Kostas E. Sillignakis – www. sillignakis. com “Late Entertainment Venues industry: How Nightclubs may measure Customer Satisfaction and how the industry may add business value and create competitive advantage by using Six Sigma model – The “Breeze” Nightclub case study. ” By Kostas E. Sillignakis CONTENTS PAGE INTRODUCTION 1. 0 THE “BREEZE” NIGHTCLUB CASE STUDY 2. 0 MANAGEMENT SYSTEM DESIGN 2. 1 ROLES AND RESPONSIBILITIES 3. 0 THE TRANSFORMATION PROCESS MODEL 3. 1 OPERATIONS MANAGEMENT CYCLE 3. 2 FUNCTIONS AND PROCESSES 4. 0 CUSTOMER SATISFACTION IN NIGHTCLUB INDUSTRY 5. PRODUCT & SERVICE ATTRIBUTES IN A NIGHTCLUB EXPERIENCE 6.
0 MEASUREMENT OF CUSTOMER SATISFACTION 7. 0 QUALITY MANAGEMENT – SIX SIGMA 8. 0 APPLICATIONS OF SIX SIGMA TO “BREEZE” CASE – ACTION PLAN 9. 0 LIMITATIONS AND DRAWBACKS CONCLUSION Figure 1. 1: Organisational Chart of “Breeze Nightclub” Figure 1. 2: Transformation Processes Figure 1. 3: The Nightclub Cycle Figure 1. 4: A Framework for Nightclubs Operations Management Table 1. 0: Functions and Processes in “Breeze” Nightclub Table 2. 0: Product/Services attributes in a Nightclub Experience p. 1 p. 1 p. p. 2 p. 4 p. 5 p. 5 p. 6 p. 7 p. 7 p. 9 p. 11 p. 13 p. 13 p. 14 p. 15 p. 15 p. 16 p. 17 p.
18 REFERENCES p. 19 1 Kostas E. Sillignakis – www. sillignakis. com INTRODUCTION For the purpose of this researched report we will use the “Breeze Nightclub” case study as a vehicle to demonstrate current operational issues and challenges within the late entertainment industry, and we will conclude with recommendations and an action plan, giving guidelines of how those type of operations may add business value to their organizations and how to gain competitive advantage.
We will start by describing and analyzing the type of operations carried and the operation processes within “nightclubs”. We will then focus on customer satisfaction and how it would be measured. Identifying critical success factors, and how a competent operations strategy may assist to achieve the organization’s objectives. 1. 0 THE “BREEZE” NIGHTCLUB CASE STUDY “Breeze Nightclub” is a relatively new business, operating at about two years. It is located at the best spot upon the seaside of the capital of Crete in Greece.
It is an investment of about 3 million euros and for its 2 past years of operations is the busiest and most successful nightclub of the island. It is an open air nightclub, with 3000 square meters operational space. The capacity of the place could reach 2500 customers on busy nights and an average daily turnover is 40000 euros. Even though of its success, the last 2 months the “nightclub” has a significant drop of business revenue and venue capacity. 2. 0 MANAGEMENT SYSTEM DESIGN The diverse services and complex organization of a night entertainment venue require an effective management system designed according to a careful developed plan.
The management system for nightclubs must be comprehensive, encompassing all necessary management activities and all aspects of available or potentional resources for example food and beverage products, labor, equipment, energy, time (Flynn et al, 2000). The organizational structure of nightclubs varies from property to property, even when size, levels of service, type and other categorical descriptions seem similar (Ninemeier, 1986). 1 Kostas E. Sillignakis – www. sillignakis. com While each nightclub is different, ertain divisions, departments, functions and responsibilities may be viewed as typical. On Figure 1. 1 we may see the organizational chart of “Breeze nightclub”, and the way roles and responsibilities of its 95 full time employees have been designed. 2. 1 ROLES AND RESPONSIBILITIES As we observe on the organizational chart on Figure 1. 1, General Manager has the responsibility of all processes and operations through out the organization including those services that have been outsourced for cost efficiency reasons.
