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Project Lean Six Sigma

This document is a student project report on applying Lean Six Sigma approaches in the hospitality industry. It includes an acknowledgement, declaration, executive summary, introduction and sections on the origins and objectives of Six Sigma and Lean. The executive summary provides an overview of Six Sigma and Lean as quality management methods aimed at reducing defects and waste in processes. The introduction discusses using Six Sigma benchmarking and tools to implement best practices for organizational growth. The origins section covers how Motorola developed Six Sigma to reduce production variability and defects. Objectives include conducting surveys of past Lean training participants and assessing reasons for pursuing or not pursuing further certification.

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Aral Rodrigues
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0% found this document useful (0 votes)
109 views54 pages

Project Lean Six Sigma

This document is a student project report on applying Lean Six Sigma approaches in the hospitality industry. It includes an acknowledgement, declaration, executive summary, introduction and sections on the origins and objectives of Six Sigma and Lean. The executive summary provides an overview of Six Sigma and Lean as quality management methods aimed at reducing defects and waste in processes. The introduction discusses using Six Sigma benchmarking and tools to implement best practices for organizational growth. The origins section covers how Motorola developed Six Sigma to reduce production variability and defects. Objectives include conducting surveys of past Lean training participants and assessing reasons for pursuing or not pursuing further certification.

Uploaded by

Aral Rodrigues
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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PROJECT BY: Aral Gilmore Rodrigues

REGISTRATION NUMBER:77121662163
COURSE NAME: MBA Operations Management
PROJECT TITLE: A STUDY ON LEAN SIX SIGMA APPROACH IN
HOSPITALITY

ACKNOWLEDGEMENT
In pursuing and completion of my MBA in Operation management, I undertook the task of
completing my project on “A STUDY ON LEAN SIX SIGMA APPROACH IN
HOSPITALITY”. To that end, I'd want to thank and express my gratitude to the Top
Management for allowing me to carry out my project and for their unwavering support. I'd
also like to thank all the employees of this organisation who assisted me with my project and
provided honest feedback. Finally, I'd want to thank my most adored and beloved parents, as
well as my friends, without whose blessings and support this project work would not have
been finished.

DECLERATION
I hereby declare that this Project Report titled " A STUDY ON LEAN SIX SIGMA
APPROACH IN HOSPITALITY " submitted in partial fulfilment of the requirement of
COURSE NAME of University is based on primary and secondary data found by me in
books, magazines, and websites, and collected by me under the supervision of my project
guide.
STUDENT NAME: Aral Gilmore rodrigues
Registration No: 77121662163
#EXECUTIVE SUMMARY:

Six sigma is a corporate management method developed by Motorola in the United States in
1981. As of 2010, it was widely used in a variety of industry areas.
Six Sigma attempts to improve process production efficiency by recognising and removing
failure sources and reducing variability in manufacturing and business processes. It utilises a
variety of quality control methods, including statistical approaches, and creates a particular
infrastructure within the firm of individuals who are experts in these procedures. Each Six
Sigma project undertaken inside an enterprise follows an established procedure and has
verifiable financial objectives.
The phrase "six sigma" comes from the language of industry, namely the notions that are
associated with the mathematical modelling of various manufacturing processes. A sigma
rating, which measures a manufacturing process's yield (also known as the percentage of
products that are free of defects), is used to characterise how mature the manufacturing
process is. Motorola set a goal of "six sigma's" for all its manufacturing operations, and the
managerial and technological techniques that were used to achieve this goal became a
catchphrase.
The term "Six Sigma" refers to a measurement of quality that many companies use to become
as close to flawless as possible. Six sigma is a data-driven, disciplined approach and
methodology for reducing faults in all stages of a process, from the manufacturing phase to
the transactional phase to the product phase to the service phase.

#THE ORIGIN AND MEANING OF "SIX SIGMA"


The idea behind the "six sigma process" is that there will be almost no failure of the items to
fulfil the specifications if there are six standard deviations between the mean of the process
and the limit of the close specification. This idea is referred to as the "six sigma process." The
technique that goes into calculating process capacity will be covered in this portion of the
article.
When conducting capacity studies, the difference in sigma units that exists between the mean
of the process and the nearest specification limit is what is being measured. As the mean or
standard deviation of the process travels farther away from the centre of the tolerance, there
will be fewer standard deviations that match between the mean and the closest specification
limit. This brings the sigma value down and increases the likelihood that the items in question
may deviate from the specifications.
# OBJECTIVES OF THIS PROJECT
♦ To conduct a survey of previous Green Belt Programme participants who did not
register in additional Six Sigma certifications with Benchmark Six Sigma.
♦ In circumstances where the participant chooses to pursue a Six Sigma certification
programme from a different training provider, to analyse the reasons behind this and
provide strategies to avoid it.
♦ To investigate the reasons for the participant's decision not to pursue any further Six
Sigma certification programmes.
♦ Finally, in situations where the participant was keen to participate in additional
certification programmes, realistic timeframes for enrolment were determined.
♦ To undertake a feasibility study in preparation for the introduction of a new product,
The Green Belt Refresher Programme.

#INTRODUCTION:
Six Sigma benchmarking is the most feasible and cost-effective technique to incorporate best
practises into an organisation. It is quite beneficial and is utilised in a wide range of
scenarios. The idea is to develop business procedures that, if implemented, may catapult
companies to new heights of success.
There are several realistic benchmarking measures available to help any Six Sigma
practitioner that wishes to measure various kinds of data. When it comes to benchmarking,
points in the form of questions will aid in the resolution of a wide variety of critical concerns.
The main question is whether benchmarking is beneficial. This question can be used to
determine if such activities should be undertaken. Once you learn how to benchmark, you
will recognise and apply best practises from other firms to improve the efficiency of your
own business processes. Then you'll understand how valuable benchmarking might be for
your company.
Before you can fully utilise benchmarking, you must first understand its purpose. Six Sigma
personnel must understand benchmarking well to aid their businesses in leveraging data to
tackle several critical challenges. There are several Six Sigma tools and techniques for
collecting and interpreting data. This information assists business owners in generating
solutions that will help their firm grow and succeed. Benchmarking is a useful technique for
assisting firms in applying best practises that support growth and development.
This low-cost technique would apply best practises to a firm in such a way that owners would
be able to plan for future growth. Only by adopting other tactics utilised by effective
companies will the firm be able to flourish and develop over time. Six Sigma approaches are
designed to improve total customer satisfaction, and enhancing the quality of firm processes
and systems is one step in that direction. Benchmarking includes a lot of benefits that can
help a business measure many areas of performance. It will indicate places where
modifications may be made and guide team members through the many processes necessary
to make them. It is a very handy strategy that may be applied in a range of business situations
at any moment.

#THEORETICAL PERSPECTIVE
#LET'S DISCUSS THE HISTORY OF MOTOROLA:

Motorola founded Six Sigma in 1981.As of 2010, several industries utilised it. Six Sigma
reduces manufacturing and business process variability and eliminates failures to improve
output quality. It uses statistical methodologies and a specialised infrastructure of quality
management professionals. Organisational Six Sigma projects follow a procedure and have
financial targets.
Industrial terminology, notably statistical production process modelling, inspired six sigma.
Sigma ratings reflect a manufacturing process's maturity by indicating its yield, or defect-free
product percentage. A six-sigma technique produces 99.9997% defect-free products (3.4
faults per million). Motorola's management and technical practises to achieve "six sigma's"
for all production became an example.
Many companies use Six Sigma to assess quality to near perfection. Six sigma is a data-
driven, disciplined method for reducing defects in any process, from manufacturing to
transactional and product to service.

#WHAT IS LEAN?
The goal of both the Lean idea and the Six Sigma method is to get rid of waste in their
processes. Still, a big part of its success depends on being able to figure out what the buyer
values. Lean is different from other methods because it doesn't need a system of trained
people and leaders to be used. The Lean approach measures value by asking if customers are
ready to pay for a certain step in the process. For example, a customer might put a lot of
value on a hotel room that has just been cleaned. There are a lot of steps that go into cleaning
and setting up a hotel room, and some of them may not seem very helpful to the guest. The
goal of lean is to get rid of steps in a process that the client isn't ready to pay for. At the same
time, these steps can be taken out of the process without hurting the quality of the product or
service.
Lean does this by figuring out which steps in a process add value, which ones don't, and
which ones add value for the customer. The value-added and customer value-added steps of a
process cannot be skipped. In Lean, cutting out the steps that don't add value is how you save
money. The value stream map is the best way to figure out which steps don't add value. Value
stream maps show how a process works step by step. Most of the time, they are done in
groups with people who know how the process works. Once useless steps that don't add value
are found and removed, the organisation is more likely to focus on making a product that is
more valuable to the customer.
A well-organized desk is another important part of the Lean method. Getting rid of trash and
things that aren't needed at work and keeping the room clean has many benefits. Some of
these benefits are that it gives the area a more professional look, makes it easier to run
operations, and makes it easier for rescue workers to take over for others. This is done with
the Lean tool of the 5S’. Sort, Straighten, Shine, Standardise, and Sustain are the words that
make up the 5S’. During the sort of phase, things that aren't being used are taken out of the
area. In the cleaning area of a hotel, for example, broken brooms and mops are often found
and thrown away. During the Straighten step, things are put in an area so that they are easy to
get to. In the case of the housekeeping supply room, the cleaning materials that are used most
often are set up in a place where they can be reached quickly.
The shine phase is when the area is cleaned and set up in a way that makes it easy to keep
clean. During the standardise phase, the work done in the first three steps is made sure to stay
the same. In the last step, "sustain," you make sure that all workers who use the area follow
the rules that the 5S’ set up.

#WHAT IS SIX SIGMA?


Motorola created Six Sigma in the 1980s in the US. In 2010, it was used across several
industries.
Six Sigma improves production by minimising random variation in manufacturing and
commercial processes and eliminating their sources. It employs statistical methods and a
dedicated infrastructure manned by in-house experts. In-house Six Sigma projects must meet
tight rules and budgetary goals.
Six sigma is an approach to quality improvement that borrows heavily from the world of
industry, particularly from the field of statistical modelling of manufacturing processes. The
sigma rating of a manufacturing process may be indicative of its level of development, since
it measures the percentage of defect-free products it produces. Six-sigma manufacturing aims
for a failure rate of less than 3.4% per million units produced (99.9997% fault-free). With a
"six sigma" goal in mind, Motorola implemented exemplary management and technical
practises throughout its production operations.
Six Sigma, as used in many businesses, is shorthand for a quality measurement strategy
aiming for statistical perfection. Six sigma is a data-driven, disciplined method and set of
tools for eradicating defects in any operation, whether its production, transaction, or service.

.
#WHAT IS NOT SIX SIGMA?

Six Sigma is a whole new way of thinking about quality management. Six Sigma is a
methodology for issue solving that can be shown to be valuable by tying in business results.
Six Sigma, he said, is more than just a theory. The goal of this method is to enhance the
quality of essential processes by defining, measuring, analysing, improving, and controlling
them. Six Sigma is not a training programme. Since Six Sigma is a business strategy that
affects the mindset and actions of all employees, it takes more time to adopt than it does to
spend in training.

#THE MYTH:
There is a common misconception that Six Sigma is exclusively useful in the manufacturing
sector, although research from 2006 by Morgan and Lee-Mortimer shows that the
methodology can be used to any business. Companies like Raytheon, Texas Instruments, and
Honeywell from the manufacturing sector represent the early success stories. Many
companies in the industrial and service sectors adopted Six Sigma after hearing about GE's
success in the 1990s. While initially restricted to the health and financial sectors, other
service sectors, such as the hotel and lodging industries, are beginning to see the benefits of
implementing Six Sigma. Many hotels, including Starwood's, have seen tangible benefits
from implementing Six Sigma, but there is a lack of literature on the subject, very little
research has been conducted on the topic, and myths persist that Six Sigma is only applicable
in the manufacturing sector.

