Quality Management – Case Study Essay

Custom Student Mr. Teacher ENG 1001-04 9 April 2016

Quality Management – Case Study

The General Manager of the four-star „Red Carpet Hotel‟ assigned us as consultants to audit his property and advise him about changes that are required to get the ISO 9001:2008 certification within one year. Besides that, we were assigned to provide him a Customized Balanced Score Card and two cost estimates for improvements, necessary to reach the ISO 9001:2008 requirements. ISO (International Organization for Standardization) is the world‟s largest developer of voluntary International Standards.

The organization was founded in 1947 and has by now a network of institutes in 164 countries. Since then, they have published more than 19 000 International Standards covering almost all aspects of technology and business. The Central Secretariat, that coordinates the system is located Geneva, Switzerland. ISO is a non-governmental organization, which wants to fill the gap between the public and private sector. They want to enable a compliance, which meets both the requirements of business and the broader needs of society. To enable them, they are working with a methodology for improvement: the Deming- or PDCA-Cycle.

The ISO 9001:2008 in general requires the implementation of a Quality Management System (QMS) in the company.

The four key stages of a QMS are:     Management Responsibility Resource Management Product Realization Measurement, Analysis, Improvement

These stages are in constant interaction between company and customer since the company is expected to meet customer expectations and satisfaction. ISO 9001:2008 specifies requirements for a quality management system where an organization:   needs to demonstrate its ability to consistently provide product that meets customer and applicable statutory and regulatory requirements aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable statutory and regulatory requirements

The implementation of the ISO standards in an organization assure their customers that the products and services are safe, reliable and of good quality. For business, they are strategic tools that reduce costs by minimizing waste and errors and increasing productivity. They help companies to access new markets, level the playing field for developing countries and facilitate free and fair global trade.

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2 Findings of the Audit
2.1 General Information about the Company
The „Red Carpet Hotel‟ is owned by the „Welcome Group of Hotels‟-chain and is
located in Budva, Montenegro. The property features 58 guest rooms, a restaurant, the „Rendez-Vous‟-lobby bar and an outdoor all-inclusive bar, an outdoor pool and an outsourced Spa and fitness center (located at a nearby sister hotel). „Happy guests result from happy staff which leads to a good product, which in turn ensures ultimate loyalty‟ is the vision of the „Red Carpet‟. The core values are „happy guests‟ and „happy staff‟. Thereby, they want to attract groups and families, with a higher living-standard from western countries.

2.2 Management Responsibility
2.2.1 Management commitment The departmental managers provide bi-weekly meetings for their staff, in which only current topics are discussed. The meetings are held for the department itself, so no other department is involved. Also the outcomes are not shared between the different departments. There is a supervision of the General Manager concerning operational performances of the staff (Management by Walking). Insurance that the quality policies of the hotel are established are only on an oral basis during the day-to-day work. Employees work after SOP’s, which the General Manager sees only as a framework and are also checked by department heads.

2.2.2 Customer focus The willing to satisfy the customer is present, but with the hotel‟s customer analysis the guests’ expectations are not met. Customer expectations are communicated to the employees through the vision and SOP’s of the hotel and checked during the work processes. The comment cards and review websites to measure the satisfaction of the costumers are not taken serious by the General Manager.

2.2.3 Quality Policy “Happy employees lead to happy customers” With this quality policy the main objective of the „Red Carpet Hotel‟ is to maximize the satisfaction. The long term goal of their policy is to ensure the loyalty of the guests as well as of the staff. The hotel‟s policy is communicated to the staff, but not the way how to achieve it. There is no frequent review of the top management if the policy is accomplished, neither documented, nor in meetings. Improvements of the quality policies happen
during the work process and are not documented either.

2.2.4 Planning Responsible for the implementation of the Quality Managements System and supervision of that is the General Manager and the middle management. Every department is responsible for its own performance and communicates directly to the General Manager if there is need of improvement. There

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is no interdepartmental guideline for the Quality Management System. Improvements of processes are made directly by the Management and middle management and not documented so it is hard to say to which extend the QMS itself is improved. Internal communication between the departments does not take place on a daily basis.

Problems are being discussed in bi-weekly meetings by the middle management but not communicated to the employees to improve the Quality Management System and work processes. The results of the customers‟ feedbacks and the surveys are shown to the departmental managers, but because the General Manager does not take them seriously, they also do not implement them to their processes. Only online review websites are accessible for everyone.

2.3 Resource management
2.3.1 Provision of resources The resources to implement, maintain and improve the effectiveness of a Quality Management System are given. Due to the fact that the hotel does not have a marketing department, that analyses the target group and their needs, wants and desires, they cannot enhance customer satisfaction because they do not know their requirements precisely enough.

2.3.2 Human resources The Human Resources Coordinator is responsible for the selection of potential new employees and the publishing of specific job descriptions for the recruitment. They find new employees via their website and word-of-mouth. The curriculum vitaes of the most suitable applicants are handed by the Human Resources Coordinator to the departmental managers. The responsible manager gives a recommendation to the General Manager, who makes the final hiring decision.

The hotel tries to hire more local staff, which is able to represent the culture, the area, is aware of the Montenegrin language and shares the hotel vision. Selection is also based on the attitude of the applicant, followed by talents and skills of the individual. Only for the middle management and management positions, a higher educational level (work experience, academic education and language skills) is required.

The current staff turnover rate rose compared to the last year by 0.3%. All new staff must follow English classes when they are hired. Additionally they have workshops about the vision of the „Red Carpet Hotel‟, the service attitude, the feedbacks and the customers‟ expectations. Based on the position of the employee, they are trained in their department via the buddysystem. They receive a department manual, where the SOP´s are stated. These manuals are also available in every department to look into. „Staff development plays an important role in the motivation of our staff and success of the hotel‟ states the hotel. But staff development trainings are not provided.

To measure the employees‟ performance, the „Red Carpet Hotel‟ relies on supervision by the Management Team. Once a year, they review talent plans and agree on development actions of the individuals. The taken measures of these reviews are only documented if changes occur by the Human Resources Coordinator. The departmental managers speak to their employees immediately, if something is wrong, has to be changed or very good.

These kinds of reviews are not documented. The tools used to make the personnel aware of their importance are rewards, like the „employee of the month‟, employee gatherings and parties to bond with the hotel. The General Manager states that employee recognition is also very important, done on a daily basis, and is „particularly effective if it takes place in front of the employee´s peers‟. Redundancies are only made by the General Manager. The hotel uses a 3 step system to warn the employee, except the person did something wrong, which requires immediate firing.

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2.3.3 Infrastructure The „Red Carpet Hotel‟ fulfils all requirements when it comes to building, workspace and associated utilities, which are necessary to operate as a hotel.

The employees have the basic required resources to perform their tasks successfully, but in some occasions additional equipment (like a telephone at the front and back office) is missing. In the hotel they are using the PMS-system in compliance with the Micros-system and a Pin-Card-system for the inventory. The Maintenance department is in charge for the functioning of utilities and machinery. But hardly any preventative actions are taken to ensure their future use. If something breaks down, they try to repair it, but if there is not enough time, they substitute it.

2.3.4 Work environment To ensure a good working environment the departmental managers provide their workers with all the resources they need. The management is focused on the employees‟ satisfaction. To ensure it, they communicate on a daily basis.

2.4 Product Realization
2.4.1 Planning of Product Realization The „Red Carpet Hotel‟ has documented processes that are needed for product realization. Every department provides its own manual, to which the employees constantly have access, but the workers need to know the manual that it is not necessary for them to look something up during work. All these manuals are focused on the main goal of the hotel – to satisfy customers. Partially, they have quality objectives and requirements for their products.

The departmental managers and the General Manager are checking the performance on a daily basis during the work flow. If necessary, they talk to the employees to improve the processes of product realization. This observation and the improvement of performance of the employees are not documented.

2.4.2 Customer-related processes Due to the fact that the organization has no documented customer requirements, those are met partially. General requirements, for example comfortable rooms, full board and a pool, are fulfilled. The guest is informed about the general terms and conditions of the hotel via the hotel‟s website. Furthermore the hotel tries to satisfy its customers with a good service provided by the staff.

Statutory requirements, like the HACCP-concept, are implemented. Additional requirements considered necessary by the hotel are for example All Inclusive, room service, business centre and currency exchange. Without a specific target market analysis the hotel does not know all the needs and wants of the customers and is not able to meet them all, only the satisfaction about the met requirements is checked afterwards by feedbacks and questionnaires. The Purchasing Officer is responsible for the ordering and the acceptance of all the incoming products. He is the one, who decides if the qualities of the goods meet the organizations‟ requirements.

Precisely formulated requirements are not given. That is why the hotel only meets them partially. The Purchasing Officer is also responsible for the documentation of deliveries and the labelling of the stored goods. There is a constant communication between him and the departments, concerning suppliers and ordered goods. The departments tell the Purchasing Officer what they need, but the final decision about the supplier is made by the Purchasing Officer.

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2.4.3 Design and development The hotel has no specified Standard Operating Procedures regarding the design. The General Manager takes care about the advertisement. He prefers big letters in strong colours to draw the readers‟ attention on the hotel‟s announcement. There is no specific design, neither appealing to the target group, nor to the product. It varies due to the daily mood of the General Manager. The Head Chef is responsible for the menu. No fixed design exists, but it is always influenced by the season or special offers. The design is not documented and it is always created new. There is no fixed time when it has to be changed or not, except from seasonal products.

2.4.4 Purchasing The Purchasing Officer is responsible for the choice of all
suppliers and for the orders for all departments in the hotel. Due to the following criteria the suppliers are selected: On time delivery Competitive pricing Ability to meet specifications and standards Product and service quality To discuss future business and give feedback, once a year the Purchasing Officer organizes an open forum with their 30 top suppliers.

This yearly meeting was, concerning to the hotel, always very beneficial to both parties. Neither the choice of the suppliers, nor the meeting is documented by the Purchasing Officer. Only the ordering, the delivering process and the checking of the quality of the delivery are documented by him.