We should mention here that shareholders in nightclub industry traditionally, they are involved on the decision making process and even on the operations management (Flynn et al, 2000). Nevertheless, on the “Breeze” case, authority of decision making has been clarified in advance, therefore the General Manager has the authority of controlling all functions except those related to Financial Investments. Deputy Manager is a “key” person who will communicate the strategy between the management board and the whole organization and will have a more “hands on” role on the operation.
The Executive Chef will be responsible for food orders and food storing, plus its typical responsibilities for efficient usage of resources, menu design and food preparation. The Executive Chef would be responsible to supervise all other Kitchen staff and stewards. Security supervisor is a very crucial and responsible role in nightclubs. Due to nature of the business, the operation hours, the consumption of alcohol by customers, and the competitive relationships with other nightclub, this person should have very good managerial, communication and customer service skills.
This person will supervise all security and valet (parking) services staff plus he will ensure the safe and secure operations inside and outside the premises. The restaurant supervisor will be responsible for the smooth operations in the restaurant and make sure that service reach or exceed the operational standards, prior set. Bar supervisor is the person who will deliver and communicate efficiently the products to customers. One of his/her main responsibilities is to ensure that resources such as beverages, people, money, equipment are handled and 2 Kostas E. Sillignakis – www. illignakis. com controlled with the best possible way. In big scale nightclub operations bartender could be the cashier himself or another person could be dedicated for cashiering duties. In the case of “Breeze” there was no separate cashiers hired. That was decided for 2 main reasons. The first is for cost efficiency and the second for having Bar supervisors motivated and empowered. Waiters A would be responsible to serve drinks on the tables or to the people wouldn’t be able to reach the Bars due to be overcrowded or maybe they would find it more convenient to be served where they stand.
Waiters A should control their assistants and make sure that service standards have been met or exceed. The Public Relations (PR) supervisor should make sure that most of repeated or VIP customers has been greeted during the night and gathering feedback from the customers. Any negative feedback should be communicated to the Deputy or the General Manager in order correction action to been taken. PR supervisor would be responsible for bookings and allocation of customers by controlling the hostess during the night.
DJs and musicians would be responsible to deliver the best possible quality of sound and vision effects plus the best selection and mix of music. Purchasing and storage supervisor would be responsible for food and beverage orders, storing and inventory control. Purchasing supervisor would not be though, responsible for closing deals with suppliers, as this is a very crucial and sensitive procedure with regards of price, quantity, quality and further offers to be gained, and thus General Manager should be involved. Outsourcing services are important to be controlled with maximum efficiency as well.
Even if most of them does not get involved during the operation hours of the nightclub sometimes they may. For example the IT services may be needed following a crash of a system during the night. Therefore, good communication and good relationship should be maintained with all outsourcing services partners. 3 Kostas E. Sillignakis – www. sillignakis. com 3. 0 THE TRANSFORMATION PROCESS MODEL “The overall objective of operations is to use a transformation process to add value and create competitive advantage” (BPP Learning Media, 2006:292). The main idea of the framework Figure 1. , is that various resources will be inserted and will be transformed into products and/or services for customers (BPM Learning Media, 2006; P. Harris, 1995; Verma & Thompson, 1999; Edwards & Ingram (1995). Within the nightclub industry, this product and service delivery takes the form of a physical interaction between employee and customer, but it could get much more complex than that (we will analyse customer satisfaction later on this report). As we see in Figure 1. 2 the main resources used in nightclub industry are: People, Money, Time, Procedures, Energy, Facilities, Equipment, and Inventory (Ninemeier, 1986).
Those resources will be transformed during the operational hours into services, experiences, feelings, (such as excitement, joy, pleasure, love, dance) and physical products (such as food and drinks). Due to the nature of the business transformed outputs may involve illegal services and products such as prostitution and drugs. However, the nightclub industry, being a service industry, must take account of the particular nature of the products and services offered, namely: • • • • • • they are perishable and cannot always be inventoried; they cannot usually be tored or kept for later use or consumption; they are often diverse and personalized in nature; demand can be difficult to determine and may fluctuate quite considerably, most services cannot be transported and must be provided or utilized on site; most services have a high labour input (Edwards & Ingram (1995). 4 Kostas E. Sillignakis – www. sillignakis. com 3. 1 OPERATIONS MANAGEMENT CYCLE Operations Management involves the design, implementation and control of the above processes (BPM Learning Media, 2006).