#THE ORIGIN AND MEANING OF "SIX SIGMA "


The name "six sigma process" is derived from the idea that almost no products will fail to
satisfy specifications if there is a gap of six standard deviations between the process mean
and the closest specification limit, as seen in the graph. The process capacity study
calculation approach provides the basis for this conclusion.
When conducting capability studies, the number of standard deviations in sigma units that
separate the mean of the process, and the closest specification limit is what is measured. If the
standard deviation of the process increases, or if the mean of the process moves further away
from the centre of the tolerance, then a smaller number of standard deviations will fit between
the mean and the closest specification limit. This will result in a lower sigma number and an
increased risk of items falling outside the parameters of the specification.
The statistical assumptions that underpin the Six Sigma model are represented statistically by
the normal distribution, which is seen in the graph above. On the horizontal axis, the distance
between the mean, shown by the symbol, and the point where the curve begins to bend is
denoted by the Greek letter sigma. The greater the distance between the two points, the wider
the range of values that are observed. The curve that was just displayed has equal to zero and
equal to one. The upper specification limit (USL) and the lower specification limit (LSL) are
located six standard deviations from the mean. It is exceedingly unusual for values to be so
far from the mean when using a normal distribution because of the characteristics of this
distribution. Even if the mean were to shift to the right or left by 1.5 sigma at some time in
the future (1.5 standard deviation movement), there is still enough room for error. Because of
this, the goal of Six Sigma is to have processes in which the mean is at least six standard
deviations far from the limit of the closest specification.

#ROLE OF THE 1.5 SIGMA SHIFT

The 1.5 sigma shift is a concept in statistical process control (SPC) that is often utilised in
quality management and process improvement. It is also known as the shift of 1.5 standard
deviations. In the process of studying and monitoring the performance of the process, it is
utilised to alter the control limits.
It is reasonable to anticipate that the values of the data points will be contained within the
control limits of the process if it is steady and well-controlled. Under the premise that the
data follow a normal distribution, these control limits are normally established at three
standard deviations or less from the mean of the process. This allows them to include roughly
99.7 percent of the available information. On the other hand, it has been shown that in
practise, processes tend to show a shift over a lengthy period, which results in a little
divergence from the theoretical assumptions. This has been seen.
The 1.5 sigma shift is often implemented to account for this change in the data. It entails
modifying the control limits by moving them 1.5 standard deviations to the right (or left) of
the process mean to get the desired results. This has the effect of widening the control
boundaries, which in turn makes room for the shift that was seen in the process.
The 1.5-sigma shift was implemented largely to address the actual realities of process
performance and to offer a more accurate portrayal of the process control limitations. Its
function is described as "addressing the practical realities of process performance." By
implementing this change, SPC practitioners hope to obtain a better grasp of the processes
they are monitoring and a more accurate identification of circumstances in which they are not
in control.
It's worth noting that the 1.5 sigma shift is a convention rather than an absolute rule. Its
application depends on the specific context, industry practices, and historical data analysis.
Some industries may choose to apply different shift factors based on their specific needs and
experiences.
Overall, the 1.5 sigma shift helps improve the effectiveness of statistical process control by
accounting for process shifts and providing more realistic control limits, thereby supporting
efforts to monitor and improve process performance over the long term.

#SIGMA LEVELS:
Errors and flaws in a process may be quantified using the statistical indicator known as the
Sigma level. Sigma measures how far off a procedure is from perfection. The DPMO
(Defects Per Million Opportunities) metric serves as the basis for this evaluation. Long-term
process efficiency is quantified by the Sigma level, which may account for a 1.5 Sigma
variation. This transformation usually takes place over very lengthy times. As far as process
measurement goes, the 1.5 Sigma change is pretty much the gold standard. Motorola created
this standard, and it has since been used by many other sectors.

The Sigma levels are as follows:


❑ During the Measure step of the DMAIC process, the Sigma level is established.
❑ The Sigma measures may be used all through the DMAIC process.
❑ An organization's total performance may be measured against that of similar
organisations using the Sigma level.
❑ When comparing one process's performance to that of the company, the Sigma level
may be used as a benchmark.
❑ Before improving a process or organisation, the Sigma level may be used to assess
baseline performance.
❑ Sigma analysis helps determine how process improvements affect performance.
SIGMA LEVEL DPMO PERCENT PERCENTAGE
DEFECTIVE YIELD
1 691,462 69% 31%
2 308,538 31% 69%
3 66,807 6.7% 93.3%
4 6,210 0.62% 99.38%
5 233 0.023% 99.977%
6 3.4 0.00034% 99.99966%
The amount of Sigma may be determined by following these stages in the calculation:
I. Find out the overall count of the units that were created.
II. Determine the number of potential errors that might occur per unit.
III. Determine the total number of problems.
IV. Using the formula, determine who the DPMO is as follows:
DPMO = (No. Of defects) x (1,000,000)
------------------------------------------------------
(No. Of Defect Opportunities / unit) x (No. Of Unit)
V. Using the DPMO Sigma Conversion Table, which is freely accessible to the public,
one may compute the Sigma of the process.

Six Sigma is a way and set of tools used in many different businesses to improve processes
and cut down on mistakes. It focuses on making processes as consistent as possible to get
high levels of quality and speed. "Six Sigma" is also a term for the numeric measure of how
well a process works.
In the Six Sigma method, there are different levels, which are often shown by a sigma () sign.
Each sigma level means a certain amount of efficiency and fewer mistakes. Here are the most
usual steps of Six Sigma:
o Sigma Level 1 (1σ): At this level, the process makes a lot of mistakes, with 691,462
mistakes for every million chances (DPMO). The process is not very effective and
needs a lot of work.
o Sigma Level 2 (2σ): At this level, the failure rate is 308,537 DPMO, which means
there are a fair number of problems. To meet reasonable quality standards, the process
still needs a lot of work.
o Sigma Level 3 (3σ): With a 66,807 DPMO failure rate, the process is performing at a
middling level. Even though it is better than the levels before, there is still room for
improvement.
o Sigma Level 4 (4σ): At this level, the flaw rate goes down to 6,210 DPMO, which
means that there aren't that many errors. People think the process is good and
constant, but it could still use some changes.
o Sigma Level 5 (5σ): The failure rate is 233 DPMO at this level, which shows a high
level of efficiency. The process is very stable and doesn't make many mistakes, so it
meets or exceeds most quality standards.
o Sigma Level 6 (6σ): With a failure rate of 3.4 DPMO, this is the best level of success
for Six Sigma. The process works with very high precision and accuracy, and the
results are almost perfect. This level is very hard to reach and is usually followed by
companies that are committed to constant growth and high quality.
It's important to remember that getting to a higher sigma level requires lowering process
variation and errors. This is often done by using statistical analysis, process optimisation
methods, and good quality management strategies.
#TECHNIQUES FOR APPLYING THE SIX SIGMA METHODOLOGY
Projects using the Six Sigma quality management system typically adhere to one of two
approaches.DMADV and DMAIC are the acronyms that are used to refer to the two different
approaches. For projects in which a company aims to improve its already-in-place
operations, the DMAIC project methodology is the approach that is used. On the other hand,
the DMADV methodology is used by a company if it has the intention of developing a brand-
new product or process design.

# DMAIC:
Define, Measure, Analyse, Improve, and Control is what each of the letters in the acronym
DMAIC stand for. To enhance the efficacy and productivity of organisational procedures, the
DMAIC approach is a popular choice among a broad range of companies operating in a
variety of sectors and business specialisations. A very effective instrument, the DMAIC
technique may steer a company towards establishing and adhering to greater and more
stringent performance criteria. This approach contributes to the streamlining of resources and
the clarification of corporate objectives when it is implemented effectively.
The five phases of the DMAIC methodology are described as follows:

# DMAIC

1.DEFINE PHASE: (Define the problem.)


DMAIC's initial phase.
It outlines the business problem as well as the overall project goals. During the Define phase,
anticipated resources, the scope of the project, and limitations are defined. The timetable for
the project is developed by Define at a high level. These details are often included in project
charters. Managers should document what they are aware of about the current processes, and
they should explain any facts that may arise during this stage. During this stage, you will also
work on defining goals and developing your team. During this stage, the primary emphasis is
on setting objectives in a manner that is congruent with the expectations of the client and the
overall strategy of the company. Which issue would you want to have resolved? In the
process of making improvements using Lean Six Sigma, the first step is called the Define
step. During this stage of the project, the team is responsible for developing a Project Charter,
which is a high-level map of the process, as well as beginning to comprehend the
requirements of the process's end users. At this crucial stage, the group presents both
themselves and the leadership of the organisation with an overview of the project's primary
objectives.

Define phase activities:


▪ Problem definition.
▪ Recording customer feedback.
▪ Determining important process outputs using important to Quality (CTQ) metrics.
▪ Project boundaries.
▪ Establishing project parameters with stakeholders.
▪ Preparing the project scope and budget to meet objectives

2. MEASURE PHASE: (Quantify the problem)


This phase establishes objective baselines for existing processes to guide project
improvement. This phase collects baseline data and sets performance baselines. This stage's
baselines are compared to performance measures at the conclusion of the project (in the
Analyse phase) to objectively assess project improvements.
The Six Sigma team, in conjunction with the process owners, determines the range and
frequency of required measurements. Teams should provide sufficient time and resources to
evaluate the validity of the suggested measuring methods. The DMAIC approach relies
heavily on a well-thought-out strategy for data collecting. This phase's objectives include the
identification and measurement of CTQs, the identification and measurement of process
capabilities, and the identification and measurement of risks. In its present iteration, how well
does the procedure perform? To phrase the question another way, how significant is the
issue? Throughout the whole of the project, measurements are of the utmost importance.
When the team first begins to gather data, their primary emphasis is on the process, and they
also measure the factors that are important to the consumers. That implies there are initially
two foci: one is on lowering lead time, and the other is on enhancing quality. During the
Measure Phase, the team will work to clarify the measurement criteria and figure out the
present performance of the process to provide a baseline for future comparison.

During the Measure phase, the following are some of the things that are done:
▪ focusing on collecting info that is important for the job.
▪ Obtaining solid initial data for use in comparing to subsequent findings.
▪ Identifying potential performance improvement zones by mapping interdependent
business processes.
3.ANALYSE PHASE: (Identify the cause of the problem)
The major goal of this stage is to isolate, verify, and identify the origin of the issue. To
identify several possible inputs to a process, or root causes, X, root cause analysis may be
used. To get to the bottom of things, utilise a fishbone diagram. With the use of consensus-
building methods like multi-voting and the fishbone diagram, Six Sigma experts may identify
the top four or five causes of an issue. Each identified root cause's contribution proportions
to the project metric Y (process issue in quantifiable terms) are established via the planning
and execution of a data collecting modality. This procedure is repeated until all plausible
causes have been found. Six Sigma often employs sophisticated statistical methods.
During this phase, we will be working on developing and designing alternate solutions. What
exactly is the root of the issue? In many cases, the Analyse Phase does not get sufficient
attention, and in the absence of analysis, teams rush to find answers before they are aware of
the real underlying reasons of the problems. As a direct consequence of this, teams end up
implementing solutions but failing to really tackle the issue! These attempts are a waste of
time and money, they produce additional variance, and they often result in brand new
difficulties. In an ideal scenario, teams would first discuss possible underlying causes (not
solutions), then generate hypotheses as to why issues exist, and last attempt to either confirm
or disprove their ideas. This would be the perfect scenario. Before putting solutions into
action, verification must be completed, which requires both an examination of the processes
involved and an analysis of the data. This is the most important aspect of the analyse phase!
The following are examples of frequent tasks performed during the Analyse stage:
▪ Determine what's happening initially.
▪ Identifying and prioritising reasons for the most significant process inputs during the
Improve phase.
▪ Input-output data analysis. Six Sigma practitioners demonstrate how each root cause
(X) influences the project metric (Y). P–values test statistically. Pareto charts,
histograms, and line graphs accompany test results.
▪ Inefficiency analysis. Process maps may highlight root causes in analytical reporting.
This identifies business inefficiencies.
▪ identifying where Quality Improvement Measures may help.

4. IMPROVEMENT PHASE:(Implement the solution)


The main goal of this part is to figure out, find, try out, and put into action an answer to the
problem at hand. Depending on the case, the answer can be put into place either in part or in
full. During this phase, Six Sigma workers try to come up with creative ways to get rid of the
root causes so that process problems can be fixed and don't happen again. There are many
tools and methods that can help you do this. Some of them are easy, like brainstorming,
random word, the six thinking hats method, etc. Design of Experiments (DOE) and other
complicated research tools are also sometimes used. No matter what method is used, the
attention is always on clear answers.
In what ways will the team work to address the underlying factors that led to the problem?
After the project teams have identified the fundamental issues, the next step is to formulate
potential solutions. During the Improve Phase, the team will first come up with potential
solutions, then test out potential process modifications, then put those ideas into action, and
last, they will gather data to determine whether there has been a quantifiable improvement.
An organised attempt to make improvements may result in creative and sophisticated
solutions that enhance not just the baseline measure but also the overall quality of the service
provided to customers.