2.4.5 Production and service provision The production and service provision is described in the SOP’s and controlled by the departmental managers. For example in the kitchen the cooks have pictures and descriptions of how to produce a dish. The „Red Carpet Hotel‟ is checked by the “HACCP”-concept. The Head Chef states, that he controls every single dish, before the waiter serves it to the guest. The employees have nearly all the required equipment to supply the products in the best way, e.g. a telephone in the Front and Back Office is missing.

The departmental managers are responsible for the production and service provision in their department. They control everything during work, but this process is not documented. To secure the customers‟ property the hotel has a safe in the back office and every room has its own safe to store the guests‟ valuable articles. If something gets stolen out of the safes the hotel is responsible and has to reimburse it.

Otherwise the police has to decide whether the hotel is responsible for the refund or not. As a purchasing system the hotel uses a Pin-Card-system. To take something out of the storage, every employee has to register with a card and the system notes down what and how much was taken out. Thus system always knows how much is in the storage. When the amount goes under a certain limit, the Financial Manager – who is responsible for the preservation of products – gets informed by a warning signal that there is not enough food, beverages or amenities in the storage and new products have to be supplied. Once a month the finance department has to count the inventory physically to check if the system is working or not.

2.4.6 Control of monitoring and measuring equipment As the hotel has no
overall system to monitor and measure the internal performance and production, it cannot be controlled. Some small systems like the Pin-Card-system (as mentioned in 2.5.5) – which is checked once a month by the finance department – are under control. But as the hotel works more on a verbal basis and does not document and measure everything, it has therefore not a lot of equipment for monitoring and measuring.

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2.5 Measurement, analysis and improvement
2.5.1 General The current quality management system, used by the „Red Carpet Hotel‟, includes few structured methods that secure the conformity of the Hotel‟s products and its services. The way actions and procedures are measured and controlled, is done by the General Manager. Also the departmental managers are involved in these measuring procedures.

2.5.2 Monitoring and measurement The organization of the „Red Carpet Hotel‟ collects and monitors information about guests´ satisfaction, but they are not taken into consideration when making new decisions. Top management thinks information given by customers are fake given by mystery visits are not significant enough The General Manager believes that appraisals from review websites are not true and were made by competitors to damage the hotel‟s image although there is a clearly visible pattern of issues pointed out by a lot of guests.

Because of the low number of mystery customer visits, the outcomes of these external audits are not significant enough to the hotel to be included in the decision making process. Top management uses the following tools for an internal audit service comment cards consecutive surveys to evaluate employee‟s performance quality improvement suggestion form Audit programs are not implemented in the organization, which show the status and importance of the processes.

Staff members are observed fulfilling their tasks by the General Manager during the work flow and when he notices something is done wrong, he immediately takes action and revises the employee. Departmental managers are also advised by the General Manager to measure and control procedures and the conformity of their products by their own in their department. Corrective actions are taken e.g. for the quality manual, whenever it is necessary.

There are no fixed times or guidelines. Frequently occurred mistakes are not documented, so it is not possible to continually improve the quality management system. The organization uses commonly used tools to measure the conformity for some products. These tools are available for example in the kitchen. There are pictures of the prepared dish to ensure equality of all dishes. The Departmental managers also control the conformity of their products before they are presented to the guests. Another system the hotel has implemented in the F&B department is the HACCP which guarantees hygiene.

2.5.3 Control of non-conforming product If a product does not meet the requirements, the departmental managers take immediate action, so they are not seen by or served to the guests. If after all these preventative actions still a complaint arises, the departments try to ensure the conformity of the product by replacing it through another. Deficient products are/can be tried to fix (e.g. rooms division)

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implemented in other products (e.g. vegetables converted into soup) used by staff (e.g. staff meals, drinks)

2.5.4 Analysis of data To confirm the suitability and effectiveness of the QM-system the organization collects data in the form of guest surveys and staff suggestions. Tools to identify suitability and effectiveness: customer complaint/incident form a “Customer‟s issues importance ranking”-list comment cards suggestion form for quality improvement guests appraisals from review websites Most of the results gained by these tools are not taken into consideration when making a review concerning the QM-system. Data from suppliers are collected by an annually open forum between the hotel‟s 30 top suppliers to exchange feedback and discuss future business.

2.5.5 Improvement Due to the lack of documentation within the organization, improvement is only done on an occasional basis, but in reviews the General Manager and the departmental managers decide on new processes to improve the QM-system if it is necessary, however these results are not documented. Non-conformities in the surveys are ranked after the number of occurred times but they are only eliminated, if they are grave.

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3 Conclusion
The outcome of the audit shows, that the current QMS of the „Red Carpet Hotel‟ is not sufficient enough in order to receive the ISO 9001:2008 certificate.

One of the major issues concerning management responsibility is, that departments have meetings for themselves and do not communicate the results to other sections of the company. So a big lack of interdepartmental miscommunication is given that costs the hotel a lot of money and prevents to match up the relevant tasks that need to comply with the product requirements. Due to a lack in market scan, the organization does not know their target group and thus neither what they need and want. Guest surveys are reviewed in a fitful way and not taken serious into consideration when making new, quality based decisions.

The resource management of the hotel provides some things, which are necessary to perform the tasks well, but there are still issues given e.g. there is no telephone in the Front and Back Office. Also the staff is not trained the way that ISO requires. Regarding product realization, the hotel has only partially quality objectives and requirements for their products and SOP‟s e.g. for the design.

The hotel chooses its suppliers after certain criteria, which are not detailed enough for the ISO certificate. Also an overall system to monitor and measure the internal performance and production is not given. Only small systems are checked e.g. the Pin-Card system by the finance department. Documentation and taking records of important decisions, information, results and failures is one of the criteria of the ISO organization, but this is not done in the current system of the hotel. Raw data the company collects from surveys and suggestion forms are not analyzed and therefore not improved.

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4 Recommendation about required Changes for ISO 9001:2008 Certification In order to get the ISO certification, the „Red Carpet Hotel‟ needs to implement an improved Quality Management System. Both, the operational and the strategic level are affected.

4.1 New approach to Management Responsibilities
In order to implement a functioning QMS that is understood by all employees and developed effectively and efficiently, the responsibilities need to be split up between strategic and operational authorities in the ‘Red Carpet Hotel’. The General Manager needs to focus on the strategy, so long term goals of the hotel, the mission, vision, values and quality objectives of the hotel.

Operational responsibilities need to be put on the department management and middle management, supervised by the General Manager. A scheduled review of the processes concerning the QMS must take place between the department management and top management, to assure the continuing suitability of the QMS and possibility of improvement.

Process performance and product conformity, as well as the status of preventive and corrective actions and improvements of the QMS need to be discussed together. Not only processes need to be discussed to improve the QMS but there also need to be a stronger focus on the customer requirements and improvements of the product related to that. Changes need to be documented and communicated to the employees as soon as changes occur.

We recommend a daily fact sheet for employees to be up to date on important information and changes. Customer comments might be implemented in the daily fact sheet, so that all employees have the possibility to be informed about the output of the comments cards.
The fact sheet is also a good possibility for the General Manager to address his employees with information from his side.

We suggest a Quality Manager to be hired as the main authority for the QMS. This person is especially in charge for making a new QMS together with the General Manager, to ensure that processes needed for the new QMS are established, implemented and maintained. He/she is also in charge for the reporting of required changes of the QMS and is thus constantly communicating with department managers and the General Manager.

Department heads are responsible for operational processes and ensuring that processes needed for the QMS are established and communicated to subordinates giving constant feedback to subordinates in appraisals that are documented and scheduled reporting to the top management and the Quality Manager of the improvements after a review As it is important for the hotel to know the customer requirements, to decide on the product, we recommend to hire a Sales and Marketing Manager. That person is specifically there to scan the market and look for a specific target group, the hotel can address in order to reach customers more efficiently.

Thus it is easier for the hotel to ensure that the QMS is suitable to the requirements of the customer. He/she is also in charge for the improvement and evaluation of the customer comment cards of the hotel, as he has a good connection to the guests of the hotel.

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4.2 New approach to Resource Management
Sales & Marketing Specific authorities of a Sales & Marketing Manager, who has to be implemented, are as followed:            develop a marketing strategy and plan improve the corporate identity and design research and report on external opportunities manage the marketing mix understand current and potential customers make customer focused decisions manage agencies measure success manage the budgets evaluate and improve commend cards report on a daily basis to the General Manager

By implementing this position, the quality of the products can be improved.

Human Resources In the Quality Management System, Human Resources play a major role, when it comes to Resource Management. The „Red Carpet‟ implemented enough tools to ensure the availability of potential new employees. But they should also document the application-processes (the rejected ones as well) to have an impression about the demand for the organization.

This report should be compiled and presented in the fact sheet every six months, so that every employee is up to date. The training procedures in the „Red Carpet Hotel‟ have to be changed to achieve the ISO 9001:2008 conformity.   Trainings have to be provided by qualified (in/external) trainers Regular trainings need to be compulsory for the staff o to train them:  on the job (operational and tactical skills)  about the corporate identity (strategic training)  in the English language

Concerning to the trainings and the Employee Performance Check Sheets, we applied the Deming (PDCA) Cycle, to continuously improve the efficiency and effectiveness of them (see appendix 9). The frequencies of the trainings depend on the necessity and the departments themselves. It is recommended to have a higher frequency in the introduction phase of the Quality Management System.

The trainings shall be documented, improved and its effort shall be checked by the Quality Manager. In order to check the effort of the trainings, an internal audit team consisting of approximately 5-6 employees shall be compiled. The manuals created by the department heads shall be verified by the Quality Manager and General Manager and shall be improved regularly to provide SOP´s, which are up to date.

