Example of each Tools of Quality Control

1. FLOW CHART

The flow of food describes what happens to food from the time it enters the workplace
until it is served to the customers.
8 Steps of Food Flow.
Purchasing and receiving. • All food must come from approved sources. ...
Storage. • General. - Practice F.I.F.O. ...
Preparation. • ...
Cooking.
Cooling. Food should be cooled from 60ºC (140ºF) to 4ºC (40ºF) within 4 to 6 hours. ...
Hot and Cold Holding.
Reheating.
 2. PARETO CHART EXAMPLES

Figure 1. Shows how many customer complaints were received in each of five categories.

Figure 2. Takes the largest category, "documents," from Figure 1, breaks it down into six categories of
document-related complaints, and shows cumulative values. If all complaints cause equal distress to
the customer, working on eliminating document-related complaints would have the most impact, and of
those, working on quality certificates should be most fruitful.
 3. Check Sheet
The check sheet is a form (document) used to collect data in real time at the location
where the data is generated. The data it captures can be quantitative or qualitative.
When the information is quantitative, the check sheet is sometimes called a tally sheet.
5S Audit Check Sheet

Regular audits lead to the best results:

Weekly “self-check” audits by teams of workers, reviewing their own areas
This might be the best way to generate suggestions for improvements
Monthly audits by the area supervisor
Ensure that the weekly audits catch any problems with the daily or weekly cleanups
Pay special attention to the less-frequent cleaning tasks
Try to notice what is missing: new tools that do not yet have a place in a rack; materials
stored neatly but not well-labeled
Quarterly audits by the plant manager
Ensure that standards are being met
If there are deficiencies, ask “why”: try to determine the root causes
Ensure that resources are allocated to repairs and to making the long-term
improvements
Without audits, it is impossible to ensure compliance.

4. Control Chart
The control chart is a graph used to study how a process changes over time. Data are
plotted in time order. A control chart always has a central line for the average, an upper
line for the upper control limit, and a lower line for the lower control limit. These lines are
determined from historical data.
The Critical Control Point of F
A critical control point (CCP) is a step in the food production process where preventative
measures can be applied to prevent, reduce or eliminate a food safety hazard, such as
bacterial growth or chemical contamination. Critical control points exist at every stage of
the process, from purchasing ingredients to the moment the product is consumed.

5. Fish Bone Diagram (Cause and Effect Diagram)

Also called: cause-and-effect diagram, Ishikawa diagram
Variations: cause enumeration diagram, process fishbone, time-delay fishbone, CEDAC
(cause-and-effect diagram with the addition of cards), desired-result fishbone, reverse
fishbone diagram
This cause analysis tool is considered one of the seven basic quality tools. The fishbone
diagram identifies many possible causes for an effect or problem. It can be used to
structure a brainstorming session. It immediately sorts ideas into useful categories.

For example, under the heading "Machines," the idea "materials of construction" shows
four kinds of equipment and then several specific machine numbers.
Note that some ideas appear in two different places. "Calibration" shows up under
"Methods" as a factor in the analytical procedure, and also under "Measurement" as a
cause of lab error. "Iron tools" can be considered a "Methods" problem when taking
samples or a "Manpower" problem with maintenance personnel.
 6. McKinsey 7S Framework
The McKinsey 7S Model is a framework for organizational effectiveness that postulates
that there are seven internal factors of an organization that need to be aligned and
reinforced in order for it to be successful.

Mc Donalds Mc Kinsey 7S Framework

The 7 elements identified in the McKinsey 7s model can be categorized as being hard
or soft in nature. They are identified as:
Hard Elements Soft Elements
Shared Values
Strategy Skills
Structure Style
Systems Staff