If the total product is to be administered effectively, nightclubs managers need to acquire an understanding of the complete process involved in planning, implementation and control, including knowledge of the design and development stages (P. Harris, 1995). The basic concepts which underpin operations in the nightclub industry are exemplified in the integrated systems approach to business organizations Edwards & Ingram (1995). Business systems may be viewed as cycles made up of inputs and outputs, an approach applicable to nightclub sector (Figure 1. 3). 3. 2 FUNCTIONS AND PROCESSES
A much-quoted source by Sasser et al. (1978) cited in Johns N, & Lee-Ross (1996), places operations on a continuum according to the proportion of “goods” or “services” in the “product”. This continuum has been applied to a wide range of different service industries and the concept is reviewed by Shams and Hales (1989); P. Harris (1995); Edwards & Ingram (1995). These authors propose that, in fact, the “goods” and “services” components of service packages are integrated and inseparable. Therefore, for the purpose of this report we will use the framework for the “Hospitality Operations Management” cited in P.
Harris (1995) and we will adapt it onto the “Breeze Nightclub” case study (Figure 1. 4, see also Table 1. 0), suggesting that it could be used by most of nightclubs in the industry due to the holistic interrelations of the late entertainment venue organisations. For efficient results of services and products all functions should be integrated, interlinked and aligned to the business strategy of the organisation. 5 Kostas E. Sillignakis – www. sillignakis. com 4. 0 CUSTOMER SATISFACTION IN NIGHTCLUB INDUSTRY
In today’s competitive environment one of the most important goals of corporate cultures is retaining and satisfying current and past customers. Experience shows that only “consumer oriented” organizations can achieve this goal (Pizam & Ellis, 1999). These companies focus on the needs and wants of specific target groups and then work hard to maximize satisfaction with the product or service being offered (Vavra, 1997:12). Customer satisfaction is considered as a necessary condition for customer retention and loyalty and therefore helps in realizing economic goals like turnover and revenue (Reichheld & Aspinal, 1994; Scheuing, 1995).
Customer satisfaction is a psychological concept that involves the feeling of well-being and pleasure that results from obtaining what one hopes for and expects from an appealing product and/or service (WTO, 1985). Customer satisfaction is the leading criterion for determining the quality that is actually delivered to customers through the product/service and by the accompanying servicing (Vavra, 1997). Satisfaction reinforces positive attitudes toward the brand, leading to a greater likelihood that the same brand will be purchased again.
Dissatisfaction leads to negative brand attitudes and lessens the likelihood of buying the same brand again (Assael, 1987:47). Unlike material products or pure services, most “Nightclub” experiences are an amalgam of products and services. Therefore it is possible to say that satisfaction with a Nightclub experience is a sum total of satisfactions with the individual elements or attributes of all the products and services that make up the experience. Jiang Y. & Wang C. L. , (2006) argue that affect will have different impacts on consumers’ uality evaluation and satisfaction, depending on the hedonic or utilitarian products/services. On Hedonic products/services the feeling of pleasure may have a positive influence on the evaluation of whether the service meets certain standards or whether it has the ability to satisfy the needs. Therefore, feelings and emotions, which will 6 Kostas E. Sillignakis – www. sillignakis. com give pleasure to Nightclubs’ customers, will have a critical role to their overall satisfaction and experience. 5. 0 PRODUCT & SERVICE ATTRIBUTES IN A NIGHTCLUB EXPERIENCE
There is no uniformity of opinion among marketing experts as to the classification of the elements in service encounters. Reuland et al. (1985:142) suggest that hospitality services consist of a harmonious mixture of three elements: the material product in a narrow sense which in the case of a Nightclub is the food and beverages; the behaviour and attitude of the employees who are responsible for hosting the guest, serving the meal and beverages and who come in direct contact with the guests, and the environment, such as the building, the layout, the furnishing, the lighting and the sound quality in the Nightclub.