Among the other goals of the Improve phase are the following:
▪ Finding the easy and simplest things to do.
▪ Using tools like the Plan-Do-Check-Act (PDCA) model to make sure that the
suggested methods work.
▪ Avoidable risks (as determined by the PDCA cycle's outputs) that are linked to
improvement efforts may be identified with the use of tools like the Failure Mode and
Effects Analysis (FMEA).
▪ Making a comprehensive proposal on how to put the strategy into action.
▪ Introducing new methods to enhance existing processes.
▪ Conducting test runs of potential fixes; if they show effective, they may be applied
system wide.
▪ In this phase, the Six Sigma team collaborates with the process owners to develop
solutions to the problems that were discovered in Analysis.
▪ Recognising the importance of maintaining improvement efforts like feedback
analysis and stakeholder involvement.
5.CONTROL PHASE:(Maintain the solution)
The major goal of this phase of Six Sigma is to maintain the gains obtained in the previous
phase. Progress accomplished in each phase is evaluated on a regular basis to guarantee its
continuation and sustainability. During this stage, a control plan is developed, and records
are kept up to date.
During the control phase, a control chart is an invaluable tool. The Six Sigma group relies on
it often to measure the durability of their progress.
How are you going to keep the progress going? The issue with the process has been resolved,
and the changes have been implemented; now the team must make sure that the process keeps
the gains it has made. During the Control Phase, the team's primary emphasis is on designing
a Monitoring Plan to continue assessing the level of success that the modified process has
achieved as well as a Response Plan if there is a drop in performance. After everything is set
up, the team sends these plans over to the Process Owner to be maintained on an ongoing
basis.

There are two main functions of a control chart.


▪ Serves as a benchmark against which the improvised procedure may be continually
evaluated.
▪ serves as a plan of action for each monitored variable in the event of process
destabilisation
▪ Replicating processes and giving credit to the project team is a step that isn't required
by the Six Sigma method but is highly suggested. Successful test projects could be
used as a model for the rest of the company. Also, information should be shared
between different departments. Recognising the work of the team goes a long way
towards making the people on the team feel better. It not only helps make the DMAIC
cycle work better, but it also helps get people on board with future improvement
projects.

#DMADV

The DMADV approach is often employed as the second project methodology in Six Sigma
initiatives. The Design for Six Sigma (DFSS) technique is another name for this approach.
Let's talk quickly about the several stages of DMADV:

#DMADV

>DEFINE: Create objectives that are in line with the expectations of your customers and the
overall strategy of your company and pinpoint the initiatives that can be measured. It is
helpful to design the team charter and establish the process map if you first determine the
expectations of the client and the content of the internal process.

>MEASURE: Measure and determine the CTQs (characteristics that are Critical to Quality),
capabilities of the product, capabilities of the manufacturing process, risks, and performance
criteria. Determine the degree of quality that is now present, specifically localise the region in
which issues are manifesting themselves and catalogue all possible contributing factors.

>ANALYSE: Create and design several different options, come up with a high-level design,
and assess your design abilities before choosing the best design. In addition to this, it helps to
determine the capacity of the process, set the performance targets, and locate the variation
sources.

>DESIGN: Based on the study that was completed in the previous phase, this phase's
primary objective is to identify the alternative solution that is both the most appropriate and
the most significant step forward.

>VERIFY: This stage includes a validation of the design, the execution of pilot runs, the
implementation of processes, and the transfer of improvements to the owners of the process.

# THE SIX SIGMA CERTIFICATION:


The word "credential" itself gives the impression that an endorsement of this kind is
connected to an individual's level of knowledge or skill in a particular field of study or
activity. A comparable certification, known as a six-sigma certification, demonstrates that the
owner has the necessary skills and qualifications to carry out the task. A six-sigma
certification serves as evidence that a person can perform the duties specified in the
certification. When compared to other quality certifications, the Six Sigma certification
stands out as being particularly advantageous since it enables its holders to make any number
of adjustments to a procedure that they feel are necessary. However, certification in six sigma
assures that a person is competent in a set of parameters that have been established.
Written evidence of a candidate's command of the subject covered in a Six Sigma training
programme is required to get the credential. The individual will be able to demonstrate their
dexterity with their hands if they get this knowledge. The training and consultancy business
that is delivering the instruction also offers certifications for Six Sigma. It's possible that the
assessments will fall within the purview of the businesses that have contracted for training
courses. The tests are subject to modification based on the history of the training
organisation. Companies that operate in the education sector have, for several years now,
been developing and administering their very own written competence assessments.
After the training for the certification has been completed, there are one or two quality tasks
that need to be completed. Students get the opportunity to demonstrate how well they
understand and can apply the topics covered in the course here. The quality projects are the
part of the six-sigma certification procedure that is the most hazy and inaccurate because the
details of the projects differ from company to business.
#SIX SIGMA BELTS AND THE COLORS:
According to six sigma, the term "belt" refers to the level or position that a person has in an
organisation now that they are carrying out a work task or implementing a project. This is the
case whether the work task is being performed or the project is being implemented. During
the process of putting a work into action, several different people contribute their time and
expertise to ensure that the finished product has no flaws, can fulfil the requirements of the
client, and is satisfactory overall. Therefore, this leads to the firm or organisation maintaining
both its quality and its profitability.
To identifying everyone's level of six sigma achievement, each belt is assigned a unique
colour. Every shade of the rainbow stands for a different duty. This is since the goal of six
sigma is not only the development of projects and products that are free of defects, but also
the rapid execution of the projects without wasting any time. When the job is broken up into
its component pieces, it is possible to do this. Additionally, each colour represents a certain
quality or degree of expertise. This identification might assist the project leaders discover the
appropriate individual to assign the various responsibilities by providing them with a starting
point. Each colour is responsible for a unique set of tasks and has a unique set of capabilities.
As a result, the colour will be able to assist the person in charge of the project in determining
the capabilities and duties of the person who is allocated to the task.

# SIX SIGMA BELTS AND THE COLOURS:


Six sigma defines belt as a person's organisational level while working or implementing a
project. Several people work together to launch a project without flaws and satisfy customers.
Thus, preserving firm quality and profit.
Six sigma belt colours indicate success. Colours signify duties. Six sigma aims to produce
defect-free projects and products quickly and efficiently. This is possible when the task is
split apart. Each colour represents a quality or skill level. This identification might assist
project directors give assignments to the right people. Each colour has duties and talents.
Thus, the colour will let the project leader determine the worker's talents and duties.

♦ SIX SIGMA GREEN BELT CERTIFICATION: Green belts in six sigma get their
training to work alongside black belts in six sigma as support workers or to work
closely under their supervision. The bearer of this certificate can recognise and solve
quality concerns because they have shown the abilities necessary to do so. This results
in the creation of initiatives that try to raise the bar. The person has shown their
expertise with six sigma tools and procedures by the completion of at least three years
of work and has been awarded the six-sigma green belt certification because of their
efforts.

♦ SIX SIGMA BLACK BELT CERTIFICATION: A candidate who has shown


professional proficiency in presenting the principles and ideas of Six Sigma has
earned the right to wear the Black Belt designation. His knowledge and experience
also extend to the ancillary infrastructure and equipment. As part of this certification,
the candidate will also get instruction on the formation of team leadership, team
dynamics, and the distribution of responsibilities to individual members of the team.
A person who has achieved the rank of black belt in six sigma will have an in-depth
understanding of the DMAIC model and how it relates to the six-sigma approach.
These professionals are well versed in the fundamental principles of lean business.
They have a keen eye for items that do not provide anything of worth. In addition to
that, they are proficient in the appropriate use of a wide range of instruments.
♦ MASTER BLACK BELT CERTIFICATION: Those who have earned the Master
Black Belt credential are recognised as six sigma quality specialists and are often
tasked with leading the organization's strategic initiatives. Master black belts get
instruction to better carry out their roles as trainers and mentors for lower rank
practitioners. A master black belt's tasks also include advising lower-level employees
on how to identify, evaluate, and prioritise initiatives with the greatest potential for
positive change. In addition to ensuring the reliability of all six-sigma metrics and
enhancements, a master black belt must also create and update training materials,
certify new six sigma facilitators, and instruct existing ones on the methodologies,
tools, and applications of the methodology across all business functions.

♦ YELLOW BELT CERTIFICATION: Participants in a Six Sigma Yellow Belt


course have a grasp at a high level of the methodology underpinning the technique.
This is done to ensure that our cherished clients' requirements as well as the long-term
objectives of our organisation are met to the greatest possible extent. Participants in
the certification training will gain knowledge of process management and the core
methodologies used in six sigma. Yellow belts in the Six Sigma methodology also
have a profound acquaintance with the processes, which enables them to make
contributions that are beneficial from any viewpoint. This certification is targeted at
assisting the company in achieving its goals.

#LEAN SIX SIGMA CERTIFICATION:


Professionals who have a Lean Six Sigma licence learn both service and business methods.
Along with this lean licence, a person also needs to meet the following:
• Concentrating on how to move quickly to achieve the goals set by the industry.
• Participates in commercial company, recognises and gets rid of activities that do not
add value to the product or to the service that is provided to the client.
• Having knowledge of lean and six sigma methodologies assists a firm in achieving a
steady improvement in their operations.
• The improvement will begin at the most fundamental level, and it will move quickly
towards its goal of completion.
• The trainees focus on a variety of topics, including the determination of
improvements, the identification of new areas for growth, the fulfilment of customer
expectations, and the achievement of business outcomes.

#PROGRAMS OFFERED & COURSE OUTLINES


GREEN BELT CERTIFICATION
#IMPORTANCE OF SIX SIGMA:
⦁ History of Six Sigma
⦁ Philosophy of Six Sigma
⦁ Key Business Drivers
⦁ Statistical concept behind Six Sigma
⦁ Overview of DMAIC, DMADV
#LEAN PRINCIPLES:
⦁ Kaizen, Poka Yoke, 5S, Seven Wastes
#CHANGE MOVEMENT:
⦁ Identify resistance to change
⦁ Implement a plan to counter resistance
⦁ Team formation (Team Stages)
⦁ Team tools
⦁ Stakeholder management
#DEFINE PHASE:
⦁ Sources of project ideas.
⦁ Project selection
⦁ Finalizing the CTQ
⦁ Project Charter
⦁ Team Roles and Responsibilities
⦁ Project scoping with SIPOC

#MEASURE PHASE:
⦁ CTQ performance characteristics
⦁ Measurement systems analysis
⦁ Process mapping
⦁ Sampling
⦁ Data types & collection plan
⦁ Basic statistics
⦁ Process capability analysis

#ANALYSE PHASE:
⦁ Identifying X’s using Ishikawa diagram
⦁ Identifying critical X’s using cause and effect matrix
⦁ Hypothesis testing
⦁ Relationship between variables
⦁ Tests of means, variances, and proportions
⦁ Finding critical X’s using graphical techniques like Pareto’s analysis, Box plots
⦁ Failure modes and effects analysis
#IMPROVE PHASE:
⦁ Idea generation
⦁ Comparing alternative solutions
⦁ Solution selection tools like Pugh matrix
⦁ Introduction to Design of Experiments
⦁ Validation and Implementation of improved process
#CONTROL PHASE:
⦁ Elements in a Process Control Plan
⦁ RACI matrix
⦁ Statistical process control
⦁ Mistake Proofing
⦁ Sustaining improvements
⦁ Project closure
BLACK BELT CERTIFICATION
PROJECT LEADERSHIP
⦁ Leadership roles & responsibilities
⦁ Organizational roadblocks & how to address them
⦁ Deploying Six Sigma in an organization
MANAGE PROJECTS
⦁ Benchmarking and replication
⦁ Planning tools & time management
⦁ Financial measures (NPV, IRR, Benefits)
COACHING PROJECTS
⦁ Team facilitation (Team Stages)
⦁ Team performance evaluation and reward
⦁ Project tracking
CHANGE MANAGEMENT
⦁ Identify resistance to change
⦁ Implement a plan to counter resistance
⦁ Stakeholder management
DEFINE PHASE
⦁ Voice of the customer (Survey Methods, Analysis of Survey Results)
⦁ Project charter
⦁ Identify owners and stakeholders
⦁ Project risk analysis
MEASURE PHASE
⦁ Process mapping & analysis
⦁ Data types & collection plan
⦁ Measurement systems analysis
⦁ Basic statistics & process capability analysis
ANALYZE PHASE
⦁ Hypothesis testing
⦁ Relationship between variables
⦁ Tests of means, variances, and proportions
⦁ Identify and handle non-normal data
⦁ Lean tools and techniques to analyse data
IMPROVE PHASE
⦁ Idea generation (Brainstorming, Creative Thinking)
⦁ Design of experiments and analysis (Full & Fractional Factorial Designs)
⦁ Failure modes and effects analysis
⦁ Implementation of improved process
⦁ Lean tools to improve (Kaizen, Waste Elimination, Kaizen)
CONTROL PHASE
⦁ Statistical process control (IMR, X Bar-R, C, U, P, NP Charts)
⦁ Lean tools for control (TPM, Visual Factory)
⦁ Sustain improvements (Control Plan, Lessons Learned, Documentation)
⦁ Financial reviews & validation (Hard and Soft Benefits)
ENTERPRISE VIEW
⦁ Integration of Lean and Six Sigma
⦁ Six Sigma and Project Management
⦁ Differences between DMAIC & DFSS