McDonalds makes use of the McKinsey 7s model to regularly enhance its performance,
and implement successful change management processes. McDonalds focuses on the
7 elements identified in the model to ensure that its performance levels are consistently
maintained, and improved for the offerings.
1. Hard elements
The hard elements of the McKinsey 7s model comprise of strategy, structure, and
systems. The hard elements of the model are easier to identify, more tangible in nature,
and directly controlled and influenced by the leadership and management of the
organization.
1.1. Strategy
1.1.1. Clearly defined
The strategic direction and the overall business strategy for McDonalds are clearly
defined and communicated to all the employees and stakeholders. This helps the
organization manage performance, guide actions, and devise different tactics that are
aligned with the business strategy. Moreover, the business strategy’s definition and
communication also make operations for McDonalds more transparent and aligns the
responsibilities and actions of the company.
1.1.2. Guiding behaviour for goal attainment
The strategic direction for McDonalds is also important in helping the business guide
employee, staff, and stakeholder behaviour towards the attainment and achievement of
goals. SMART Goals are set with short and long term deadlines in accordance with the
business strategy. The business strategy helps employees decide tactics and
behaviours for attaining the set goals and targets to help the business grow.
1.1.3. Competitive pressures
McDonalds’s strategy also takes into consideration the competitive pressures and
activities of competitors. The strategy addresses these competitive pressures through
suggestive measures and actions to address competition via strategic tactics and
activities that ensure sustainability to McDonalds via adapting to market changes, and
evolving consumer trends and demands.
1.1.4. Changing consumer demands
An important aspect of the strategy at McDonalds is that it takes into constant
consideration the changing consumer trends and demands, as well as the evolving
consumer market patterns and consumption behavior. This is an important part of the
strategic direction at McDonalds as it allows the company to remain competitive and
relevant to its target consumer groups, as well as allows the company to identify
demand gaps in the consumer market.
The company then strategically addresses these gaps through product offerings and
marketing activities which give the company successful and leading-edge over other
patterns in the market.
1.1.5. Flexibility and adaptability
The strategy at McDonalds is flexible and adaptable. This is an important aspect of the
strategic direction, and strategy setting at McDonalds. Rigidity in strategy leads a
company and a business to often become stagnant and obstructs advancement, and
progression with evolving changes in the consumer markets.
1.2. Structure
1.2.1. Organizational hierarchy
McDonalds has a flatter organizational hierarchy that is supported by learning and
progressive organizations. With lesser managerial levels in between and more access
to the senior management and leadership, the employees feel more secure and
confident and also have higher access to information. Moreover, the flatter hierarchy
also allows quicker decision-making processes for McDonalds and increases
organizational commitment in the employees.
1.2.2. Inter-Departmental coordination
McDonalds has high coordination between different departments. The company’s
departments often form inter-department teams for projects and tasks that require
multiple expertise. All coordination between different departments is effective and
organized. McDonalds has a systematic process for initiating and monitoring
coordination between departments to ensure smooth work operations and processes –
and goal attainment.
1.2.3. Internal team dynamics [department specific]
McDonalds encourages teamwork and team-oriented tasks. Where jobs require
individual attention and scope, the company also assigns individual responsibilities and
job tasks. However, all employees at McDonalds are expected to be team players who
can work well with and through other members, and who get along well with other
people. The teams at McDonalds are supportive of all embers and work in synch with
synergy towards achieving the broader team objectives and goals under the McDonalds
designed strategy and values.
1.2.4. Centralization vs. decentralization
McDonalds has a hybrid structure between centralization and decentralization. Like
many progressive organizations, McDonalds largely supports decentralized decision
making. Job roles at McDonalds are designed to be carried out with responsibility, and
employees often set their goals with mutual coordination and understanding with the
supervisors.
However, McDonalds is also centralized in making sure that supervisors oversee, and
approve of the various efforts, and tactics that employees choose to ensure that they
are aligned with the organizational strategy ad values.
1.2.5. Communication
McDonalds has a developed and intricate system for ensuring communication between
employees, and different managerial levels. The communication systems at McDonalds
enhance the overall organizational structure. The systematic, defined, and organized