Yearly reviews about employees´ performance are not enough. The documentation of them, only when a change occurs, is it neither. Changes to improve this situation shall be:   bi-yearly reviews, which are documented by the departmental managers Employee Performance Check-sheets (for example: was the telephone answered after 3 rings) filled out (at least once a week) by co-workers and documented by the departmental managers; a follow up to the individual always have to be given to improve quality and the performance of the

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employee or to show him/her recognition; the General Manager and the Quality Manager shall review the outcomes every two months as well (see appendix 6)

Maintenance The „Red Carpet Hotel‟ needs to take preventative actions to ensure the functionality of the utilities and machinery for the future. The maintenance department also has to record for example breakdowns or other issues with utilities of the hotel. These data shall be compiled and presented monthly to the Quality Manager.

Telephone System The ISO 9001:2008 requires that the organization provides the infrastructure, necessary to fulfil customer requirements. Since there is no telephone, for example in the reservations department, potential customers are not able to book this way. So a telephone, which is connected with all the others in the hotel, has to be implemented.

4.3 New approach to Product realization
As for ISO 9001:2008 it is necessary to set specific quality objectives, we recommend the „Red Carpet Hotel‟ to implement specific Standard Operational Procedures for each department. These SOP‟s should include a detailed description of the working processes and a definition of the product (like the pictures in the kitchen, how a dish should be prepared and how it should look like) and which resources are required.

To keep them up to date, the General Manager and the Quality Manager have to check the SOP’s every second month and improve them based on customers’ requirements. The departmental managers need to check them during the working processes and if something does not work well, inform the GM and the QM about necessary changes, which have to be implemented immediately. To improve these SOP‟s it is recommended to make a detailed analysis of the target markets and their needs and wants. It is also necessary to document all these procedures on a written basis and safe the information with a suitable system like PMS (already exists in the hotel).

The General Manager and the Sales & Marketing Manager need to maintain the information to be always up to date with the guests‟ requirements. After auditing some of the hotel‟s managers, we found out that there are high costs (€ 46.759,00) due to internal miscommunication (see appendix 2).

To get the ISO 9001:2008 it is necessary to improve the communication. All the departments need to talk to each other and share the information about the guests, their behaviour and needs and wants. Therefore we recommend to set a meeting every second day for all the departmental managers to get informed about the other departments. After these meetings the managers should sit together with their employees to share the important information.

Rooms Division In accordance to reach a higher level of quality, the required equipment needs to be provided to the staff in all departments. The hotel has all the equipment, except a telephone at the Front Office and Back Office for incoming reservation calls. We highly advise to provide this.

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F&B The given manual from the „Rendez-Vous Bar‟ is not enough and we recommend to improve the content. How to react on complaints How to handle complaints How to deal with unfriendly guests Behaviour during producing a drink (the employee is still visible for the guest) What to do when there is „nothing‟ to do As we do not have all manuals from each department, we cannot give specific recommendation about all the manuals, but all of them need to be very detailed.

Purchasing The hotel‟s selection criteria for suppliers are not sufficient enough to get the ISO 9001:2008. Therefore it is necessary to improve the list of criteria. We would recommend the 23 criteria by Dickson (see appendix 11). This selection process should be documented by the Purchasing Manager to make sure that the best suppliers are selected. Furthermore the list has to be up to date all the time; e.g. if one supplier rises the price, it needs to be documented immediately.

Marketing To get the certificate it is necessary to implement a specific design for the hotel. This design should reflect: the quality the hotel‟s policy the brand / name the product the service the target market‟s requirements Furthermore the design needs to be the same in advertising, at the hotel‟s website, on the menu and everywhere else where the hotel presents the name and product. The customer should be able to identify the design and combine it with the product and service of Red Carpet. The process of creating the design should be documented and – if necessary – reviewed.

4.4 New approach to Measurement, analysis and improvement
To meet the ISO standards, certain changes within the organization have to be made. The general changes will include the measurement of customer satisfaction and product conformity. Also handling and documentation of data and information is one of the general changes that need to be made.

Tools used for measuring and collecting customer information and staff suggestions have to be upgraded. Guest satisfaction is one of the measurands of a quality management system. For that the organization shall always monitor the information received from their customers. To gain even more specific information regarding complaints, suggestions and improvements, the measurement tools need improvement.

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Improvement to measure Customer Satisfaction: Comment Card (see appendix 5) o essential and highly important points e.g. “taste” and “freshness” in the FOOD-row are missing. o a line named “WHY?” in which the guest can state why he choose a certain grade. o unclear questions: “reason for going out to meal?”- better “Why did you choose our restaurant?” Staff can evaluate customer satisfaction on a daily, cheap basis by asking. Spoken feedback from customers should be recorded, documented and implemented in reviews.

Internal and external audits For internal audit, also the staff should be introduced more into the process of improving the QMS of the hotel. The suggestion form is not enough to evaluate enough information. The management should implement awards or encouragements for the employees who help actively improving the Quality Management System. To control the quality of the employees´ performance, peers from other departments use the new Employee Performance Check Sheet (see appendix 6). All this should be done in short and fixed intervals during the year. Also an internal audit team consisting of 5-6 people should actively help improving the QMS.

This team should have a meeting once a week where they discuss their results with the Quality Manager and then present the findings to the General Manager. For external audit, the number of mystery customer visits should be increased to receive more effective information. The current situation shows, that the information gained from visits two times a year is useless. The outcomes of these audits should be recorded and monitored by the responsible manager and also be implemented in departmental, overall reviews and the daily fact sheet.

To monitor and measure the processes within the company, it is not enough for the General Manager, to walk around watching the staff doing their work. Flow charts and appraisals made by departmental managers should guarantee the processes executed right. Mistakes and errors should be documented and implemented in the next review.

Non-conforming products It is vital, that all incoming goods are not only controlled by their quantity characteristics like weight, length, quantity etc. but also by their quality, if they meet the organizations products requirement. This can be done by check sheets. ISO states that it is not mandatory to document the monitoring and measuring of product process, but it is important to always keep an eye on any operational processes, which could have an impact on the quality of the product. Also the person who evaluates certain conformity criteria on a product needs to be authorized.

Data To get the most out of the raw data collected from surveys, suggestion forms and audits, the organization shall ensure to collect data analyze the data assess the data determine where there can be improvement within the organization

The data analysis should provide statements about customers„ satisfaction

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employees„ satisfaction conformity to product requirements characteristics and trends of processes and products opportunities for prevention action suppliers To analyse all the data given, the hotel shall use modern quality techniques like the Pareto-Chart and the Ishikawa-Diagram, which are shown in the appendix 1 and 4 of this report. The Quality Manager shall fulfil these tasks and present them to the other managers who will discuss them with their employees. To meet the ISO requirements, the organization shall implement audit results analysis of data corrective and preventive actions management review to continuously improve the quality policy, the quality objectives and the QMS itself.

Corrective actions should not only be taken alone if non-conformities occurred. Also recording what happened and try to prevent it is necessary to choke the cause from the beginning on. All the appeared mistakes should be discussed with the employees in form of reviews. Through analysis of all the processes and workflows again and again, problems can be eliminated and repetitions avoided. As employees are always involved in operational processes, their advices of improvement should be recognized.

5 Final Conclusion
According to the requirements to get the ISO 9001:2008 certificate and the information we got during the auditing, our recommendations are as follows: recruit a Quality Manager recruit a Sales & Marketing Manager implement a quality policy implement a Quality Management System make a market scan to know the customers‟ requirements improve the product and the quality of product and service establish and improve quality tools (e.g. guests‟ surveys, PDCA-cycle) train the employees improve the internal communication monitor and document all processes The more detailed instructions are mentioned in the „Gantt Chart‟ (see appendix 10) and in the Customized Business Balanced Scorecard (see PART II). If the „Red Carpet Hotel‟ follows all our recommendations, the hotel will be ISO certified within one year.

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6 Cost Estimates for Improvements
6.1 Staff-Training
„The greater the investment in employee training, the more profitable the firm‟, was the outcome of an international survey of more than 5000 organizations in 2006 by B. Hansson, Personnel Review. Besides that, it can pay off in more capable and loyal workers. The ISO 9001:2008 certificate requires trainings to achieve the necessary competence of the staff. To develop a training program, we have to weigh the cost of the current problem against the cost of training to eliminate it.

The total costs of complaints for 2012 are € 51.681,00 (see appendix 2 „Adjustment cost due to guest complaints‟ and „Complaint handling‟). Due to the internet review websites, 15,15 % of the complaints are attributable to staff (see appendix 1 „Pareto Chart‟). So the total costs of complaints about staff are € 7.829,67. Another cost factor is the rework due to miscommunication, which is € 46.759,00 (see appendix 2).

So the total costs of the current problem related to staff are € 54.588,67. The hotel should try to spend not more than that on trainings. Concerning to historical data, the approximate costs for trainings per employee per year are € 890,00. Attributable to this data, the „Red Carpet‟ would have to invest € 73.870,00 for 83 employees.

To reduce those costs to € 19.281,33, the hotel can make use of different tactics: Look inside Employees in the organization may be a rich source of training expertise and the relevance of the training can be built in when it comes from someone inside the organization. If certain employees get professionally trained once, they can train the other employees of the company. To improve their performance, programs like train-the-trainer would be applicable for that.

Focus training on what is needed Targeting training to specific gaps can make the training budget go further. Capitalize on reduced costs of online training Online training offers the advantage of lower costs and getting training content out to more people than traditional classroom training can. To check the effort of the trainings it is useful to hire a Quality Manager (which is also required by ISO 9001:2008). He or she can keep track and coordinate the trainings themselves.

6.2 Quality Manager and Sales & Marketing Manager
The ISO 9001:2008 certificate requires that the top-management appoints an employee, who is responsible for the quality of the hotel. A Quality Manager ensures that the processes needed for the quality management system are established, implemented, maintained and improved if necessary. Currently the Quality Related Costs are € 246.101,00 (see appendix 2). We estimate a decrease to € 142.036,00 by appointing a Quality Manager.

