LEBANESE UNIVERSITY

SUBJECT: OPERATIONAL MANAGEMENT HOMEWORK DONE BY BAROUYR TEKIAN & JOHNNY

EL HAJJ

CASE :JOS S AUTHENTIC MEXICAN RESTAURANT

Q1 : HOW SHOULD QUALITY BE DEFINED AT THIS RESTAURANT ? 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 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. 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.

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.

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.

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.

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 some previous operation to correct the defects; and scrap, which is incurred if a defective item is unfit for further processing.

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.

ORGANIZATINAL ETHICS AND QUALITY:

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.

Q3 -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. Most team actively engaged in continuous improvement train their work teams to use the plando-study-act for problem solving, another name for this approach is taught quality improvement technique, this cycle comprises the following steps,

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. y 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. y 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. y 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.