OPERATIONAL MANAGEMENT WITH TOTAL QUALITY MANAGEMENT

2ND SEMESTER MIDTERM EXAMINATION

AY 2021-2022

Name: _______________________________________ Course & Section: _______________

Student No.:________________________

Direction: Read the case and answer the questions and below the story.
CASE N0. 01
SERVICE QUALITY AT THE EXCELENT HOTEL
Adopted from: Hospitality Marketing Management (2009) by Robert D. Reid and David B. Bojanic

Gilda Serra had recently transferred to the Excellent Hotel to improve the level of customer
service. She had been with the company for five years and had been quite successful in
improving the level of customer’s satisfaction at the two previous hotels to which she has been
assigned. Gilda knew that the Excellent was going to be a real challenge. The mix of business
was 60% individual transient guests and 40% group business. Of the group business, about 1/3
was motor coach tour groups.
On her first day on the job, she was witnessed quite a sight. There was line of about 20 guest
waiting to check in when two motor coaches arrived and more than 80 additional guest and
guides walked into the lobby to check in. Needless to say, the 2 font’s desk agents had a look to
terror in their eyes as they worked diligently to process the registration for those waiting to
check in. Some 40 minutes later, everyone had been check in, but the general manager said to
Gilda, “I’m glad that you are here; we need to work out a better system. Let’s meet for lunch
tomorrow to discuss your initial ideas.” Gilda had just picked up a pen to start brainstorming
ideas to present to the general when a guest approached her desk
“Hello, my name is Brey Ong, and I stayed at your hotel last night with my family. We really did
not have a good experience, and I want to tell you about it. I want to make sure that this does
not happen again, to me or anyone else.” Mr. Ong then proceed to tell Gilda his account of the
events. “I was travelling with my wife and our son, who is 4 years old. Our connecting flight
delayed, so we did not arrived to our final destination at the airport, and I assumed that I would
be able to secure my room while waiting for the luggage. When I approached the employee at
the hotel’s airport facility, I was told this to be surprising, since this was the very type of situation
in which an airport facility would be beneficial.
Next my family took a shuttle van from the airport to the hotel, where we were given directions
to the front desk. Two front clerks were on duty when the passengers from the airport shuttle
arrived a little before 11PM. However, one of the front desk clerks was apparently going off duty
at 11 PM. And she proceeded to close her drawer at the exact moment. This left a line
approximately 10-12 guest to be checked in by one clerk. Needless to say, it took some time to

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process all the guest, and we had to wait 20-30 minutes for our turn. We were assigned to a
room, but at this point we had few bags and my son was fast asleep and had to be carried.
When I asked for assistance with our luggage, I was told that no one is available at that time of
night. The hotel was large, having over 1,000 rooms and the rooms were spread out among
several adjacent buildings. Our rooms was 2 building away from the lobby area. My wife and I
struggle to carry the luggage and our son to the room. We arrived there about 11:300 and
attempted to enter the room. The key unlocked the door, but the door would not open. After a
couple of attempts, we heard a woman’s voice in the room. Obviously, the room had been
double-booked and the woman woken from her sleep. I used the house phone to call the front
desk and explain the predicament. The front desk and explain the predicament. The front desk
manager offered a quick apology and said that she would send someone with a key to nearby
room. About 10 minutes, a housekeepers had no idea what was going through the hallway, and
she let my family into the room that I had been given over the phone. However, the
housekeeper had no idea what was going on and took my word. After, we had been in the room
for 10 minutes, the phone rang and I spoke with the front desk manager. She acted as though
she had sent the housekeepers to open the room, but she still needed to send someone with
the room keys. She apologized one last time and told me to call the front desk if I had any other
problems.”

Questions: (25 Points)

1. In what particular quality level does the problem of Mr, Brey Ong occurred? Explain.
2. How should quality be defined in a hospitality industry like a hotel? How would you
assess the quality of Excellent Hotel? Describe briefly.
3. What proposals should Gilda Serra recommend to the general manager considering the
complaint of Mr. Ong? Discuss.
4. In relation to the case above. How quality service affect business in the short and long
run?
5. What best practices of the hotel needs to adapt to avoid this kind of poor quality services
experience from a customer? Explain.

