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Table of contents
1.0- Synopsis of Case study........................................................................... 2.0 - Joses mission statements....................................................................... 3.0- Major issues........................................................................................... 4.0Definition of quality...............................................................................

5.0- Cost of poor quality............................................................................ 5.15.25.35.45.5Prevention cost................................................................................... Appraisal cost..................................................................................... Internal failure cost............................................................................. External failure cost............................................................................ Organizational ethics and quality........................................................

6.0- Tools for improving quality................................................................... 7.0- Employee involvement.......................................................................... 7.1- Problem solving team............................................................................ 7.2 Special purpose team............................................................................. 7.3- Self managed team................................................................................. 8.0- Continuous improvement....................................................................... 9.0- Six sigma improvement model............................................................... 10.0- Discussion and Conclusion.................................................................... 11.0- References.............................................................................................

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1.0 -

Synopsis of Case.

Joses Authentic Mexican Restaurant is located in New England in a mature business district on the edge of a large metropolitan area. Joses is a small 58-seat Restaurant that offers a reasonable menu in a traditional Mexican style. it is a Mexican restaurant that is why the restaurant interior decoration promotes the Mexican them. The walls appear to made of adobe and are draped with serapes, and the furniture is Spanish-Mexican style the background music is flamenco guitar and mariachi, Joses does not take reservations .being a traditional Mexican restaurant all its waiting staff are male. The menu consists of 23 main entrees which are assembled from eight basic stocks. (Chicken, beef, beans, rice, corn tortillas, flour tortillas, tomatoes and lettuce and a variety of other ingredients. Sauces, herbs and fruits, vegetables. The restaurant is having limited free parking for Joses customer, The meals are correct and pleasing to the eyes. The Joses accepts cash or major credit card but no checks. Joses sheaf at one occasion was complaining that the guilty of food was not good which was recently delivered, in return food preparation was taking longer then normal time, kertisky a waiting staff was also helping sheaf in some of the new material preparation while which was not his responsibility. Recently a customer satisfaction survey was conducted at Joses the results were as follows. The management of joses tries to improve and develop the services at joses for that they conducted the survey from the customer during the weekend in the evening time .which is the busy time of the joses restaurant and good time for survey so the management can get the point of view from a number of customers about joses restaurant. Customers survey results. Where you seated promptly? Yes 70, No 13 Was yours waiter satisfactory? Yes 73 No 10 Were you served in a reasonable time? Yes 58 No 25 Was your food enjoyable? Yes 72 No 11 Was your dining experience worth the cost? Yes 67 No16 Joses survey is signifying the areas where management need to look at it, and carry out important operational measures to address the demand or expectation of Joses customers.

2.0 -Q1: JOSES MISSION STATEMET.

Ans. Jose as a Mexican food restaurant is committed to serve their patrons in a Mexican tradition environment by keeping the restaurant internal decoration similar to the Mexican

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culture, in the same way joses want to serve Mexican food in a wide variety, and Joses is also pursuing to provide top quality food to their customers in return to gain their satisfaction by controlling time management in food preparation, food serving, minimizing customer waiting time, in order to improve the business by maintaining high quality and standard.

3.0- Major Issues:Joses has confront some of the major issues that have can access during the survey e.g.

Majority of the customer are not satisfied from the Joses service they received. There is improper waiting area with Joses in result patron how to wait outside the waiting area. During peak hours Joses staff is encountering us minutes to serve the customers. Joses do not take reservation. Joses is getting some time poor quality food from the supplier which is impacting the Joses quality. The above issues need to be addressed to enhanced integrated co-operation in Joses operation.

4.0- QI : HOW SHOULD QUALIY BE DEFINED AT THIS RESTAURANT.

