Applying continuous improvement through process management in a restaurant environent

Rochester Institute of Technology

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1998

Applying continuous improvement through

process management in a restaurant environent

Thomas Wappman

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APPLYINGCONTINUOUS IMPROVEMENT THROUGH PROCESS MANAGEMENTINA RESTAURANT ENVIRONMENT

by

ThomasJ. Wappman

Athesissubmittedtothe

Faculty, ofthe Schoolof_{Food, Hotel,}andTravelManagement

at

RochesterInstituteof_Technology

inpartialfulfilmentoftherequirements

forthedegreeofMasterofScience

ROCHESTER INSTITIITE OF TECHNOLOGY

School of Food, Hotel and Travel Management Department of Graduate Studies

M.S. Hospitality-Tourism Management Presentation of ThesislProject Findin2s

Narne:

_---

-Title of Research: Applying Continuous Improvement Through Process

Management in a Restaurant Environment

Specific Recommendations: (Use other sideif necessary.)

(1) Dr. Richard Marecki

Thesis Committee: (Chairperson)

(2) Prof. Warren Sacklgr

OR (3) Dr. Franc'is Domoy

Faculty Advisor: Dr. Richard Marecki

Number of Credits Approved: __4 _

IJ11hj

S,iff'

_

~

S-5r~'

at Department Chairperson's Signature

Note: This form will not be signed bythe Department Chairperson until all corrections, as suggested in the specific recommendations (above) are completed.

ROCHESTER INSTITUTE OF TECHNOLOGY

School of Food, Hotel and Travel Management Department of Graduate Studies

M.S. Hospitality-Tourism Management

Statement Grantin2 or Denying Permission to Reproduce Thesis/Project

The author of a thesis or project should complete one of the following statements and include this statement as the page following the title page.

Applying Continuous Improvement Through Process Management

Title of thesis/project: _

in a Restaurant Environment

Thomas J. Wappman ~ . .

I, , hereby~deny) penmssIOn to the

Wallace Memorial Library of R.I.T., to reproduce the document titled above in

whole or part. Any reproduction will not be for commercial use or profit.

OR

I, , prefer to be contacted each time a

request for reproduction is made. I can be reached at the following address:

/ft.y~J?ff 7 >

ABSTRACT

Thepurpose ofthis _studyisto investigate howcontinuous improvement methods can be

applied inarestaurantenvironmentthroughprocess management. Increasedcompetition

in the service marketplace, and more knowledgeable customers has forced _many

organizationsto focus onbusiness re-engineering. _Therefore,the _abilityto _develop new

systems aimed at the

customers'

needs has become imperative. This assessment will

focus on the service _deliverytimein four areas ofa student-operated restaurant _utilizing

process management techniques. The fourprocesses that the researchers measured are:

1) promptness of

greeting-seating the _{customer, 2)} beverage service, 3) entree service,

and ₄₎ check-payout. The datacollectedin this_studycanbe applied for future means of

improvement at Henry's Restaurant on the Rochester Institute of _Technology campus.

Furthermore, the utilization ofthe instruments in this _study will prepare future service

managers with experience in Statistical Process Control (SPC) methods, which are

ACKNOWLEDGEMENTS

Iwouldliketo thankDr. Richard Mareckifor hisexpertise and guidancethroughout this

project.

Iwould also liketo thank_myparentsCarlandSharon Wappmanfortheloveand support

that_theyhave giventome overtheyears. Thankyoufor everythingthatyouhavedone

forme mom anddad. I loveyouboth_verymuch.

To mybrotherRoband sister_Linda,thankyouforyour_{friendship,support,} and

knowledgethatyouhavegivento me overtheyears.

Tracey,thankyoufor_beingsuch a great_friend,Iloveyou.

TABLE OF CONTENTS

Abstract ii

Acknowledgments iii

ListofTables vi

ListofFigures vii

Chapter I. Introduction andStatementof_Study 1

Introduction 1

Problem Statement 2

Hypothesis 3

DefinitionofTerms 3

ScopeandLimitations 4

Chapter II. ReviewoftheLiterature 6

Customer Focus 6

ProcessImprovement 10

Total Involvement 18

QualityLessonsfrom Baldrige Award Winners 21

Chapter IE. _Methodology 25

Settingof_Study 25

StudySample 25

Research Instruments Used 25

PeriodofData Collection 26

Procedures 26

Chapter IV. Analysis ofData 35

Data Collection 35

Control Charts 35

Findings 35

Chapter V. Conclusions andRecommendations 41

Conclusions 41

Recommendations 41

LIST OF TABLES

Table 1 - Groups_ofPeopleInvolved intheOperation_andImprovement ofProcesses... 12

Table 2- Phases

ofProcessManagement 14

Table3-ProcessManagement in Perspective 17

TABLE OF FIGURES

Figure 1

-CustomerGreeted _byHost/Hostess 28

Figure 2

-Beverage Order TakenandDelivered 30

Figure 3-EntreeOrder TakenandDelivered 32

Figure 4

-PresentationofCheckandPayment 34

Figure 5

-Greet-SeatResponse Time 37

Figure 6

-Beverage Response Time 38

Figure 7

-Entree Response Time 39

Figure 8

-Check-PayoutResponse Time 40

Figure 9

-Process ModelatHenry's 44

CHAPTER I

Introduction and Statement of_Study

Introduction

The 1990s have experienced a myriad ofchanges in the service industry. The

futurein this_{field is expandingrapidly,} anditisestimatedthat90% of all workers willbe

involved in some aspect of service _by the turn of the century. The growth is evident;

from new businesses _entering the marketplace to technological advances to better serve

thecustomer. Over thepastfifteen_years, more and more players have become involved

in the _delivery of some aspect of service. Food service has experienced the largest

growth_duringthis timeperiod.

In the seventies, Burger _King and McDonald's were the lone fast-food giants.

However, the nineties have seen the evolution of bagel shops, such as Bruegger's and

Manhattan BageL Theemergence of newfast-foodrestaurants, like BostonMarket,Taco

Bell, and Wendy's has also crowded the marketplace. _Furthermore, specialized

restaurants have become popular destinations for families. These include the Olive

Garden, Macaroni_Grill, Don_Pablo's, andthenumerous steakhouses _{(Outback, Lonestar,}

andBugaboo Creek). The growth seems unlimited whenitcomes to _restaurants, because

more and more individuals are _dining out on a more consistent basis. A problem that

arises _is, How are all of these establishments _going to survive? The solution _today is

through a commitment to continuous improvement practices through process

management.