communication allows an easy flow of information and ensures that no organizational
tasks and goals are compromised because of a lack of communication, or
misunderstandings.
With flexibility and adaptability, the McDonalds is not only able to benefit from quickly
reacting and responding to changing consumer patterns globally, but is also able to
locally and culturally adapt its products via localization for different countries and
regions. Moreover, the company is often able to proactively predict consumer market
changes, and devise strategic changes accordingly to meet the market trends.
1.3. Systems
1.3.1. Organizational systems in place
McDonalds has defined and well-demarcated systems in place to ensure that the
business operations are managed effectively and that there are no conflicts or disputes.
The systems at McDonalds are largely departmental in nature, and include, for
example:
- Human resource management
- Finance
- Marketing
- Operations
- Sales
- Supply chain management
- Public Relation Management
- Strategic leadership
1.3.2. Defined controls for systems
Each of the defined and demarcated systems at McDonalds has especially designed
tools and methods as controls for evaluating performance and goal attainment. These
controls and measures are designed specifically in different departments based on the
nature of their tasks and responsibilities. Moreover, each department also designs
specific controls for members for performance evaluation, as well as for inter-
departmental tasks and responsibilities.
1.3.3. Monitoring and evaluating controls
McDonalds continually evaluates its systems through the designed controls. This
monitoring of the performance is continual and ongoing. This is largely done through
observation and informal discussions. Feedback to employees and overall department
heads is informally given regularly as and when is required. Formal evaluation of
performance is also conducted semiannually – or quarterly, depending on the need and
the urgency of the projects and assigned tasks. This is a formal process that is
undertaken by supervisors and managers to ensure the identification of performance
lags, and suggestive means of improvement.
1.3.4. Internal processes for organizational alignment
McDonalds also has special processes and methods for ensuring that all departments
and systems within the organization are aligned and working in harmony towards the
greater business goals and targets. This is made possible through ensuring that all
systems are designing and working towards goals and targets specific to their expertise
under the broader business vision and strategy. Moreover, the strategic leadership at
McDonalds also ensures that all systems are allocated with resources, and set specific
targets to achieve similar business goals in any specific period.
2. Soft elements
The soft elements of the McKinsey 7s model, in turn, include shared values, staff, skills,
and strategy. These elements are less tangible in nature and are more influenced by the
organizational culture. As such, the management does not have direct influence or
control over them. These elements are also harder to describe and directly identify – but
are equally important for an organization’s success and improved performance.
2.1. Shared values
2.1.1. Core values
The core values at McDonalds are defined and communicated to foster a creative and
supportive organizational structure that will allow employees to perform optimally, and
enhance their motivation and organizational commitment. The core values at
McDonalds include, but are not limited to:
- Creativity
- Honesty
- Transparency
- Accountability
- Trust
- Quality
- Heritage
The McDonalds business also ensures that all its activities and operations are
conducted with high ethical and moral standards that redefined and benchmarked
against international criteria.
2.1.2. Corporate culture
McDonalds encourages an inclusive culture that celebrates diversity. The company has
an international presence, and production units that are spread across different
countries, as such, McDonalds ensure that its organizational culture is supportive of
diversity, and has internal policies to reduce incidences of discrimination.
The corporate culture at McDonalds also encourages innovation and creativity by
allowing independence for growth to individuals and teams –thus helping them refine
their careers as well as personalities. Lastly, the corporate culture at McDonalds also
has a supportive leadership which works towards increasing employee motivation and
job satisfaction by giving way to visibility and accessibility.
2.1.3. Task alignment with values
McDonalds ensures that all its job tasks and roles are aligned with the core values that
the company propagates. This means that all activities, tactics, and strategic tactics
employed by McDonalds will reflect its core values, and will not deviate away from
these. This is to ensure a consistent, and reliable brand image, as well as an honest
organizational culture. In the event of organizational change, the company will continue
to ensure that all change management processes and methods incorporate the core
values so that the organizational culture is consistently maintained, and systematically
changed if need be.