Based on historical data, the approximate gross-salary for a Quality Manager is around € 55.000,00 per year. The selection and recruitment costs have to be added to that. The average costs for outsourced recruitment for a management position are around € 18.000,00 – € 24.800,00. So the total costs for the hotel to implement the Quality-Manager position in their hotel in the first year are around € 76.400,00.

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Quality Management Final Report 2012/2013 Team L9 The Hague

ISO also requires that the organization provides the resources needed to enhance the customer satisfaction by meeting the customer requirements. Whereas the work to receive those resources is very extensive and requires certain knowledge, the „Red Carpet Hotel‟ should implement the position of a Sales & Marketing Manager.

At the moment, the net revenue of the hotel is € 6.578.090,00. By appointing a Sales and Marketing Manager, we estimate additional net revenue of € 500.000,00 in the first year. Based on historical data, the approximate gross-salary for a Sales & Marketing Manager is around € 70.000,00. To recruit and select an applicant for this position, recruitment costs around € 18.000,00 – € 24.800,00 have to be added. So the total costs for the hotel to implement the Sales & Marketing Manager position in their hotel in the first year are around € 91.400,00.

6.3 Conclusion
To achieve a higher quality of the performance of the „Red Carpet Hotel´s‟ employees, we want to replace the costs related to staff failure by the costs related to staff trainings. The new Quality Manager will be in charge of these trainings and the quality related to that. He/she will also be in charge of the other causes accrued to unsatisfying quality and the costs related to them. The new Sales & Marketing Manager will ensure that the requirements of the targeted customers are met to raise customer satisfaction and hotel‟s revenue.

So the approximate costs for the trainings and new positions for the upcoming year will be around € 222.400,00. Thus we estimated a decrease in quality related costs to € 142.036,00 and additional revenue of € 500.000,00, the „Red Carpet Hotel‟ can expect a profit of € 135.575,33 by implementing trainings and appointing a Quality Manager and a Sales & Marketing Manager.

Profit and loss before and profit and loss after one year. Property Costs of complaints due to staff rework due to miscommunication Profit and loss before -€ 7.829,67 -€ 46.759,00 -€ 54.588,67 -€ 76.400,00 -€ 91.400,00 Quality related costs (besides the above mentioned) -€ 191.512,33 -€ 142.036,00 Trainings Quality Manager Sales & Marketing Manager Quality related costs Profit and loss after one year Property

+€500.000,00

Additional Revenue due to better targeting and customer focus Total

Total

-€ 246.101,00

+€ 135.575,33

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Quality Management Final Report 2012/2013 Team L9 The Hague

PART II: Customized Business Balanced Scorecard Proposal
1 Introduction
In order to get the ISO 9001:2008 certificate some changes are necessary for the „Red Carpet Hotel‟. These changes should implement a better quality and therefore lead to a higher guest‟s satisfaction. To improve the quality of a hotel the Business Balanced Scorecard (BSC) is a very helpful management tool. With this tool all concrete goals and the way how to achieve them can be defined. The BSC was created by Robert S. Kaplan and David P.

Norton and since more than 20 years it is one of the most used management tools. Instead of looking backwards, with implementing the BSC a company is looking and moving forwards. In the middle of the BSC stands the vision and mission of the company. Around that, there are the four affected perspectives: Financial perspective Customer perspective Learning and Growth Internal Business Processes Due to the changes regarding to the implementation of the ISO 9001:2008 certificate, we created a customized Business Balance Scorecard for the Red Carpet Hotel.

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2 The Strategy and the four BSC dimensions
2.1 Vision and Mission
„Happy guests result from happy staff which leads to a good product, which in turn ensures ultimate loyalty‟ – as the current vision of the hotel is not suitable for the ISO 9001:2008, the management needs to implement a new vision and mission. As a four-star-hotel the main focus of the new Quality Management System should be high quality in production and delivery. With more information about the guest‟s requirements the product and service can be improved, which leads to the current main goal of the hotel – to maximize guests‟ satisfaction. To become the leading hotel in the area of Budva, not only the target market should be analysed, an analysis of the surrounding area and the culture is necessary as well.

2.2 Financial Perspective
Many companies focus their financial perspective on three major statements: to survive, to succeed and to prosper. As the „Red Carpet Hotel‟ had expected a profit of € 466.420,00 (see appendix 3), but performed a loss of € 288.825,00 there need to be some changes. The costs due to guests’ complaints (see appendix 2 – „Adjustment cost due to guest complaints‟ and „Complaints handling‟) should be dissolved within 3 years. To decrease these costs, the hotel‟s staff should react on complaints immediately and resolve the cause and make sure that it will not happen again. Furthermore it is very important to learn how to react on complaining customers, that they are not annoyed.

This can be learned in special trainings. Not only costs are reduced, also the customers‟ satisfaction increases and therefore the quality of the „Red Carpet Hotel‟. The communication between the different departments does not work very well and that leads to high costs due to internal miscommunication (see appendix 2 – „Rework due to internal miscommunication‟). Especially during the last year these costs were doubled.

To decrease them again, the departmental managers should sit together in meetings at least three times a week to share their information about the customers. The shared information is then told to the employees and so everyone knows everything important about the guests and there is no internal miscommunication that affects the daily workflow.

2.3 Customer Perspective
As there are lots of complaints, the customers’ satisfaction should be improved. Therefore the hotel needs to make a detailed analysis of the target market to figure out all the guests‟ needs and wants. With this information an improved and personalized product can be offered, based on the guests‟ requirements which meets their expectations and leads to high satisfaction. The information has to be continuously improved.

Quality Management Final Report 2012/2013 Team L9 The Hague

The feedbacks and surveys are a good possibility to check the satisfaction continuously. To get informed about the guests‟ opinion, more feedbacks and surveys need to be handed in. Therefore the hotel should promote them in the rooms, at the reception, at the bar and in all other public areas of the hotel.

Furthermore the loyalty of guests should be improved. With the detailed target market analysis (as mentioned above) the products are more suitable to the hotel‟s customers which leads to higher satisfaction and the result is that the guests tell their friends about it and come back. Positive word-ofmouth and regular guests reflect a well performing and high quality of the hotel.

2.4 Learning and Growth
As we noticed that many complaints are due to the staff’ performance, this issue should be improved as well to reach a higher guests‟ satisfaction. With implementing the detailed and specific SOP‟s for each department, the employees are better prepared and can perform more effective.

The meetings and shared information between the different departments (as mentioned in 2.2 Financial Perspective), as well as additional trainings for each department help to improve the quality of the performance. The effect of these trainings are displayed in the customer‟s comment cards (e.g. „service knowledge‟) To make sure that the hotel hires the best staff, the qualification level at the hiring process should be higher. For example there need to be a higher level of language skills set.

At least English is necessary to work in an international hotel. Even the education and the work experience should be improved and the hotel needs to set higher standards for the hiring process. Furthermore the management of the „Red Carpet Hotel‟ should implement extra trainings. With all these additional trainings and the higher education, the employees could be empowered. They can be responsible for more parts of their work and therefore the staff works more independently, which raises the level of quality.

2.5 Internal Business Processes
With establishing a new Quality Management System, internal processes are automatically affected. The main goal of the QMS and the associated Standard Operational Procedures is to monitor and document every process in accordance to fulfil everything on the ISO 9001:2008 checklist (see appendix 7). As mentioned above (see 2.2 Financial Perspective) the costs due to complaints are too high.

The number of complaints should be lower. Therefore the hotel‟s staff needs to react on complaints and resolve the causes to make sure that it will not dissatisfy a guest again. After three years all the causes should be identified and resolved. No dissatisfying situations
lead to no more complaints.

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Quality Management Final Report 2012/2013 Team L9 The Hague

PART III: Appendices
1 Pareto Analysis

Complaint-Review-Impact on potential customers based on a travel review website

Complain Quantity Quantity % Helpful Review Impact on potential customer Cumulative % Food 8 24,24 31 248 44,21 Pool & Beach 5 15,15 26 130 67,38 Staff 5 15,15 16 80 81,64 All inclusive 4 12,12 8 32 87,34 Rooms 3 9,09 9 27 92,16 Security 3 9,09 7 21 95,90 Reservation 3 9,09 5 15 98,57 Others Sum 2 33 6,06 100 4 106 8 561 100,00

300 250

200
150 100 50 0

100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00

Impact on potential customer Cumulative %

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Quality Management Final Report 2012/2013 Team L9 The Hague

2 Quality Related Costs

Red Carpet Hotel
YTD – 2012 Quality Related Costs Rework due to internal miscommunication
Maintenance of facility & rooms Cost of non-confermance Adjustment cost due to guest complaints Complaints handling Waste Correcting imperfection € 246.101,00 € 46.759,00 € 39.376,00 € 34.454,00 € 27.071,00 € 24.610,00 € 19.688,00 € 14.766,00 % of total costs YTD – 2013 Budget € 142.036,00 € 10.000,00 € 46.538,00 € 30.249,00 € 15.000,00 € 10.000,00 € 18.615,00 € 11.634,00 2013 compared to 2012 57,7% 21,4% 118,2% 87,8% 55,4% 40,6% 94,5% 78,8%

19,0% 16,0% 14,0% 11,0% 10,0% 8,0% 6,0%

€ 240,000.00 € 200,000.00

€ 160,000.00 € 120,000.00
€ 80,000.00 € 40,000.00 €-

2012 2013

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Quality Management Final Report 2012/2013 Team L9 The Hague

3 Financial Performance
Red Carpet Hotel YTD – actual Total Revenue Rooms F&B Conference Telephone Other Income € € € € € € 6.578.090,00 1.704.079,00 1.787.668,00 2.843.605,00 42.678,00 200.060,00 25,905% 27,176% 43,228% 0,649% 3,041% % of total revenue € € € € € € YTD – budget 7.245.591,00 1.710.910,00 2.158.266,00 3.138.340,00 44.527,00 193.548,00 actual compared to budget -9,213% -0,399% -17,171% -9,391% -4,153% 3,365%

Rooms
F&B Conference Telephone Other Income

€ 8,000,000.00 € 7,000,000.00 € 6,000,000.00 € 5,000,000.00 € 4,000,000.00 € 3,000,000.00 € 2,000,000.00 € 1,000,000.00 €-

actual budget

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Quality Management Final Report 2012/2013 Team L9 The Hague

4 Ishikawa Diagram

Poor customer satisfaction of leisure and business guests. To visualize the causes and effects of the poor customer satisfaction of the ‘Red Carpet’, we created an Ishikawa (or Fishbone) diagram. Causes are grouped into the main categories Product Methods Manpower Material and potential factors causing the effect poor customer satisfaction are linked to those.