Continuous improvementinvolvesthree majorprinciples. _First,

customers' needs

must be attended to at alltimes. The customer has become the major player in today's

competitive marketplace, because they are _{necessary for} continued success. Customers

arenow _directingcompaniesonhowtodelivertheir services. Oneexamplethatcomes to

mind is the new system implemented _by the Mobil Oil Corporation. At Mobil service

stations around the country, patrons are now able to use a device on their _key-ring to

activate thegas pump. This enables customersto _{pay-at-the-pump} without _having to go

inside to _pay an attendant. Technological advances have given the customer more

options, and those businesses that are committed to _improving their service _delivery

processhave abetterchance of surviving.

Processimprovement isthe second aspectofcontinuous improvement. Itsgoal is

to produce a desirable output to meet the customer's requirement. _{By devising} new

methods, and_redesigning old _ones, businessesarein aposition where_they must improve systems to _stay competitive. Companiesmust_{constantly investigate,}and devise the best

methodtoproduce a_qualityoutput.

Finally, totalinvolvement is the last aspect involved incontinuous improvement. This approach must consist of _strong active _leadership within senior management.

Further, the talents of all employees in an organization must be utilized. This is

accomplished _byempoweringemployees and_utilizingteams to betterservethecustomer.

It has become _increasingly important for all facets of an organization to commit to

producing qualityoutputs (services).

MystudywillfocusonHenry's_Restaurant, locatedontheRochester Instituteof

Technology campus. Through continuous improvement _efforts, the restaurant is

attemptingto becomeastate-of-the-artfood laboratory. Technological _advances, such as

strategically placed cameras and electronic comment cards have been implemented at

Henry's. These processes are aimed at _{providing quality} service on a consistent basis.

The new cameras are used to time the wait _staff, while the electronic comment cards

provide feedbackonthe_quality of_food, and promptness ofservice. _Mystudy willfocus

on whether or not these improved processes have improved customer satisfaction at

Henry's.

Problem Statement

delivery. There is a need to ttain tomorrow's managers _{in utilizing} statistical process

control _{(SPC) tools,} with an eye toward continuous improvement. This is accomplished by focusing on three principles; customer _focus, process management, and total involvement. Processtransformationhas become a_{necessity for}thosebusinesses thatare

committed to _producing a _quality product year-after-year. The utilization of process management has emerged as the _way to continue to improve the method of service

delivery. This is accomplished _{by focusing} on the

customers'

needs, because they are

theintegral factor for success. Ifbusinessesfail to incorporateprocess management into

their company, _theyare at risk of_{experiencing lost}revenue and/or business. The ability

to possess a systemthat is beneficial to the _external, as well as the internal customer is important for continued success. This study will investigate how process management

wasimplemented atHenry's Restaurantandtheresultsthatwere attained.

Hypothesis

The implementationof process management atHenry's Restaurant hasresulted in

betterservice_{quality for}thepatrons.

Null Hypothesis

Process management has had little or no effect onthe _quality ofservice _delivery

atHenry's Restaurant.

Definition ofTerms

ContinuousImprovement- _the

constantdeploymentofresources aimed at_devisingnew processesthatwillincreasethe_qualityof an outputforthecustomer

External Customer the people _(person) who receives the desired output from a

Henry's Restaurant a student-run restaurant located on the fourth floorofthe George

Eastman _Buildingon theRochester Instituteof_Technologycampus

Process Management the method used to acquire, define, execute, and improve best

practicesof an organization with customerfocus asthemain objective

QS-1000

-ahand-held electronic_{marketing device}usedtomeasure customer satisfaction

Total _Quality Management- _{a management concept where} thecustomer's needs arethe

drivingforce,and continuous improvementis alwaysinvestigated

Ultrak 24/40 Hour Continuous Recorder - device

usedto monitor time of wait staffto

performcertain servicefunctions intherestaurant

Scope and Limitations

The scope of this _{study is} to examine how continuous improvement can be

applied through process management in a restaurant environment. This study utilized

statistical process control tools to improve service _quality at Henry's Restaurant.

Students and _faculty focused on the front-of-the-house operations in a restaurant. The

four areas studied were; greeting of customers, beverage service, entree service, and

checkpresentation-payment.

The limitation ofthis _study is that it was conducted over a six-week time period

every Tuesday and _{Thursday during} the Fall Academic Quarter. _Therefore, the data

gathered reflects alimited sample. Iftherestaurant was open morethan two days a_week,

then alarger assessment could have been complied. _Furthermore, theanalysis _primarily

focused on the "front house" operations at Henry's. _Therefore, the wait staff and

host/hostess were the _only workers timed on a _daily basis. This meant that the kitchen

CHAPTER II

Review ofthe Literature

Customer Focus

Society:_{Increased Expectations of Service}

The modern _quality era emerged in _1980, with the introduction of a book _by

Philip Crosbyentitled _Quality is Free. _Crosbyinvestigated methods onhowto improve

adequate _quality care for customers. Inthe years _following, a number of similar books

were published that focused on service excellence for the benefit of the customer. However, many organizations were reluctant to listen to the desires of the consumer.

Today, it is imperative that senior managementknowswho their customers are and what

they exactly expect. The customer has become an active participant in _determining

service _deliveryprocesses. A customer _{is constantly looking} for ways to make theirlife

easierfor themselves, and_{in turn,} are_{getting harder}to please. 'Today'scustomer-driven

culture demands that all systems and processes in a _{company be} oriented to the

customer's convenience and

success"

(Hyden, 1991). Technological advances and

conveniencehave become thebestfriend'sofconsumers. _Therefore, businesses arenow

forced to _develop new methods that are aimed at the customer's wants and/or needs or

they will suffer. _Hence, individual customers are now _driving the global _economy,

instead of specific markets and products.