2.2. Style
2.2.1. Management/leadership style
McDonalds has a participative leadership style. Through a participative leadership style,
McDonalds is able to engage and involve its employees in decision-making processes
and managerial decisions. This also allows the leadership to regularly interact with the
employees and different managerial groups to identify any potential conflicts for
resolution, as well as for feedback regarding strategic tactics and operations. Through
its participative leadership, McDonalds is able to enhance employee motivation, and
increase organizational commitment and ownership amongst employees as well as
other stakeholders.

2.2.2. Effectiveness of leadership style

The participative leadership style is highly effective in achieving the business goals and
vision of the organization. Employees feel to be active members of the organization who
are valued for their suggestions, feedback, and input. Moreover, through participative
leadership, leaders and managers are able to identify current and potential conflicts
within the McDonalds organization, and actively work to resolve them as soon as
possible.

2.2.3. Cooperation vs competition – internally

With its supportive and encouraging organizational culture, McDonalds gives way to
internal collaboration and cooperation between employees, systems, teams, and
departments. This cooperation and collaboration at McDonalds is important since its
operations are spread globally, and also because tasks and responsibilities within the
company often require inter-departmental feedback and input. Moreover, with increased
expansion, and synergy, the business also regularly forms project teams – which
function effectively because of the cooperative and collaborative culture within the
McDonalds organization.
2.2.4. Team vs groups
McDonalds has effective and functional teams and works with them internally to
achieve its various business goals and objectives, and complete tasks. The company’s
management is encouraging and supportive, and the leadership provides a motivating
and pragmatic vision toad achieve. The human resource management system, as well
as the organizational training, supports all employees in their growth fairly and
transparently. This leads to effective team formation instead of nominal groups within
the organization for various projects, as well as department-specific tasks and roles.
2.3. Staff
2.3.1. Employee skill level vs business goals
McDonalds has a sufficient number of employees employed across its global
operations. Employees for different job roles and positions are hired internally as well as
externally – depending on the urgency and the skill levels required. Based on this, it is
seen that McDonalds has employees who are skilled as per the requirements of their
job roles and positions. All employees are given in house training to familiarize
themselves with the company and its values. External training along with in-house
training is provided for skill level enhancement.
All job roles and positions are designed to facilitate the achievement of business goals,
and as such, employee skill level at McDonalds is sufficient to achieve the business
goals of the company.
2.3.2. Number of employees
McDonalds has employed a large number of employees. The number of employees
varies from country to country as per the requirements and needs of the business and
operations. The global team of McDonalds is an inclusive one that accepts, and
encourages diversity, and works in synchronization with members to ensure attainment
of business goals. The team member sand employees are the most important part of
business success for McDonalds.

2.3.3. Gaps in required capabilities and capacities

McDonalds has a well-defined system for identifying potential needs of capabilities and
capacities for the organization. The human resource function of the business has a
systematic process that aligns all other departments to identify potential vacancies or
skill gaps. Based on the nature of the need, the human resource department arranges
for recruitments which may be permanent or contractual in nature, as well as arranges
training sessions if need be for the current workforce.
2.4. Skills
2.4.1. Employee skills
McDonalds has a commendable workforce, with high skills and capacities. All
employees are recruited based on their merit and qualifications. McDonalds prides itself
on hiring the best professionals and grooming them further to facilitate growth and
development.
2.4.2. Employee skills vs task requirements
McDonalds has defined tasks and job roles and hires and trains employees for skill
levels accordingly with respect to those. The company ensures that all its job
requirements are met and that employees have the sufficient skills to perform their
respective jobs in accordance with the values and culture as well as the business goals
and strategy of McDonalds.
2.4.3. Skill management
McDonalds pays particular attention to enhancing the skills and capacities of its
employees. It arranges regular training and workshops – internally as well as externally
managed- to provide growth and development opportunities for its employees.
McDonalds focuses on personal as well as professional growth for its employees and
works accordingly with them.
2.4.4. Company’s competitive advantage
The human resource is one of the core competitive advantages of the company. The
skills of employees are developed specifically for job roles and requirements at
McDonalds and provide a competitive benefit to the company – where players cannot
imitate employee skills or training. This creates a unique and non-substitutable
competency for McDonalds.
 7. Nadler-Tushman Model
The Congruence Model was developed in the early 1980s by organizational theorists
David A. Nadler and Michael L. Tushman. It's a powerful tool for identifying the root
causes of performance issues. It can also be used as a starting point for identifying how
you might fix them.