1. Product One cause of the insufficient product realization to satisfy the customers of the Hotel is the Food and Beverage Department. 44,52 % of the guest complains were caused by unsatisfying quality of that department. Leaning on an online review website and the comment cards, the guests are not satisfied with the taste of the food, as the food is often not cooked well. Furthermore, there is a weak variation of the buffet for all-inclusive guests, as guests complained for example about repetitive meals every night and a poor snack choice.

Food and drinks for diabetic guests is not offered and only a poor choice for vegetarians available. Drinks for all-inclusive guests also have to be ordered at the Pool bar outside, which is unsatisfying, when it is raining. 23,34 % of the guests complains were about the Pool & Beach area. Being well booked, the hotel cannot provide its guests with enough sun beds or other possibilities to shelter from the sun.

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Quality Management Final Report 2012/2013 Team L9 The Hague

As there are no conference rooms there are no possibilities for business guests to hold conferences and meetings in the hotel, which causes a stay away of business guests.

2. Manpower The unfriendliness of the staff was mentioned many times by guests on the online review website. 14,36 % of the guest complaints were caused by the staff. Complaints by guests staying in the hotel were handled not at all or not satisfying by the staff and it was mentioned that employees often do not smile and are rude and dismissive to guests. Many employees do not speak English well and are unmotivated, which is also shown in the employee satisfaction survey. (November 2011, overall employee satisfaction: 2,6 / 5).

There is also a high absenteeism (5,95%) and turnover rate (3,3%) of employees, which has a bad influence on the day to day performance of the employees. The employees have a lack of previous work experience and knowledge, as there are not enough and poor trainings through the buddy system training.

3. Methods Methods and internal performance of the hotel also cause a low guest satisfaction. Rework due to internal miscommunication causes the highest quality related costs in the hotel (€ 46.759,00 in 2012). A documentation of processes, reviews and such does not take place regularly and important information is communicated only orally on a daily basis. Appraisals are yearly, thus employees are not on constantly on track of their own work performance, as suggestions for improvement and criticism are mostly given only during the process. Another cause is the organizational structure of the ‘Red Carpet Hotel’. It is difficult for the hotel to reach its customers, because there is no Sales and Marketing Manager and there is a too broad segmentation.

Furthermore, there is no person focused on the establishing, documentation, implementation and maintenance of a quality management system. A method to analyse guests‟ complaints is the comment card that is handed out to guests. That is seen as unimportant by the General Manager, who is in charge for those. Thus there are no regular analysis of the comment cards, no reactions towards the guests, criticised criteria not improved and the comment cards itself are not improved either.

4. Material In the Travel review website, guests repeatedly complained about the condition of the hotel rooms. There were for example dirty and burned stains on the sheets, the air conditioning was in a bad condition and there came a smell of sewage from the drain. A cot that was provided by the hotel was broke and not cleaned. The work equipment is only fixed, when breakage is already noticed and seldom replaced.

A preservation and routinely check of the equipment does not take place sufficiently, which also worsens the work flow of the employees. A telephone is missing in the reservation department, which makes communication between the guest and this department only in written form possible.

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5 Comment Cards
5.1 Analysis

Menu Choice % 2009 2010 2011 2012 Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent 15,2 84,8 12,6 87,4 11,6 88,4 15,9 84,1 σ 2,5 σ 2,6 σ 2,6 Ø σ 2,55 σ 2,5

Wine list % 2009 2010 2011 2012 Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent 17,3 82,7 10,8 89,2 10,3 89,7 14,2 85,8 σ 2,5 σ 2,7 σ 2,7 Ø σ 2,58 σ 2,4

Food prepared as ordered % 2009 2010 2011 2012 Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent 12,2 87,8 11,7 88,3 8,3 91,7 9,3 90,7 σ 2,8 σ 2,8 σ 2,6 Ø σ 2,7 σ 2,6

Reservation taking % 2009 2010 2011 2012 Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent 43 57 33,8 66,2 33,8 66,2 41,7 58,3 σ 1,7 σ 1,9 σ 1,9 Ø σ 1,78 σ 1,6

Quality Management Final Report 2012/2013 Team L9 The Hague

Server knowledge % 2009 2010 2011 2012 Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent 18,6 81,4 19,3 80,7 19,2 80,8 19,7 80,3 σ 2,3 σ 2,3 σ 2,3 Ø σ 2,3 σ 2,3

Timeliness of service % 2009 2010 2011 2012 Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent 27,4 72,6 18,2 81,8 16,9 83,1 21,5 78,5 σ 2,2 σ 2,4 σ 2,4 Ø σ 2,28 σ 2,1

Server friendliness and attentiveness % 2009 2010 2011 2012 Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent 38,8 61,2 45,6 54,4 42,8 57,2 44,4 55,6 σ 1,6 σ 1,6 σ 1,6 Ø σ 1,63 σ 1,7

Overall Experience % 2009 2010 2011 2012 Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent Poor|Fail Good|Excellent 16,2 83,8 11,4 88,6 11,8 88,2 9,7 90,3 σ 2,8 σ 2,6 σ 2,7 Ø σ 2,63 σ 2,4

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5.2 New Comment Card

Together for Quality
Name: ____________________________________ Date of visit _____________________________ Please rate your overall satisfaction

FOOD Presentation: Menu choice: Taste: Freshness: Special wishes: Excellent Excellent Excellent Excellent Excellent Good Good Good Good Good Fair Fair Fair Fair Fair Poor Poor Poor Poor Poor

Additional comments you want to tell us: __________________________________________

SERVICE Reservation taking: Server knowledge: Server appearance Timelineness of service Wine list Excellent Excellent Excellent Excellent Excellent Good Good Good Good Good Fair Fair Fair Fair Fair Poor Poor Poor Poor Poor

Additional comments you want to tell us: __________________________________________

AMBIANCE Lighting, decor Music: Temperature: to much to loud to warm appropriate comfortable comfortable too little to quiet to cold

Additional comments you want to tell us: ___________________________________________

OTHER Will you recommend us to other guests? YES NO. Why not? ______________________

If you would like to receive information about special events, offers or menus, please feel free to give us your email address. __________________________________________________________

Thank you very much for helping us improve

Quality Management Final Report 2012/2013 Team L9 The Hague

6 Employee Performance Check Sheet
Drinks Service Total Score: ___________ Date and Time: _____________________ Standard 1 2 Was the guest greeted within one minute after entering the bar? Was the drinks order taken within three minutes after placing the guest? Did the employee show well menu and product knowledge while taking the order? Did the employee offer a variety of brands / different sorts while taking the drinks order? Did the employee ask the guest, if he/she would like to eat in the bar; if yes, did the employee offer the menu? Was the right drink served within five minutes after the order? Were the drinks served and cleared with a tray? Did the employee pour the drinks in case of bottles/cans or mixed drinks in front of the guest?

In case of ordering the wine by the glass, did the employee show the bottle to the guest? Did the employee lay out ready a coaster, where he/she placed the drink? Did the employee place a coaster under the drink? Was the drink served in the correct and clean glass, with the corresponding trimming and a cocktail stirrer (if applicable)? Was the drink (if applicable) well cooled? Did the employee offer two different snacks? Did the employee serve the snacks with a napkin? Did the employee clean dirty tables immediately?

Did the employee offer another glass within two minutes, after the drink was emptied? Was the bill presented, within three minutes after request, in a clean billfold with a hotel-pen? Outlet: Rendez-Vous Bar Name of Employee: __________________________ Meet Below N/A

3

4

5

6 7 8

9

10

11

12 13 14 15 16

17

______________________
Signature checked employee

________________________
Signature checking employee

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Quality Management Final Report 2012/2013 Team L9 The Hague

7 ISO 9001:2008 Checklist
Quality Management System – ISO Design Requirements 4. Quality management
system 4.1 General requirements: Yes The organization shall establish, document, implement and maintain a quality management system and continually improve its effectiveness in accordance with the requirements of this International Standard. The organization shall: a. Determine the processes needed for the quality management system and their application throughout the organization b. Determine the sequence and interaction of these processes c.

Determine criteria and methods needed to ensure that both the operation and control of these processes are effective. d. Ensure the availability of resources and information necessary to support the operation and monitoring of these processes. e. Monitor, measure where applicable, and analyze these processes. better questionnaire; no analysis, responsible? Follow up?

No x

Partial

x x x X more
often,more details

x

f. Implement actions necessary to achieve planned results and x continual improvement of these processes. 4.2 Documentation requirements: XX 4.2.1 General: The quality management system documentation shall include: Yes No Partial a. Documented statements of a quality policy and quality x objectives. b.

A quality manual. (=employee handbook) x c. Documented procedures and records required by this x international Standards. d. Documents, including records, determined by the organization x to be necessary to ensure the effective planning, operation and control of its processes. 4.2.2 Quality manual: The organization shall establish and maintain the quality manual that includes: Yes a. The scope of the quality management system, including details of and justification for any exclusion. No Partial X are procedures explained in training?

b. The documented procedures established for the quality x management system, or reference to them. c. A description of the interaction between the processes of x the quality management system. – q tools – ikashawa – mang, responsibilities, policies, resources, 4.2.3 Control of documents: Documents required by the quality management system shall be controlled. Records are a special type of document and shall be controlled according to the requirements. A documented procedure shall be established to define the controls needed: Yes No Partial

a. To approve documents for adequacy prior to issue. x b. To review and update as necessary and re-approve documents. x c. To ensure that changes and the current revision status of documents are x identified. d. To ensure that relevant versions of applicable documents are available at x points of use.