MASTER BLACK BELT CERTIFICATION


OVERVIEW
⦁ Six Sigma key elements - Six Sigma elements where Black Belts and Green Belts
commonly falter or need help.
⦁ Theory of Constraints, Business Process Reengineering
⦁ Advanced concepts in Sampling, MSA, Multi-Variable analysis, RTY calculations.
LEADERSHIP AND CHANGE
⦁ Change Management Essentials
⦁ How to manage multiple projects
⦁ Creating and managing project dashboards.
⦁ Using software for Six Sigma project management.
TEACHING, FACILITATION SKILLS
⦁ Key elements in Facilitation
⦁ Practice sessions on facilitating discussions
ADVANCED DMAIC TOOLS
⦁ When to change alpha and beta risk values,
⦁ Regressions - Logistic Regression, Multiple Regression—Forward, Backward,
Stepwise, Best Subsets, Multi-co linearity, MANOVA
⦁ DOE - Response Surface Methodology, Nested Design, Mixed Designs
⦁ Multivariate Analysis - Cluster Analysis and Principal Component Analysis.
⦁ Distribution fitting - Various types of distributions and applicability to specific
situations.
⦁ Control Charts - Special Charts
DFSS TOOLS
⦁ Taguchi methodology—Static and Dynamic Designs
⦁ Quality Function Deployment with exercise
⦁ TRIZ (Theory of Inventive Problem Solving)
⦁ Practice exercises using TRIZ
SIMULATION TECHNI QUES
⦁ Selecting the predictors and decision variables
⦁ Running and analysing simulations
⦁ Optimization techniques
⦁ Using Forecasting Models
⦁ Practice exercises using software for Simulation & Forecasting
INTEGRATING LEAN AND SIX SIGMA
⦁ Integrating Lean with Six Sigma
⦁ Integrating Lean Six Sigma with other approaches.
AVOIDING COMMON PITFALLS
#LEAN MANAGEMENT CERTIFICATION
LEAN OVERVIEW
⦁ What is Lean?
⦁ Key Concepts in Lean
⦁ Relation with organizational excellence
LEAN METHODOLOGY
⦁ The sequence in Lean implementation.
⦁ Applying lean at a work area.
LEAN METRICS
⦁ Process Cycle Efficiency
⦁ Takt Time and Cycle Time
⦁ Benchmarking
LEAN TOOLS AND CONCEPTS
⦁ 5S
⦁ Batch processing, Cellular/Flow Processing
⦁ SMED
⦁ Supermarkets and Kanban
⦁ Just in time concepts
⦁ Push vs Pull systems
⦁ Load Levelling
⦁ Standardizing flow
⦁ Late Point Differentiation
⦁ Poka Yoke
⦁ Visual Controls
⦁ Kaizens
⦁ Value Stream Mapping
COMPARISON WITH RELATED METHODOLOGIES
⦁ Theory of Constraints
⦁ Business Process Re-engineering principles
⦁ TPM and OEE concepts

ENTERPRISE VIEW
⦁ Current Value Stream Mapping
⦁ Visualizing Future Value Stream Map
⦁ Identification of Kaizen Bursts
⦁ Using A-3
⦁ Integration of Lean and Six Sigma
⦁ Business Impact of Lean Implementation.

STUDY (BASED ON MY CURRENT ORGANISATION, WORKING AT A


CONTACT CENTRE)

#IMPLEMENTING LEAN SIX SIGMA:


*The following observation is based on the industry I'm currently working at that is a contact
centre. Due to my experience dealing with the transfer rates I've mentioned the effects of lean
six sigma to improve customer experience by reducing the transfer rate at a contact centre.

Call Centre Decreases Transfer Rate by 30% and Implements Lean Six Sigma to Completely
Transform Culture. As I am now employed at a contact centre, one of my primary
responsibilities is to help clients who need immediate assistance. My goal also takes the
transfer rate into account. As a professional, I know that sharpening my abilities on a regular
basis is essential for maximising my output and boosting my transfer efficiency.

Because of this, high rates are an unmistakable indication that customers' calls are being sent
to several agents, and the resolution of their problems takes much too long. A team working
in a contact centre must come together as a community of people who are good at solving
problems to achieve the low transfer rates that will lead to increased levels of customer
satisfaction. Additionally, the team must be committed to developing a culture of operational
excellence and continual process improvement.
#SUMMARY:

*THE PROBLEM: When the call centre for a technology leader in the business equipment
and supplies industry started seeing shift rates that were much higher than 20%, it was clear
that something needed to be changed. The people who worked in the call centre felt frustrated
and useless because the customer happiness numbers were quickly going in the wrong
direction.
*THE DISCOVERY: Even though the team working on improving the process already
knew what was going wrong, they didn't have a voice or the right tools to fix it. Because of
Lean Six Sigma, they were able to find their voice and help improve the process.
*THE SOLUTION: In the past, the team's main goal would have been to get a new phone
system or piece of technology instead of looking into the process and figuring out why the
problem was happening. But thanks to what they learned in their Lean Six Sigma training, the
members were able to see simple ways to fix the problems. These methods did not require a
lot of changes to systems or technology.
Since they couldn't stop operations to put in place the new training guidelines for agents, the
team chose to do it in steps, starting with a very small group of agents from a single area.
Before moving on to the next round of training, they looked back at the results and lessons
from the first round and then used what they had learned throughout the whole contact centre.
Because they were so thorough, the team was able to make their plans better as the spread
went on. The best way to handle this would be to give the direct number for the team
handling the customer service question at the first point of contact, instead of moving
directly, which could lead to a wrong transfer if there are a lot of calls coming in.

*THE RESULTS: Call transfer rates immediately dropped into the mid-teens, which
resulted in an improvement of around 30 percent across the board. Additionally, there was an
immediate decrease in agent irritation and a considerable boost in the level of pleasure
experienced by customers. If we manage to maintain the transfer rate below a 13%, we can
make sure that the customer calling in can have a pleasant experience to resolve the issue and
achieve a first call resolution.
However, the entire culture of the contact centre was the aspect that was most significantly
affected. The group no longer automatically resorts to the pricey "technology solutions" of
the past; rather, they rely on data to determine the most effective way to put their efforts
towards finding answers to problems. Because of this more concentrated approach, the team
can swiftly uncover the fundamental causes of challenges, which often leads in solutions that
are quite different from what was envisioned when the project was first started.
#IMPLEMENTING LEAN SIX SIGMA IN THE HOSPITALITY INDUSTRY:

#OVERVIEW AND INTRODUCTION:


In the hotel business, providing excellent service to guests is crucial. As a service industry,
hospitality relies on staff who are forthright, well-mannered, and invested in the satisfaction
of their customers and guests. Many hospitality companies have used the Six Sigma
methodology to enhance their processes. This allows them to provide excellent, speedy
service to clients while keeping overhead to a minimum. Typically, a "top-down" approach is
used while implementing Six Sigma. This implies that the upper echelons of management are
well-versed in Six Sigma methodology and that they, in turn, provide extensive training to
their staff. Six Sigma was developed first in the manufacturing industry. It's an unusual mix
since it prioritises client satisfaction while still basing decisions on facts. As such, it is
essential for the hospitality industry to anticipate its consumers' demands and provide "just in
time" to satisfy them. There should never be either too many or too few of any item in stock,
thus accurate inventory tracking is essential. Six Sigma companies in the hospitality sector
may provide consistently high-quality services in a wide variety of locations throughout the
globe by using carefully designed "best practises" and then spreading them to many sites.

The earnings of the hotel industry skyrocket when Six Sigma methods are used. There are
several travel-based reward, loyalty, and incentive programmes since the hospitality industry
relies heavily on consumer trust. Profits rise when consumers are dedicated to a brand. This is
particularly true in a sector that faces intense competition, has seasonal profits, and relies
heavily on consumers' discretionary income and time off. Hoteliers may increase their bottom
line and gain repeat customers by anticipating their wants and providing for them in a manner
that is both cost-effective and lucrative. When Six Sigma is implemented uniformly to
enhance and perfect processes worldwide, tourists in Denver and Dubai will have the same
experience. Web evaluations and social media in this era of widespread digital access are
crucial to the success of the hospitality industry. That's why it's crucial to tread carefully and
prevent slip-ups. Workers in the hospitality sector may cut their error rate to 3.4% or less
using the Six Sigma Toolbox. This is crucial for the reputation and sway of a hotel chain on
the web.
Six Sigma is a technique for analysing a procedure in order to pinpoint the source of any
discrepancies or flaws. Those who have earned the Accredited Six Sigma Certification in
Hospitality have shown mastery of the subject matter. Having this sort of certification will
make you a much more valuable employee in any sector.
The term "hospitality" is used to describe a wide variety of industries, including those that
provide lodging, food and drink, amusement parks, air travel, transportation, ships, and/or
entertainment. To put it another way, any company or group that caters to visitors may be
considered part of the hotel sector. In the past, Six Sigma was thought to lessen mistakes
made during manufacturing. The Six Sigma methodology is gaining traction outside of
manufacturing and into service industries like hotels because it is effective and based on data.
There is a fine line between efficiency and client satisfaction in the hospitality industry.
Competition is high, and profit margins are low. If you want your hotel to stand out from the
competition and earn more money, then you need to use the Six Sigma Process.

LET'S HAVE A LOOK AT SOME RELEVANT CASES TO REVIEW THE


APPLICATION OF SIX SIGMA APPLIED IN THE HOSPITALITY INDUSTRY:
# CASE 1:
#INTRODUCTION:
This recession has affected the hotel sector hardest. Less discretionary money means less
vacation and spending. Over the last decade, resort corporations like MGM and Caesars
Entertainment have accumulated massive long-term debt to expand properties in Las Vegas.
MGM Resorts' 2001 and 2011 annual reports show that long-term debt quadrupled from $6
billion to $12 billion while revenues only grew 50%. This perfect storm has cast doubt on
whether these enterprises can survive and avoid bankruptcy.
To survive in this tough economy, hotels of all sizes are cutting expenses and improving
efficiency. In economic downturns, all sectors cut labour expenses. In hospitality, decreasing
expenses may degrade service. Customers are paying less and scrutinising hospitality service
more than ever.
Forbes.com reported that in the third quarter of 2011, consumers made less money and spent
less amid signs of an economic rebound. Las Vegas customers have so many resort
alternatives that they won't accept substandard service like they used to. Hospitality
businesses must decrease expenses and provide excellence despite economic constraints.
Lean and Six Sigma have worked in different sectors.
Lean and Six Sigma transformed General Electric and Lockheed Martin. "Lean" corporations
like Amazon and Berkshire Hathaway are doing well in this environment. Lean and Six
Sigma are rare in hospitality.
This study will examine hospitality Lean and Six Sigma successes. Lean and Six Sigma are
used by Starwood Hotels and Caesars Entertainment, but smaller companies might profit
from them. Manufacturing industry developed Lean and Six Sigma. Some believe Lean and
Six Sigma cannot operate in service businesses because of their industrial heritage.
Discussing hospitality Lean and Six Sigma implementation issues and pitfalls. A one-day
business board meeting cannot deploy Lean and Six Sigma. This systemic approach is as
important as programme operation.