Service Gaps in Timeshare Industry

The concept of the timeshare was conceived by a German named Alexander
Nette in the 1960s in the French Alps. Because none of his friends could afford to
individually purchase an apartment in a ski resort, he suggested that the group of
friends purchase one apartment jointly, and share use of it. The period of usage was
determined by the proportion of money each individual contributed. Eventually, his
friends agreed to divide use of the apartment by week. This meant that each person
was designated use of the apartment for a period of weeks, while another friend was
designated use in the following weeks. This model created the basis for the timeshare
industry (Madrid, 1996). Later, the concept of the timeshare was introduced to America
and was first launched in Florida with the same model (Woods, 2001). As the timeshare
industry developed, timeshare products evolved to include a larger variety of products,
from basic weekly internal products to unit float products, from time and location
oriented change to point oriented products, and from point to fractional and PRC
(private residence club) products. Fractional products are timeshares in which multiple
owners share use, typically with each owner having access to the property between
three weeks and three months. A PRC product is a high-end fractional product, which
offers longer stays than fractional product, usually more than three weeks to four
months (ADRA International Foundation, 2010a). As the products change, vacation
owners perceive service changes, followed by an increase in their expectations The
timeshare industry is one of the fastest growing industries in the hospitality sector. It has
experienced a two-digit increase in the past 20 years. In 2009, the annual revenue
reached $6.3 billion in U.S. There were 1,548 timeshare resorts and 170,232 units in
U.S. in2009. In total, timeshare owners spent $9.0 billion, with 5.7 million travel owners
who spent about $1,574 on each trip (ADRA International Foundation, 2010b). Most
importantly, there will be 76 million people approaching retirement in the next few years.
Among these people,72% of them took leisure trips in 2008 (ADRA International
Foundation, 2010b). It seems that the timeshare industry has enough space to grow
and expand to more broad markets worldwide in the next few decades .Not all statistics
show optimistic data, especially after the Great Recession in 2008.Although sales
volume in 2009 reached $6.3 billion, timeshare sales decreased 35% from2008 due to
external economic impact. Average occupancy of available timeshares declined from
81.6% to 79.7% percent (ADRA International Foundation, 2010b). In 2010, sales
volume increased slightly to $6.4 billion, representing only a 1.6 percent increase. The
average interval’s price decreased from $20,468 in 2009 to $19,300 in 2010 (ADRA
International Foundation, 2011b). These statistics indicate that the timeshare industry is
shrinking, especially after 2008, and show that customers are more rational when
choosing and purchasing their products. For these reasons, the timeshare industry is
still facing severe challenges for future development. Findings show that owners are
more interested in selling their timeshare than in buying additional new ones (ADRA
International Foundation, 2010b; ADRA International Foundation, 2011b). Beyond just
internal challenges, the timeshare industry also faces competitions from other sectors of
the larger hospitality industry, such as standard and luxury hotels for high-end
customers and cruise travel for families. Overall, it is quite urgent and necessary to
evaluate timeshare owner’s needs and expectations and identify the gaps between
customer expectations and perceptions of received service.

8. PESTEL Framework
A PESTEL analysis is an acronym for a tool used to identify the macro (external) forces
facing an organisation. The letters stand for Political, Economic, Social, Technological,
Environmental and Legal. Depending on the organisation, it can be reduced to PEST or
some areas can be added (e.g. Ethical)
In marketing, before any kind of strategy or tactical plan can be implemented, it is
fundamental to conduct a situational analysis. And the PESTEL forms part of that and
should be repeated at regular stages (6 monthly minimum) to identify changes in the
macro-environment. Organisations that successfully monitor and respond to changes in
the macro-environment are able to differentiate from the competition and create a
competitive advantage.

