Total Quality Management Research (Service Business)

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COLEGIO DE SAN LORENZO

SCHOOL of BUSINESS and MANAGEMENT


Congressional Avenue, Quezon City

TOTAL QUALITY MANAGEMENT OF BEAUBOX NAIL STATION

A Case Study

Presented to

Ms. Josephine Tenegra

Colegio De San Lorenzo

Quezon City

In Partial Fulfillment

of the Requirements for the Course

TQM101: Total Quality Management

Chanaia Lopez

Janwayne Marquicias

Kate Jubilo

Lans Albert L. De Lara

Colegio De San Lorenzo

Quezon City

October 29, 2019

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY…………………………P. 3

II. INTRODUCTION………………………………….P. 4-5

III. REVIEW OF RELATED LITERATURE…………P. 6-8

IV. AREAS OF CONSIDERATION………………….P. 9-12

V. RESULTS AND CONCLUSION…………………P. 13

VI. BIBLIOGRAPHY…………………………………..P. 14-15

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

EXECUTIVE SUMMARY

Maintaining quality inside an organization is really important, this will play a

crucial role on maintaining your composure and focus as you enter a strong and

competitive market, especially in this day and age where companies are being

innovative when it comes to their strategies.

The second chapter of this research will provide a strong foundation on the

research topic, the researchers included relevant and compatible articles that will serve

as one of the foundations of the research. The articles are carefully picked to present

and create a connection between the future readers and the researchers.

The third chapter will discuss the weaknesses and struggles of Beaubox Nail

Station, and how DMAIC can help them resolve the difficulties their facing. Lastly, the

final chapter will discuss the results and conclusion of the research

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

INTRODUCTION

Every business needs quality to satisfy the customers. Crosby (1979) defined

quality as “conformance to requirements” it’s the ability of the service or product to meet

the design specification of the customers.

Service is “a commercial enterprise that provides work performed in an expert

manner by an individual or team for the benefit of its customers”. (Business Dictionary,

2019) In a daily operation on service, it’s crucial that the person who performs the service

is knowledgeable for the credibility and safety of the clients. Kotler and Armstrong (1996)

defined service quality as “the totality of features and characteristics of a product or

service that bear on its ability to satisfy stated or implied need’’. It’s important to have

features and characteristics the products or services this will help the customers to know

the variety of your offerings, how each product/service is valued and who will be your

target persons that you need to satisfy.

Parasuraman, Zeithaml and Berry (PZB’s, 1988) introduced five SERVQUAL

dimensions. The customers use this to evaluate service quality. “The five SERVQUAL

dimensions are: Tangibles-- is the appearance of physical facilities, equipment etc.

Reliability-- is the ability to perform the promised service dependably and accurately.

Responsiveness-- is the willingness to help customers and provide prompt service.

Assurance-- is the knowledge and courtesy of employees and their ability to convey trust

and confidence. Empathy-- is caring, individualized attention the firm provides its

customers.” The five dimensions will help the service providers to know what they need

to improve and develop to get the loyalty of the customers.

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

Each and every service provider wants to maximize their profit. To maintain their

business in the long run while giving their products and services with quality that

customers will avail or buy when time comes they need it.

It’s important to understand the wants and needs of the customers to meet the

customer satisfaction with their feedback and suggestions we will know what they need

and what service/product are most valued or needs to improve. Most of the customer

wants good service with fair price that companies or service providers desire to achieve.

Quality in service is one the key to the customer’s heart to get their attention about your

offerings. Currently, service providers are still improving their operations and employees

to achieve their goal.

The researchers will conduct this study to help their organization to improve their

quality in service to meet the customer satisfaction.

The researchers decided to conduct a research with the management and

employees of Beaubox Nail Station, a local Nail spa located at E St.,, Loreto, Morning

Breeze Subdivision, Caloocan, 1400 Metro Manila. The business stared operating back

in 2013. The research aims to help small service businesses to maintain, regain and

implement quality in their organization. This will help them achieve their goals and

maximize the use of their resources for the improvement of the company.

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

REVIEW OF RELATED LITERATURE

The researchers reviewed various studies and articles that are in line with the

objectives of the present paper, this portion will also give a much wider view on the

topic.