Throughoutthe eighties, manycorporationsthought that _they were_implementing

breakthrough _deliveryprocesses, but in many instancestheir systemswere not

customer-friendly. Business leaders arejust starting torealize thatcustomer-focused processes are

vital to their success. Customer focus has become the most important factor to _being

successfulin thecompetitive marketplace. The companies that are _experiencing success

today, arethe ones who _constantlyinvestigate waysto _{satisfythe external,} aswellas the internal customer on a consistent basis. _According to _Albrecht, the cardinal rule of

the_abilityto_identifyandrespond to areaswhere customersbelievechange isneeded will

prosper _(Brown, 1995). Ithas been almost_twentyyears since the_quality revolution, but the idea of customer focus is now _extremely important due to _changing needs and

increased competition in the marketplace. An unsatisfied customer is difficult to win

back, thatis_whycustomer focusmust bethenumber one_priorityofall service providers.

The Need for Customer Focus

The detainment ofcustomers isa_keyingredientto success in theservice _industry

today. _Only a handful ofcorporations have been successful in attending to customer's

needs on aconsistentbasis. Oneexample isthe_catalog giant,L.L. Bean. Bean describes

what a customer meansto hiscompany:

Acustomer isthe mostimportantperson _ever, acustomer is notdependent on_us,

we are dependent on them; they are not an interruption of_work, butthe purpose ofit. We are_doing themafavor _bygiving us the_opportunity to serve them. A

customer brings us his/her wants, it is our job to handle them (Tenner and

DeToro, 1992,p.51).

A badexperience at ahotelor restaurant will makecustomers hesitatefora return

visit in the future. "The _key to _gaining a long-term competitive advantage is to

continuallymeet

customers'

expectations inwaysthat_theyrecognize as _adding value. It is necessary to know who your customers _are, and what _they

expect"

(Tenner and

DeToro, 1992, p.51). _Therefore, the _abilityto focus on thecustomer is thefirst ofthree stepsfor qualitymanagement.

Since the introduction of the _quality revolution _twenty years ago, _many organizations have experienced lost revenue because of a reluctance to listen to the

customer. Hyden explains that success _today is achieved _{by making} the customer successful (1991). If the customer knows that _they are _{appreciated, they in turn will}

return in the future. Cross lists five stages of _bonding to deepen customer _loyalty;

awareness, identity, relationship, community, and _{advocacy (1992).} These stages assist

management in _learning who their customers are and how _they can continue to service

them in the future. The Strategic _Planning Institute states, "organizations that focus on

quality ofcustomer care _keep their customers _up to 50% _longer, have 20-40% lower

marketingcosts, and experience 7-17% better net

returns"

(Zemke, 1997). Theproblem

is that _only a handful of organizations have been successful in mastering customer

service techniques. Club Med has been a successful operation _{for many years,} because

they focus on the information that _they receive from their customers to improve the

product and services that _they offer _(Whiteley, 1997). _Therefore, all companies are

attemptingtopatternthemethods ofClub Med fortheirowncustomer-oriented systems.

The concept of customer care is a problem in many _{corporations,} but more and

more are _starting to realize how important the customer has become. The Forum

Corporation surveyed six hundred executives and asked _them, what are your

organizations most important strategic needs? An astounding 86% answered _quality of customer care _(Whiteley, 1994). _However, the process of _improving customer

satisfactioninvolves manychangesina company's_philosophy and practices. Companies

that are able to _satisfytheir customers _consistently must have acomplete _{understanding}

oftheirclient, thecompetition ofthe marketplace, and an _abilityto _identifyandrespond

to areas that need change _(Brown, 1995). This is the reason _only a handful of

corporationshave beensuccessful.

Customer-QualityPractices

Every company has a unique method of _attending to customer's needs. The

ability to make the consumer _happy and successful is a challenge that is not always attainable. _However, a pizzeria in Minnesota has taken customer care to the next level.

manyas nine visits to a specific table_during a meal. This is accomplished _{by assigning}

small sections ofthe restaurant to each server. In turn, this allows the staff to spend

plentyoftime _taking care oftheir guests. _Further, the owner states, "we are attuned to

our _customers; from vegetarians to babies to grandparents"

(Walkup, 1995). This

example illusttates how important the customer has become in today's competitive

marketplace.

Quality customer service is also evident at the Motorola Corporation. The

company uses a _five-step method for recovery from a bad experience with a customer.

Thesesteps are asfollows:

1. _Apology

-acknowledgmentof error

2. Urgent Reinstatement

-efforttorestorebalance

3. _Empathy

-expressingcompassion

4. Symbolic Atonement

-agestureto showformistake

5. _Follow-up

-closureforthe incident

The above practice has enabled Motorola to become a leader in the electronics

industry. _{The ability} to turn a bad experience into a pleasant one takes a lot of

commitment, andMotorolahasestablished a methodtodo so.

The Internal Customer's ImpactonService

It hasalso been determinedthatemployees are_{extremely important}to companies

that hope to become more customer-oriented. Employees who _enjoy theirjobs and feel

valued and appreciated _by their employer _{will, in turn, display} a positive and helpful

attitude toward customers _(Barrett, 1994). The front-line employee has become an

important asset for companies to find out what

customers'

desire. _They are the people

who interact with the external customer on a _daily basis. _{Southwest Airlines actively}

solicits advice from their front-line employees because of their close interaction with

passengers. Employees are _{actively involved in developing} new programs to improve

day-to-day operations,and Southwest listens carefullyto their internal customer because

they know the passengers best (Barrett, 1994). It would be absurd if management was

reluctant to receive input from the employees, because a person behind a desk has very little knowledge of what the customer desires compared to a front-line employee.

Employeesoften have valuable inputthatcan be ofbenefit when improvementis needed inthe_qualityof acompany'sproduct_(Weiss, 1997).

However, customer focused attitudes must be initiated _by executives who wish

that their employees treat customers fairly. Hyden lists four steps to begin a

customer-oriented atmosphere. _First, executives must add value to their products. _Innovation,

continuous_improvement, and_{continually asking} customerswhat_they need are_necessary to _stayahead ofthe competition. _{Second, customer-friendly} systems mustbe developed

at all levels ofthe organization. Hyden explains that simple service tests can be run to

ensurethat the systems are _functioningproperly. _{Theyinclude making} phone calls from the outside into the company, performing surveys of customers, and _{examining if}

customer's interests are _being met. _Third, employees must _{be involved in contributing}

ideas and solutions to the company. It has been determined that great business leaders

createenvironmentsthatallowsemployeesto providetheirinput andparticipationtoward

customer service.