PESTLE Analysis for Hotel Industry

Political factors: The government holds extensive power over the hotel industry
Travel bans can kill the hotel and tourism industry.
The government has a stronghold over the hotel industry. For instance, if the political
party in power sets a travel ban, it could hurt the tourism and hotel industry immediately.
All it takes is one decision and a country loses the vast majority of its economy
Hotel owners would enjoy tax reform.
Another thing the government controls are taxes. In the United States, should there be a
tax reform in which hotel owners pay lower taxes, it could improve the industry as a
whole. Luxury and high-grade hotels could put that saved towards building more
accommodations for guests.
Fear during presidential elections.
Since the government affects this industry so intensely, many hotel owners are on edge
during election time, as a new President with new ideals can swiftly impact the hotel
industry, and overthrow the previous President’s laws.
Economic factors: Weakened currencies, economic cycles, and tailored offerings
A big investment expected to grow.
Hospitality is one of the biggest investment sectors for global investors, especially within
the United States. Continued growth is expected into 2020 and beyond.
The strength of currency can bolster the industry.
The strength and weakness of currency can affect the attractiveness of a vacation spot.
For example, if international currencies are stronger than the American dollar, people
outside of the United States will want to visit.
The importance of economic cycling. hile all businesses are affected by economic
changes, the hotel industry is one of the most susceptible to its influence. It goes
through economic cycles first and comes out first. Whether it comes out successfully
depends on a few primary factors, including unemployment rates, job growth, and travel
spent.
Tailoring to patrons in varying locations.
Hotel chains are improving profits and revenue by acquiring worldwide resorts, like how
the Marriott International acquires Starwood Hotels & Resorts Worldwide. Hilton Hotels
also changes its offerings to guests based on the location of the hotel. Guests will
appreciate offers tailored to them, which will encourage them to come back again in the
future.
Sociocultural factors: Customers want cheaper hotels and turn to Airbnb instead
Big trouble with Airbnb.
Airbnb is the hotel industry’s biggest competition. Travelers, particularly millennials,
enjoy the mass selection of rooms Airbnb offers. You can quickly and conveniently book
your room through an app — and it’s often less expensive than hotels in the area.
Hotels often run out of rooms during peak seasons, and when they don’t, they jack up
the room prices. At one time, trying to find a different hotel would be the only option, but
now you can check Airbnb and likely find something suitable and cheaper. This is a
huge problem for hotels who often see a hike in profit during peak seasons when rooms
are scarce.
Hotels do offer more than the standard Airbnb room. Many hotels have additional
facilities, like pools, a gym, and even massage parlors. You can eat at the many
restaurants built within, like Starbucks and iHop, too.
Technological factors: Social media, blogs, and scratching reviews
New technology to be wary about.
Years ago, hotels only used traditional media (print and broadcast), but now there are
new media brought forth via the internet to consider. Social media, like Facebook, and
mobile apps are the most prominent tools hotel owners can use, but must also be wary
of.
Fast sharing news thanks to the internet.
Because of social media, the news is available and updated 24/7. Any incidents close to
the hotel can be reported within minutes, shared online by thousands, and have articles
written up by media outlets in seconds. It’s so quick that hotel owners can’t do much to
stop it.
Reviews on blogs can make or break a hotel’s reputation.
Anyone can write a review and post it on a blog or share it on social media. People who
stay at hotels will take photos and write up an honest post about their experience. This
is a good and bad thing for the hotel industry. Hotel owners who are confident that their
hotels are worthy will pay social media influencers to write about it. Hopefully, this will
grab attention and the hotel chain will gain new customers. However, it only takes one
scathing review to destroy a reputation.
Traveling websites forces hotels to remain competitive.
Travel websites have made it easier for people to price shop hotels. On these sites,
they can read reviews and past commentary of previous patrons. As such, hotels must
remain competitive, otherwise, patrons will book a different chain.
9. Six Sigmas

Six Sigma in the Hotel Industry

Lean Six Sigma is made much easier with software, especially property
management and all-in-one hotel software. One option is the integrated software
suite provided by Guestline, which pulls together front office, back office and
reservations into a single platform. With technology like this on their side, staff
across all departments will enjoy better prioritization, clearer communication, and
happier guests.

Here’s how tools like Guestline help your hotel implement a Lean Six Sigma
mindset that drives key metrics for your hotel:

Faster processes

Metrics: Check-in speed, room turn time

Fewer redundant steps means that your staff is more responsive to guests and
work on tasks that matter most to the hotel. For instance, with Guestline's
housekeeping module, your team can get real-time room prioritization and can
thus turn rooms more quickly. This eliminates waiting around for a guest to leave
by sending housekeepers to the right rooms at the right time.

Lower costs.

Metrics: Labor as a percentage of revenue, facilities repair cost

When you tighten your processes and eliminate wasted effort, you reduce your
costs. You’re usually able to deliver the better quality service, because staff
aren’t wasting their time on redundant steps (and are usually happier and less
frustrated). With Guestline, you’re also able to stay on top of both urgent and
routine maintenance through native integrations, which saves you money in the
long term.

Happier staff.

Metrics: Turnover rate, staff satisfaction survey.