Quality in Service

According to Fraser Sherman (2019) service quality is significant in the business

that will gain the corporate many advantages. Good service can encourage customers to

spend more than they would have planned to stay. It increases sales and satisfied

customers will be more likely to buy again. It is easier and more cost effective to maintain

existing customers than to attract new ones. Offering good service to the consumer saves

money and it improves people’s way of seeing your company, boosting your credibility

and brand.

The Lumen Learning (n.d.) a company with a high level of quality of service is likely

to meet customer needs while being economically competitive in their respective

industries. Successful companies that remain competitive in the market place are

proactive in obtaining information from their existing and future client base in order to

ensure that they meet their needs.

Quality is so important for the large companies that they have a separate

department for quality assurance. This is to ensure that the products and services of the

organization follow the quality standards necessary. Many large companies pay a lot of

attention to quality because they know that their reputation is eventually influenced by the

quality of the product and services they offer (Nellas, 2010).

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

Diana Eidson (2016) complete customer satisfaction is the aim of high quality

service. They’ll tell others about you when your customers are happy and when they’re

not happy they’ll tell other about you as well. That is why for any company, successful

word of mouth marketing is important.

The CQI (2019) effectively managing quality will strengthen the image and prestige

of the company, protect it from risks, increase its productivity, raise its profitability and

position it to continue to grow while making employees and customers happier.

According to Quain (2019) when you fail to meet the needs of consumers, they will

look for alternatives quickly. Quality is essential to pleasing your customers and

maintaining their loyalty so that in the future they can continue to buy from your company.

Quality products contribute significantly to long term sales and productivity. They also

allow you to charge higher process and keep them up.

Any business they are in, customers will not choose the company on the basis of

cost alone but often on the basis of quality. Studies have shown that customers are going

to pay more for a product or service that they think is being made good and exceeds the

standard. Customers will expect the company deliver quality products or services (Quain,

2019).

When workers experience excellent quality of service within the company they are

more likely to be inspired outside the organization to provide excellent quality (Nkusi,

2018).

According to Hitesh Bhasin (2018) it also enhances your employees’ morale when

a customer praises the company. Their faith in your business grows over a period of time

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

and you will understand that delivering good customers service is the key to building trust

in the employees who will be motivated enough to keep their customers satisfied. Once

the costumer is pleased with the product or services that the company will provide the

customer will stick back to the brand and will not switch to the competitors (Bhasin, 2018).

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

AREAS OF CONDISERATION

In this part of the research, the researchers will identify the weaknesses of

Beaubox Nail Station, the researchers will use DMAIC (Define, Measure, Analyze,

Improve, Control) to formulate a solution that will help the company resolve its issues

with maintaining and improving their quality as an organization.

Figure 1. DMAIC Model

• DEFINE

According to the owner of Beaubox Nail Station, James Phillip Del Rosario, the

company has three major problems that they are facing, the first one is the long waiting

time of the customers to be accommodated, growing competitive market, and employee

productivity. This resulted to loss of income and brand value.

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

• MEASURE

Currently, the company has 6 Nail technicians, a cashier, and a maintenance

personel. Beaubox Nail Station has an estimated 50-110 customers every day. They

start to operate 12:00 PM – 11:00PM, and during 5:00 PM – 11:00 PM tons of

customers are trying to avail their service and sometimes, the number of people trying

to avail their service would double during Fridays and weekends. There are other nail

spas/salons within the subdivision where Beaubox is located.

Figure 1.1 Beaubox Nail Station Flow

chart
• ANALYZE

The figure 1.1 shows the flow of work inside Beaubox Nail Station, upon entering the

establishment nail technicians will greet and ask the customer what service they want,

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

and they will guide the customer to the nail station then perform the specific service they

want, but this will only be applicable if there is an available nail technician at the

moment. You’ll have to wait if there is no available nail technician and for the case of

Beaubox Nail Station, they only have 6 nail technician and not everyone is present

every day since workers are entitled by the law to have day-offs, services that they offer

needs ample time to be done since the attention to detail must be observed all the time

to ensure quality, and this resulted to long waiting time for the customers to be

accommodated and the supposed customers will transfer to their competitors to get the

service they want, thus, loss of income and brand value. As of October 28, 2019, there

are 2 nail spas nearby where Beaubox Nail Station is located, and this is also one of the

major problems that they are facing right now. Before, they were able to dominate the

market since they are the only nail spa around the area. Also, the productivity rate of the

employees are dropping, according to one of the nail technician, the long working hours

and high demand from the customers make them physically, emotionally, and mentally

exhausted.