#OBJECTIVE:
The positive results that businesses have seen after adopting Lean and Six Sigma practises
can be found online in abundance. Many sectors rely heavily on these kinds of programming,
including manufacturing, production, storage, and distribution. This article's goal is to
examine how Lean and Six Sigma have been implemented in various hotel operations and to
identify the barriers that have prevented their general adoption by other industries.

The need for hotel companies to streamline operations without compromising the quality of
their offerings is a major challenge. The literature review gives a summary of the main Lean
and Six Sigma methodologies, their application in the hotel business, and the factors that
have prevented it from becoming more popular in the hospitality industry.

#HOSPITALITY SUCCESSES IN LEAN AND SIX SIGMA


We seek hospitality examples of Lean and Six Sigma and their fundamental concepts. The
hotel business lacks Six Sigma DMAIC methodology implementations. Starwood Hotels
adopted Six Sigma in 2001. The firm saw rapid financial gains after implementing 3500 Six
Sigma initiatives at Starwood properties globally. After implementation, incremental revenue
jumped 19% and customer spending increased approximately 12%. Starwood increased
income from 91 to 141 million pounds by centralising the spa bookings department using Six
Sigma.
Due of its parallels to manufacturing, Lean and Six Sigma have worked in food production on
a case-by-case basis. 5s and value stream mapping reduced food waste from 10% to 5% at
Glostrup Hospital in Denmark. Glostrup's 5s technique placed the ingredients storage space
such the most utilised ingredients were closest.
Value stream mapping revealed a situation where meals were made, kept, and reheated days
later. When adopted at the hospital, the system reduced kitchen staffing. Six Sigma revealed a
lot of food waste.
Value stream mapping and Kaizen events analyse any process, not just manufacturing. Lean
and Six Sigma technologies improved hotel airport shuttle wait times and customer
satisfaction. The 323-room franchise hotel provided airport and hotel shuttles. Customers
might request shuttle service to nearby retail centres and companies.
Staffing was limited, and dispatch, transportation, and driver communication was poor. This
corporate makeover prioritises consumer requests and streamlines procedures. Lean and Six
Sigma can improve hotel maintenance, but there is no evidence. Lean 5s and kaizen may
improve housekeeping efficiency and reduce waste. Due to managing cleaning materials,
housekeeping appears suitable for 5s. Value stream mapping may analyse hotel room
cleaning.

# KEYS TO SUCCESSFUL IMPLEMENTATION OF LEAN AND SIX SIGMA


Despite their efficiency gains, Lean and Six Sigma have no common structure for
implementation. Instead, Lean and Six Sigma literature highlights implementation-ready
topics. Implementation requires training and committing staff to programme tools and
concepts. Lean and Six Sigma must complement and work with employees' daily tasks to
succeed. All staff are instructed on concepts, techniques, and roles to achieve this.
Hiring Six Sigma black belts or Six Sigma-trained outsiders does not ensure success. Expect
some setbacks. Initial project failures may range from 30-60% and should not be a major
worry. An organisation must have a strategy before commencing the programme, regardless
of the structure. Six Sigma implementation requires seven steps. Visioning, planning,
creating, executing, enhancing, maintaining, and abandoning.
Management gets interested in Six Sigma at the planning phase. They evaluate the tools'
organisational applications. Management selects to implement and chooses the tools and
players to operate the programme during strategizing. This is crucial. The development phase
focuses on programme leaders' duties. This level trains company leaders. Continuous
improvement events are executed during implementation. At this point, the company
evaluates training, Six Sigma adoption, and improvement suggestions.
Implementation suggestions are implemented in the improvement phase. Management will
also plan to boost Six Sigma. The improvement phase analyses if the programme improves.
Management and executives must sustain what was implemented. The Six Sigma project
successes should transform the company culture in the Sustaining phase. The programme is
abandoned at any time in this procedure. For various reasons, this ends the programme.
Critical elements that affect the pace and scope of implementation include the number of Six
Sigma black belts, the number of skilled sponsor project managers or green belts, and the
money. Taking on too many initiatives at once might lead to burnout and the ultimate
abandonment of Lean and Six Sigma.
Successful implementation requires fostering a culture of cooperation and participation,
which may be hampered by more controlling leadership styles. Some companies have a
culture where management seldom approach their staff for comments or suggestions. Both
Lean and Six Sigma benefit enormously from listening to and acting on the suggestions of
front-line workers. Changing a company's culture may be challenging, which may be another
reason these initiatives haven't been implemented more widely in the hospitality industry.

# TO CONCLUDE
Despite the well-documented success of Starwood Hotels' company-wide implementation of
Lean and Six Sigma in 2001, their use has been restricted in the hotel industry. The most
successful initiatives in the hotel industry have been those focused on a single department and
issue. Lean and Six Sigma methods have been shown to improve several facets of hotel
operations, including housekeeping, food production, and transportation. Value stream
mapping is a tool for analysing business processes that encourages collaboration among
different parties to find and implement solutions.
Organisational culture change and the related costs of time, money, and resources are the
primary reasons why Lean and Six Sigma have not been more widely adopted. Therefore, it
may be easier to execute Lean and Six Sigma at a smaller organisation with fewer properties.
Larger companies may choose to roll out Lean and Six Sigma in stages, beginning with a
pilot programme in a small number of locations or regions. This would allow the company to
fine-tune its implementation strategy as it went. Therefore, fewer people would give up on
the programmes after an initial setback.
# CASE 2:
#INTRODUCTION:
According to what the relevant literature has revealed, Lean and Six Sigma have proven
effective in the Hospitality industry when implemented in smaller departmental dosages.
Although there is little evidence to show that it is possible to successfully adopt it entirely
throughout an entire organisation in the hospitality industry, the implementation strategy that
rolls out the principles in certain departments or at smaller properties would be the most
suitable way to go about it. This section will offer a guide for the implementation of Lean and
Six Sigma, which may be carried out at a small hotel property, or on a departmental level
inside a major resort property such as those seen on the Las Vegas strip. Both types of
implementations can be carried out successfully.

# GUIDE TO IMPLEMENTATION
The following methodology for putting Lean and Six Sigma into practise is suitable for use in
a department of a big hotel or resort, as well as in a small to medium-sized hotel. In each
scenario, there are around one hundred people working for the company. The amount of time
needed to put the programme into effect is reduced when dealing with an organisation of this
scale. Additionally, the training process for the whole workforce is made easier, and the
program's successes and failures may be determined with greater speed.
The seven stages of implementation serve as a road map and procedure for putting the
programmes into action, as well as for bringing about the required cultural shift that is
essential for the programme to be effective. This implementation guide, together with its first
application in the department or hotel, will serve as a pilot test that may later be utilised to
apply Lean and Six Sigma in additional departments and hotels. if succeeded
Within the framework of this guide are two fictitious entities that serve as an illustration of
how implementation should be carried out. The housekeeping department of a major hotel or
resort is an example of one of these types of establishments. The housekeeping department
was selected because it is most analogous to a manufacturing or production activity, which is
where Lean and Six Sigma have their deepest roots. In addition, key activities carried out by
the housekeeping department, such as the cleaning of hotel rooms, are amenable to analysis
using techniques such as value stream mapping, spaghetti diagramming, and DMAIC.

# PHASE 1
ENVISIONING:
At the corporate level is where the conceptualising stage of the implementation process takes
place. This is true whether we are talking about a small to medium large hotel or the
housekeeping department. Either a senior officer or executive will be interested in Lean and
Six Sigma, or middle management will be working to garner support for the programmes at
the corporate level. At this point in the process, the objective is to get management buy-in for
the deployment of Lean and Six Sigma. If the corporation does not agree to back the
program's effort, then the programme cannot go on to phase 2. The corporate office must
provide their word that they will pay for the training programmes and any other costs that
may be incurred because of the implementation. Additionally, the corporation must
demonstrate that it is committed to spreading the message and driving the essential shift in
the company's culture. The officer or executive who will serve as the head of the programme
at the corporate level and be known as the Lean/Six Sigma Champion.
It is quite probable that the corporate level will be the one to initiate the intention to apply
Lean and Six Sigma. This is particularly true when considering the example of the
housekeeping department, since it is quite improbable that the head of the department could
conduct such a programme without the order or permission from the executive level. The
imagining step could proceed in a different way depending on the size of the hotel, which
might be tiny or medium.
If the hotel is not part of a huge chain or franchise and is instead a solo establishment, hotel
management may be involved in the conceptualising stage of the project. The purpose of this
endeavour is still the same: there must be a commitment from management and/or the hotel
owner to offer financial support to the programme and to lead the charge in the process of
changing the culture.

#PHASE 2
STRATEGIZING:

This stage involves building the Lean and Six Sigma framework. All staff will be trained on
Lean and Six Sigma and how they apply to their employment.
This phase will engage a Six Sigma Black Belt to lead the programme and implementation.
The black belt will have taught an organisation Lean and Six Sigma. They will also have
hands-on experience with programme implementation, maintenance, and success.
A small hotel may not be able to afford a full-time black belt, however it is advised. Small to
medium-sized hotels may engage a Lean Six Sigma expert. Appointing a leader and getting
Lean Six Sigma training from the American Society for Quality (ASQ) is cheaper. ASQ
offers Lean Six Sigma training and black belt certification. This option may be cheaper, but
the leader will not have the expertise or training to conduct the programme right immediately.
Phase 2 requires a comprehensive Lean Six Sigma infrastructure and a black belt leader,
whether hired or trained from within. The black belt will train green belts for two weeks.
Housekeeping managers or supervisors are green belts at small to medium-sized hotels.
Green belts use DMAIC, value stream mapping, Lean 5s, and other methods to analyse
operations, reduce waste, and improve efficiency.
#PHASE 3
DEVELOPING:
Housekeeping and small-to-medium hotels employ the same phase.
Green belts and the black belt or Six Sigma manager will choose projects and processes to
analyse. The 5s method of housekeeping supply rooms and value stream mapping events to
discover wasted hotel room cleaning procedures are housekeeping department initiatives.
In a small to medium-sized hotel, value stream mapping might encompass restaurant food
manufacturing, front desk guest check-in, and hotel room housekeeping.

#PHASE 4
IMPLEMENTING:
The purpose of this stage is to get some projects up and running and to begin establishing an
environment in which the concepts of lean manufacturing and six sigma may be used on a
daily basis. On these initiatives, employees at every level of the organisation are involved,
and everyone has an equal opportunity to provide comments on how to improve workflows.
You shouldn't start more than ten jobs at this first phase in the process. Because of the
complexity of the processes that are being envisioned, the optimal number of beginning
projects is between five and seven.

#PHASE 5
IMPROVING:
At this stage, an evaluation of how successful the programme has been is carried out. The
individuals in charge of Lean Six Sigma will need to determine whether or not the initiatives
have resulted in an improved level of company efficiency and whether or not there has been a
shift in mentality. If the programme hasn't been successful up to this point, it's usually
because of the challenges that might arise when implementing Lean and Six Sigma in a
service-oriented firm. The leadership of the organisation needs to devise a strategy to get the
management team on board, which has been reluctant to do so, and may need to recruit new
employees to operate within the system.

Management will devise a strategy, which will be based on what has worked and what hasn't
worked, to continue doing what has worked and to rectify what hasn't worked. According to
the available evidence, there may initially be a number of initiatives that are unsuccessful.
Even if the programme has a significant number of setbacks, that does not indicate that it
needs to be terminated. Improvements in both the quality of work performed by employees
and the company itself constitute development.
#PHASE 6
SUSTAINING:
In this part, the programme is put into action to keep the wins going and fix the problems.
The good things about the programme should be praised and shared with all workers. The
leader must keep pushing for a change in attitude and show that the programme is working by
pointing out the achievements. Employees who haven't joined in with the programme yet will
have to be talked to now. To keep the success that has been made, the people in charge of
Lean Six Sigma must be more committed than ever.
If nothing is done during this time, the programme may have to be scrapped.