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Quality Management Final Report 2012/2013 Team L9 The Hague

e. To ensure that documents remain legible and readily identifiable. f. To ensure that documents of external origin determined by the organization to be necessary for the planning and operation of the quality management system are identified and there distribution controlled. g. To prevent the unintended use of obsolete documents, and to apply suitable identification to them if they are retained for any purpose. 5. Management Responsibility 5.1 Management commitment: Yes Top management shall provide evidence of its commitment to the development and implementation of the quality management system and continually improving its effectiveness:

a. Communicating to the organization the importance of meeting customer as well as statutory and regulatory requirements. b. Establishing the quality policy. c. Ensuring that quality objectives are established. d. Conducting management reviews. e. Ensuring the availability of resources. 5.2 Customer focus Yes Top management shall ensure that customer requirements are determined and are met with the aim of enhancing customer satisfaction (see 7.2.1 and 8.2.1). 5.3 Quality policy:

Top management shall ensure that the quality policy: Yes a. Appropriate to the purpose of the organization. b. Includes a commitment to comply with requirements and continually improve the effectiveness of the quality management system. c. Provides a framework for establishing and reviewing quality objectives. d. Is communicated and understood within the organization. e. Is reviewed for continuing suitability.

5.4 Planning: 5.4.1 Quality objectives Yes Top management shall ensure that quality objectives, including those needed to meet requirements for product [see 7.1 a)], are established at relevant functions and levels within the organization. The quality objectives shall be measurable and consistent with the quality policy. 5.4.2 Quality management system planning: Top management shall ensure that: a. The planning of the quality management system is carried out in order to meet the requirements. b.

The integrity of the quality management system is maintained when changes to the quality management system are planned and implemented. 5.5 Responsibility, authority and communication: 5.5.1 Responsibility and authority Yes Top management shall ensure that responsibilities and authorities are defined and communicated within the organization. 5.5.2 Management representative: Yes Top management shall appoint a member of the organizations management who, irrespective of other responsibilities, shall have responsibility and authority that includes: a. Ensuring that processes needed for the quality management system are established, implemented and maintained. b. Reporting to top management on the performance of the quality management system and any need for improvement. Yes

x x

x

No

Partial

x x x x x No x Partial

No x x x

Partial

x x

No x

Partial

x No x x Partial

No x

Partial

No

Partial

x x

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Quality Management Final Report 2012/2013 Team L9 The Hague

c. Ensuring the promotion of awareness f customer requirements throughout the organization. NOTE The responsibility of a management representative can include liaison with external parties on matters relating to the quality management system. 5.5.3 Internal communication Yes Top management shall ensure that appropriate communication processes are established within the organization and that communication takes place regarding the effectiveness of the quality management system. 5.6 Management review

5.6.1 General Yes Top management shall review the organization’s quality management system, at planned intervals, to ensure its continuing suitability, adequacy and effectiveness.

This review shall include assessing opportunities for improvement and the need for changes to the quality management system, including the quality policy and quality objectives. Records from management reviews shall be maintained . 5.6.2 Review input: The input to management review shall include information on: a. Results of audits. b. Customer feedback. c. Process performance and product conformity. d.

Status of preventive and corrective actions. e. Follow-up actions from previous management reviews. f. Changes that could affect the quality management system. g. Recommendations for improvement. 5.6.3 Review output: The output from the management review shall include any decision and action related to: a. Improvement of the effectiveness of the quality management system and processes b. Improvement of product related to customer requirements. c. Recourse needs. Yes

x

No

Partial x

No

Partial x

x

x No X X X X X X x No Partial

Yes

Partial x x

x

6. Resource management (SOP)
6.1 Provision of resources: The organization shall determine and provide the resources needed: a. To implement and maintain the quality management system and continually improve its effectiveness. b. To enhance customer satisfaction by meeting customer requirements. 6.2 Human resources 6.2.1 General Personnel performing work affecting conformity to product requirements shall be competent on the basis of appropriate education, training, skills and experience. NOTE Conformity to product requirements can be affected directly or indirectly by personnel performing any task within the quality management system.

6.2.2 Competence, training and awareness: The organization shall: a. Determine the necessary competence of personnel performing work affecting conformity to product requirements. b. Where applicable, provide training or take other actions to achieve the necessary competence. c. Evaluate the effectiveness of the actions taken. d. Ensure that its personnel are aware of the relevance and importance of their activities and how they contribute to the achievement of the quality objectives. Yes x No Partial

x

Yes

No x

Partial

Yes

No x

Partial

x x x

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Quality Management Final Report 2012/2013 Team L9 The Hague

e. Maintain appropriate records of education, skills and experience. 6.3.
Infrastructure: The organization shall determine provide and maintain the infrastructure needed to achieve conformity to product requirements. Infrastructure includes, as applicable: a. Buildings, workspace and associated utilities. b. Process equipment (both hardware and software). c. Supporting services (such as transport or communication or information systems). 6.4 Work environment

The organization shall determine and manage the work environment needed to achieve conformity to product requirements. NOTE The term “work environment” relates to those conditions under which work is performed including physical,environmental and other factors (such as noise, temperature, humidity, lighting or weather). 7 Product realization 7.1 Planning of product realization: Yes The organization shall plan and develop the processes needed for product realization.

Planning of product realization shall be consistent with the requirements of the other processes of the quality management systems. In planning product realization, the organization shall determine the following, as appropriate: a. Quality objectives and requirements for the products. b. The need to establish processes and documents, and to provide resources specific to the product. c. Required verification, validation, monitoring, measurement, inspection and test activities specific to the product and the criteria for product acceptance. d. Records needed to provide evidence that the realization processes and resulting product meet requirements. (see 4.2.4).

The output of this planning shall be in a form suitable for the organization’s method of operations. NOTE 1 A document specifying the processes of the quality management system (including the product realization processes) and the resources to be applied to a specific product, project or contract, can be referred to as a quality plan. NOTE 2 The organization may also apply the requirements given in 7.3 to the development of product realization processes. 7.2 Customer-related processes 7.2.1 Determination of requirements related to the product

The organization shall determine: a. Requirements specified by the customer, including the requirements for delivery and post-delivery activities. b. Requirements not stated by the customer but necessary for specified or intended use, where known. c. Statutory and regulatory requirements applicable to the product. d. Any additional requirements considered necessary by the organization. 7.2.2 Review of requirements related to the product: The organization shall review the requirements related to the product.

This review shall be conducted prior to the organization’s commitment to supply a product to the customer((e.g. submission of tenders, acceptance of contracts or orders, acceptance of changes to contracts or orders) And shall ensure that: a. Product requirement are defined. Yes

x No Partial

x x x

Yes x

No

Partial

No

Partial x x

Yes

No x

Partial

x x x x

Yes

No x x x x

Partial

Yes

No x x

Partial

x

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Quality Management Final Report 2012/2013 Team L9 The Hague

b. Contract or order requirements differing from those previously expressed are resolved. c. The organization has the ability to meet the defined requirements. Records of the results of the review and actions arising from the review shall be maintained (see 4.2.4). Where the customer provides no documented statement of requirement, the customer requirements shall be confirmed by the organization before acceptance.

Where product requirements are changed, the organization shall ensure that relevant documents are amended and that relevant personnel are made aware of the changed requirements. NOTE In some situations, such as internet sales, a formal review is impractical for each order. Instead the review can cover relevant product information such as catalogues or advertising material.

7.2.3 Customer communication: The organization shall determine and implement effective arrangements for communicating with customers in relation to: a. Product information. b. Enquiries, contracts or order handling, including amendments. c. Customer feedback, including customer complaints. 7.3 Design and development: 7.3.1 Design and development planning: The organization shall plan and control the design and development of product. During the design and development planning, the organization shall determine: a. The design and development stages. b. The review, verification and validation that are appropriate to each design and development stage. c. The responsibilities and authorities for design and development.

The organization shall manage the interfaces between different groups involved in design and development to ensure effective communication and clear assignment of responsibility. Planning output shall be updated, as appropriate, as the design and development progresses. NOTE Design and development review, verification and validation have distinct purposes. They can be conducted and recorded separately or in any combination, as suitable for the product and the organization. 7.3.2 Design and development inputs: Yes Inputs relating to product requirements shall be determined and records maintained (see 4.2.4).

These inputs shall include: a. Functional and performance requirements. b. Applicable statutory and regulatory requirements. c. Where applicable, information derived from previous similar designs. d. Other requirements essential for design and development. The inputs shall be reviewed for adequacy. Requirements shall be complete, unambiguous and not in conflict with each other.

7.3.3 Design and development output: Yes The output design and development shall be in a form suitable for verification against the design and development input and shall be approved prior to release. Design and development output shall: a. Meet the input requirements for design and development. b. Provide appropriate information for purchasing, production and service provision. c. Contain or reference product acceptance criteria. d. Specify the characteristics of the product that are essential for its safe and Yes No

x x

Partial x

x x

Yes

No x x x x x

Partial

x

No

Partial

x x x x

No

Partial

x x x x

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Quality Management Final Report 2012/2013 Team L9 The Hague

proper use. 7.3.4 Design and development review: Yes At suitable stages, systematic reviews of design and development shall be performed in accordance with planned arrangements: a. To evaluate the ability of the results of design and development to meet requirements. b. To identify any problems and propose necessary actions. Participants in such reviews shall include representatives of functions concerned with the design and development stage(s) being reviewed. Records of the results of the reviews and any necessary actions shall be maintained (see 4.2.4).

7.3.5 Design and development verification Yes Verification shall be performed in accordance with planned arrangements (see 7.3.1) to ensure that the design and development outputs have met the design and development input requirements. Records of the results of the verification and any necessary actions shall be maintained (see 4.2.4). 7.3.6 Design and development validation Yes Design and development validation shall be performed in accordance with planned arrangements (see 7.3.1) to ensure that the resulting product is capable of meeting the requirements for the specified application or intended use, where known.