Ans. Jose is the food restaurant as the food service provider, its patrons expecting high quality from the joses operation in term of food preparation, food serving time, food delivery time, both its internal and external customer will have the considerable impact from the service, quality is the core unit of the business success, customers always evaluate the service or product they receive. Joses responsibility is to satisfy their customer through the conformance specification of their processes of food service, quality and performance should be the top priority of the Joses management and operational teams. In other words when a process fails to satisfy a customer, the failure is considered a defect, in todays world many organisation spend time, efforts, and expense on system, training, and

organizational changes, to improve the quality and performance of their process, they believe that it is important to be able to gauge current levels performance so that any process gaps

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can be determined. gaps reflect potential dissatisfied customers and additional costs for the firm. There is artistry in the preparation of food; some food can be prepared to be delicious, while another recipe can make a dish that is repugnant. Whether the food is gourmet meal, a traditional Mexican recipe or a hamburger, the recipe can make it a hit or a mass. But note that taste of the food is not the quality of the food. The quality of a product is defined as whether it fulfils its stated and implied specification, the customer expects the food to be what is promised on the menu, to be cooked and prepared properly, to be clean and to have the correct flavour that is considered quality food. Customer satisfaction should be the top priority; high quality is achievable at lower costs at lower costs and greater customer satisfaction. Customer satisfaction is the measure or determination that a product or service meets a customer exceptions considering requirements of both quality and service. Joses restaurant must be depend on their customers and therefore should understand current and future customer requirement and strive to exceed customer expectations to meet the challenges. The more satisfier factors present, the higher customer satisfaction, Joses restaurant needs to illustrate to the customers that they are care for them and listen to their voice when they are not truly satisfied with the kind of services the restaurant provided, by measuring customer satisfaction and making customer needs visible, targets can be linked to customer expectation and performance of the organization optimized furthermore, other opponents to improve customer satisfaction for Joses restaurant includes; conformance to specification; value, fitness for use, support, however, psychological standard impression is also inconvincibly important to create in customer minds.

Moreover, customer defines quality through value. Value is the power of a good or service to command other goods in exchange for the present worth to typical users and investor of future benefits arising out of ownership of a property the amount of money deemed to be the equivalent in worth of subject property. Customers value is the one of the most important element of a business, Nevertheless Joses restaurant does not have it, and they need to improve their values more for the customer satisfaction. Poor customers value could cause a business thousands of dollars and also it credibility. The value of the customers must be heard at all the times. it is what attracts people to a business. Thus, when the customer are pleased they will become a long term assets to the restaurant.

Building strong customer relations can tie a customer and business together. When customers are satisfied they feel well treated and are willing to treat the business will in return.

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So the customer satisfaction will be the quality at this restaurant. The quality which will attract the customers, the quality which will maintain and flourish the business at Joses.

5.0- Q2: WHAT IS THE COST OF POOR QUALITY? Ans. When a process fails to satisfy a customer, the failure is considered a defect. Many companies spend a significant time, effort, and expenses, on system, training, and believe that it is important to be able to gauge current levels of performance of their processes, so that any process gap can be determined, Gaps reflect potential dissatisfied customers and additional costs for the firm, most experts estimate that the cost of quality range from 20 to 30 percent of gross sales, these costs can be broken down into four major categories; prevention, appraisal, internal failure, and external failure.

5.1-PREVENTION COSTS. Preventing costs are associated with preventing defects before they happen. They include the costs of redesigning the service or product to make it simpler to produce, training employee in the methods of continuous improvement, and working with suppliers to increase the quality of purchased items or contracted services. In order to prevent problems from happening, firms must invest additional time and money, In term of Joses restaurant significant amount of consideration needs for the prevention cost of quality in order to create customer satisfaction. 5.2- APPRAISAL COSTS. Appraisal costs are incurred when the firm assesses the level of performance of its process. Joses has recently done the survey which has provided a clear insight of restaurant performance in the mind of customers, the survey is providing the objective field for the management which need to be addressed. The appraisal costs evaluate prevention and performance in an organisation; appraisal cost decrease because fewer resources are needed for quality inspections and subsequent search for causes any problems that are detected.

5.3- INTERNAL FAILURE COSTS.