Process Improvement

Work Processes

Process improvement is the second _key principle for total _quality management.

Every time that we receive a good or _service, there is some type of process involved. There is a process in place when you order a hamburger from a fast food _restaurant, or

when one checks into a hotel. "All products and services are produced and delivered throughworkorbusiness

processes"

(Tenner and _{DeToro, 1992,} p.98). Tennerdefines a

process as the sequential integration of _{people, materials, methods,} and machines to

produce value-added outputsforcustomers (1992). _Further, Born assertsthat a processis

the sequence of steps which transforms information from an initial state _(input) into a

final state _(output) (1994). The concept ofprocess transformation is a _key issue _facing businesses in the nineties, due to increased competition and customer expectations.

Today's_industryleadersare_{constantlyimproving}their workprocessesto betterservethe

customer. Four groupsof people areinvolved intheoperation and improvementprocess:

1. Customers

-thepeople whoreceivetheoutput

2. Work _Group - the_{people who work}inthe_process to_{produce and}deliverthe_output

3. Supplier

-thepeople who provide inputto theworkprocess

4. Owner the person responsible for the operation of the process and for its

improvement

(See Table 1onnext _page)

ImprovementStrategies - Process Management

Organizations are constructed in order to reach certain objectives. _Therefore,

constant improvement is needed in order to maintain a _quality operation and satisfied

customers. There are two types of improvement that can be adapted; incremental or

breakthrough. Incremental improvements are _usually low-cost modifications in a

companyinvolving workprocedures and process steps. Onthe other _hand, breakthrough (reengineering) improvements are major changes to the work process through

technological advances and innovation (Melan, 1995). These methods can be

accomplishedthroughtheimplementationof process management.

Melan states, thatprocess management achieves fourobjectives. _First, itreduces

costsfora company. _Second,it improves the_qualityoftheoutputthatis_beingproduced.

Third, it increases the _productivity of the output. _Finally, it provides a basis for total

quality improvement throughout an organization (1995). _LBMS, Inc. supports this _by stating, process management yields a 350% improvement in developer productivity, a

90% reduction in_defects, and a$5 returnfor every dollar invested _{(1996). These results}

TABLE 1

Groupsof_{People Involved} in theOperationand ImprovementofProcesses

Group Involved Henry's

Customers PatronsofHenry's

Work _Group Kitchen Staff

Supplier Wait Staff

Owner Warren Sacklerand Students

Tenner,A R &_DeToro, I. J. (1992). Total_QualityManagement: ThreeStepsto ContinuousImprovement. Menlo_Park,CA: _{Addison-Wesley Publishing}Company.

illustrate howprocessmanagementcan_drasticallyturnarounda company.

However, _implementing process management is not accomplished overnight.

There are three phases involved in the six basic steps of _improving a process. Melan

classifies the three phases as _{initialization, definition,} and control (1995). This is

represented in Table 2onthe_followingpage. _Further, Pall₍₁₉₈₇₎lists thesixingredients

essentialforprocess management as:

1. _Ownership

2. _Planning

3. Control

4. Measurement

5. Improvement

6. Optimization

Ownership is the first integral aspect of process management. It involves the

assigning of_{responsibility for} the design and improvementoftheprocess. Theowner of

a process is usuallya _manager, because_theyare_usuallyaccountable for theperformance

and resources of the process _(Melan, 1995). For all process improvement _initiatives,

ownership must _{be clearly} established in order to achieve success. Effective process

cannotbeachieved without anindividualor_groupthatownsthe totalprocess.

Planning is the second ingredient for successful process _management, and

includes the _beginning and the end ofthe process. _According to Melan, every process

must possess an input and an output _boundary (1995). Inputs precede the first _activity

that occurs, while outputs follow the _{last activity in} the process. _Further, the _planning

stage examinesthe interrelationships thatbetween the major components ofthe process.

Theseincludetheinteractionthatoccurs between_{customers, producers,} andsuppliers.

The third _{step is} control. This stage assures that effective measures are _being

takenin thedevised process. Palldescribes it as, making sureall _{outputs are predictable}

and consistent with the

customers'

expectations. It is a _{regulating method, because} a

TABLE2

PhasesofProcess _Management

Assign_Ownership

Phase 1: Initialization

Phase 2: Definition

Phase 3: Control

Delineate Boundaries

DefineProcess

Establish Control

Points

Implement

Measurements

Perform Feedback

and Control

Source:_{Melan,Eugene (1995). Process}

Management:Methodsfor_{ImprovingProducts} and_Services,

MCGRaw-Hill,Inc.: New_York.

process with no control points willlack feedback _(Melan, 1995).

Measurementis the fourth necessity, because it manages the _improving process.

Through_measurement, itcan bedetermined ifor ifnot

customers'

expectations are _being

met with the output delivered. _According to _Melan, there are three _primary types of

measurements; measures of conformance _{(defects, errors)} measures of response time

(cycle time), and measuresof repetition (numberof re-dos).

Further, process data can be presented in a number of ways. _{They include;}

histograms, bar charts, Pareto charts, trend or run _charts, pie _charts, and control charts.

At the Zytec Corporation (a Baldrige Award _Winning Company), employees use the

following criteria to determine what statistical process control tool is to be used for a

particular situation_(Hodgetts, 1994):

In _answeringthisquestion... UsethisSPCtool

Whatgoes onintheactivity? How chart

Whatarethe_bigproblems? Paretochart

What arethecauses? Cause/effect Diagram

What does pastdatashow? Histogram

Whatarethecause/effect? Scatterplot

What do currentdatashow? Controlcharts

Improvement is the fifth element of success process management. Continuous

improvement is essential in order for a desired process to reach its full potential. As

stated earlier, improvement can be incremental (little or no capital _investment) to

breakthrough (new technological advances and changes to an organization). _Ownership

participation is _essential, because _they are the ones who possess the resources for

improvement.