Wherever practicable, validation shall be completed prior to the delivery or implementation of the product. Records of the results of validation and any necessary actions shall be maintained (see 4.2.4). 7.3.7 Control of design and development changes Yes Design and development changes shall be identified and records maintained. The changes shall be reviewed, verified and validated, as appropriate, and approved before implementation.

The review of design and development changes shall include evaluation of the effect of the changes on constituent parts and product already delivered. Records of the results of the review of changes and any necessary actions shall be maintained (see 4.2.4). 7.4 Purchasing: 7.4.1 Purchasing process Yes The organization shall ensure that purchased product conforms to specified purchase requirements. The type and extent of control applied to the supplier and the purchased product shall be dependent upon the effect of the purchased product on subsequent product realization or the final product. The organization shall evaluate and select suppliers based on their ability to supply product in accordance with the organization’s requirements.

Criteria for selection, evaluation and re-evaluation shall be established. Records of the results of evaluations and any necessary actions arising from the evaluation shall be maintained (see 4.2.4). 7.4.2 Purchasing information: Yes Purchasing information shall describe the product to be purchased, including, where appropriate: a. Requirements for approval of product, procedures, processes and equipment. b. Requirements for qualification of personnel. c. Quality management system requirements. The organization shall ensure the adequacy of specified purchase requirements prior to their communication to the supplier. 7.4.3 Verification of purchased product Yes No No Partial

x x

No x

Partial

x

No x

Partial

x

No x

Partial

x

No

Partial x

x

x

Partial

x x x x

No

Partial

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Quality Management Final Report 2012/2013 Team L9 The Hague

The organization shall establish and implement the inspection or other activities necessary for ensuring that purchased product meets specified purchase requirements. Where the organization or its customer intends to perform verification at the supplier’s premises, the organization shall state the intended verification arrangements and method of product release in the purchasing information. 7.5 Production and service provision: 7.5.1 Control of production and service provision: The organization shall plan and carry out production and service provision under controlled conditions.

Controlled conditions shall include, as applicable: a. The availability of information that describes the characteristics of the product. b. The availability of work instructions, as necessary. c. The use of suitable equipments. d. The availability and use of monitoring and measuring equipment. e. The implementation of monitoring and measurement. f. The implementation of product release, delivery and post delivery activities. 7.5.2 Validation of processes for production and service provision:

x

x

Yes

No

Partial

x x x x x x Yes No Partial

The organization shall validate any processes for production and service provision where the resulting output cannot be verified by subsequent monitoring or measurement and, as a consequence, deficiencies become apparent only after the product is in use or the service has been delivered. Validation shall demonstrate the ability of these processes to achieve planned results: a. Defined criteria for review and approval of the processes. b. Approval of equipment and qualification of personnel. c. Use of specific methods and procedures. d. Requirements for records. e. Revalidation.

7.5.3 Identification and traceability Yes Where appropriate, the organization shall identify the product by suitable means throughout product realization. The organization shall identify the product status with respect to monitoring and measurement requirements throughout product realization.

Where traceability is a requirement, the organization shall control the unique identification of the product and maintain records (see 4.2.4). NOTE In some industry sectors, configuration management is a means by which identification and traceability are maintained. 7.5.4 Customer property Yes The organization shall exercise care with customer property while it is under the organization’s control or being used by the organization.

The organization shall identify, verify, protect and safeguard customer property provided for use or incorporation into the product. If any customer property is lost, damaged or otherwise found to be unsuitable for use, the organization shall report this to the customer and maintain records (see 4.2.4). NOTE Customer property can include intellectual property and personal data. 7.5.5 Preservation of product Yes The organization shall preserve the product during internal processing and delivery to the intended destination in order to maintain conformity to requirements. As applicable, preservation shall include identification, handling, packaging, storage and protection. Preservation shall also apply to the constituent parts of a product.

x x x x x No x x x Partial

No

Partial x x x

No

Partial x

x x

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Quality Management Final Report 2012/2013 Team L9 The Hague

7.6 Control of monitoring and measuring equipment: Yes The organization shall determine the monitoring and measurement to be undertaken and the monitoring and measuring equipment needed to provide evidence of conformity of product to determine requirements.

The organization shall establish processes to ensure that monitoring and measurement can be carried out and are carried out in a manner that is consistent with the monitoring and measurement requirements. Where necessary to ensure valid results, measuring equipment shall: a. Be calibrated or verified, or both, at specified intervals, or prior to use, against measurement standards traceable to international or national measurement standards; where no such standards exist, the basis used for calibration or verification shall be recorded. b. Be adjusted or re-adjusted as necessary.

c. Have identification in order to determine its calibration status. d. Be safeguarded from adjustments that would invalidate the measurement results. e. Be protected from damage and deterioration during handling, maintenance and storage. In addition, the organization shall assess and record the validity of the previous measuring results when the equipment is found not to conform to requirements.

The organization shall take appropriate action on the equipment and any product affected. Records of the results of calibration and verification shall be maintained (see 4.2.4). When used in the monitoring and measurement of specified requirements, the ability of computer software to satisfy the intended application shall be confirmed. This shall be undertaken prior to initial use and reconfirmed as necessary. NOTE Confirmation of the ability of computer software to satisfy the intended application would typically include its verification and configuration management to maintain its suitability for use. 8 Measurement, analysis and improvement 8.1 General:

Yes The organization shall plan implement the monitoring, measurement, analysis and improvement processes needed: a. To demonstrate conformity TP product requirements. b. To ensure conformity of the quality management system. c. To continually improve the effectiveness of the quality management system. This shall include determination of applicable methods, including statistical techniques, and the extent of their use. 8.2 Monitoring and measurement: 8.2.1 Customer satisfaction Yes As one of the measurements of the performance of the quality management system, the organization shall monitor information relating to customer perception as to whether the organization has met customer requirements.

The methods for obtaining and using this information shall be determined. NOTE Monitoring customer perception can include obtaining input from sources such as customer satisfaction surveys, customer data on delivered product quality, user opinion surveys, lost business analysis, compliments, warranty claims and dealer reports. 8.2.2 Internal audit: Yes The organization shall conduct internal audits at planned intervals to determine whether the quality management system: a. Conforms to the planned arrangements, to the requirements of this international standard and to the quality management system requirements No No Partial x No Partial No x Partial

x

x

x x x x x x x x

x x x

x

Partial

x

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Quality Management Final Report 2012/2013 Team L9 The Hague

established by the organization. b. Is effectively implemented and maintained. An audit programme shall be planned, taking into consideration the status and importance of the processes and areas to be audited, as well as the results of previous audits. The audit criteria, scope, frequency and methods shall be defined. The selection of auditors and conduct of audits shall ensure objectivity and impartiality of the audit process. Auditors shall not audit their own work. A documented procedure shall be established to define the responsibilities and requirements for planning and conducting audits, establishing records and reporting results.

Records of the audits and their results shall be maintained. The management responsible for the area being audited shall ensure that any necessary corrections and corrective actions are taken without undue delay to eliminate detected nonconformities and their causes. Follow-up activities shall include the verification of the actions taken and the reporting of verification results (see 8.5.2). 8.2.3 Monitoring and measurement of processes Yes The organization shall apply suitable methods for monitoring and, where applicable, measurement of the quality management system processes. These methods shall demonstrate the ability of the processes to achieve planned results.

When planned results are not achieved, correction and corrective action shall be taken, as appropriate. NOTE When determining suitable methods, it is advisable that the organization consider the type and extent of monitoring or measurement appropriate to each of its processes in relation to their impact on the conformity to product requirements and on the effectiveness of the quality management system. 8.2.4 Monitoring and measurement of product Yes The organization shall monitor and measure the characteristics of the product to verify that product requirements have been met.

This shall be carried out at appropriate stages of the product realization process in accordance with the planned arrangements (see 7.1). Evidence of conformity with the acceptance criteria shall be maintained. Records shall indicate the person(s) authorizing release of product for delivery to the customer (see 4.2.4). The release of product and delivery of service to the customer shall not proceed until the planned arrangements (see 7.1) have been satisfactorily completed, unless otherwise approved by a relevant authority and, where applicable, by the customer.

8.3 Control of nonconforming product: The organization shall ensure that product which does not conform to product requirements is identified and controlled to prevent its unintended use or delivery.

A documented procedure shall be established to define the controls and related responsibilities and authorities for dealing with nonconforming product. Where applicable, the organization shall deal with nonconforming product by one or more of the following ways: a. By taking action to eliminate the detected nonconformity. b. By authorizing its use, release or acceptance under concession by a relevant authority and, where applicable, by the customer. c. By taking action to preclude its original intended use or application. d. By taking action appropriate to the effect, or potential effects, of the nonconformity when nonconforming product is detected after delivery or use has started.

When nonconforming product is corrected it shall be subject to re-verification to demonstrate conformity to the requirements. Yes x

x x

x x x x

x x

x

No

Partial x x x

No

Partial x

x x

No

Partial

x

x x x x

x

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Quality Management Final Report 2012/2013 Team L9 The Hague

Records of the nature of nonconformities and any subsequent actions taken, including concessions obtained, shall be maintained . 8.4 Analysis of data: Yes The organization shall determine, collect and analyse appropriate data to demonstrate the suitability and effectiveness of quality management system and to evaluate where continual improvement of the effectiveness of the quality management system can be made. This shall include data generated as a result of monitoring and measurement and from other relevant sources.

The analysis of data shall provide information relating to: a. Customer satisfaction. b. Conformity to product requirements. c. Characteristics and trends of processes an products, including opportunities for preventive action (see 8.2.3 and 8.2.4) d. Suppliers (see 7.4). 8.5 Improvement: 8.5.1 Continual improvement The organization shall continually improve the effectiveness of the quality management system through the use of the quality policy, quality objectives, audit results, analysis of data, corrective and preventive actions and management review. 8.5.1 Corrective action: Yes The organization shall take action to eliminate the causes of nonconformities in order to prevent recurrence.