• IMPROVE

The researchers suggest that in order to avoid long waiting lines for the customers,

Beaubox Nail Station should hire more nail technicians with experience and exposure

with this kind of job, for a much quicker way to provide the service without

compromising the quality of the work. They should also provide scheduled trainings for

their nail technicians to update their knowledge, as well as learn new ways and tricks to

provide the service they need to do. Providing good benefits and compensation will also

help retain and gain experienced nail technicians. A shorter waiting time will result to

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

accommodating more customers, earning more income, and increasing brand

value/equity. This will also make the customers stay and not transfer to their

competitors.

• CONTROL

Beaubox Nail station needs to maintain their good relationship to their employees, this

can be a key to a much productive employees since there is a harmonious working

environment. Provide trainings for both new and tenured nail technicians to update their

skills and knowledge. Continue to offer competitive salaries and benefits to encourage

new employees to work for them, and to encourage tenured employees to retain their

productivity. Productive employees will be able to cater more customers, and this will

result to a shorter waiting time for the customers and loss of income can now be

avoided.

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

RESULTS AND CONCLUSION

The researchers were able to interview the owner and some of the employees of

Beaubox Nail Station, all of them said that the long waiting time for the customers to be

accommodated was a huge problem for them, especially to the nail technician because

the pressure is on them to finish their current customer and move-on to the next one as

quick as possible. Productivity was also an issue, since the employees were tired

because of the working hours and the high demand from the customers. Focusing on

training and development of their employees will be a good investment since the

employees will be able to work accurately without sacrificing quality. The company will

be able to resolve their issues with the help of DMAIC tools and just simple

implementing quality all throughout the company.

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

BIBLIOGRAPHY

• Business Dictionary (2019) Retrieved from

http://www.businessdictionary.com/definition/service-business.html

• Arlen, Chris. (2008, October 24). The 5 Service Dimensions All Customer Care

About. Retrieved from http://www.serviceperformance.com/the-5-service-

dimensions-all-customer-care-about/

• Chapter 3 Service Quality. Retrieved from

https://www.google.com/url?sa=t&source=web&rct=j&url=http:shodhganga.inflibn

et.ac.im/bitstream/10603/77015/10/10_chapter%25203.pdf&ved=2ahUKEwjB8cy

7rvvAhUVIIgKHXCqa-

UQFjABegQICRAG&usg=AOvVaw3NffHdl1DQhB8VJGIIB5tw

• Sherman, Fraser. (2019, August 19). Why is Quality in Customer Service

Important? Retrieved from https://bizfluent.com/about-5437915-quality-customer-

service-important.html

• Lumen Learning. (n.d). Service Quality. Retrieved from

https://courses.lumenlearning.com/boundless-marketing/chapter/service-quality/

• Nellas, Stephen. (2010, June 20). The importance of Quality in your business.

• Retrieved from http://bip.softwarejewel.com/featured/the-importance-of-quality-in-

your-business-4443/

• Eidson, Diana. (2016, January 21). 5 Benefits to Providing quality Service and How

to Achieve Them!. Retrieved from https://www.linkedin.com/pulse/5-benefits-

providing-quality-service-how-achieve-them-diana

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COLEGIO DE SAN LORENZO
SCHOOL of BUSINESS and MANAGEMENT
Congressional Avenue, Quezon City

• CQI. (2019). What is quality?. Retrieved from https://www.quality.org/article/what-

quality

• Quain, Sampson. (2019, February 12). Why is Quality Important for a Business?.

Retrieved from https://smallbusiness.chron.com/quality-important-business-

57470.html

• Nkusi, Fred K. (2018, September 03) Quality service delivery is a competitive

advantage. Retrieved from https://www.newtimes.co,rw/opinions/quality-service-

delivery-competitive-advantage

• Bhasin, Hitesh. (2018, March 6). 7 Advantages of giving good customer service.

Retrieved from https://www,marketing91.com/advantages-of-good-customer-

service/

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