The final step is optimization, which involves _implementing the process. Melan

lists eight steps that enables process improvement to become a _{reality using} process

management(1995). _Theyare:

Selecta process

Establisha processteam

Trainthe team

Develop animprovement_sttategy

Applythesixstepsofprocessmanagement Presentresultsandrecommendations

Implementimprovement

Monitortheimprovedprocess

Process Management in Today's Marketplace

More and more organizations are _using process management to attain _company

goals. It has become the central tool of modern _quality management (Anttila, 1997).

Further,process managementfocusesonthecustomer, and methodsto betterserve them.

(SeeTable 3on next _page)

This management style (process _management) provides customer focus for

routine work. _Adopting customer focus eliminates the interface between operations and projectmanagement. Ratherthan_defining workinterms ofresponsibilities and systems, businesses are responsiveto the

customers'

requirements, and the processes which must be undertakento deliver products which meetthem_{(Turner, Peymai,} and _{Stewart, 1995,}

p.48).

Xerox is one _company that _{has been extremely} successful _{in utilizing} process

management effectively. The Xerox _Leadership through _{Quality strategy} is based on

three elements; quality principles, management actions and _behaviors, and _quality tools

(Tennerand _DeToro, 1992). Theseprincipals have enabledXerox to become a leader in

thecopier_business, andincreasetheir worldwide marketshare. Processmanagement can

beeffective _{only if}thewhole organizationis _willing to commit to quality. This leads to

TABLE3

Process_{ManagementinPerspective}

Organizational View Process View

Management Orientation People Process

Approach Perpetuation Initiation

Driver Job Customer

Progress PeopleMotivation Removalof_barriers,process

simplification

Control _{Responsibility} Procedure

BusinessMeasurement BottomLine _Quality

Correction Fixproblem(Who iswrong?) Reducenonconformance (Whatis_wrong?)

Motto Followorders- "Do your

job"

ImproveProcess- "How can

Ihelp?"

Source:_Pall, Gabriel(1987). _QualityProcess_{Management, Prentice-Hall,Inc:}

Englewood_Cliffs,NewJersey.

Total Involvement

All organizations that engage in total _quality management must have all of its

employees involved. Each department should have supporting functions in order to

ensure the desired output meets certain _quality specifications. Total involvement is

necessaryto ensurecustomer focusand process improvement inan organization. This is

supported_byDavid _Kearns,thenPresidentof_Xerox, who statedin 1983:

Xerox is_{clearly in}a period oftransition. Weare no longerthe_company weonce

were, and we are not yet the _company that we must be. If we are to _successfully

complete this transition and continue our record of success, every individual in the

corporation will have to work toward our common goals (Tenner & DeToro, 1992,

p.259).

Leadership/Management

Senior management possesses the_ability to make improvements that willlead to

continual successin an organization. _Everydecision that impacts an organization starts

at the top. Business leaders are responsible to their _{customers, employees,} and

stockholders to achieve successful results. _Therefore, continuous improvement is a

challenge that all leaders must address, because their actions and decisions result in

success orfailureof a company. As J.WillardMarriot, Sr. once stated,"Successis never

final"

(Albrecht, 1988). Thisexemplifiesthe commitmentthathis _companyhas takenin

regardto _improvingservice quality.

Furthermoremanagement mustbeawarethat therightworkprocesses are inplace

for an organizationto succeed. Too oftenmanagers become fixatedonaprocess, and _try

sohardto makeitmore efficient_(Morano, 1994). Thisiswhere continuousimprovement

mustbe implemented. Ifa processis not_{workingeffectively, leadership} mustinvestigate

methods to improve service _{quality for} the internal and external customers. Tenner and

DeToro state, that leaders must look at the _following six questions before altering a processforcontinuousimprovement(1992). _Theyareasfollows:

1. What is ourpurpose?_(mission)

2. Whatdo wewantto become?_(vision)

3. What do webelieve in?_(values)

4. Whatguidancewillbeprovidedto employees oftheorganization?_(policy)

5. What are the accomplishments that will fulfill our mission and attain our

vision?_(goals)

6. How do we movetowardour vision and accomplish our goals?_{(methodology)}

These questions are _{extremely important for} those managers who seek to move

their business in an upward fashion. _Leadership is an integral part of total _quality

management, and ifthereis a lack ofdirection at the_top of an _{organization,} then status

quo will prevail Senior management must possess a commitment to continuous

improvement, andtotal_qualityprinciples. Albrecht _asserts,thechief executive and other

senior managers must preach, teach, and reinforce the gospel of service _{quality (1988).}

Management must create the conditions to make service excellence attainable and

worthwhile. If an executive is obsessed with_{quality improvement,} employees at lower

levels ofthe organization will recognize how important it is. The _following methods have beenused _by senior management to improveprocesses fortheir _employees, and in

the_longrun; thecustomer.

Empowering theWork Force

An employee who is empowered to solve problems when _they arise is an

extremely important benefit to a company. _{Empowering involves passing} on _authority

and _{responsibility} to the employee. _Many organizations believe that a commitment to

continuous improvement _by all members is necessary if their businesses are to remain

competitive _{(Wellins, Byham,} and _Wilson, 1991). _Therefore, empowerment has proved

beneficial because employees are no _{longer waiting for} a manager to make a final

decision on an issue. Employees are more active in _determining the outcome of certain

business transactions. At _Solectron, the employees are given the _authority to _stop the

production line at _any time if _they feel it is _necessary (Hodgetts, 1994) Morano

continues, "empowerment is _becoming a _necessary condition in firms to be able to

compete in _furiouslycompetitive global

markets"

(1994). Xerox and AT&T have also

been extremelysuccessful_{in empowering} employees.

Further, restaurants have now empowered servers to correct _any problems that

may arise _during a meal. _Many now have the powerto offer _{complimentary} meals ifa

guestis not_completelysatisfied withhis/her _diningexperience _(Walkup, 1995). Theage

of empowermenthas seentheelimination ofthehierarchical business structure. _{In turn,}

theemergenceofhorizontalcompanieshas becomecommonplace.