CASE NO. 2

FIVE REASONS TO AVOID CEBU PACIFIC AIR

Being the most preferred airline in the Philippines when it comes to cost effective and value,
Cebu Pacific has earned a name for itself in the industry. However, overseas Filipino workers or
OFWs should caution themselves before taking a flight.
There are number of bad tales that may spur you to pay the extra cost just to stay and get to
your destination on time. Here are some reason to avoid the Philippine’s Largest Airline.

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Flight get delayed
There was a time when passengers choose Cebu Pacific flights because of its on time flight
pledge. But that’s history. Growing number of flight are now delayed due to several factors,
including lengthy security checks and weather disturbance. There are plenty of times when
flights gets delayed due to several reasons like problems in the aircrafts systems and
equipment, too many airplanes from the company scheduled for that day and booking problems.
For OFWs with limited time and wish to get to destinations promptly, this is cautionary tale.
People can have their flight delayed by a few hours or completely cancelled. Cebu pacific needs
to improve the way it accommodates too many passengers. Since the airline and its investors
may be more concerned about volume ticket sales, schedules can get compromised. OFW have
limited time to be with family and delayed flight are among the last things we want to
experience.

Safety concerns
High profile mishaps like the June 2 flight in Davao and another one in Manila two weeks later
exposed safely concern when flying this airline. Authorities are looking at human error as cause
of these accidents. For OFWs whose lives are already at risk as they venture out their comfort
zones and exposed to illegal recruiters, human traffickers and corrupt airport staff, flying in an
airline with questionable safety record perhaps due to overworked flight crew or lack of
maintenance checks, is an insult to injury. If we look back in history, it’s been 15 years since
that ill-fated Cebu Pacific flight 387 that crushed in Mt. Sumagaya and killed 99 passengers and
crew members, questions still remain.

Non-existence legroom
The seats in Cebu Pacific airplanes have readjusted to accommodate more passengers so only
those near the exists as well as the front rows enjoy adequate leg room. It is very difficult to lean
your seat back without taking the space of the person behind you. Tall people usually hit their
knees on the seat in front of them and others feel very claustrophobic throughout the fight.
While passengers may endure this for a short while on domestic flights, we can only hope that
wide-bodied aircraft will be used for long-haul flights in the Middle East. For OFWs who wish to
treat themselves a comfortable ride, may be this is not the way to go.

Poor Customer Support

In the aftermath of the 5j971 flight whose plane skidded off the runway at Davao’s Francisco
Bangoy International Airport there was an apparent lack of coordination from the flight crew,
ground staff and overall crisis management team, if the airline has one passengers were not
informed of what’s going on and flight attendant were allegedly unable to advise passengers
what to do. And when weary folks inside the cabin were able to get off the plane help from the
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airline was virtually non-existence. Passengers Menard Dacono, 26 a business development
manager working in Singapore, said when they reached the airport, not one official from Cebu
Pacific faced them.
Customer support should not only be extended to people who buy ticket or rebook their flights.
They also include miss flight because of delays and passengers who suffer for what been
identified as error of the carrier. We can only guess Cebu Pacific is more of style than
substance when it comes to customer care as its infamous dancing flight attendants were good
enough only for a show and a total failure during times when they’re expected to perform their
duties.
On and by the way, just because you’re enjoying the Piso fare doesn’t mean you’re getting the
flight on the cheap. You have pay for snacks, luggage and if you’re careless when booking
online, you’ll have to pay for your seat or make unintended donation.
Overlooking
Many OFWs experiences getting bumped off from the flight because they were never informed
that they were never informed that they were only booked as chance passenger. Many
discounted ticket have a clause hidden in the fine print, giving the airline the right to remove
passengers if the plane gets overcrowded. The Problem starts from the time the company
books more people than what the aircraft can accommodate to ensure that all flight are full.
Even when they’re government order, a defiant Cebu Pacific vowed to appeal the decision and
threatened to raise its fare if it fails to get a positive outcome.

Questions: (25 Points)

1. What are some of the reason OFWs avoid taking flight using Cebu Pacific airline?
Explain your answer.
2. What particular dimension/s in service quality is lacking in Cebu Pacific airline? Discuss
them.
3. What improvements will have recommend to Cebu Pacific airline to become saleable to
OFWs? Describe your recommendations.
4. As a consumer would you still patronize Cebu Pacific Air, despite of the poor service that
you have experience? Explain?
5. How would you address the issue if you are in the management of the Cebu pacific air?
Explain?