Internal failure costs result from defects that are discovered during the production of a service or product. In joses recently the waiting staff kertisky noted that the patrons have decrease giving tips, which is pointing towards some sort of Defects, defects fall into main categories: rework, which is incurred if some aspect of a service must be performed again or if a evidence item must be rerouted to

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some previous operation to correct the defects; and scrap, which is incurred if a defective item is unfit for further processing, for example, an analysis of the availability of acquiring a company might be sent back to the mergers and acquisitions department if an assessment of the companys history of environmental compliance is missing. The proposal for the purchase of the company may be delayed, which may result in the losses of purchase opportunity. 5.4-EXTERNAL FAILURE COST. External failure costs raises when a defect is discovered after customer receives the service or product. The customer pass on the information to another of their fallows who might use the service, or having intention to use the service, for instance if joses did not provide the tasty food to their customer which was their expectation, in return the customer will not think to use the service again, and at the same way will not recommend the joses to their friends for the service use. Dissatisfied customer talk about the bad service or product to their friends who in turn tells others. The potential impact on future profits is difficult to assess. But without doubt external failure costs erode market share and profits, Encountering defects and concerning them after the product is in the customers hands is costly. Joses has conducted the survey in which 25% of the patrons has raised the concern that they were not satisfied from the service they receive from josses, this situation is identifying the external failure of the joses. External failure costs also include warranty services and litigation costs. A warranty is a written guarantee that the producer will replace or repair defective parts or perform the service to the customer satisfaction. Usually warrantee is given for the specific time period. Warranty cost must be considered in the design of a new service or product. However in Joses study the fall in the number of customer has not identified, the survey has provide the concern of the customers, if they were not met the joses will have the above likely consequences.

5.5-ORGANIZATINAL ETHICS AND QUALITY.

External failure cost go beyond the out of pocket cost associated with warranties, litigation, or the lost sale from the disqualifies customer there is a greater societal effect that must be factored into decision making involving the production of services, or product, which often balancing the traditional measures of quality performance and the overall benefit of the society, it is not ethical to knowingly pass defective services or product to internal or external customer, the well being of all stakeholders, such as stakeholders, such as stockholders, customers, employee, partners, and creditors, should be considered.

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The quality costs of prevention, assessment, internal failure, and external failure, must be balanced with ethical consideration to arrive at the appropriate process and approaches to manage them. Joses sheaf has identified at one occasion the that the food were the poor quality the have received from the supplier, in the analysis of this fact that the sheaf have used that food for serving the patrons, nevertheless he was not satisfied from the quality, so ethics is need to be follow at this restaurant which will contribute to maintain the quality at ethical level.

6.0- Q2 -USE SOME OF THE TOOLS FOR IMPROVING QUALITY TO ASSESS THE SITUATION AT JOSES. The total quality management (TQM) is a tool that assess the situation at joses there are three main principles of TQM. Customer satisfaction, employee involvement, and continuous improvement. TQM is a quality management program and the way of Managing the operations process at business with the purpose to establish continues improvement objectives of a products and processes. It is an approach that motivates, supports, and enables quality management in all activities of the organization .TQM is a tool that recognizes and identifying the need to determine the customers expected requirements and uses that knowledge to create necessary changes in the operational system of the organization that can fully addressed the need of the customers. The TQM is one of the most important tool which is concern with the customer satisfaction, as customer satisfaction is one of the major issue at Joss restaurant for this reason achieving the top quality is the top priority at joses, buy using this tool it easy to determine and manage high quality at lower cost and greater customer satisfaction.

Joses restaurant must depend on their customers and there for should understand current and future customer needs, meet customer requirements, and strive to exceed customer expectation the more the customer satisfy the higher the jose;s will be successful. 7.0- EMPLOYEE ENVOLVEMENT. Employee involvement is one of the most important factor in the organizational success, employee can achieve greater success for the business if they were given the expression of ownership and they were having the authority to have their say in the business decision.