Corrective actions shall be appropriate to the effects of the nonconformities encountered. A documented procedure shall be established to define requirements for: a. Reviewing nonconformities. b. Determine the causes of nonconformities. c. Evaluating the need for action to ensure that nonconformities do not recur. d. Determining and implementing action needed. e. Records of the results of action taken. f. Reviewing the effectiveness of the corrective action taken.

8.5.2 Preventive action: Yes The organization shall determine action to eliminate the causes of potential nonconformities in order to prevent their occurrence. Preventive actions shall be appropriate to the effects of the potential problems. A documented procedure shall be established to define requirements for: a. Determining potential nonconformities and there causes. b. Evaluating the need for action to prevent occurrence of nonconformities. c. Determine and implementing action needed. d. Records of results of action taken (see 4.2.4),. e. Reviewing the effectiveness of the preventive action taken.

x

No

Partial x

x x x x

Yes

No

Partial x

No

Partial x

x x x x x x No x Partial

x x x x x

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Quality Management Final Report 2012/2013 Team L9 The Hague

8. Interviews
8.1 GM Interview Quality 1. What are your quality objectives and policies? – to provide the best service for guest, because happy guests come through a good product – he has more a framework than SOPs, which means he checks the quality of the trained people daily 2. why? – when the employees happy, the guests happy –

Who implements them? – How do you communicate them to your employees? he is walking around in the hotel, checks point of sales and the rooms there is a direct communication, weekly meeting, newsletters, yearly meeting with employees and direct contact to other managers How do you ensure that your employees are aware of the importance of their activities to reach the objectives? When the employees are hired they have to know the objectives already. The HR department sees if they have spirit or not or if they have earlier experience.

There is a severe selection by the HR department. Furthermore the GM himself checks daily on the employees. through the buddy system – Do you document them? No, just in the vision and mission 3. Are you the only Quality Manager? – yes, but the middle management can take action to reach a proper quality – they have to check the quality of their department as well 4. Do you have SOPs for every department? If yes, how do you measure them?

There are SOPs in the drawer but they do not measure them How do you document them? There is no documentation How often do you control and improve them? the employees must know them and take action, when it is the time, if something goes wrong, they do not have time to look at SOPs and action needs to take place on the spot 5. What kind of documents do you implement in your QM- System? Who controls and checks them?

There is for example no checklist, it is all in his head. 6. You have notice boards, quarterly newsletters, bi-weekly management- and department meetings. Do you communicate important information to your employees on a daily basis? If yes, how do you do that?

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Quality Management Final Report 2012/2013 Team L9 The Hague

The GM sees nearly everybody everyday, if there is something important, he informs them personally, but there are no fixed meetings. 7. Is there a review of the QM- system at planned intervals with other members of top management? Do you maintain your records?

Just oral, then he checks if it happens or not he is final responsible, but every department is responsible for their departments there are the bi weekly meetings with managers and the newsletters for all employees if problems/complaints occur, he tells and ask the DM immediately and they decide together what to change everything happens on an oral basis 8. If there come up problems in the reviews concerning the QM- System (e.g. guest complaints), do you decide on a new effective process to improve? he decides on new processes immediately, when they occur with the department managers Human resources

1. Is there only one job description or do you specify them for each job? – for different jobs, there are different job descriptions 2. Who trains the employees? – they have the buddy system and the employees get on the spot trainings for example form HR department and Front Office staff, during the first four weeks, but no further trainings – English is a problem, because his local employees have a bad education, but he wants to support the local employees, so he rather employs them, even though they are not easy to work with

3. Who evaluates the effectiveness of the trainings? – Managers and himself check how new employees work 4. Do you record the trainings? – no Infrastructure 1. What kind of software do you use? – he does not know that, because it is the business of the financial department and the Front Office 2. Who is in charge for maintenance? – maintenance department 3. What happens to products with insufficient quality? – he tries to substitute as much as possible and repairs things, when it is possible Marketing 1. What is your Marketing strategy? – to fill hotel as much as possible

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Quality Management Final Report 2012/2013 Team L9 The Hague

– he wants to attract groups, leisure-, and business guests – the travel agencies help him with that Who is in charge for it, how do you promote the hotel? – through newspapers, magazines, travel agencies, his hotel website (which he does not understand) What is your target group? Costumers from not too far away, preferably the EU, people with money, middle age and older people with high positions and more money

2. How do you design your product? – Do you have any standards for design? – special promotions are printed in red and in big letters but there is no real design – there is no hotel logo or symbols – How do you monitor it? – Not at all. 3. Do you have other tools to measure customer satisfaction, besides the comment cards and Trip advisor? – him and the employees speak with the guests in person – the mystery visits are okay but he does not like them as much, as the information might be biased – He only sticks to it because at least it is a tool – the comment cards are not as reliable either in his opinion – he suggests ISO to design a tool to measure satisfaction Measurement

1. Do you do a benchmark analysis? – He looks at competitors, speaks with them and they establish prices together over dinner. – Then he looks if there is room to raise prices a little bit. How often do you do it? Once a year at the end of a season they meet to discuss how everything worked, where the costumers came from. How do you act on it? He does not really act on it, they exchange guests and recommend each other with the competition in the area.

2. Do you have an internal audit program? If yes, which one? – There is no internal audit program, everybody in the hotel takes care of the quality in the hotel. At the end of each season they see if they made profit or not and that is in a way his audit. 3. Is there a mission or core values? – Just like the vision, he wants happy employees with spirit and happy guests, he does not count on words on paper, he wants to see action and wants his employees to.

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Quality Management Final Report 2012/2013 Team L9 The Hague

8.2 DM Interview Financial Manager Quality 1. Does every department have its own quality manual? – He believes yes, everyone has their own manual, but he has nothing to do with manuals, since the GM coordinates it How often is it improved? – Whenever it is necessary and they feel of it, there is no fixed time or guideline. How do you react if an employee does not succeed the SOP´s in the manual? – He speaks to them and makes agreement or warning. They get 2 warnings, and a written warning then he has to take a consequence, so fire the employee

2. Do your employees have the required resources to perform successfully?(Equipment) – Yes there enough office equipment, like telephones, Fax, etc. 3. Do you review the performance of your employees and the customer satisfaction? employees: Yes, he reviews the performance, as soon as he sees something going wrong or good, then he speaks to them straight away, but there are no yearly appraisals.

Customer: There are not many complaints, but he looks for sources and tries to solve them right away – Regarding the costs, he just monitors it but does not do anything about it himself. 4. What kind of topic´s do you discuss during your bi-weekly meetings? – anything from which guests arrive, groups arrivals, forecasts, general business, guest complaints, also customer satisfaction and the performance of employees – They decide bonuses for employees together with the other managers. – Do you discuss: – Customer Satisfaction Performance of employees and Needs of improvement of the quality management system – If something is going wrong we discuss it. 5. You have 47.000€ costs due to miscommunication.

Why? What changed comparing to last year? – For example the kitchen is not informed about guests, or housekeeping about extra beds or what a transfer costs to bring a bed upstairs – every department works for its own, there is no aligned communication, but he discusses that in bi weekly meetings with his employees – Compared to last year, they want to become more efficient. – There was some downsizing, so they are expecting more from staff which was also causing a big miscommunication. – They had to give a higher payroll for employees because otherwise they would go to the competition. Job Requirements 1. What kind of selection criteria do you have?

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Quality Management Final Report 2012/2013 Team L9 The Hague

– for finance: background knowledge, a diploma depends on the position, but in general they must have some experience. – fluent English only matters for accounts receivable 2. What kinds of qualification are necessary for a position in middle management (i.e. FOM)? – Previous work experience, some kind of diploma

3. What do you do, to implement a good work-environment? – To provide all facilities to do a job, so the usual things, like cafeteria and such. Security 1. Do you protect and safeguard customer’s property and are you liable for this? – For example if something gets stolen they call the police and then they decide if the hotel compensates or not together with the GM 2. How do you secure personal data? – with a security software but they do not have a IT manager, so they do it themself or they hire somebody, because the hotel is too small for an IT team

Head Chef Communication 1. Are you satisfied with the communication between the departments? – it doesn’t affect him, he does his job, but he does communicate lots with the F&B manager and financial Controller, Quality & Design 1. Do you have standards to design your product in case of: Menu Dish itself (is it documented?) – if change of menu: factor. Availability of regional product, get suggestions, present it to management meeting – gets feedback- adjusts it, prepares dishes with recipe and comes up with final results, makes a presentation, than everyone gives feedback and he makes a standard recipe and controls 2. Do you change your standards regarding to special occasions? (i.e. seasonal) – yes

3. Do you document them? – no 4. How do you measure the quality of your products? he checks the meal before the waiter takes it 5. Do you review the performance of your employees and the customer satisfaction? Yes, he sees what is going on, because it is an open kitchen, so he can monitor the progresses and sees if everybody is on track or not

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Quality Management Final Report 2012/2013 Team L9 The Hague

is in contact with employees, human basis 6. What do you do with guest complaints? – If a guest is not happy he tries to prepare something news and discusses complaints in management meetings – they do not change menus, because it is difficult and too expensive. – there are no vegetarian dishes on the menu, but he can prepare it when the waiter tells him to

7. Do you discuss them with employees? – Yes 8. Is quality discussed with your staff? – If yes, is it daily? – yes, nearly minute by minute 9. Are you controlled via the HACCP-concept? – yes 10. Do your employees have the required resources to perform successfully?(Equipment) – How often do you control them? – What do you do with insufficient equipment? – Yes they have all equipment, if something brakes or does not function, they call maintenance Inventory/Purchase

1. What kind of inventory system do you have? -pin card system, always on track, order it compared to cards, count stock once a month they see the stock – but only when it is under a certain amount they count it once a month – Who is responsible for it? – responsible is finance department they also do inventory – What kinds of qualification does this person have 2. Does every department have influence on the choice of

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