Process Performance and Quality.ppt

Process Performance and Quality How Process Performance and Quality  fits the Operations Management Philosophy Quality at Crowne Plaza Christchurch The Crowne Plaza is a luxury hotel with 298 guest rooms three restaurants, two lounges and 260 employees to serve 2,250 guests each week. Customers have many opportunities to evaluate the quality of services they receive. Prior to the guest’s arrival, the reservation staff gathers a considerable amount of information about each guest’s preferences. Guest preferences are shared with housekeeping and other staff to customize service for each guest. Employees are empowered to take preventative, and if necessary, corrective action. Costs of Poor Process Performance Defects: Any instance when a process fails to satisfy its customer. Prevention costs are associated with preventing defects before they happen. Appraisal costs are incurred when the firm assesses the performance level of its processes. Internal failure costs result from defects that are discovered during production of services or products. External failure costs arise when a defect is discovered after the customer receives the service or product. Total Quality Management Quality: A term used by customers to describe their general satisfaction with a service or product. Total quality management (TQM) is a philosophy that stresses three principles for achieving high levels of process performance and quality: Customer satisfaction Employee involvement Continuous improvement in performance TQM Wheel Customer Satisfaction Customers, internal or external, are satisfied when their expectations regarding a service or product have been met or exceeded. Conformance: How a service or product conforms to performance specifications. Value: How well the service or product serves its intended purpose at a price customers are willing to pay. Fitness for use: How well a service or product performs its intended purpose. Support: Support provided by the company after a service o