Topic 7: Quality & TQM


Learning Objectives

  • Define the concept of Quality and its components.

  • Assess how Quality is measured.

  • Discuss the management of Gaps in quality perception.

  • Define Total Quality Management (TQM) and its advantages.

  • Evaluate examples of Quality Management theories.

Defining Quality

  • Quality: The perception of meeting and exceeding customer expectations.

  • Quality is an ongoing process focused on:

    • Building and sustaining relationships with customers by assessing, anticipating, and fulfilling their needs.

    • Consistent delivery of products and services according to expected standards.

  • Quality Components: Creating Positive Experience

    • Level of service delivered,

    • Consistency in processes,

    • Customer satisfaction through creating value and memorable experiences.

    • Guests expect diversity in services.

Key Dimensions of Quality in Hospitality

  1. Tangible Elements: Physical aspects that guests can see and touch.

  2. Reliability: Ability to deliver promised services accurately every time.

  3. Responsiveness: Willingness and ability to help guests promptly.

  4. Assurance: Employee competence that inspires trust and confidence.

  5. Empathy: Providing caring and tailored attention to make guests feel valued.

  6. Consistency: Delivering the same high standard across services.

  • Quality is achieved by combining technical excellence with emotional engagement in the overall guest experience.

Measuring Quality

Aspects to Measure:

  • Operations: Evaluating operational processes to ensure quality.

  • Finances: Reviewing financial metrics to ensure sustainability.

  • Customer Feedback: Gathering and analyzing feedback as part of a quality management infrastructure.

Blueprinting and Process Design

  • Needs to monitor the processes used in creating services effectively.

Defining Quality by Stakeholders

  • Customers’ Role:

    • Customers define quality through overall product design aligned with expectations.

    • They reject low-quality products and services.

  • Producers’ Role:

    • Producers contribute by ensuring products and services conform to design specifications.

    • Emphasize testing and continuous improvement based on customer feedback.

The Gap Model of Quality

Customer Expectations vs. Perceptions

  • Gaps Identified:

    • Gap indicates the difference between customers' expectations and their actual perceptions of service quality.

  • Scenarios:

    • Expectations > Perceptions: Perceived quality is poor.

    • Expectations = Perceptions: Perceived quality is acceptable.

    • Expectations < Perceptions: Perceived quality is great.

  • Optimally, businesses aim to under-promise and over-deliver.

Identifying Gaps to Deliver Better Service

  • Provider Gaps:

    1. Provider Gap 1: Not knowing what customers truly expect.

    2. Provider Gap 2: Not selecting the right service design and standards.

    3. Provider Gap 3: Not delivering services according to standards.

    4. Provider Gap 4: Not matching performance to promises.

  • Customer Gap:

    • Customer Gap 5: Difference between customer expectations and perceptions.

  • Closing Provider Gaps (1-4) will help close the Customer Gap (5). [Reference: Zeithaml, V. A., & Bitner, M. J., 1996. Services Marketing. New York: McGraw-Hill.]

Total Quality Management (TQM)

Definition of TQM

  • Total Quality Management: A management approach to improve the quality of an organization's outputs, including goods and services, through continual improvement of internal practices.

Key Characteristics of TQM:

  • Customer-Centric View: Focus on customer needs and satisfaction.

  • Active Involvement of Employees: Everyone in the organization is involved in improving quality.

  • Continual Effort: Ongoing drive to enhance quality standards.

  • Ensures that customer needs are fulfilled the first time, every time.

Advantages of TQM

  • More consistency in services and products.

  • Better efficiency, resulting in less waste, time, resources, and fewer mistakes.

  • Improved guest satisfaction leads to increased loyalty.

  • Opportunity to exploit new markets.

  • Enhanced development of existing services.

Elements of TQM

  1. Customer Focused: All organizational functions and staff should be aligned with customer needs.

  2. Process-Oriented: Emphasizes the input-output process delivered to customers.

  3. Data Metrics: Data should be collected and analyzed for monitoring quality.

  4. Communication: Every department must be informed to ensure coordination.

  5. Continual Improvement: Quality enhancement is a never-ending process.

Examples of Quality Management Theories

The Juran Trilogy

  • Quality Trilogy Components:

    1. Quality Planning: Preparing processes to meet customer needs.

    2. Quality Control: Monitoring operations to ensure stable and consistent results.

    3. Quality Improvement: Addressing projects on an individual basis to enhance quality.

  • Established by Joseph Juran and still relevant today.

Six Sigma

  • A process improvement model initiated by Motorola in the 1980s.

  • Utilizing quality tools and techniques to reduce costs and increase revenues by improving process effectiveness and efficiency.

  • Employs measurable cost savings to enhance customer satisfaction.

Lean Manufacturing

  • Focuses on eliminating waste to add value while maintaining quality.

ISO 9000

  • A set of international standards targeted at quality management and quality assurance.

Implementing Total Quality Management in Four Steps

  1. Define: The scope and boundaries of the process to be analyzed are first establishied

  2. Measure: The metrics to evaluate how to improve the process are determined

  3. Analyze - A process analysis is done, using the data on measures, to determine where improvements are necessary

  4. Improve - The team uses analytical and critical thinking to generate a long list of ideas for improvement

  5. Control - The process is monitored to make sure that high performance levels are maintained