INTRODUCTION TO TOTAL

QUALITY MANAGEMENT IN THE

TOURISM AND HOSPITALITY
INDUSTRY
CBMEC 2

Cris John Ray S. Calihat

Jessa Mae T. Bingco

Eman Noel Fernandez

 LEARNING OBJECTIVES:
 Understand the meaning of quality and the
importance;
 Outline various definitions and dimensions of
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quality;
 Trace the quality planning road map to meet the
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quality need of the customers;
 Understand the concept and definitions of quality
costs;
 Identify the basic patterns of quality-related
costs; and
 Use the various analysis techniques for quality
costs.
 HOSPITALITY INDUSTRY

 Earliest instance of hospitality has been

recorded in 15,000 BCE at the Lascaux Caves in
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France – First shelter in history that
accommodated people with different tribes.
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 In the early 1700s, Masonic Lodges began to
appear in North America.
 In 1927, Hot Shoppes was founded in
Washington, D.C, a hospitality company that
later become Marriot Corp. in 2015.
HOTEL ACCOMMODATION PACKAGE

Appropriate Furniture
Protection from
Appropriate heating Fittings Equipment
Environment Hazards
lighting and ventilation Conference and Meeting

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Facilities

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Feeling of Provision of Personal
well-being
ACCOMMODATION
Hygiene
PACKAGE

Hot Food and Beverage

Satisfactory standard of Provision
hygiene, health and safety
cleanliness, appearance and Appropriate Personal
standards state of repairs Security
and maintenance
TYPICAL HOTEL ORGANIZATIONAL
CHART

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 QUALITY DEFINED

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 QUALITY DEFINED
Quality can be confusing concepts
People view quality subjectively
The meaning of quality continues to evolve as
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the quality profession grows and matures
Quality perception by managers of different firm

Perfection Providing a good, usable product

Consistency Doing it right first time
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Eliminating Waste
Speed of delivery
Delighting or pleasing customers
Total customer service and
Compliance with policies and satisfaction
procedures
 QUALITY DEFINED

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DIMENSIONS OF QUALITY

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 DIMENSIONS OF QUALITY
# DIMENSION MEANING AND EXAMPLE
1 Performance Primary operating characteristics of a product, such as signal coverage, audio quality,
display quality and so on.
2 Features Secondary characteristics, added features, such as calculators, alarm clock features,

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etc.
3 Conformance Meeting specifications or industry standards, workmanship (or) the degree to which a
product’s design or operating characteristics match pre-established standards.
4 Reliability The probability of a product’s failing within a specified period of time.

6
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Durability

Service
It is a measure of a product’s life having both economic and technical dimensions.

Resolution of a problem and complaints, ease of repair.

7 Response Measures the promptness in terms of the start up of the product.

8 Aesthetics Sensory characteristics, such as the exterior finish, etc.

9 Reputation Past performance and other intangibles such as how it is being by peers (or Social
Media Influencer).
QUALITY PLANNING

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APPLY MEASUREMENTS

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 FUNCTIONAL LEVEL

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MULTIFUNCTIONAL SYSTEMS

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MAJOR PROGRAMS
 TOOLS OF QUALITY
• FLOWCHART
• STATISTICAL PROCESS CONTROL (SPC)
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• TECHNOLOGY AS APPLIED TO TQM

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COST OF QUALITY

• CONCEPT AND DEFINTION OF

QUALITY COSTS
ELEMENTS OF QUALITY COSTS

The cost of Quality (COQ) can be

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classified into the following four
categories:
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1.Cost of Prevention
2.Cost of Approval
3.Cost of Internal Failures, and
4.Cost of External Failures
 COST OF PREVENTION

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Preventive costs are the costs that are
incurred on preventing a quality problem
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from arising. Prevention costs can be
related to efforts to prevent its failures.
 COST OF APPROVAL

Appraisal costs are the costs that are

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incurred in assessing that the
products (or services) conform to the

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requirements. Appraisal costs relate
to testing, execution, and examination
to assess whether specified quality is
being maintained.
 COST OF INTERNAL FAILURES
Internal failure costs arise due to internal
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failures. Hence, these costs are linked to
correcting mistakes before delivery of the

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product, such as: scrap,
adjustments, downtime of equipment,
rejects,

worker sitting idle while waiting for repairs,

and sales discounts for inferior products.
COST OF EXTERNAL FAILURES

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External failure costs arise on the
other hand from the rejection of
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the products (or services) by the
customers due to poor quality.
 FACTORS AFFECTING
FAILURE COSTS
There are many factors that affect external and internal
failure costs. External failure cost is affected by:
i. Inimical notoriety situations
ii. Unsettled client's complaints
iii.Feeble organization intercommunication
iv.Environmental noncompliance

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Whereas the internal failure cost is affected by the
following factors:
v. Substandard materials preparation
vi.Shortage of materials
vii.Unexpected machinery intermission
viii.Review of materials and goods
ix.Finished goods redesigning
COST OF POOR QUALITY AND SUPPLY
CHAIN

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 COST OF QUALITY

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 ANALYSIS TECHNIQUES FOR
QUALITY COSTS
TREND ANALYSIS

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A trend analysis or a trend graph is a planning
tool that provides information for longer-range
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planning. It also provides information for the
investigation and assessment of quality
improvement programs. In this context, trend
analysis compares the present quality cost levels
to past levels.
 TREND ANALYSIS

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 ANALYSIS TECHNIQUES FOR
QUALITY COSTS

Pareto Analysis
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A Pareto analysis is a method of classifying
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items, events or activities according to their
relative importance. A Pareto Diagram is a
diagnostic tool commonly used for separating
the vital few causes that account for a
dominant share of quality loss.
 PARETO ANALYSIS

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Typical Pareto Diagrams and their Interpretations

COST OF FAILURE IN PESOS

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Pareto Diagram for External Failures

COST OF FAILURE IN PESOS

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Pareto Diagram for Internal Failures

 CHAPTER REVIEW AND
SUMMARY
Quality is the totality of characteristics of an entity that bear on its ability to satisfy
stated and implied needs.

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Dimensions of quality are performance, features, conformance, reliability, durability,
service, response, aesthetic, and reputation.

The cost of carrying out the company’s quality functions (meeting the quality needs of

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the customers) are known as cost of quality.

Four major categories of quality costs are:

1. Cost of Prevention
2. Cost of Appraisal,
3. Cost of Internal Failures, and
4. Cost of External Failures

Analysis techniques for quality costs are Trend Analysis and Pareto Analysis.
 SELF-ASSESSMENT QUESTIONS
1. Define Quality
2. Select a product (or service) and describe how the dimensions of Quality
influence its acceptance.
3. Define Quality Planning

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4. What do you mean by Quality Planning Road Map? Can it be applied to
the major programs at corporate level? If yes, then how?
5. What do you mean by the term “Cost of Quality?”

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6. Explain the different types of Costs Contributing to Cost of Quality.
7. Write short notes on the Following:
• Cost of Prevention
• Cost of Appraisal
• Cost of Internal Failures
• Cost of External Failures
8. Explain the various Commonly Used Analysis Techniques for Quality
Costs.
9. Explain the difference between Inspection and Quality Control..
10. List the Elements of the Cost of Prevention.
THANK
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YOU!
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