On Table 2. 0 we have identified all products and services attributes which may define a quality Nightclub experience. Those attributes considered being the critical success factors of Nightclub operation and we will now attempt to find ways measure customer satisfaction in nightclubs based on those values. 6. 0 MEASUREMENT OF CUSTOMER SATISFACTION Perhaps the primary reason for taking the time to measure customer satisfaction is to collect information, either regarding what customers say that needs to be done differently or to assess how well an organization is currently meeting its customer needs (Vavra, 1997:28).
A secondary, but no less important function of customer satisfaction measurement in nightclub enterprises, is that by surveying customers, an organization is demonstrating its interest in communicating with its customers; finding out their needs, pleasures, displeasures and overall well-being (Pizam & Ellis, 1999). Measurement is a key principle to managing processes with the need to identify trends, assess stability, determine whether customer requirements are actually met and drive improvement (Armistead & Machin, 1997). There 7 Kostas E. Sillignakis – www. sillignakis. com re several ways to assess the quality of services and customer satisfaction through subjective, or soft, measures of quality, which focus on perceptions and attitudes of the customer rather than more concrete objective criteria. These soft measures include customer satisfaction surveys and questionnaires to determine customer attitudes and perceptions of the quality of the service they are receiving (Hayes, 1997:2). Furthermore, the soft measurement systems may use information gathered by direct feedback from the customer, or even measure the complaints and compliments in the organisation.
Financial data such as profit margins, turnover or venue capacity may be used as an indicator of guest satisfaction but that would be risky as this kind of information could be manipulated and misinterpreted. Benchmarks against the competitors also could be used as a comparison and identification of customer satisfaction. On “Breeze” case study, soft measurement systems of customer satisfaction had been used. Direct feedback from customer by “front line” employees, management and shareholders, have been consistently gathered and analysed.
Furthermore, customer complaints and compliments was all reported and noted to the management board for further analysis. Financial ratios and drop of venue capacity was the indicators, alerted shareholders and that was the main reason of hiring a new General Manager. The report would suggest that a planned and structured customer survey using the main attributes identified in Table 2. 0 would be a very efficient and helpful tool for managerial decisions at that time. Something that unfortunately didn’t happened due to other priorities.
Nevertheless, by using all the other soft measurement methods mentioned above, the management came up with results identifying the main drawbacks, challenges and issues, believed to be the reason of customer dissatisfaction. The main attributes of customer dissatisfaction referred to two main categories: i) Material Product: The main issues were food & beverage consistency with regards mainly on food appearance, flavor and incorrect temperatures. ii) Behavior & Attitude of employees: The main problems related with employees behavior and attitude was lack of courtesy, professionalism, promptness and 8
Kostas E. Sillignakis – www. sillignakis. com knowledge. Inefficiency of speed and quality of service had been identified, as well. There is a logical explanation for this all. There were two key positions in the whole operation that related to the business underperformance. The previous General Manager, had an attitude problem himself, and therefore he was in a continual conflict with the employees. Thus, has as a result, the qualified and experienced employees who were able to find another job easily they all left. As a result, only the unqualified and inexperienced employees had been left on the operation.
The remaining employees didn’t have the knowledge, or experience to satisfy customers’ needs and requests. The other person responsible for the existing situation was the Executive Chef. He had attitude problems as well, and he used to get in conflict with all kitchen staff and the waiters interacted with Kitchen. This situation had forced employees to create subgroups and subcultures within the operation, creating a huge organizational problem. There were incidents, employees physically fighting each other or arguing and shouting in front of the customers.