CASE NO. 03

W. EDWARDS DEMING OF POWELL, WYO: THE MAN WHO HELPED SHAPE THE WORLD
By: Doug McInnis

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In 1950, Japanese businessmen turned to an obscure American from Wyoming to help them
rebuild an economy shattered in World War II. The industrial expert, W. Edward Deming, taught
Japan’s manufacturers how to produce to quality products economically. The Japanese used
that knowledge to turn the global economy on its head and bet U.S. industry at its own game.
Companies such as Toyota Motor Corp. and Sony Corp adopted Deming’s concepts and
became world-class producers in their fields, helping Japan become one of the planet’s
dominant economic powers. Japan’s rise was start of a regional metamorphosis. Asia eventually
became a manufacturing giant. Although American companies could have learned from
Deming, most ignored him for decades even as Asians competitors gobbled away at Americans
customers’ base and profits.
Deming was born in 1900 in Sioux City, Iowa. Seven years later, the family moved to a farm
near Camp Coulter, soon renamed Powell, Wyo., where they eked out living. Their first home
was a tarpaper shack that provided scant protection from Wyoming winters.
Deming worked his way through the electrical engineering program at the University of
Wyoming by doing odd jobs including janitorial work. He graduated in 1921. After earning his
doctorate in mathematics and mathematical physics from Yale University in 1928, he held a
series of government and private industry jobs. His first was at the U.S. Department of
Agriculture’s Nitrogen Research Laboratory, where his work on the physical properties of
materials introduced him to statistics.
In time, Deming hit on the idea of using statistics to quantify the manufacturing process: how
efficiently companies were, how good their products were, and how well companies were
managed. He concluded that many manufacturing operations were deeply flawed and could
only be improved if upper level corporate managers took an active role in fixing them.
Deming’s ideas were simple yet revolutionary. He believed that management was usually to
blamed for a company’s failings. If a company’s products were badly made, it was because the
bosses designed an inferior manufacturing system. “Can you blame your competitor for your
woes?” he asked corporate managers. “No. You did it to yourself.”
Deming particularly criticized the dominant method of quality control used by U.S.
manufacturers. Under this system, products were inspected for defects only after they were
made. In contrast, Deming maintained it was better to design the manufacturing process to
ensure that quality products were created from the start.
This made economic sense. When a poorly made product came off the production line, a
company faced two desirable options. It could scrap the piece – wasting the material, labor,
energy, and financing costs that went into making it- or it could ship the product and risk
alienating its customers. Deming believed that making excellent items at the outset saved
money and won customer, and he backed his ideas with statistical data.
He lack the natural charisma that many innovators bring to their mission, often delivering his
message in blunt language and making little efforts to charm impress to win over his audiences.
The New York Times described him as “a tall, formal man who habitually wore frayed three-
piece suited and spoke to senior executives as if they were school boys.”

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To further complicate matters, Deming frequently used language that left executives scratching
their heads. He begun one representation to corporate managers with the question, “Do you
have constancy of purpose?” His writings weren’t much different. “The prevailing style of
management must undergo transformation. The transformation is discontinuous. It comes from
understanding of the system of profound knowledge, “he wrote in the second edition of his book
The New Economics.
But those who took the time to wade through his texts found that Deming delivered economic
dynamite. Using this theories, they gained a critical edge in cost and quality over their
competitor. Since Deming’s first converts were Japanese, the implementation of this concepts
helped to shift the balance of economic power from the U.S. and Western Europe toward the
Far East.
Japan had every reason to give Deming a chance. Much of the country was flattened in World
War II by Allied bombing raids, and two of its cities were obliterated by the first military use of
the atomic bomb. To rebuild their shattered country, the Japanese believed they must become
global explorers of high- quality manufactured products. For them, Deming ideas were a perfect
fit.
In the decades that followed, Japan’s electronics and automobile companies carved out never
larger slices of the U.S. and global marketplace for themselves. By the 1980s, the U.S. auto
industry had lost a sizeable part of the American car market to Asian auto companies. The U.S.
electronics industry shriveled.
The cost was felt throughout the American economy. Cities and towns in American’s industrial
belts suffered as U.S manufacturers shrank or closed their operations. Meanwhile, the U.S.
trade deficit grew enormously because Americans bought imported products that used to be
made here. Today almost any consumer product from light bulbs to running shoes is likely to
bear the stamps of an Asian country of origin.
Over the years, a few American companies requested Deming’s assistance. Ford Motor Co.,
hemorrhaging money in the 1980s, was among the first to hire Deming to reshape its
manufacturing operations. One result of that collaborations was Ford’s Revolutionary Ford
Taurus, which became one of the best-selling cars of all time. Other U.S. firms that turned to
Deming for help included Xerox Corp., Procter and Gamble Co., AT&T Inc., and The New York
Times.
Deming was 93 when he died in 1993 at his longtime Washington, D.C., home where he both
live and worked. He worked until his death: His last seminar for executives was held in Los
Angeles just ten days before he died. To the end, he was unlikely revolutionary who lived what
he taught. For instance, he wrote the dates on eggs in his refrigerator to ensure that the oldest
were consumed first and none would spoil. But his business methods worked, and by the time
he died, the industrial expert from rural Wyoming had gained converts all over the world, even in
the once-resistant United States.