#TO CONCLUDE
This guide can be used as a tool to help both big and small catering businesses use Lean and
Six Sigma in a controlled way. The big organisation will always be able to make changes to
implementation after each stage of implementation. If the programme was used by more
people, this wouldn't be the case. Also, the organisation will be able to look at the costs of
execution and find ways to make them better.
This guide can help smaller hotels, like a family-owned summer camp, adopt Lean and Six
Sigma on a tight budget. When a black belt can't be used, a General Manager who has been
trained in Lean Six Sigma can use the goals listed in each part of the plan to successfully put
the programme into place.

#CASE 3
SERENA HOTELS:
Serena hotels was founded in 1969 in Kenya. It now has 36 unique hotels, spas, safari huts
and camps, castles and forts, and 2,826 rooms in 28 countries, so it has a global reach. But if
you want to be one of the biggest hotel and entertainment companies in the world, you must
be committed to offering steady quality. This leading hotel company has created a global
quality management programme that includes ISO9001, ISO14001, OHAS18001, ISO22000,
and the Total Quality Management system. This is to make sure that customers are always
happy with their hotel stays. Serena could easily investigate Six Sigma.
Serena hotels wants to be one of the first companies that doesn't make things to use the Six
Sigma quality method. Six Sigma is a programme that makes customers more dedicated by
getting rid of randomness, mistakes, and waste. The word "Six Sigma" means that there are
no more than 3.4 mistakes for every million chances.
The economic benefits and competitive advantages of hotels depend on how good their
service is. It includes real things like tools, facilities, food, and drinks, as well as spiritual
things like the setting, atmosphere, and the quality of goods to meet customer needs. Any
mistake could cause a customer to leave. The Six Sigma process basically finds a problem
area, measures it, figures out why there is a problem, and then fixes it. This means that the
way Serena hotels handle things like customer service, food and drinks, guest
accommodations, etc., should be almost perfect#IMPLEMENTATION PHASE:
There are three steps to the execution process.
• Learn the basics of how to make things better.
• Learn how Six Sigma is used in the hotel business, especially in food and drink
processes.
• The DMAIC process

According to the plan, the Serna hotel's management should first understand the key
principles of Six Sigma and the benefits they'll get after it's put into place. After that, they
should understand how to use Six Sigma properly in the hotel. And finally, the DMAIC
method

#DAMIC can assist in executing Six Sigma in Serena hotels as follows.


* INITIATION PHASE: Currently, some of the hotel's team members and subject matter
experts are trained on Six Sigma. Bottom-line data from the voice of the customer, such as
from customer happiness polls, customer complaints, loss of market share, and internal
checks, can help find ways to improve quality. Important quality measures are found, along
with the range of performance that is acceptable. A financial analysis is done, and the top
management approves the financial forecasts of changes. Waste should also be measured in
terms of money. A project chart is made, and team members are chosen.
* DATA MANAGEMENT PHASE: During this phase, the chosen team members or
subject matter experts would map the process, set up and test a measurement system, and
collect reliable data to find the process input factors that have a big effect on the output.
Basically, the data collected here should show how well and how well value stream mapping
is working right now. During this time, you should also figure out what tasks don't add value.
Also, the data needs to be looked at to show what the biggest problems are and what methods
were used to find their causes. Graphical tools may be used in analyses, for example, at
Serena, the cost of labour is very high. The whole process should be looked at, from hiring to
how well the job is done. Inputs could include union action, skills, performance, absence,
disagreements, complaints, discipline measures, work rules, working hours, leave cycle, etc.
The measurement tools should be able to record the right information, like time sheets,
attendance logs, extra pay slips, training records, and so on. After looking at the data, it may
be clear that only a few of the sources have a big effect on the cost of labour. This could
include things like extra, long hours, being missing, and training. Then, the problem is
analysed to find its main cause. This could be a manager's failure to plan because the system
has too many factors, a lack of medical facilities for workers, unfair output requirements, low
pay, etc.
#IMPROVEMENT PHASE: After figuring out the problem's root cause, the next step is to
make changes to fix and improve the situation. In this part, work is done to get rid of
mistakes and waste by using mathematical modelling and changing the key inputs to get the
best answer. This may require the creation and use of a good schedule system, a review of job
policies to meet medical needs, and even the replacement of staff with automation and
process technology to cut costs. There also needs to be a plan for how to improve things.
#FREEZING PHASE: In this step, the hotel management will put in place rules to keep
making changes. You can use up-to-date control charts, ways to avoid making mistakes,
internal checks, financial studies, prize systems, and a good screen tracking system.

#CHALLENGES IN IMPLEMENTATION:
There isn't enough high-quality, reliable data, there aren't enough ways to analyse data, there
isn't enough time, the projects aren't clear, the team doesn't agree on the problems, and people
don't want to change. Team members may see work on a Six Sigma project as extra work on
top of their regular work, lose passion, miss meetings, stall activities, and lose progress,
which could cause the project to take longer. It was also found that managers are more
reluctant to change than operational staff because operational staff could see the benefits
more quickly. Most of the time, top managers don't want to learn about Six Sigma. Also,
many managers don't really understand their most important customers, so they must guess
where they need to make improvements.

# CONCLUSION:
Six Sigma is a good, organised way to improve quality that leads to improvements in the
triple bottom-line in the long run. Most of the time, this is why Six Sigma replaced TQM and
became the most important part of quality management. When trying to gain and keep a
competitive edge in the hospitality business, it is important to know how to identify and meet
the unique needs, wants, and standards of hotel guests, as well as how to provide high-quality
service to customers. Putting the Six Sigma quality standard into action at the Serena hotel
will make the processes much more effective and efficient. It will lead to more loyal
customers and less staff turnover, which will lower running costs. Revenues tend to go up.
For example, there is less chance of losing money because of billing mistakes made by front
desk staff or restaurant staff who must work in cramped areas. There could also be faster
times between cleanings and the use of, among other things, regular cleaning processes. This
is always good news for the hotel business and picky guests.
#CASE 4:
SIX SIGMA ANALYSIS IN INDIAN HOSPITALITY INDUSTRY: MARRIOTT
HOTEL
#INTRODUCTION:
Six Sigma is a strategy or method that is used to get rid of or cut down on problems or flaws
in a system for process improvement and quality management. DMAIC and DMADV are
mostly used to do six sigma research. DMAIC stands for "define, measure, analyse, improve,
and control." It is used when a process only needs small changes, while DMADV, which
stands for "define, measure, analyse, design, and verify," is used when a process or method
needs to be changed.
In this case study, we want to improve the current process, so we'll do a six-sigma DMAIC
analysis for the Marriott Hotel in Bangalore.

# BRIEF INTRODUCTION ABOUT MARRIOTT HOTEL, BANGALORE

The Marriott Hotel in Whitefield is a member of the Marriott International Inc. hotel chain,
which is the largest hotel company in the world. The Marriott is located in the midst of the
city's economic sector, close to well-known landmarks as well as popular retail malls such as
Phoenix Market City. It provides its guests with five-star accommodations and dining
options. It includes 391 rooms with high-end amenities like as room service that is available
around the clock, a fitness centre, a spa that provides complete services, and restaurants that
serve a variety of cuisines. In addition to this, it provides consumers with a variety of tasty
dining alternatives as well as the opportunity to have food delivered from neighbouring
establishments. Additionally, it makes it possible for individuals to go to the supermarket and
buy the food they require. You may get a quick glimpse at the many services that are
provided by the Marriott Hotel by referring to the table that is provided below.

OUTLET PRODUCT OPERATING HOURS


M Café Buffet, Continental, Asian, 24/7, Breakfast, Lunch
Indian Dinner
M Bar Full Bar, Cocktails, Wines Open for Dinners only till 7-
1:00 am
Alto Vino Authentic Italian Open for Dinners only till 7-
1:00 am
WBG- Whitefield Bar and Bar-B-Que Open for Dinners only till 7-
Grill 1:00 am
Whitefield Baking Bakery, Pastry, Desserts, 9 am to 11 pm Breakfast,
Company Sandwiches, Juice Lunch and Dinner
Room Service 24-Hour in-room service
#SCOPE OF RESEARCH:
In this study, the hotel business in India will be the thing that will be looked at and evaluated.
The Marriott Hotel, Whitefield, is the hotel that is being looked at for the project. In this
research study, Six Sigma analysis will be used as a tool to find out what problems the
management is having with serving the customer base.

#SIX SIGMA ANALYSIS:


Six Sigma is a focused, data-driven way for getting rid of mistakes and flaws in a process.
The main goal of this is to carry out a measurement-based master plan that puts process
improvement at the centre and uses Six Sigma improvement projects to reduce differences.
The DMAIC process, which stands for identify, measure, examine, improve, and control, can
be used to do this. This is also an "improvement system" for making step-by-step changes to
processes that are already in place but don't meet certain requirements.

1.DEFINE:
In the define phase, the issues and problems that cause mistakes in the process are found and
described. It is important to clearly describe the problems, because if you don't, you might
end up solving the wrong ones.
Based on this study, the biggest problem is not being able to figure out what the customers
want and need. This means that the wrong kind of services are given to the customers, and
the normal time for room service is not kept. From the information that was collected, it was
found that 36 orders came in during the month of March, and the average number of orders
over the five months that were used for the study was 30.6. The highest amount of time that
Marriott allows for bringing services is 20 minutes, but data shows that the average amount
of time it takes to deliver services to a room is about 22.6 minutes.

Month Number of Orders Average Time for Service


(Mins)
MARCH 36 24
APRIL 31 23
MAY 22 24
JUNE 30 19
JULY 34 23

TABULATION OF NUMBER OF
ORDERS &TIME TAKEN FOR ROOM SERVICE

#LINE GRAPH OF NUMBER OF ORDERS

#LINE GRAPH OF AVERAGE TIME OF SERVCE


2.MEASURE:

During the measure phase, there is a lot more data collection, analysis, and numerical and
statistical studies. In this step, the main goal is to figure out which measure has the most
impact on the problem.
Those who have the biggest effect are put at the top of a list that will be studied in the
measure phase. During this phase, it is necessary to gather information about the current
processes and how they are being done. In this study, the 80-20 rule and the Pareto chart are
used to figure out how well the current processes are working. The 80-20 rule says that 20%
of the problems are caused by 80% of the actions that management takes to deal with
customer issues.80% of the time, the problem is a mismatch between the service time and the
order. Feedback can be better if this is taken care of.

#COMPLIANTS REGARDING ROOM SERVICE

ROOM SERVICE COMPLAINTS FREQUENCY


SERVICE TIMING 14
ORDER MISMATCH 9
HOSPITALITY COMPLAINTS 5
FOOD QUALITY 2

#PARETO CHART

3.ANALYSE:
The third step of the DMAIC process is to look at the problems the Marriott Hotel is having
and figure out what is causing them. Fishbone diagrams, also called Ishikawa diagrams or
"cause and effect" diagrams, are used to describe the possible reasons of a problem, which
can help find its root causes.

4. IMPROVE:
In the better phase, you come up with a new way or try something out to cut down on
mistakes. Most of the time, ideas are collected through discussion, and then a trial test is
done.
The biggest trouble with Marriott is the people who work there and how they are trained. It is
important to ask the staff what problems they are having and what areas of training they need
the most help with. So, a good training event needs to be set up for both the interns and the
staff. Long work hours can make this hard to do because it takes a lot of time. The training
can happen once a week, and the staff can be given the right amount of information and
training.
The management can also try out the "Magic" idea on a small scale to see if it can cut down
on mistakes and wait times for room service. The problem with doing this is that it can be
hard for the "magic" team and the service-providing team to talk to each other. This needs to
be fixed.

5.CONTROL:
During the management step, the success of the changed process is evaluated. The results are
judged based on the standards that the hotel has set.
In this case, the management can keep an eye on the training classes they give their
employees and test their performance every month to see if they are getting the right
information about any changes or new parts of the operation.
At the start of putting the magic method into place, it can be helpful to have a senior and
knowledgeable member of staff check the order of operations. So that if a student or newly
trained employee makes a mistake, he can help them fix it right away instead of going to
management and waiting for them to fix it, which saves time that can be used to meet
customer needs.
Lastly, it's important to get feedback from customers daily about how the way services are
given to them has changed, and to take steps based on how happy they are with the changes.
# CONCLUSION
According to the findings of this study and the interpretations of those findings, management
must take further actions to enhance the training of employees who interact directly with
consumers. More instruction has to be provided for all the teams, regardless of whether they
work during the week or on the weekends. Because it was discovered that there were more
complaints on the weekends, this indicates that the individuals who were assisting customers
were not doing their jobs well, which shows that they hadn't been given the appropriate
training. Since it was found that there were more complaints on the weekends, this signifies
that there were more people who were helping customers. Additionally, the majority of
criticisms were regarding orders that did not match, indicating that the personnel had to have
a better understanding of the cuisine and how it is prepared.