In a competitive labor environment, hotels must empower their teams with the
tools they need to do their jobs effectively. By eliminating stresses, such as
miscommunications that lead to a guest checking into a dirty room, Guestline's
centralized staff collaboration features keeps staff on the same page from night
 audits to cleaning schedules -- leading to fewer conflicts with guests (and each
other!). It also offers a sense of accountability and trust, which is key to long-term
satisfaction at work.

As you can see, Lean Six Sigma will streamline your operation by helping you
and your team identify and fix defective processes to most efficiently allocate
labor resources. Those efficiencies mean that you can do more with less.

And, since a stronger guest experience results in better, more consistent

reviews, this methodology leads to stronger competitiveness in your market and
more gross revenue. That’s a potent mix of efficiency and reputation, which
means that you’ve got a more profitable hotel. A winning formula!

10. House of Quality

Pizza Restaurant using House of Quality or Quality Function Deployment

(QFD)

Its about a Pizza Restaurant that runs in great profit for initial 8 years of its
operation but profits go down terribly in last 3 years. You are one of the many
regional managers for the restaurant chain. What are the solutions that you will
undertake for the company to again perform well in market ?
Define • What is the Problem? Abysmal performance of the company in the last 3
years in comparison with its initial 8 years as shown in the table below: Attributes
Initial 8 years Last 3 years CAGR 40 % 5 % Market Share 56 % 32 % Stores at
Loss 12 % 35 % • What does customer want i.e. Voice of the Customer?
Methods used to know the requirements of customer:
 Focused group discussions
 Customers' service inquiries database
 In-depth customer observation
 Structured or unstructured customer interviews
 Self-completing questionnaires
 Customers‘ complaint and compliment database
 Front-line staff feedback In our case the list of customer requirements was
identified with online literature search and a brainstorming session with a group
of friends.

Measure • What to measure?

 Weightage: Quantifying the importance of different requirements of customers,
on a scale of 0-10, in the customer’s perspective.
 Rating of the Pizza Restaurant X: Asking the customers to rate the firm on
these requirements on a scale of 0-5.
 Rating of the competitors (say A and B): Asking the customers to rate the
nearby competitors on same requirements on the same scale. • How to
measure? Using a structured questionnaire, ask pizza customers (say around
300) to rate the importance of their requirements and to compare the
performance of the pizza restaurants with their “ideal pizza restaurant”. In this
way it is possible to see which quality characteristics are more important for
meeting or exceeding customers' expectations. Also, the performance of different
restaurants can be assessed competitively. The questionnaire can be filled
through following modes:
 Online – Social media platforms, websites, third party survey companies like
surveymonkey
 Offline – Visitors, via delivery staff  Hotline – Toll free number or IVRS Step

Analyze • What is the tool used to analyze? House of Quality: It provides a

systematic approach to identify and prioritize the steps that are needed to be
taken to improve the existing process, service or product successfully inculcating
the voice of customer during the analysis.

House of Quality Customer requirements (WHATs) Relationship between

WHATs and HOWs Interrelationship between HOWs Prioritized solutions
Technical descriptors (HOWs) Prioritized Customer requirements
 Improve It involves implementing the steps for improvement in the same priorityIn
our case: Priority 1: Cooking material – Consider changing the supplier or go for in-
house material supply if possible Priority 2: Facilities – Consider upgrading the
infrastructure of the restaurant Priority 3: Discounts – Right discounts at apt time
(festivals, vacations etc) considering overall profit, Priority 4: Tie-ups – Look for a
partner who can supply complementary food items at the restaurant on shared profit
basis Priority 5: Delivery Service – Hire more delivery staff and improve the reach of
each outlet Priority 6: Advertisement – Design creative marketing campaigns through
mediums like TVF, organize competitions in DU colleges, consider crowd sourcing of
other problems on different platforms Priority 7, 8 and 9 (Automation, User Interface and
Packing Quality respectively) – As these stand very low in the priority list, consider
focusing on them only if the above steps don’t work
Control How do we ‘hold the gains’ of our solutions? • Periodic feedback about
delivery service, quality, consistency, advertisement reach • Regular analysis of
balance sheet of every store to see the impact of each solution as its
implemented • Prepare contingency plans in case a solution fails.

Prepared by:

Maureen M. Caluag
MSHTM