UtilizationofTeams

Another aspect of empowerment isthrough the formation ofteams. The concept

ofteams wasbroughtto theUnitedStates in the late 1970s_byWayne Rieker in an effort

to achieve _{quality improvement (Melan,} 1993). _{Today, many leading} corporations are

relying on self-directed work teams to accomplish organizational goals. _{Jerry Junkins,}

theCEOofTexas Instruments states, "Nomatter your_business, those teamsarethewave

ofthe future _{(Dumaine, 1990,} p.52). So what is a team? A team is a small _group of

individualswith_{complimentary}skillscommittedto aspecificgoal.

A survey asked senior managers the major reasons _they were _moving towards

self-directed work teams; the _primary reason was to improve _{quality (Wellins, Byham,}

and _Wilson, 1991). Theresults attributed to teams can be found at such _leading service

providers as, Federal Express, General _{Electric, Motorola,} and AT&T. At Federal

Express, service errors _(including such things as _{lost packages)} were cut _by 13%

(Dumaine, 1990). A team has been known to obtain better results than a collection of

individuals_{operating in}confinedjobs.

Teamsaremore flexiblethanlargerorganizationalgroupingsbecause _theycanbe

more_{quicklyassembled, deployed, refocused,}and _{disbanded, usually in} waysthat

enhance ratherthandisruptmorepermanent structures andprocesses. Teamsare

moreproductivethan groupsthathave no clear performance objectivesbecause

their members are committedto delivertangibleperformance results. Teams and

performanceare an unbeatable combination(Katzenbach & _{Smith, 1993,}p.15).

There have been several phenomena on _why teams perform so well. _{First, they}

bring together _{complimentary} skills and _experiences, which exceed those of _any

individual. _Second, teams establish communications that support real-problem solving.

Third, they enhance the economic and administrative aspects of work. _Finally, teams

have more fun because workers feel more relaxed and comfortable with one another

(Katzenbach and _Smith, 1993). _Finally, Wellins et al believe self-directed work teams

are established for the _following reasons; _they improve quality and _service, provide

greater _flexibility, reduce _{operating costs,} and attract and retain the best people (1991).

Empoweredteams haveemerged as a_wayto get more_{productivity from}theworkforce.

Quality Lessons from Baldrige Award Winners

The Malcom Baldrige _Quality Award was created in 1987 in hope of_improving

the overall competitiveness of United

States'

industries. The award is open to three

categories; manufacturing, services, and smallbusinesses. This honor is thehighest level

of national recognition for performance excellence that an _{American company} can

receive. Richard Hodgetts performed an analysis of past winners and presents eight

lessonsthatare universal_{among Baldrige}winnersforsuccess (1994).

Lesson 1: Formulatea _{Vision ofQuality}

guideto_develop aplan. Thisisevident_bythe_following twoexamples:

Cadillac: The mission of the Cadillac Motor Car _Company is to engineer,

produce, and market theworld's finest automobiles known foruncompromised levels of

distinctiveness,comfort, convenience, and refinedperformance.

Motorola: Dedication to _{quality is} a_wayoflife at ourcompany, so much sothat

it goes far beyond rhetorical slogans. _{Our ongoing} program ofcontinued improvement

reaches out for change, refinement, and even revolution in our pursuit of _quality

excellence. Motorolawill pursue goals aimed attheachievement of_qualityexcellence.

Lesson 2: Involve_TopManagementfromtheStart

Thecompanies thatare_{continuously competing for} theMalcom Baldrige _Quality

Award hasits _topmanagement involved in the total_qualityeffort. Senior managers bear

the ultimate _{responsibility for} the success of _{organizations,} and through their positions

havethe_authorityto setdirectionand allocate resources(Tennerand _DeToro, 1992).

Lesson 3: FocusonCustomer Needs

As stated earlier in the section on customer _focus, theneed for customer focus is

extremely importantto beasuccessfulorganization, becausethecustomer is king!

Lesson 4:_Develop the_PlanningandImplementation Processes

Award winning firms in the _{study did} extensive _{planning for} total _{quality by}

determining the objectives to be attained and then _devising a plan of action to be

implemented. This is accomplished _{by making} sure that all of the departments in the

organization can_effectively attain_qualityobjectives. At Federal_Express, twelve service

quality indicatorsmeasure _qualityperformance. These indicators aretracked for overall

performance ona_daily basis toensure quality.

Lesson5: Train Employeesto UseStatisticalProcessControl Tools

This step involves _teaching the methods to the personnel and then _allowing

employees to _{apply it in} the workplace. At the Zytec Corporation, criticalquestions are

answered_using the_following methods:

Lesson 6: Empower Employees

Baldrige organizations spend a great deal oftime _encouraging their personnel to

become more involved in getting tasks accomplished. For example, the Ritz-Carlton

allowsemployees to spend_upto $2,000to alleviatea problemfortheirguests.

Lesson 7: RecognizeandReward Employees

Recognition and awards are presented in a myriad of ways. _Theycan range form

financial awards, vacation trips, a _{day off,} a_{parking space,} or a plaque. _{The ability} to

recognize employees is beneficial because it makes the internal customer feel as if_they

are_havinganimpactonthe success ofthecompany. Thecompanies intheanalysis each

hadunique recognition _systems, but_theyalso shared the_following characteristicsintheir

effortsto acknowledge employees:

1. Recognition isalways positive and rewards success

2. Recognition is offered openly, and is publicized throughout the _company or

department

3. Recognitionis_carefullytailored to needs ofthepeople

4. Rewardsare given_promptly

5. Thereisa_{relationship between}theachievementandtherewardis_clearlyunderstood

Lesson 8: Make Continuous Improvementan_OngoingChallenge

All ofthe firms analyzed had a desire for continuous _{improvement. Two} ofthe

most populartoolsutilized _byBaldrigeAwardwinners were_benchmarking and six sigma

which aimed at_improvingtheirsystem ofdelivery.

The above lessons are beneficial to those companies that are serious about

continuous improvement. At _Henry's, a number ofthese ideas were implemented in

ordertore-organizetheprocessesofservicedelivery.

CHAPTER III

Methodology

Settingof_Study

The study was conducted over twelve days in Henry's Restaurant, which is

locatedon thefourth floorofthe George Eastman _Building onthe Rochester Instituteof

Technology. Henry's is a student-operated restaurant that is open to the public seven

weeks _during eachacademic quarter. _During the 1997 Fall Academic _Quarter, the hours

of operation were 11:30a.m to 1:30p.m.