We would like to advise that you use the "magic" technique, which entails taking care of all
calls from guests, and putting together a separate crew to handle solely room service. One
individual is in charge of ensuring that all calls from the rooms are answered in this system.
After that, additional staff members are dispatched to assist, and when orders are received
from nearby establishments, they are inspected by hand before being delivered to the clients.
This is done in order to guarantee that the services will be rendered within the allotted
amount of time. The speed with which service is performed can be increased by doing these
tasks in the correct manner.

163
#CASE 5:

#INTRODUCTION:
The hotel business may have been hit the hardest by the current downturn. People have less
money to spend on things they want, so they travel less and don't spend as much when they
do. In order to pay for the huge rise of resorts in places like Las Vegas over the past ten years,
resort companies like MGM and Caesars Entertainment have taken on a lot of long-term debt.
According to MGM Resorts' annual reports from 2001 to 2011, the company's long-term debt
has doubled from about $6 billion in 2001 to over $12 billion in 2011, while its income has
only grown by about 50%. Because of this "perfect storm," it's hard to know if these
businesses will be able to keep going and not go out of business.
In this tough market, both big and small companies in the hotel industry are looking for ways
to cut costs and work better. When the economy is bad, everyone is interested in finding ways
to cut costs on wages. In the hotel business, this is a very risky way to go because cutting
costs could hurt service. Because there are fewer restaurants and people are spending less,
good service is more important than ever.
Even though there are signs that the economy is starting to get better, shoppers still made less
money in the third quarter of 2011. So, they didn't spend as much money. Customers won't
put up with bad service like they might have in the past in places like Las Vegas where there
are a lot of casinos.
Lean and Six Sigma have helped companies like Lockheed Martin and General Electric
change in amazing ways. In the current market, Amazon and Berkshire Hathaway are two
companies that are doing well and call themselves "Lean." Even so, Lean and Six Sigma
aren't used by that many hotel companies.
This talk will look at where Lean and Six Sigma have worked well in the hotel company. Big
hotel groups like Starwood Hotels and Caesars Entertainment have used Lean and Six Sigma,
but smaller companies could also benefit from them. Lean and Six Sigma come from
companies that make a lot of different things. Some people think that because Lean and Six
Sigma come from manufacturing, they can't be used in the service businesses. There will be a
discussion about the pros and cons of using Lean and Six Sigma in the hotel business.
Lean and Six Sigma can't be used without a well-thought-out plan, which can't be made in a
company board meeting in one day. As important as it is to make sure the projects work, this
general plan of action is also important.
#HOW CAN THIS BE JUSTIFIED:
Because of the bad economy, hotel businesses have had to change how they do business.
Long-term debt seems to be a thing of the past in the Las Vegas market, where every year a
new resort used to be built on the strip. This is clear from what Caesar Entertainment CEO
Gary Loveman said recently. Loveman says, "If we can't meet our liquidity needs or pay our
debts when they're due, we might have to cut back on or delay renovation and expansion
projects, cut costs, sell assets, or try to restructure our debt." Leaders of big service
organisations think a lot about how to cut costs.
The problems at MGM Resorts are the same as those at Caesars. There is a problem here
because there is a lot of long-term debt and income is going down. Jim Murren, CEO of
MGM, said, "Because of the economy, we're paying more attention to controlling costs and
looking for ways to save money in every part of our business."
Lean and Six Sigma have helped companies in other industries get back on their feet, and
they could do the same for the hotel industry. The programmes have a history of cutting costs
and making operations run more smoothly. These are two things that are very important to
the hotel and restaurant business right now.

# SIX SIGMA DEFINED:


Six Sigma's main goal is to make customers happy and keep them loyal to a product or
business. This is an easy idea. One that every business wants, even if they don't use Six
Sigma. Six Sigma is different because it puts a lot of weight on statistical analysis of
processes and uses that analysis to get rid of mistakes or waste in an operation. In an
organisation, Six Sigma is led by people who have been taught and approved and know how
to use the tools and methods. As in karate, the belt system shows how skilled and trusted
someone is who has been trained in Six Sigma. The top level of recognition is the Six Sigma
master black belt. To get a black belt, you must learn the rules and techniques and pass a test.
Also, the person who wants to be a black belt must have led two big projects for ongoing
growth. Some projects that qualify are ones that change the way a business works or cut the
time it takes to make something.

# LEAN DEFINED:
Lean is a way of thinking that tries to get rid of waste, just like Six Sigma. But a lot of it
depends on figuring out what the customer wants. Lean is different because it doesn't need
trained people and leaders to be put into action. Lean measures value by asking if customers
will pay for that step in the process. One thing that a customer might find useful is a clean
hotel room. Getting a hotel room ready for a customer may involve steps that the customer
may not think are important. The goal of lean is to get rid of the parts that customers aren't
willing to pay for and that can be taken out of the process without changing the final product
or service.
Lean does this by figuring out which steps in a process add value, which ones don't, and
which ones add value for the customer. The value-add step and the customer value-add step
cannot be taken out of a process. In Lean, cutting out the steps that don't add value is how
you save money. The value stream map is the best way to figure out which steps don't add
value.
A well-organized desk is another important part of the Lean method. Getting rid of trash and
things that aren't needed at work and keeping the room clean has many benefits. Some of
these perks include making the area look more professional, making it easier to get around,
and making it easier for rescue workers to take over for others. This is done by the Lean tool
of the 5s. Sort, Straighten, Shine, Standardise, and Sustain are what the 5s stand for. During
the sort phase, things that aren't being used are taken out of the area. In the cleaning area of a
hotel, for example, broken brooms and mops are often found and thrown away. During the
Straighten step, things are put in a place where they are easy to get to. In the case of the
housekeeping supply room, cleaning goods that are often taken from stock are put in a place
where they are easy to get to.

#REASONS OF RELUCTANCE TOWARDS LEAN AND SIX SIGMA IN


HOSPITALITY:
The research says that Lean and Six Sigma can work well in many different parts of a hotel.
Even though there is proof of success, Starwood Hotels is the only hotel company that uses
Lean and Six Sigma in every part of the business. This makes me wonder why Lean and Six
Sigma aren't used more in the hotel business. It may be hard to agree on how important it is
to set up a Six Sigma system with trained leaders. Usually, the best people in an organisation
are put in charge of Six Sigma. These workers may not be able to do their original jobs
because they must go through a lot of training and take on more tasks.
Another possible reason for resistance is that managers in the hotel business are not always
good at or see the need to analyse data and the root causes of problems. The way these
managers have run their businesses and helped customers for years is the way they like best.
Lean and Six Sigma might be a threat to the way they do things and might just be a trend that
won't last long.
Six Sigma and Lean may not be used in the hotel industry because they require effort and
buy-in from all levels of the organisation. Participation at all levels is important. Many times,
process redesigns and kaizens can make a process more efficient so that less people are
needed, which could lead to cuts. This can make workers not want to take part.
Hospitality companies may not be interested in quality management programmes like Lean
and Six Sigma because they take a long time to fully adopt. It could take many years to
properly implement Lean and Six Sigma across the whole business. Investing time, money,
and other resources without getting anything back right away may not seem like a smart
business move.
The high rate of staff change in the catering organisation could also be seen as a potential
problem. Hotels, especially smaller summer hotels, always must work hard to keep good
workers. Leaders may not want to take on the extra cost of training new workers on Lean and
Six Sigma concepts.
The hotel business doesn't like Lean and Six Sigma because it has a bad reputation that these
programmes can only be used in production and industrial settings. Lean and Six Sigma are
well-known because they came from organisations that focus on making things. Some people
in the service business might not find the tools used in the programmes useful.

#KEYS TO SUCCESSFUL IMPLEMENTATION OF LEAN AND SIX SIGMA:

Lean and Six Sigma boost efficiency, but there is no standard way to implement them.
Instead, Lean and Six Sigma literature highlights implementation issues.
Implementing the initiatives requires training and committing individuals to their tools and
ideals. Lean and Six Sigma must function together in an organisation. They should
complement each other and fit employees' daily routines. To achieve this, all employees learn
concepts, tools, and their duties.
Hiring Six Sigma black belts or other Six Sigma-trained professionals from outside the
company doesn't guarantee success. Expect setbacks. 30–60% of early ideas fail. However,
this should not cause concern.
Before commencing the project, an organisation must have a plan. Six Sigma implementation
requires seven phases. Imagine, plan, create, execute, improve, stay up, and quit.
Managers initially learn about Six Sigma during planning. They evaluate the tools for their
company. itemising is when management chooses to implement the project and determines
what tools and who will operate it. This is the most crucial step.

The program's leaders' jobs are prioritised during creation. The organization's leader is
trained. Continuous improvement events are implemented. The company now assesses
whether the training was sufficient and whether most workers support Six Sigma. Improve if
not.
Implementation proposals are implemented throughout growth. Management will also
develop Six Sigma improvements. The program's effectiveness is continuously monitored
through expansion.
Management and executives must maintain the system throughout maintenance. If all goes
well, Six Sigma project victories should influence the organization's mentality throughout the
Sustaining phase. At any point in this procedure, the programme is cancelled. The
programming ends permanently for various reasons.
Money, Six Sigma black belts, sponsor project managers, and green belts determine
execution pace and scope. If you start with too many projects, Lean and Six Sigma may not
work, and you may have to abandon it.
Successful adoption requires a culture of cooperation and engagement. Controlling
leadership might hinder this. Some bosses don't ask for feedback. Bottom-up feedback is
better for Lean and Six Sigma. The hotel business may not employ the initiatives more since
changing a culture is difficult.
#RESULTS ACHIEVED AS A RESULT OF IMPLEMENTATION:
Using Lean and Six Sigma practises, catering businesses can improve how well their
operations work. Even though many of Lean's main principles are made for the
manufacturing industry, we have found that some parts of the hotel industry might gain from
putting them into practise. The Lean 5s can be used by any department that is in charge of
handling supplies of any kind. Hotels are in charge of a huge number of things, like cleaning
supplies, game tables, slot machines, and food and drinks. One of the most important parts of
managing a hotel is making the best use of room. Lean 5s may be able to help with this.

Since the hotel industry is always changing, a single business may have many teams that are
in charge of providing and managing a wide range of different services. Most of the time, it
seems like these groups run their work as if they were a bunch of separate businesses, or
units. For example, the marketing department might start a new marketing effort, but the
game department might decide not to take part. There is a chance that the hotel bookings
department won't know about the new all-inclusive meeting plan that the convention sales
department will be putting out. If nothing else, the ideas of Lean and Six Sigma urge all areas
to talk to each other and work together.

Value stream mapping and kaizen events are two examples of this type of activity. For both
to be successful, people from all of an organization's divisions need to be involved and
physically present. Communication between different areas can never be looked at in a bad
way. Tools like Lean and Six Sigma may help a company become more of a smooth whole,
where all the parts are moving in the same way at the same time.

The biggest reason that Leans and Six Sigma aren't used more in the hotel business is that
they require new ways of thought and a change in company culture. According to the study
that has been released, Lean and Six Sigma have a bad name among people who don't know
much about them. Some people think that Lean and Six Sigma are ways to get rid of jobs and
that they create an environment of constant study of operations that doesn't focus on what
went right but rather on what went wrong. In the hotel business, older managers and industry
veterans will want to stick to what has worked for them in the past, and they are less likely to
change their old ways of doing things.

Another big problem is that Lean and Six Sigma require a lot of time and money. Some
managers might find it hard to make up for the time and money that could have been spent on
other things. Implementation could take up to a year or even longer in a small building or
company. Because the economy is hard to predict, funds for training and other capital
spending are being cut, and investors and other interested parties want a faster return on their
investments.
The good news is that these problems are not impossible to solve. There is enough proof in
the books to back the claim that Lean and Six Sigma have helped companies that were failing
become successful ones. The Lean Six Sigma infrastructure's job is to get this knowledge to
each person in a company in the right way. People who are set in their ways and don't want
things to change need to be told about the problems in the hotel industry over the past few
years. Given how things are now in the field, the way things were done before is no longer
useful. The successes that Lean and Six Sigma have had in different fields need to be shared,
as does the idea that groups that don't try to change and get better will fall behind in their own
fields.