Questions: (25 Points)

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 1. What is the economic sense of designing better the manufacturing process to insure that
quality products were created from the start according to Deming? Explain.
2. What is the Philosophy of Deming easily accepted by the Japanese during that time?
Discuss.
3. If you are Deming, other than Japan where else can you offer your assistance in terms
of quality control? Defend your answer.
4. How the Philosophy of Deming helps shape the world of business and leaders?
5. How about into our personal life’s, how Philosophy of Deming contribute into our daily
lives?

CASE NO. 04

ORIENTATION MISFORTUNE IN A PRESTIGIOUS UNIVERSITY

(Adapted from Quality and Performance Excellence, 6th edition, 2013 by Evans)

Oh what a wonderful presentation! That university presentation is really cool. I love it besides
being close home, the university has lots of majors. Surely Mom and Dad will like the place
when they visited. Hmmm, I think I will invite both of them to take a campus tour with me.
The campus is so big, it took us three hours to complete the tour, yet we didn’t even see
everything. I wasn’t sure that the tour personnel knew what he was doing. We went into a very
large auditorium but the lights weren’t even on yet. Our tour personnel, wasn’t aware where we
locate the switch. Se we had to hold the door open so the light could come in. about ¾ of the
way through the tour the said personnel said, “The university isn’t really a bad place to go to
school; you just have to learn and adjust to the system.” I wonder what he meant by that
statement?
The application is really puzzling. How do let the admission office know that I am interested in
Mathematics, Civil Engineering, and Industrial Management? Even my own parent can’t figure it
out. I guess I will call the admission office for assistance.
I am so excited! Mom just handed me a letter from the university. Maybe they already accepted
me. What??? What’s this? The letter said that I need to send my transcript. I did that when I
mailed in my application three weeks ago. What’s really happening? I hope it won’t affect my
application. I really have to check it with admission office.
You can’t find my file? I thought you were missing only my transcript. I asked my counselor if
she had sent it in yet. She told me that she sent it last week. Oh, you’ll call me back when you
locate my file? Alright I will be waiting!
Finally, I’ve been accepted! Wait a minute, I didn’t apply to the university. That’s two years
associate program. I wanted Mathematics, Civil Engineering, or Industrial Management. Well,
since my only choice is this university, I really want to go, I believe I’ll send my confirmation
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form. It really like an application. I know I gave them a lot of the same information. I wonder why
they need it again! It’s a really a waste of time!
Orientation was a lot of fun! I’m glad they have taken care of my application. I think I will really
enjoy my stay in this university. After all I made a lots of friends already during the orientation. I
saw my advisor and signed up for my classes. All I have to do is to pay my tuition bills. Whoops.
None of my financial assistance is on this bill. I know I filled out all of the forms because I got a
scholarship letter from the university. There is no way my parents and I can pay this big bill
without any financial assistance. It says at the bottom, I will lose all my of my classes if a don’t
pay the bill on time.
I am not confirmed on the computer? I sent in my form and the fee long time ago. What am I
going to do. I don’t want to lose all of my classes. I have to go to the admission office or the
college and get letter that proves I am confirmed student. Alright, if I do that tomorrow, will I still
have all of my classes? I can’t sleep, I am so nervous and stressed about my first day…

Questions: (25 Points)

1. How will you assess the outcome and the disorderly process in the admission of this
prestigious university? Discuss it.
2. How will you help the university standardize its admission process in order for this story
not to happen again?
3. Have you encountered the same story in your university? What did you do then?
4. What best practices of the prestigious university need to implement in order to satisfy it
stakeholders?
5. If you were one of the student experience those processes, how would you address to
the management of the prestigious university about your experience?