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All these can be achieved if the organization use the employee at the best way, the best way to use the employee is to create teamwork, teamwork which is a small group of people who have common purpose, set their own performance goal and approaches, and hold themselves accountable for success, Team work promotes and creates innovative abilities in the employees they can work independently under the rules provided by organisation in this way employee are having ownership feeling and in the consequence they give more to the organization, they creating strong bond with organization, this idea has been used by the Japanese firms after the second world, the Japaneses changed the ways of the organization operation and they started copying the western style in organization, but the Japanese come with more revolutionised ways they realised the importance of the employee relationship with organization. In the same way Joses management team must give more importance to their employee, their training and commitment with joses Joses whole team must crate cross functional integration to achieve organizational goals. The three kinds of teams can be created with these distinctive purposes.

7.1- Problem solving team. Problem solving team is a group of people consisting on common employee, and supervisor who are dealing with the problem concerning with operation in the organization this team analyze, identify, and solve these problems.

7.2- Special purpose team. Special purpose team is the team which is concern with mounting organizational problems, and labour problem, this special team is explaining the organizational concerns e.g. they are explaining the new policies to the external and internal customers, or if the organization introduce new labour policies or the

organization introduce new technology at the organization, joses team need to be train, to identify those problems they are concerning with the the quality and customer satisfaction. 7.3Self managed team. Self managed team is the kind of team who are highly expert in all kind of operation which are running in the organization, this team is moving the labour from one point to another, wear they will be needing , this team also some time taking on the administrative responsibility, they are recruiting new member, fulfilling the supply chain,

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Joses team need training and self managing qualities to address the most of the problem immediately and effectively as they confront in the operation system. 8.0- CONTENIOUS IMPROVEMENT. Contentious improvement is based on a Japanese concept called kaizen, is the philosophy continually seeking ways to improve processes, Continuous improvement involves identifying benchmark of excellent practice and installing a sense of employee ownership in the process. Most team actively engaged in continuous improvement train their work teams to use the plan-do-study-act for problem solving, another name for this approach is taught quality improvement technique, this cycle comprises the following steps, (a) Plan, The team select the process(an activity, method, machine, or policy) that needs improvement, the team than documented the selected process, usually by analysing related data; set quantities goals for improvement; and discuss various ways, to achieve the goals, after assessing the benefits and coasts of the alternatives, the team develops with qualities measures for improvement. The same way in the joses the major issues need to be select and for studies. (b) Do, the team will implement the plan, and monitored progress, Data are collected continuously to measure the improvement in the process. Any changes in the process are documented, and further revision made as needed. Study, The team analyze the data collected during the process, if the team identified any shortcoming in the outcome the team will stop the process. (c) Act, according to this study if the process is productive and successful this should be the bench mark of the operation processes, this procedure should be documented and must revised by the employee, the same at the joses the employee should identified the safe procedures which are addressing the expectation of the customers.

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Problem solving projects always focus on those aspect of the process they do not value to the services or product. Another the most effective services improving tool is the six sigma.

9.0- SIX SIGMA IMPROVEMENT MODEL. Six sigma is relies heavily on the principles of TQM, is comprehensive and system for achieving, sustaining, and maximizing, business success by flexible minimizing defects in the operation system in any organization, although six sigma has a different focus than, it is driven by a close understanding of customer need, the disciplined, use of the facts, data and statistical need, Although six sigma improvement model is a five step procedure that leads to improvement in process performance the model can be applied to project involving