Even though Lean and Six Sigma have been shown to be helpful, it will be hard to get rid of
the bad reputation that comes with standard management practises. Many people will not be
able to buy and take part. You might be able to get around this problem by putting together a
network of creative thinkers who have shown they can quickly adapt to new situations within
the company and are committed to the idea that things should always be getting better. This
could be a group of younger people in an outfit who haven't yet learned to be happy with the
way things are. In addition, the company will need to hire staff members who already have
these skills to fill future positions. Changing an organization's culture is a big job. However,
if you can find people within the company who are ready to use Lean and Six Sigma as
leadership options, this process will be easier.

Employing a Six Sigma Black Belt to handle the installation and ongoing improvement
efforts is one way for the company to get around this problem, both in terms of the
investment needed and the immediate return it will give. In order to get a Six Sigma Black
Belt, the person must show that they have handled and carried out several different projects
for continuous growth that have led to positive financial results. The black belt is expected to
have a good understanding of the ideas and to have worked directly with the setup and day-
to-day activities of a company that uses Lean Six Sigma.

Also, getting a black belt may be enough to cover the cost of adopting Lean and Six Sigma
on its own in a smaller business or company. This is one of the ideas that the Lean and Six
Sigma Alliance has put forward. Getting a Six Sigma black belt could save a company up to
$450,000 in costs. It seems unlikely that a company would spend even close to this much to
use Lean and Six Sigma. This could explain why the execution will take so long and how
much it will cost, which will finally get the backing and buy-in of high-level management for
the start of the plan.

#GUIDE TO IMPLEMENTATION:
The following strategy for adopting Lean and Six Sigma is good for both a department in a
big hotel or lodge and a small to medium-sized hotel. In either case, there are about 100
workers all together. In a business this size, it takes less time to get the programme up and
running, it's easier to train the whole team, and it's easier to see how well the programme is
working or not.
The seven stages of execution are used to put Lean and Six Sigma concepts into action in a
business or company. The seven stages give a road map and method for putting the
programmes into place. They also create the culture change that is needed for the programme
to work. This implementation guide and its first use in the department or hotel will serve as a
trial test that, if successful, can be used to adopt Lean and Six Sigma in other departments
and hotels.
In the guide, two fictional organisations are used as an example of how execution works. One
of these is the cleaning department of a big hotel or lodge. The cleaning area was chosen
because it is like an industry or production business, which is where Lean and Six Sigma
come from. Also, value stream mapping, spaghetti diagrams, and DMAIC make it easy to
look at important jobs in the housekeeping area, like cleaning hotel rooms.
The small to medium-sized hotel was chosen as the other company because it has fewer
employees than a bigger hotel and would therefore be able to start up faster. Also, to show
that Lean and Six Sigma can be used and put to good use in all parts of a business.

#PHASE 1
ENVISIONING:
The planning stage of application happens at the company level for small to medium-sized
hotels and the cleaning department. Either an officer or senior will be interested in Lean and
Six Sigma, or middle management will be trying to get company backing for the
programmes. At this stage, the goal is to get company backing for putting Lean and Six
Sigma into place. If business doesn't agree to back the programme, it can't move on to phase
2. Corporate must agree to pay for training programmes and any other costs that come up
because of the application. Corporate must also agree to spread the word and lead the
necessary mindset change. The Lean/Six Sigma Champion is the officer or senior who will
lead the programme at the company level.
It is possible that the executive level will be the one who wants to use Lean and Six Sigma.
This is especially true in the case of the cleaning department, where it would be difficult for
the head of the department to start such a programme without an order or approval from the
top level. The imagining stage may look different for a small to medium-sized hotel. If the
hotel is on its own and not part of a big chain or business, hotel management can be involved
in the planning stage. In this case, the goal is still the same: management and/or the hotel
owner must be willing to back the programme financially and lead the way in changing the
culture.

#PHASE 2
STRATEGIZING:
At this time, the system that will be used to run the Lean and Six Sigma programme must be
put in place. All workers will also need to be trained on the Lean and Six Sigma ideas and
how they apply to their specific jobs in the organisation.
During this part, a Six Sigma Black Belt will be hired to run the programme and make sure it
is put into action. The black belt will have taught an organisation how to use Lean and Six
Sigma in the past. They will also have had hands-on experience with all the steps that go into
putting the programme in place, keeping it going, and making sure it works.
Even though it is suggested that a company hire a full-time black belt, a small hotel may not
be able to afford this cost. In the case of a small to medium-sized hotel, they may want to hire
an expert who has worked in a Lean Six Sigma organisation for a long time. A cheaper way
would be to choose a leader from within the organisation and send that person to the
American Society for Quality for Lean Six Sigma training. The American Society for Quality
gives training for getting a black belt and a lot of training on the Lean Six Sigma concepts.
Even though this option may seem cheaper at first, it will take longer to set up because the
leader won't have the knowledge or training to start the programme right away.
Whether an organisation hires a black belt to run the programme or trains someone from
within, the key to phase 2 is having all the Lean Six Sigma leaders in place to run the
programme. This group of leaders is called "green belts," and the black belt will train them
for two weeks. In the example of the cleaning department or a small to medium-sized hotel,
the green bands are the managers or bosses of that department. Green belt training involves
using DMAIC, value stream mapping, Lean 5s, and other tools to look at processes, find and
get rid of waste, and make them more efficient.
The imagined organisational chart for the cleaning department of a big hotel has more
departments than the organisational chart for a medium-sized hotel. In this case, it's believed
that the programme has a bigger budget and that a black belt is hired to run it. Later, the
seven stages of execution can be led by the black belt in another area. Because of the big
activity, more green belts are given jobs. These include the linen/uniform supervisor, floor
supervisor, night supervisor, public area supervisor, and the executive and junior cleaner,
even though they are higher on the organisational chart.
In the last parts of this phase, all the staff will be taught how Lean and Six Sigma work. In the
next stage, champions, black belts, and green belts will start to look for projects to work on.

#Below is the Small to medium-sized organisational plan taken from "Medium Size
Lodging Property" by J. Bardi, 2011, p. 47, Hotel Front Office Management. Copyleft
2011 by John Wiley & Sons, Inc.
#PHASE 3
DEVELOPING:
In the cases of cleaning and small to larger hotels, the phrase works the same way. The black
belt or Six Sigma manager will work with the green belts to find tasks and processes to
analyse. Some projects that may happen in the housekeeping department are the 5S process
for cleaning supply rooms and value stream mapping events to find steps in the cleaning
process that are useless or not necessary. In the example of a small to medium-sized hotel,
some projects could involve recording the way food is made in the kitchen, how guests check
in at the front desk and how hotel rooms are cleaned.

#PHASE 4
IMPLEMENTING:
During this part of the process, the goal is to get some projects up and running and to start
creating an environment where the ideas of Lean and Six Sigma can be used in the day-to-day
running of the business. Everyone in the company, regardless of their position, works on the
projects, and everyone has the same amount of say when it comes to making suggestions on
how to make things run more smoothly. During this early time, no more than ten projects
should be started. Given the size of the made-up business, it would make more sense to have
five to seven first projects.

#PHASE 5
IMPROVING:
Now that the initiative has run its course, it may be evaluated for efficacy. The leadership of
Lean Six Sigma must determine whether the initiatives have been successful in fostering a
culture change and increasing the efficiency of the operation. The potential risks associated
with implementing Lean and Six Sigma in a hotel sector business may explain why the
project has not been successful so far. The organization's leadership must devise a plan to
convince the management, which has been slow to embrace the programme, and maybe bring
in new employees to work in the infrastructure.

Management will examine the triumphs and mistakes that have occurred up to this point
while developing a plan to build on the former and rectify the latter. There may be more
failures than successes in the early stages of a business, according to the available data. A
high rate of failure is not always cause to cancel a project or initiative in its entirety. A step
forward may be thought of as even the smallest increment in people and organisational
performance.

#PHASE 6
SUSTAINING:
During this stage, the plan will be put into action to guarantee that its prior successes are
maintained while also resolving any issues that have surfaced as a result of its
implementation. The accomplishments of the programme should be brought to the attention
of every member of the staff, regardless of their level, and they should be encouraged to
celebrate those accomplishments. The champion is accountable for ensuring that momentum
is maintained in support of the idea of a cultural transformation, as well as for pointing to the
outcomes as proof that the plan is succeeding. At this juncture, it is essential to take action
about the members of the workforce who have declined to take part in the course. The
leadership of Lean Six Sigma must exhibit a level of devotion that is higher than it has ever
been in the past to maintain the degree of success that has been achieved. It is possible that
the project may have to be terminated in the future if this phase ends without any action being
done.
#PHASE 7
ABANDONMENT:
This step might happen whenever the protocol calls for it. Several scenarios may account for
this phenomenon. One of the difficulties is the inability to create and maintain a strong
leadership infrastructure that is committed to the effective implementation of the project. All
the other programming is based on this fundamental structure. Those in positions of authority
within the infrastructure may be reluctant to further advance the programme if they lack the
commitment necessary to stay on board with its tenets and do not believe in its benefits.
Another contributing factor to giving up was the high number of perceived setbacks
throughout the implementation phase. It's normal to have plenty of setbacks in the beginning
stages of anything. Finding out whether the software is saving money or working more
efficiently is the most crucial step in deciding whether to stick with it or jump ship. Another
possible explanation for the project's demise is that proponents of Lean and Six Sigma in the
hospitality sector were unable to convince enough people that their ideas would really work
in the business.

#TO CONCLUDE:

This book could be used to help both big and small catering businesses adopt Lean and Six
Sigma in a controlled way. After every stage of implementation, the large company will
always be able to make changes to how implementation is done. If the project were done on a
larger scale, this situation wouldn't be happening. Also, the company will be able to look into
the costs of the execution and make improvements in those areas.

Smaller hotels, like a family-owned summer camp, could use this book to adopt Lean and Six
Sigma on a tight budget. When a black belt can't be used, a general manager who has been
trained in Lean Six Sigma can do a good job of running the plan by using the goals listed in
each step of the guide.

Even though Starwood Hotels' use of Six Sigma throughout the company in 2001 was seen as
a success, Lean and Six Sigma have not been used much in the hotel business. In the hotel
business, the most successful projects have often been led by a single department and focused
on fixing a single problem.

Recent study shows that putting Lean and Six Sigma methods into place in a hotel could help
improve many different areas, such as cleaning, food production, and transportation, among
others. Value stream mapping can be used to analyse almost any process in a company. It
also motivates people with different interests to work together to find answers to problems.
Lean and Six Sigma aren't used as much as they could be because it's hard to change an
organization's culture and it costs a lot of money to train people and build up infrastructure.
This is the main reason why Lean and Six Sigma aren't used more. Because of this, Lean and
Six Sigma can work better in a smaller company with fewer properties. Larger businesses
may adopt Lean and Six Sigma in stages, with each new stage starting in a different place,
property, or geographic area. Because of this, the company would be able to improve the
execution process slowly but steadily along the way. Because of this, it is less likely that all
of the plans will be cancelled because one project failed early on.

#REFERENCES
#Websites:
* Benchmark Six Sigma Website (www.benchmarksixsigma.com)
* Website (www.motorola.com )
*Wikipedia (www.wikipdeia.org)
#Books:
* Dedhia, N.S. (2005), “Six Sigma Basics”, Total Quality Management.
*Thawani, S. (2004), “Six Sigma – Strategy for organizational excellence”, Total Quality
Management,
* Woodall, December (2008). An Overview of Six Sigma
* Gerald J. Hahn, August (1999). The impact of six sigma improvements – a glimpse into the
future of statistics.
* MARTIN EVANS, (1978) The coastal hotel sector- performance and perception analysis
(Marriott Hotel, n.d.)
* Pepper, M.P.J., and Spedding, T. (2009), “The Evolution of Six Sigma”
* Adeyemi, Y. (2004), “Analysis of Six Sigma at Small vs. Large Manufacturing
Companies”
* De Feo, Joseph A.; Barnard, William (2005). JURAN Institute's Six Sigma Breakthrough
and Beyond - Quality Performance Breakthrough Methods.
* Benchmark Six Sigma Green Belt, Black Belt, Master Black Belt and Lean Management
Brochures

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