The organization had been left with no team spirit, no motivation, no vision and objectives, no support and guidelines. In such an organization it is not difficult to understand that most operational issues identified as customers’ dissatisfaction attributes was highly interlinked to the organizational chaos of the enterprise. Immediate action and reconsideration of business strategy needed in order to put the business back in track. 7. 0 QUALITY MANAGEMENT – SIX SIGMA Quality management has long been established as an important strategy for achieving competitive advantage.
Traditional quality initiatives such as statistical quality control, zero defects, and total quality management have been key initiatives for many years. Six sigma can be considered as a recent quality improvement initiative that has gained popularity and acceptance in many industries across the globe (Jiju et al, 2005) Six sigma is a powerful business strategy that yields a dramatic reduction in defects, errors, or mistakes in service processes (Antony, 2005). It is a powerful methodology developed to accelerate improvement 9 Kostas E. Sillignakis – www. illignakis. com in service quality by focusing relentlessly on reducing process variation and eliminating nonvalue added steps or tasks (Kwak and Anbari, 2006). Improved processes lead to improved customer satisfaction, increased productivity, increased market share, business profitability, and so on. Six sigma provides managers with the strategy methodology, infrastructure, tools and techniques to change the way businesses are run (Antony and Banuelas, 2002). Service-oriented businesses adopting Six Sigma business strategy will have the following benefits: • • mproved cross-functional teamwork across the entire organisation; transformation of organizational culture from fire-fighting mode to fire-prevention mode; • • increased employee morale; reduced number of non-value added steps in critical business processes through systematic elimination, leading to faster delivery of service; • reduced cost of poor quality (COPQ) (costs associated with late delivery, customer complaints, costs associated with misdirected problem solving, etc. ); • increased awareness of various problem solving tools and techniques, leading to greater job satisfaction for employees; improved consistency level of service through systematic reduction of variability in processes; and • effective management decisions due to reliance on data and facts rather than assumptions and gut-feelings. There are two main aspects of the six sigma strategy that are not emphasised in other business improvement methodologies and total quality management (TQM), and thus Six Sigma framework has been chosen in order to create an action plan for “Breeze” nightclub, which will add value to the business and create a competitive advantage.
First, six sigma has been very successful in integrating both human aspects (culture change, training, 10 Kostas E. Sillignakis – www. sillignakis. com customer focus, etc. which are the main issues of customer dissatisfaction in “Breeze” case) and process aspects (process stability, variation reduction, capability, etc. ) of continuous improvement. Second, six sigma methodology (define-measure-analyse-measure-control or DMAIC for short) links the tools and techniques in a sequential manner (Jiju et al, 2005). 8. 0 APPLICATIONS OF SIX SIGMA TO “BREEZE” CASE – ACTION PLAN
Step 1: Management commitment (Coronado and Antony, 2002; Goh, 2002). Almost all the literature reviewed agrees that this factor is a must for successful six sigma implementation. This has to be “top-down” rather than initiated by a particular department or from the ground (Goh, 2002). Therefore, the management board and the shareholders should restructure the business organisation and they are responsible for change in attitude of individual employees. Moreover, in “Breeze” case all dysfunctional or problematic employees should be identified and quarantined or replaced.
Step 2: Education and training (Johnson and Swisher, 2003; Coronado and Antony, 2002; Goh, 2002). Education and training help people understand the fundamentals, tools, and techniques of six sigma. Customer service training and Team building seminars, are the main priorities for “Breeze” case. Thereafter, technical skills trainings (wine training, mixology, service sequence, etc. ) would be very useful from “Breeze” employees. Step 3: Cultural change (Caulcutt, 2001). Six sigma is considered a breakthrough management strategy and it involves the adjustment of a firm’s values and culture.
In some cases, substantial change to an organization’s structure and infrastructure needs to take place (Coronado and Antony, 2002). As we have already mentioned “Breeze” nightclub has major cultural issues. Attitude and behaviour of employees need to be adjusted and aligned to the overall business strategy. The two previus steps will be critical to the efficient change of organisation culture. 11 Kostas E. Sillignakis – www. sillignakis. com Step 4: Customer focus (Coronado and Antony, 2002; Goh, 2002). Customer focus is one of the major requirements in applying six sigma.