CASE NO. 05

TARDY PROFESSIONAL

If there is one thing that will curdle my blood, it is the unprofessional behavior by supposed
professional. And yes, I consider excessive and unexcused lateness (or a no-show) to be
HIGHLY UNPROFESSIONAL. I know, I know, Filipnos supposedly have a Latin (or is it a
Malayan?) propensity for being tardy, but I would argue vehemently that it isn’t genetic, rather
something learned, tolerated and eventually, habitual.
More than two weeks ago I made an appointment to see my urologist on Saturday, July 6 at
10am. My grandfather had prostate cancer, my father died of it and numerous uncles, cousins
and a siblings have had prostate cancer as well. Suffice it say it’s in the genes, and I have a
very high probability of getting it. Dad had his prostate exam in his late 60s and that was far too
late. I distinctly remember that day. We had lunch and he proudly announced he was going for
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his first “digital exam” and he was quite impressed with technology those days. Hours later he
showed up at our home, stuck his middle finger out and pointed it at Mrs. MM and indignantly
declared “DID YOU KNOW THIS IS CALLED A DIGIT” Whoa, did he gave a rude afternoon
surprise or what?  On my 40th found myself a reputable doctor, did he required exams every
few years, and in between got blood tests for PSA readings. So far so good.
Saturday mornings I healed to the hospital at 9am, to bring the Teen to a different medical
appointment. My Chief of staff headed over to the urologist to tell them I was in the hospital and
he signed me up at 9:45am, already number “6” on the list of folks told to show up at 10am
(what is the use of an APPOINTMENT time if a dozen people are told to show up at the exact
same time?). At 9:50am, I showed up at the urologist office and was told to wait outside. The
doctor hadn’t arrived yet. Several other patients were waiting, including one elderly man who
arrived in a wheelchair, and he sat beside me. 10:15 comes along and not a single patient has
been summoned. 10:30 and we are all still waiting. Apparently the doctor isn’t there yet. 10:45
am and still no advice. Now there are 8-10 people who have travelled to the hospital from near
and far, who have waited patiently for 60-80 minutes long and there is still no doctor in sight. At
this point, there is already estimated 700 or so minutes wasted patient time, the equivalent of
1.5 man days of work! If the average patient valued THEIR time at say just PHP500 per hour,
that would be already br PHP6,000 in wasting time. Double that cost and we are up to
PHP12,000 in lost value, lost time, and mounting irritation. Some folks, perhaps like the doctor,
might value their time at say PHP8,000 an hour (if they charge PHP800 per person and see a
10 folks per hour) and if that were true, then we are talking PHP80,000+ in wasted time value.
At roughly 10:49, the doctor’s secretary emerges from her offices to announce that the doctor
would be late, and that he wasn’t expecting to get in before 11:30, and that was not certain
either. Would the 10 patients be willing to wait that long? For a 10 am appointment, she was
now asking all of us if we would wait that long? For a 10 am appointment, she was now asking
all of us if we would wait until AT LEAST 11:30, and since I was number 6 on the list, I would
likely be seen at say 12:15 or later, assuming he arrived. I told her this was TOTALLY
UNPROFESSIONAL and I asked her WHY he was late, and she answered “kasi traffic eh, he’s
still in Greenhills…” to which I BLEW A GASKET. I would understand if he was held up in an
operating room, or if he stopped to save a car accident victim, or if previous patients tried to
blow up his car with stick of dynamite… but to be told that he was simply “stuck in traffic” at
10:50am many kilometers from the hospital when he should have been at his desk at 9:45am is
really begging for a rant. The elderly gentleman decide me, heaved a heavy sign of frustration.
He said he waited THREE HOURS the day before and the doctor NEVER EVEN SHOWED UP.
He had written 1.5 hours today and he left, limping, with the aid of a cane, clearly disgusted.
Note that 10 patients, some of whom were from the north where the doctor was driving in from
all managed to get to the hospital before 10am, while he was 1.5+ hours late. Of course, the
doctor was leaving on a foreign trip the next day, so if you didn’t suffer the wait today, they
couldn’t reschedule a missed appointment for a couple more weeks. And there was no
guarantee he would show up then, either!
I told the secretary that I wouldn’t wait, and I would also never come back and would find
another doctor instead. I asked her write on his paper that if had indeed arrived before the
appointment time, and that they waited nearly one hour before advising patients he would be yet
another 45 minutes late or more, and I asked that she write the reason for the delay and sign it