StudySample

The population used for this _{study included} the lunch patrons at Henry's

Restaurant (the external customers), as well as the staff of Henry's (the internal

customers). _Typically, the customers of Henry's are form both on and off campus.

Reservations are _requested, due to the limited number of _seats, but walk-ins are also

welcome.

ResearchInstruments Used

There were two instruments utilized to conduct this investigation. The Ultra

24/40 Hour Continuous Recorder KR5440 was used to time the wait staff in service

delivery. _Also, theUltra 8 Camera System Model KZ0824A tapedeach member ofthe

Henry's staffat alltimes. Thesecameras were _{strategically}placed in the _dining area of

the restaurant and the kitchen. The response times were calculated in the _following

areas; promptness of _greeting, beverage _delivery, entree _delivery, and check

presentation.

PeriodofDataCollection

The data was collected _by Rochester Institute of _Technology graduate students during the 1997 FallAcademicQuarter. Thisperiod started onSeptember25, and ended

onNovember _5, 1997. Therestaurant was open _{every Tuesday} and _Thursday for lunch

from1 1:30 am until 1:30 pm.

Procedures

This study was doneto analyzethe effects of a _{quality improvement} processin a

restaurant environment. _During the Fall Academic _Quarter, students and _faculty were

introducedto SPC conceptsinregardsto "frontofthe house" operations of a restaurant. A process flow chart was developed to illustrate how service was to be delivered at Henry's. _Further, sub-processflowcharts weredevised to show who was responsible for

each_activity ofthe service _deliveryprocess. These sub processes were dividedinto four

categories; ₁₎greeting-seating of_customers,2)beverage _{service, 3)} entree _service, and₄₎

check pay-out.

Melan'

s six steps for _improving products and services through process

management were implementedfor each sub process. A descriptionof each sub process

andits_{corresponding flow}chart are represented onthe_followingpages.

Promptnessof_Greeting

The promptness of the _greeting was performed _by the host/hostess on duty.

Therefore, they possessed the _ownership of the process. It was the role of the

host/hostess to seat the guests when _they arrived, which meant that there were no other

boundaries with other co-workers. The process for

greeting-seating guests was as

follows. _First, the customer arrives at the front door of Henry's and is greeted _by the

host/hostess. _Next, the customer is asked if _they have reservations or if _they are just

walking-in for lunch. If there are _{reservations, they} are checked on the master list of

reservations forthe day. Menus are then counted out forthe number of_guests, and the

host/hostess seats the customers at a table. After this is completed, the host/hostess

returns to the _greeting station to await future guests. There are two control points

present in this process. The first involves _checking to see ifthere are _{reservations,} and

the second is the response time from the

guests'

arrival until the actual seating. The

measurements are determined through the use of the Ultrak video camera and _timing

device. _Finally,feedback isprovidedthrough thecustomer assessment. (Figure₁₎

FIGURE 1

Customer Greeted _by

Host/Hostess

Customer Arriveat Henry's

Host

Greeted_by

Host/Hostess

Seats Guest

withMenu

Return to Host

Station

Counts Out

Menus

Tables

become

available

Asked towait and given approximate

timeof wait

Beverage_Delivery

Ownership wasdivided intothreeareas fortheservice ofthebeverage. The

threeownerswerethewaitstaff, the _bussers,and thebeverage staff. Eachownerhad a

specific _boundary involved inthe_deliveryofthebeveragetothecustomers. The guests

were greeted_bythewaitstaff, andtheirbeverageorder wastaken.Thebeveragestaff

thenwas inchargeof_preparingthe_beverage, whilethebuspersondeliveredthebreadto

the table. _Also,thewait staffreturnsto take theentreeorderformtheguests. Whenthe

beverage orderiscompleted_bythebeverage staff,itisdelivered_bythewaitstaff.

Therefore, theprocess startswiththe_greeting and_taking ofthebeverage order_bythe

wait staff. _Next, breadisdeliveredwhile thebeverageisprepared, and the entree order

istakenanddeliveredto thekitchenforpreparation. _Finally, thebeverage is served. The

twocontrol points werethepreparation ofthebeverage andtheresponsetime fromthe

time thebeveragewas ordered untilthe timeit wasdelivered. Themeasurements were

determined through theuse oftheUltrakvideo camera and_{timingdevice,} while

feedbackwasgatheredfromthe_qualityassessment. (Figure₂₎

FIGURE 2

Beverage Order Taken and

Delivered

tesponsej

Time

Waitstaff

Busperson

Beverage

Staff

1r i

GreetGuest,

Beverage Order Taken

Beverage

Delivered

n *

M

Bread Brought

toTableand

Water Glasses Filled

'_T

>^BeverageV

^Prepared,/' Beverage

Completed

Entree _Delivery

The _ownership ofthis process belonged to the wait staff and the kitchen staff.

The boundaries were as _follows; the entree order is taken _by the wait staff and is

delivered to the kitchen for preparation _by the kitchen staff. _During this time, the

beverage is delivered _by the wait staff. After the entree orders are completed, they are

delivered _bythe wait staff. The process thenis as follows: the entree order is taken and

delivered to the kitchen to be prepared. Drinks are brought to the table and when the

entree(s) is complete, it is served. The two control points of this process is the

preparation oftheentree(s) and theresponse time fromthe _ordering oftheentree until it

isserved. The measurements aredeterminedthrough the use oftheUltrakvideo camera

and_timingdevice, while feedback isprovided_bythe_qualityassessment. (Figure 3)

FIGURE 3

Entree Order Takenand

Delivered

^/^ResponseS^

^>^

Wait Staff

KitchenStaff

1 i\

Entree Order

Taken Entree Served

i '

it

Entree Entree

Complete

Prepared

Presentation ofCheckand Payment

The wait _{staff, cashier,} and _quality assessment team possess _ownership ofthis

sub process. The boundaries are as _follows; the check is prepared _by the _cashier, who

gives it to the wait staff for delivery. _Next, payment is given to the wait staff who

delivers itto thecashier. Afterpayment is_received,the_qualityassessment teamdelivers

the electric commentcard forcompletion _bythe guests. The process _{is very simple;} the

meal is completed, the check is _prepared, payment is made, and the assessment is

completed. The two control points used were the preparation ofthe check _by the wait

staffand theresponse time from thecompletion ofthe meal untilthepresentation ofthe

check. Measurements were determined through theuse ofthe Ultrakvideo camera and

timing device. Finally,feedbackwas received fromthe_qualityassessment completed_by

i

theguests. (Figure4)

