p.

1


Ritz-Carlton


Prof. Silverman
p. 2
Ritz-Carlton
Strategy
Operate hotels in the luxury segment of the market
Focus on personalized service to customers
Strive to improve operational efficiency
Have procedures to ensure the highest quality standards
Provide consistent quality at all properties (worldwide)
Achieve high levels of service through:
Building systems to measure service performance
Responding to problems quickly
Anticipating customer demand
Reacting quickly to that demand




p. 3
Ritz-Carlton
Operations Strategy
Steadfastly collect data on guest preferences
Continuous effort to develop novel approaches for improvement
Hire people with an aptitude for service
Strong emphasis on training across all departments
Empowering employees to solve customer problems
Reward structure that recognizes employee performance

p. 4
Ritz-Carlton
Performance
Won Malcolm Baldrige Award 1992
Only hotel company to win this prestigious award
Award criteria
Leadership
Strategic Planning
Customer and Market Focus
Information and Analysis
Human Resource Focus
Process Management
Business Results
Proportion defects is only .0037
p. 5
P-chart
-0.01
-0.005
0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
1
1
5
2
9
4
3
5
7
7
1
8
5
9
9
1
1
3
1
2
7
1
4
1
1
5
5
1
6
9
1
8
3
1
9
7
2
1
1
2
2
5
2
3
9
2
5
3
2
6
7
2
8
1
2
9
5
3
0
9
3
2
3
p
p-bar
UCL
LCL
14 out of control days
p = .0037
p. 6
Occupancy
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
0
100
200
300
400
500
600
Saturday Friday Wednesday Thursday Tuesday Monday Sunday
Occupancy
p. 7
Quality Problems by Defect
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
0
20
40
60
80
100
120
140
160
180
200
Defects by Type
p. 8
Quality Problems by Day of Week
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
0
20
40
60
80
100
120
Friday Saturday Sunday Tuesday Thursday Wednesday Monday
All Defects by Day
p. 9
Quality Problems as % of Occupancy
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
0.000%
0.100%
0.200%
0.300%
0.400%
0.500%
0.600%
0.700%
Sunday Friday Tuesday Thursday Saturday Monday Wednesday
All Defects as % of Occupancy by Day of Week
p. 10
Room Clean by Day of Week
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
0
5
10
15
20
25
30
35
40
Sunday Saturday Friday Monday Tuesday Wednesday Thursday
Room Clean Defects by Day of Week
p. 11
Incorrect Reservation by Day of Week
13 incidents on one Wednesday
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
0
5
10
15
20
25
30
Wednesday Sunday Saturday Friday Thursday Monday Tuesday
Incorrect Reservation by Day of Week
p. 12
14 Out of Control Days
105 Defects on 14 Out of Control Days
13 of these were due to
a single incident on 3/12
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
0
5
10
15
20
25
30
14 Out of Control Days by Defect
p. 13
Room Clean p-chart
-0.01
-0.005
0
0.005
0.01
0.015
0.02
1
1
7
3
3
4
9
6
5
8
1
9
7
1
1
3
1
2
9
1
4
5
1
6
1
1
7
7
1
9
3
2
0
9
2
2
5
2
4
1
2
5
7
2
7
3
2
8
9
3
0
5
3
2
1
p
UCL
LCL
p-bar
8 out of control days
P-bar = .0013
Sat
Sun
Fri
Sun
Fri
Sun
Wed
Sun
p. 14
14 Out of Control Days
D
a
t
e
2
T
o
t
a
l
s
O
b
s
e
r
v
a
t
i
o
n
7-Jan-97 9
12-Jan-97 8 Sunday
14-Jan-97 7
15-Jan-97 7
17-Feb-97 5 Presidents Day
12-Mar-97 15
20-Apr-97 6 Sunday
27-Apr-97 5 Sunday
15-May-97 7
4-Jul-97 10 Independence Day
13-Jul-97 5 Sunday
25-Sep-97 7
1-Oct-97 7
7-Nov-97 7
p. 15
Analysis
Room clean largest problem
Room cleaning problems on Sunday
More problems on weekends
Room clean out of control on weekends and holidays
All defects out of control 50% of time on Sunday and
holidays
Room assignment problem during the week





p. 16
Problems from Analysis
Staffing on Sunday
Management on Sunday
Leisure vs. business customers
Room assignment problems may be caused by
empowerment and reservation system
Check in/check out delays may be caused by leisure
customers
Reservation system utilization causing incorrect
reservations
Insufficient staffing or systems for wake-up calls


p. 17
Recommendations
Sunday staffing
Management
Housekeepers
Rotation of Sunday assignments
Better coordination between front desk and
housekeeping on room cleaning readiness
Better coordination for reservation systems
Computer backup for wake-up calls
Better management and training for housekeepers
More integration of housekeeping and engineering
Reserve specific rooms when so requested
p. 18
Ritz-Carlton Initiatives
Room cleaning in teams of three
Lower worker turnover
Higher productivity
Better quality
Display SQI (service quality indicator) throughout
hotel so employees can monitor real-time guest
service processes
Developed POLO (protect our little ones), a child
safety program in response to increased family travel
Developed CLASS (customer loyalty anticipation
satisfaction system) a company-wide database to
meet and anticipate repeat customers preferences
and requirements
p. 19
Ritz Carlton Initiatives
Segment check-in system
Express for business travelers
Pampered with champagne and a presentation of hotel
services and amenities for leisure travelers
Merge deep cleaning housekeeping processes with
engineering preventive maintenance schedule to
ensure that all guestrooms are guaranteed to be
defect free every 90 days
Stagger lunch hours of housekeeping supervisors to
streamline guest room inspection process. This
reduces the problem of guest room readiness