Chapter 2

Managing Quality

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Foodservice Organizations, 5th editionSpears & Gregoire

Quality in the Foodservice System

QualityApproach to business not a programDefined by customer through satisfactionAimed at performance excellence Increases customer satisfactionReduces cycle times and costsEliminates errors and rework

Quality customer service is goal of profit and non-profit organizations

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Foodservice Organizations, 5th editionSpears & Gregoire

Dr. Deming’s 14-Point System

Developed 14-point system to help companies increase quality

1. Improvements of products & services

2. Adopt new philosophy of quality

3. Cease dependence on inspection

4. Do not choose supplier solely on price

5. Constantly improve production & service systems

6. Extensive on-the-job training

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Foodservice Organizations, 5th editionSpears & Gregoire

Dr. Deming’s 14-Point System

7. Shift from production numbers to quality

8. Drive out fear

9. Break down barriers among departments

10. Eliminate slogans & targets for workplace

11. Eliminate numeric quotas for workforce

12. Do not rob employees of pride or workmanship & eliminate annual ratings

13. Program of education & self-improvement

14. Work to accomplish preceding points

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Foodservice Organizations, 5th editionSpears & Gregoire

Management Approach

Evaluating operations with goal of improving performanceQuality assurance (QA)Total quality management (TQM)Continuous quality improvement (CQI)Six SigmaReengineering

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Quality Assurance

Output orientedDefining measurable quality standardsControls in place to ensure standards

are metReactive processPredicated on follow-up and inspection

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Process Improvement

Shift from individual tasks by individual employees to entire processes of several tasks by multiple employees

Total quality management and reengineering commonly applied to these efforts

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Total Quality Management

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Total Quality Management

Goal of improving performance of organization in response to customer needs and expectations

Originated in manufacturing industriesNow applied in colleges, universities,

governmental agencies, nonprofit organizations, restaurants, clubs, & schools

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Total Quality Management

Helps organization focus on customer by identifying and satisfying their needs and expectations

Customer – anyone affected by a product or service External Customer – affected by product but do not

belong to organization that produces it Internal Customer – affected by product and do

belong to organization that produces it (employee)

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Total Quality Management

Encourages employee participation Identifying problem & finding solution

Empowerment – managers allow employees to act independently within their job descriptionsEmployees are permitted to make decisions

in their area of work

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Total Quality Management

Involves teams of employees, leader, & facilitator to accomplish changeTeam projects aimed at improving product

or service quality while reducing costFacilitators teach communication, contribute

information, challenge decisions, & share experiences

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Total Quality Management

Number of steps varies, usually includes: Identifying a problemDetermining causesDeveloping measurable improvementSelecting & implementing best solutionCollecting data to statistically measure

resultsRefining the solutionRepeating the cycle

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Foodservice Organizations, 5th editionSpears & Gregoire

Total Quality Management

Tools assist with identifying problems & guiding decision on changes neededBenchmarkingPlan-do-check-act cycleCause and effect diagramsControl chartsPareto analysis

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Benchmarking

Compare one’s performance with “best in class”

Assist managers to focus improvement efforts

Companies, such as Press Ganey Associates, Inc, compile data for this comparison

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Foodservice Organizations, 5th editionSpears & Gregoire

Plan-Do-Check-Act Cycle

Model for coordinating process improvement efforts

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Foodservice Organizations, 5th editionSpears & Gregoire

Cause and Effect Diagrams

Illustrate factors that may influence or cause a given outcome

Termed Ishikawa or fishbone diagrams

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Foodservice Organizations, 5th editionSpears & Gregoire

Control Charts

Graphical record of process performance over a period of time

Values of upper & lower control limits are drawn to help identify potential problems

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Pareto Analysis

80% of given outcome typically results from 20% of an input (a.k.a 80-20 rule)

“Vital few and trivial many”Vital few causes, if identified and

corrected, can have greatest impact on improving quality

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Foodservice Organizations, 5th editionSpears & Gregoire

Six Sigma

Data-driven approach & technique for eliminating defects in any process, no more than 3.4 defects per million opportunities

DMAICS approach to quality improvement Define project goalsMeasure current performance of process Analyze and determine causes of defects Improve process by eliminating defects Control future process performance Standardize process for the future

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Foodservice Organizations, 5th editionSpears & Gregoire

Reengineering

Rethinking & radical redesign of business processes to achieve dramatic improvements in performance

Improving processes core to business rather than individual tasks

Process – end-to-end set of activities together create value for customer

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Foodservice Organizations, 5th editionSpears & Gregoire

ISO 9000 Standards

International standards on quality management

Based on 8 principles Customer focus Leadership Involvement of people Process approach Systems approach to management Continual Improvement Mutually beneficial supplier relations

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Foodservice Organizations, 5th editionSpears & Gregoire

External Recognition of Quality

Individuals can receive certificationCertified Quality Manager (CQM)Certified Quality Engineer (CQE)Certified Reliability Engineer (CRE)

Organizations can be recognizedOhio Governor’s Award for ExcellenceMichigan Quality Leadership AwardMissouri Quality Award

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Foodservice Organizations, 5th editionSpears & Gregoire

Malcolm Baldrige National Quality Award

Recognize companies for achievements in quality & performance

Promotes sharing of information on successful performance strategies

Managed by U.S. Commerce Department’s National Institute of Standards and Technology

Open to business in U.S. or its territories

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Malcolm Baldrige National Quality Award

3 awards may be given each year in 5 categories:ManufacturingServiceSmall businessEducationHealth care

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Malcolm Baldrige National Quality Award

Criteria consists of 7 categoriesLeadershipStrategic planningCustomer and market focus Information and analysisHuman resource focusProcess managementBusiness results

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Joint Commission on Accreditation of Healthcare Organization

Published original quality assurance standards for hospitals

Independent, non-profit organization to set standards & accredit healthcare organizations

Stimulating healthcare field to attain ever-high standards and provide care to American people

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

Joint Commission on Accreditation of Healthcare Organization

JCAHO standards:Address performance expectation in key

functional areas (patient assessment, patient care, environment, etc.)

Focus on what organization does, not what it has

Developed in consultation with healthcare experts, purchasers, & consumers

Standards are scored using 5-point scale