1. Create constancy of purpose for the improvement of product and service, with the aim to become competitive, satisfy customers, stay in business, and provide jobs. 2. Adopt a new philosophy of cooperation (win-win) in which everybody wins and put it into practice by teaching it to employees, customers and suppliers. 3. Cease dependence on mass inspection to achieve quality. Instead, improve the process and build quality into the product in the first place. (a) When people and organizations focus primarily on quality, quality defined by the following ratio:
QUALITY =RESULT OF WORK EFFORTS:TOTAL COSTS
then quality tends to increase and costs fall over time. (b) However, when people and organizations focus primarily on cost, (often dominant/typical human behaviour) then costs (due to not minimizing waste, ignoring amount of rework occurring, taking staff for granted, not rapidly resolving disputes and failing to notice lack of product improvement plus, over time, loss of customer loyalty) tend to rise and quality declines over time. At Hotel East End we have implemented the following principle (a).The methods used for cost control at the restaurant, banquet and Hotel level are: · KOT Analysis (for reconciliation of the KOT’s and actual bills to resolve discrepancies and anomolies,if any). · Yield standards (for determining the actual yield of raw veg.consumables and non-veg food material based on international and local chef standards.) · Application of LIFO/FIFO/HIFO inventory valuation techniques for management and control of stock and stores. · Maintenance of stock ledgers at multiple levels (restaurant,kitchen,stores and banquet) for transparency and accountability. · Implementation and utilization of a transparent and effective financial accounting model for better transactions. The Financial reports are generated on daily basis(such as sales summary for restaurant and room service etc) .Presently two accountants are employed. One for day to day accounting and another for weekly upgradation, rectification and auditing. 4. End the practice of awarding business on the basis of price tag alone. Instead, minimize total cost in the long run. Move toward a single supplier for any one item, based on a long-term relationship of loyalty and trust. 5. Improve constantly, and forever, the system of production, service, planning, of any activity. This will improve quality and productivity and thus constantly decrease costs. 6. Institute training for skills. At Hotel East End our captains,stewards,cheffs and restaurant and banquet managers are constantly being trained in order to brush up their skills. 7. Adopt and institute leadership for the management of people, recognizing their different abilities, capabilities, and aspiration. The aim of leadership should be to help people, machines, and gadgets do a better job. 8. Drive out fear and build trust so that everyone can work more effectively. 9. Break down barriers between departments. At Hotel East End we facilitate smooth interaction between the different departments-accounts, stores, front office, kitchen and restaurant. Abolish competition and build a win-win system of cooperation within the organization. 10. Eliminate slogans, exhortations, and targets asking for zero defects or new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. 11. Eliminate numerical goals, numerical quotas and management by objectives. Substitute leadership. 12. Remove barriers that rob people of joy in their work. This will mean abolishing the annual rating or merit system that ranks people and creates competition and conflict. |
improvement. We have implemented the same for our managers, stewards and chefs. 14. Put everybody in the organization to work to accomplish the transformation. The transformation is everybody's job.
KEY SUCCESS FACTORS | The principals see the following factors playing a critical role in the success of the organization: |
Providing services in a timely fashion. |
|
|
"Guaranteed satisfaction." |
|
|
|
|
|