This is emphasized in terms of critical to quality characteristics. Six sigma is highly sensitive to requirements for customer satisfaction (Goh, 2002). Therefore, the whole organisation should become more “customer” driven. All functions and processes should be redesigned in order to be more focused onto customer satisfaction. Decentralisation and employee empowerment would also help the nightclub business to be more flexible and more “customer” focused. Step 5: Measurement of Customer satisfaction (Sehwall and DeYong, 2003). A consistent system of customer satisfaction measurement should be developed.
A customer questionnaire should be developed and distributed in such a way that the organisation will have official analysed customer feedback at least once per month. A report should be prepared by the management boeard in order to be presented at the general staff meeting once per month. Thus, everyone in organisation will be aware about their performance. Step 6: Financial Benefits: Financial benefits as a measure of achievement makes it easily understandable for employees and help them to relate to six sigma project outcome (Goh, 2002). Financial results should be communicated with employees probably at the general taff meeting once per month. It would be wise, management board to develop a reward programme linked to organisation performance in order to motive and reward staff efforts. Step 7: Re-engineering of functions and processes. A very critical step of operational success, is for the management to identify processes that are defective and even replace, simplify or develop them. As we explained on step 4, all re-designed processes should customer focused. 9. 0 LIMITATIONS AND DRAWBACKS Even though, Six Sigma is a powerful framework for business transformation, it has its limitations, as well. Nightclub organisations are complex perations with processes and sub 12 Kostas E. Sillignakis – www. sillignakis. com processes which is difficult to be standardized. Therefore, management and employees should always be ready to use their creative thinking techniques and to be flexible with their decisions. Training and development of employees is a huge investment of money and time, which if not managed efficiently may result in total losses of resources. Due to nature of the business, nightclubs recruitment usually consisted by low level educational background employees. Therefore, it may be difficult for some of them to follow complex procedures and functions.
CONCLUSION Late entertainment venues, such as nightclubs, are very complex operations with multistage functions and processes. The nature of business, due to the operational hours, the consumption of alcohol and other substances, the clientele quality and employees skills, could become a very difficult operation to manage. On the other hand competition is high, and because it is an industry that follows trends, it is very risky and unstable. Therefore, multi talented managers needed in order to plan and design processes, implement, monitor, and evaluate them, and at the end of the day to be successful.
Total quality models such as Six Sigma, if used in the nightclub industry may add value to the business and create a competitive advantage. And this is because, there are not many nightclub operations using such sophisticated techniques and procedures. Late entertainment venues operations, continuously evolving and changing trying to follow trends of music, fashion, alcohol, leisure preferences, etc. making the industry, one of the most challenging fields of academia research. 13 Kostas E. Sillignakis – www. sillignakis. com Shareholders GM Deputy Mgr. Exec. Chef Security Sup. Restaurant Sup. Bars Sup.
