Starwood Hotels and Resorts Case Study
Implementing Six Sigma programs takes considerable time and commitment from an organization. In your Operations Management: Processes and Supply Chains text, read the “Process Performance and Quality at Starwood Hotels and Resorts” case study on page 133. Then respond to the case study’s question 1 as your initial post for this discussion.
Quality and Capacity Planning Problems
After reading Chapters 3 and 4 in your Operations Management: Processes and Supply Chains text, select one question from the “Statistical Process Control” section on pages 124–129, one question from the “Process Capability” section on pages 129–131, and one question from Chapter 4, pages 150–156. Solve the three problems and post your answers in the discussion area.
Gate Turnaround at Southwest Airlines Case Study
In your Operations Management: Processes and Supply Chains text, read the “Gate Turnaround at Southwest Airlines” case study on pages 156–157. Then respond to the case study’s questions 1 and 2 as your initial post for this discussion.
VIDEO CASE: Process Performance and Quality at Starwood Hotels & Resorts
Starwood Hotels & Resorts is no stranger to quality measurement. In the most recent year, Starwood properties around the globe held 51 of approximately 700 spots on Condé Nast’s Gold List of the world’s best places to stay. Its spa and golf programs have consistently been ranked among the best in the world.
At Starwood, processes and programs are driven by the work of its team of Six Sigma experts, called Black Belts. Developed by Motorola more than 20 years ago, Six Sigma is a comprehensive and flexible system for achieving, sustaining, and maximizing business success by driving out defects and variability in a process. Starwood uses the five-step DMAIC process: (1) define, (2) measure, (3) analyze, (4) improve, and (5) control.
Clearly, understanding customer needs is paramount. To this end, Star-wood collects data from customers on its Guest Satisfaction Index survey, called the “Voice of the Customer.” The survey covers every department guests may have encountered during their stay, from the front desk and hotel room, to restaurants and concierge. Past surveys indicated that how well problems were resolved during the guest stay was a key driver in high guest satisfaction scores. To increase its scores for problem resolution, the Sheraton brand of Starwood launched the Sheraton Service Promise program in the United States and Canada. The program was designed to give guests a single point of contact for reporting any problems. It was intended to focus associate (employee) attention on taking care of service issues during the guest’s stay within 15 minutes of first receiving notice.
Starwood has implemented Six Sigma quality programs to efficiently resolve guest problems at its properties around the globe.
However, although scores did increase, they did not increase by enough. Consequently, Sheraton brought in its Six Sigma team to see what it could do. The team employed the basic Six Sigma model of define-measure-analyze-improve-control to guide its work. To define the problem, the Six Sigma team worked with data collected and analyzed by an independent survey organization, National Family Opinion. The study indicated that three key factors are needed in problem resolution: (1) speed, (2) empathy, and (3) efficiency. All three must be met in order for the guests to be satisfied and the Sheraton Service Promise fulfilled. Then, the team looked at the specific processes that affected performance: Telephone operators’ handling of requests, procedures for determining who to call, engineering workloads, and so on. The work identified in each area was measured. For example, call logs were established to track speed, empathy of associate handling the call, and efficiency of the staff charged with fixing the problem. The data collected were analyzed to determine why guests’ problems were not resolved within the 15-minute standard. Pareto charts and other techniques were used for the analysis.
The final step involved control and monitoring to be sure that the improved processes developed by the Six Sigma team became part of the property’s culture, and that they were not abandoned after the team’s work was finished. Tracking continues for 12 to 18 months, with monthly feedback to the manager or department head responsible for the improvement of the Sheraton Service Promise program. The improvement effort also receives visibility through the company’s intranet so the rest of the organization sees the benefits—including service levels and financial performance—and can use the experience to improve their own operations.
1. Implementing Six Sigma programs takes considerable time and commitment from an organization. In terms of top-down commitment, measurement systems to track progress, tough goal setting, education, communication, and customer priorities, evaluate the degree to which Starwood successfully addressed each with the redesign of the Sheraton Service Promise program.
2. How might the new Sheraton Service Promise process help Starwood avoid the four costs of poor process performance and quality (prevention, appraisal, internal failure, and external failure)?
3. Starwood is the first major hotel brand to commit to a dedicated Six Sigma program for improving quality. Why might an organization be reluctant to follow this type of formalized methodology? What other approaches could Starwood or its competitors use?