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incremental improvement to process or to project requiring major changes, including redesign of in existing process or the development of a new process. The following steps comprise the model. 1. Define. Determine the characteristic of the process output that are critical to customer satisfaction and indentify any gaps between these characteristics and the processs capabilities. Get a picture of the current process by documenting it using flowcharts and process charts. e.g. at Joses some of the concern com forward in the case study about customer satisfaction from the service they receive at joses the case study has identified that 25% of the patrons were not happy, the same they said that the dining experience they are paying for is not the real worth they are paying at Joses, 2. Major. Quantify the work the process does that effect the gaps select what to major. Identify data sources, and prepare a data collection plan. At Joses case study all the major issues are those that could have direct effect on the business performance, all these major issues need to dealt immediately and effectively. 3. Analysis. Use the data on major to perform process analysis, applying tools such as praetor charts, scatter diagram, and cause-effect diagram and the statistical process control (SPC) tool in this chapter to determine where improvements are necessary. Whether or not major redesign as necessary, establish procedure to make the desired outcome routine. Joses concern issues with customer expectation will be analysed by for the possible implication of corrective measures to address the problems. 4. Improve. Modify or redesign existing method to meet the new performance objectives implement the changes. As the new methods identified they will remain as a benchmark procedure at josses, the operation team should be trained to carry out the exact methods that are approved for the customer satisfaction. This tool is evaluating the progress in operation the observer are documented the positive achievement and recorded them as the improvement, the Joses team should observe the positive achievement in the operation, and should stop the process if there were mismatching.

5. Control. Monitor the process to make sure that high performance level are maintain. Once again, data analysis tools such as Prato charts, bar charts scatter diagram, as well as statistical process control tools can be used to control the process. The selected operational procedure should be revised, and need to be documented and this process must be firmly hold by Joses operational team and at any time the process standard should not decrease from the present level, however in the operation process continuous improvement need to be find out for the more better performance from joses in general and over all catering services.

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Successful user of six sigma has found that its essential to rigorously follow the steps in the sigma improvement model. Which is some time referred to as the DMAIC process (whose name comes from using the first letter of each step in the model)? To accomplish the goal of six sigma employee must be trained in the whys and the how-tops of quality and what it means customers, both internal and external, successful firms using six sigma develop a cadre of internal teachers who then are responsible for teaching and assisting teams involved in a process improvement project. These teachers have different titles depending on their experience and level of achievement. Green Belts devote part of his or her time to teaching and helping teams with their projects and the rest of his or her time to their normally assigned duties. Black Belts are full-time teachers and leaders of teams involved in six sigma projects. Finally, Master Black Belts are full-time teachers who review and mentor Black Belts.

SIX SIGMA IMPROVEMENT MODEL

DEFINE

MEASURE

ANALYZE

IMPROVE

CONTROL

10.0- DISCUSSION AND CONCLUSION. Joses was facing some of the operational issues which have come across through a case study that was conducted in the response when the employees noted the decrees in the amount of tips from the patrons, the major issues of that study were as dissatisfaction of from the jose;s operation, the dining charges were not the real worth as they were paying, some them were not seated properly, some of

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them were not served in proper time, in the response of all these issues some of the operational improvement tool have used to address all the issues at the utmost level to met the demand of the customers,

TQM, total quality management is applied at Joses to; in term of measurement issues future research may use multiple items to strengthen the reliability of satisfaction construct. Also, the structural relationship among the three constructs may also be added into this model, based on the literature, and be tested empirically. Six sigma improvement model, is the model that is implemented on Joses to investigate the customer expectation that have arisen in the survey which has conducted by Joses, this model can be applied to projects involving incremental improvements to processes or to projects requiring major changes, including The re design of an existing process or the development of a new process. The proposed implemented operation improvement tools are the necessary Tools to solve the Joses problem.
11.0 -References

Cranian and Taylor 1992 Oliver 1993 Bitner 1990 Carman 1990 Boulding et all 1993 Spreng and mackoy 1996 Operations management 9th edi by Lee J.krajewski,Larry P.Ritzman,Manoj K.Malhotra. Bearden and Teel 1983,p.21 selected determinants of consumer satisfaction and complaint reports. Journal of marketing research 21-28

Churchill,G,A and Suprenant C.(1982).An Investigation into the determinants of consumer satisfaction.

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ANGLIA RUSKIN UNIVERSITY

International operations management Assignment

CASE JOSES AUTHENTIC MEXICAN RESTAURANT

Student ID No=

0876264

Module Code=

BD 415037S

Module facilitator = Jeremy Cheah (cheah@londoncollege.org)

Institute= London college of accountancy