Waiters A PR Sup. Purchasing Sup. DJs & Musicians Kitchen Staff & Stewards Security and Valet Services Staff Restaurant Staff Bar Staff Ass. Waiters Hostess Receiving & Materials Staff OUTSOURCING Services IT Services Cleaning Services Accounting Maintenance & Engineering Pool Maintenance Figure 1. 1: Organisational Chart of “Breeze Nightclub” 14 Kostas E. Sillignakis – www. sillignakis. com Legal INPUT RESOURCES • • • • • • • Equipment Material Money Labour Energy Time Information Transformation Processes PRODUCTS SERVICES Figure 1. 2: Transformation Processes (adapted by BPM Learning Media, 2006)
CONSUMER MARKETS EVALUATION MONITORING SERVICE CORRECTIVE ACTION OR PLANNING DESIGN PRODUCTION PURCHASING Figure 1. 3: The Nightclub Cycle (adapted from Edwards & Ingram (1995)) 15 Kostas E. Sillignakis – www. sillignakis. com Figure 1. 4: A Framework for Nightclubs Operations Management (adopted by P. Harris,1995) Public Relations Restaurant Capacity Utilization Process Design Staff Management Inventory Management Quality Assurance Training & Development IT Systems Marketing & Promotions Kitchen Accounting BARS Purchasing Service Housekeeping Cleaning Maintenance Engineering Security Entertainment (DJs, Artists)
NIGHTCLUB OPERATIONS MANAGEMENT 16 Kostas E. Sillignakis – www. sillignakis. com Table 1. 0: Functions and Processes in “Breeze” Nightclub Business Functions Public Relations: Bookings, Media & Press control, Customers Services, Local authorities communication, Social responsibility Marketing & Promotions: Events organising, Sell the product, Segment Market, Develop Marketing strategy mix, Promote Events, design and decorations, promotion material, Web Site control, Newsletter Purchasing & Materials: Communicate with Suppliers, Orders, Receiving, Storing, Inventory control Primary Functions
Restaurant: Food operations service and control, money transactions Kitchen: Food ordering, Food receiving and Storage, Food production, BARS: Beverage operations, preparation and service, preparation and pass it to waiters, money transactions, Service: Taking orders and deliver the drinks, Keep area tidy and clean, Money transactions Security: venue capacity control, control customer entrance, dress code, control female-male ratio, prevent illegal activities on the premises, ensure trouble-free operations, parking control, valet services, monitor CCTV, Entertainment: Music selection and mix, Sound quality, Visual effects, Dance performances
Management Functions: Capacity Utilization: Forecasting, profit engineering, operating statistics, linear programming Process design: Billing and cost control systems, costing methods, control cycle Staff Management: Labour scheduling, payroll control, productivity, staff costs Inventory Management: Stock policy and control, periodic control reports Quality assurance: Standard costs and yields specifications, good inwards control Outsourced Functions
IT Systems: IT strategy development aligned with business strategy, implementation and setting of IT systems, maintenance and control, emergency support Accounting: control of payments and receivable, management report preparation, balance sheets, Profit and Loss accounts Cleaning: PEST control, cleaning procedures Maintenance: Pool Maintenance, Equipment Maintenance, Electrical devices and lighting, building maintenance. 17 Kostas E. Sillignakis – www. sillignakis. com Table 2. 0: Product/Services attributes in a Nightclub Experience
MATERIAL PRODUCT • • • • • • • • • • • Quality of F Portion or Measures size Variety of Menu/Beverages F Consistency Range of tastes, textures, aromas, colors Correct F temperatures Appearance of F Price of meal/drinks/services Quality of advertisement materials. Sound & Vision Equipment IT Facilities ENVIRONMENT • • • • • • • • • • • • • • • • • • • • • • • • • Cleanliness of Nightclub Location & Accessibility Size & Shape of Rooms Overcrowd ness Furniture and Fittings Decoration and Color Scheme.