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with her name. Of course she pain outright LIED. She refused to write that she informed us of
the delay at 10:50 or so, and instead of writing “traffic” as she had said in front of several
patients, wrote “because of an unfortunate event.” Not only was the doctor acting in a totally
unprofessional manner, what should have been the hapless secretary in the middle, decided
instead to add fuel to the fire.
The doctor was, in my opinion, simply unprofessional. Ideally, he should have exerted every
effort to get his office on time. He had paying and some SICK patient waiting for him. If he
couldn’t arrive close to the appointed time, say within 15 minutes or so, he could have EASILY
called his secretary ahead so she could the advice patients by text or phone that the doctor
would be late and they try and use the time a bit more productivity. The doctor was simply
arrogant if he thought that wasting a good 1.5-2.5 hours of 8-10 patients time was acceptable
behavior, almost regardless of WHATEVER he was doing during that time. A professional,
thoughtful, well-mannered person would only HAVE TO CALL to let folks waiting know what was
going on. Expecting them to wait for him for several hours is poor form, period. Like I said
earlier, an unforeseen medical emergency might be an acceptable excuse, but not informing his
office while 10 clients sat waiting, is simply inexcusable, in my opinion.
I personally consider chronic lateness (particularly in a professional setting such as a doctor’s
office) to be the ultimately sign of arrogance and self-centeredness it is disrespectful, displays a
complete lack of manners and waste an incredible amount of time/effort. Yes, it is a pet peeve.
Professional should show up on time, particularly when you have made appointments weeks in
advance and customers are paying for the service. I try never return to a professional who
doesn’t have the basic ability to show up for an appointment on time. In this case, the doctor in
question lost several clients that day, and probably not. Another sign he was lacking in the
professional department. Neither he nor his secretary bothered to call the patients who left in
disgust to try and re-schedule their appointments, or simply to apologize for the hours they were
forced to wait for the doctor to arrive. I will never go back to this particular doctor and I will tell
everyone I know to avoid him like the plague. If more people stuck in their middle finger at
twerps like this, the less of them we would have to tolerate in future. Hospital administrators
should police their own ranks and get rid of bad apples that spoil the rest of the bunch. As much
as possible, I am taking my business to another hospital right now on. Isn’t it amazing that in
thousands of flight I have taken in my lifetime, not once has a delay been blamed on a pilot not
showing up on time. Nor have to a major sporting event like boxing match, tennis final, NBA
game, NFL match that started more than a few minutes late because the pros were stuck in
traffic. And yet I have run into several doctors who thought they were so important and valuable
that they regularly forced patient to wait excessive amount of time just to pay for their
consolations with the doctor.
On a brighter note, I have noticed that this kind of arrogant doctor behavior is not necessarily
the norm at that hospital in recent months, appointments our family members have had at OB
doctors, dermatologist, cardiologist and pulmonary specialist have all been done on an
appointment basis, with minimal waiting time, and the doctors have all shown up. They are far
more patient-centric and I hope these types of doctors flourish in future. I fully understand that
patients can also be no-show, and just as I would livid if a doctor didn’t bother to show up, so
should patient be charged if they made an appointment and didn’t cancel out beforehand.
QUESTION: (25 points)
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 1. Why is the author not satisfied with the service of the hospital? Is this bad behavior the
norm of the hospital? Discuss?
2. How should any doctor maintain quality service with his patients? Detail your
discussion?
3. Do you think the hospital lacks of customer focus the reason why this doctor is behaving
this way? Or the doctor is just an isolated case? Depend your answer?
4. If you are one of the patient waiting, would you do the same?
5. In order to achieve customer quality service, In general, what do you think is the best
way to achieve it?

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