(0 u M-E c >. O 3 +3 D-(0 c (0 LU 0 w c (0 Q. Q 4-* ^ ^ , , _ A 0) 3 o it

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CHAPTER IV

Analysisof_Data

Data Collection

The goal ofthiscontinuous improvementproject was toimprovethe processes of

servicedelivery. Datawas collectedin a realtime and fora period oftwelve days _(every

Tuesday and _Thursday) the restaurant was open. The tabulated data was entered into

Microsoft Excel spreadsheet for tabulation. Then the tabulated data used Minitabs

(vl_1.2) toproduce control chartsthatrepresented x-bar and range oftheinformation.

ControlCharts

Processcontrol chartsare usedto_specifytheupperandlower boundsofa sample.

Within theselimits liesthemean oftheaveragesfor thedatasample over a specific time

period. The upper control limit _(UCL) is the highest _boundary on the chart, while the

lower control limit _(LCL) is the lowest _boundary of the chart. Data is plotted within

these boundaries, and it enables researchers to find the mean and range of the samples

over the time ofthe research _(Hayes, 1997). Control charts were used in this _study to

illustrate themean and range ofthedatacollectedin Henry's forthefourareas of service

delivery.

Findings

Figure 5 represents the x-bar and range forthe _{greeting-seating}process. In this

analysis, the mean time for this process was 37.68 seconds, with a range of 51.33

seconds. The mean and range of times gathered for _day one were not _very accurate.

Since thiswas the _opening of_dayofthe_restaurant, the staff_{may have been} uncertain of

their roles. _{Further, they} were _getting acquainted withthe SPC tools. The nextten days

ofoperation represent anincrease in service time. The analysis also showedthat groups

with six people or more took longerto seat than those with two orthree in a party. The

increased time to seat larger groups can be attributed to the staff _being unprepared or

unfamiliar with_seatingbiggroupsfor lunch_(Marecki, 1998).

Figure 6 shows the x-bar and range for thebeverage service process. The mean

forthisprocess was 3.5 minutes,with a range of about 8minutes. Therangedatawas in

control over theperiod ofdata _collection,except on the 11th _daywhen therewas a large

number of groups with six or more guests. Onthis_day, therange was out of control.

Figure 7 representsthe x-bar and rangefortheentree service process. The mean

time for the order to be taken and delivered was 14.58 minutes, while the range was

10.22 minutes. All of the data lie within the upper and lower control _limits, which

indicatethat theprocess remainedincontrol _duringthedurationofthe analysis_(Marecki,

1998). Entree responsetimes were in control for the_day withlarge _groups, because the

kitchen staff was aware that _they were _{coming in for} this day. This was one occurance

wherethebackofthehousewasmore_adequatelypreparedthan the frontofthehouse.

Figure 8represents the x-bar and range forthecheck-payout process. The mean

time from check presentation until change and receipt was4.43 minutes. The range for

this process was6.9 minutes. Almostall ofthedatawas within the control _limits, which

means that theprocess was in control forthe durationofthe _{study (Marecki,} 1998). On

day 10 thecashier was _using the computersystem forthe _{first time,} whichincreased the

meantimeforthisday.

FIGURE 5

Greet-Seat Response Time

Greet-Seat Time

_(Sec.)

c 03

0J CD C CO

100

-50

-0 -L

Subgroup 0

100

_H

50

-o

-10

3.0SL=67.29

X=37.68

-3.0SL=8.074

3.0SL=108.5

R=51.33

-3.0SL=0.000

FIGURE 6

BeverageResponse Time

Beverage Response Time

_(Min.)

10

5

-o

-Subgroup 0

20^"

10

-o

-10

3.0SL=8.255

X=3.530

-3.0SL=M.195

3.0SL=17.32

R=8.192

-3.0SL=0.000

FIGURE 7

Entree Response Time

Entree Response Time

_(Min.)

<D en

20

-15

-10

T

Subgroup 0 10

3.0SL=20.48

X=14.58

-3.0SL=8.688

3.0SL=21.62

FIGURE 8

Check-PayoutResponse Time

Check-Payout

Response Time

_(Min.)

9

-8

-7 -6

-5 H

4 -3

_H

2

-1

0

r

Subgroup 0

15

-10

-5

-0

-_\

T

5

^7

10

3.0SL=8.420

X=4.436

-3.0SLO.4527

3.0SL=14.60

R=6.907

-3.0SL=0.000

CHAPTER V

Conclusion and Recommendations

Conclusion

This studywas performedto improve service_{quality in} a restaurant environment.

Food service organizations are faced with _strong competition and increased customer

demands today. It has become imperative thatcontinuous improvement is usedin order

to provide a_quality product on a consistentbasis. Through the useof statistical process

control _{tools, Henry's} implemented a program that has made it a state-of-the-art food

institution. _Further, it has enabled future food service managers to learn how to

implement a continuous improvement process. _{This study} was important because it

empowered the students to _develop processes and then analyze what occurred in each

one.

The SPC tools will benefit each student who had an _opportunity to be a part of

this program. _However, this is not a one- _{time program.}

"Quality improvement must

becomepart oftheculture ofan

organization"

(Marecki, 1998). _{This study} was thefirst

step inthe turnaround ofHenry's Restaurant utilizingprocessimprovement.

Recommendations

Future studies _{may investigate} the data that was compiled _by the _quality

assessmentteam. This datawas gatheredfromtheelectriccomment cardsthattheguests

filled-outaftertheirmeals were completed. Ibelievethatifthisis _done, thenacomplete

analysis can be performed to see if process management has an effect on customer

satisfaction.

FIGURE 9 to U) c <u ro Q. 0> Q c"8 HI > h o> >.o <0 oi Q-(T I a>"D ao> o> > o> 01 mQ c o E Q > 3 C col

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