Availability and shape of Chairs, Stools, Stands & Tables. Sound Quality – Acoustics Vision and Lighting effects Spaciousness of Nightclub Neatness of Nightclub Employees’ appearance Availability of Parking Hours of Operation Female:Male ratio Quality of clientele Branded Venue Name DJ name Reservation System Accuracy of Bill Littering outside Nightclub Security & Safety Drugs Crime/Violence Entrance Queuing time BEHAVIOR & ATTITUDE OF EMPLOYEES • • • • • • • • • • • • Friendliness Attentiveness Promptness Courtesy Competence Attractiveness/Appearance Efficiency of Speed Professionalism Responsiveness to special requests Efficiency Complaints Handling Knowledge of employees Efficiency of phone answering Social Responsibility (Control of alcohol consumption per customer) 18 Kostas E. Sillignakis – www. sillignakis. com REFERENCES Antony, J. , Banuelas, R. (2002), “Key ingredients for the effective implementation of six sigma program”, Measuring Business Excellence, Vol. No. 4, pp. 20-7 Armistead C. , & Machin S. , (1997), Implications of business process management for operations management, International Journal of Operations & Production Management, Volume 17 Number 9 pp. 886-898 Assael, H. (1987), Consumer Behavior and Marketing Action, 3rd ed, PWS-Kent, Boston, . BPP Learning Media, (2006), Foundations of Management-Part A, BPP Profesional Education, Oxford Brookes University and ACCA. Coronado, R. B. , Antony, J. 2002), “Critical success factors for the successful implementation of six sigma projects in organizations”, The TQM Magazine, Vol. 14 No. 2, pp. 92-9. Correa H. , Ellram L. , Scavarda A. , Cooper M. C. , (2007), An operations management view of the services and goods offering mix, Volume 27 Number 5 pp. 444-463. Flynn M. , Ritchie C. , Roberts A. , (2000), Public House & Beverage Management, ButterwortHeinemann, Oxford UK. Goh, T. N. (2002), “A strategic assessment of six sigma”, Quality Reliability Engineering International, Vol. 18 No. 5, pp. 403-10. Jiang Y. & Wang C. L. , (2006), The impact of affect on service quality and satisfaction: the moderation of service contexts, Journal of Services Marketing, Volume 20 Number 4 pp. 211-218. Jiju A. , Maneesh A. , Madu. , (2005), Six sigma in small- and medium-sized UK manufacturing enterprises, International Journal of Quality & Reliability Management, Volume 22 Number 8 pp. 860-874. John S. A. Edwards, Hadyn Ingram (1995), Food, beverage and accommodation: an integrated operations approach, International Journal of Contemporary Hospitality Management, Volume 7 Number 5 1995 pp. 5-28 Johns N, & Lee-Ross (1996), Strategy, risk and decentralization in hospitality operations, International Journal of Contemporary Hospitality Management, Volume 8 Number 2 1996 pp. 14-16. Johnson, A. , Swisher, B. (2003), “How six sigma improves R&D”, Research Technology Management, No. March-April, pp. 12-15. Kwak, Y. H. , Anbari, F. T. (2006), “Benefits, obstacles and future of six sigma approach”, Technovation, Vol. 26 pp. 708-15. Ninemeier D. Jack. , (1986), Planning & Control for F Operations, AH, Michigan. 19 Kostas E. Sillignakis – www. illignakis. com Peter J. Harris, (1995), A development strategy for the hospitality operations management curriculum, International Journal of Contemporary Hospitality Management, Volume 7 Number 5 pp. 29-32 Pizam A. , & Ellis T. , (1999), Customer satisfaction and its measurement in hospitality enterprises, International Journal of Contemporary Hospitality Management, Volume 11 Number 7 pp. 326-339. Reichheld, F. , Aspinall, K. (1994), “Building high-loyalty business systems”, Journal of Retail Banking, Vol. 15 No. 4, pp. 21-9. Reuland, R. , Coudrey, J. Fagel, A (1985), “Research in the field of hospitality”, International Journal of Hospitality Management, Vol. 4 pp. 141-6.. Sasser, W. E. , Olsen, R. P. , Wyckoff, D. D. (1978), Management of Service Operations, Allyn & Bacon, Boston, MA cited in Johns N, & Lee-Ross (1996), Strategy, risk and decentralization in hospitality operations, International Journal of Contemporary Hospitality Management, Volume 8 Number 2 1996 pp. 14-16. Scheuing, E. E. (1995), Creating Customers for Life, Productivity Press, Portland, OR. , Sehwall, L. , DeYong, C. 2003), “Six sigma in health care”, International Journal of Health Care Quality Assurance, Vol. 16 No. 6, pp. 1-5. Shams, H. , Hales, C. (1989), “Once more on ‘goods’ and ‘services’: a way out of the conceptual jungle”, Quarterly Review of Marketing, Vol. 14 No. 3, . Snee, R. D. , Hoerl, R. (2003), Leading Six Sigma, Prentice-Hall, Upper Saddle River, NJ, . Vavra, T. G (1997), Improving Your Measurement of Customer Satisfaction: A Guide to Creating, Conducting, Analyzing, and Reporting Customer Satisfaction Measurement Programs, ASQ Quality Press, . Verma R. , & Thompson G.
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