1. Submitted To:
Mr. Bhupendra Gehlot
Using Six Sigma at Starwood Hotels
and Resorts
Submitted By:
Rohan Patel
(k11023)
2. Table Of Contents
Introduction
What is Six Sigma?
Five Phases Of Six Sigma method
Six Sigma at Starwood
Conclusion
3. Introduction
During the 1980s and 1990s, corporations rushed to
implement TQM pro-grams. It has been almost three
decades since this initiative got started, yet despite its
popularity the TQM movement has had many critics
questioning whether it is a legitimate management
practice that offers tangible benefits for organizations.
Several studies have documented the economic and
financial contributions that the implementation of
quality improvement programs has had on companies
(Hendricks & Singhal, 1997, 2001; Easton & Jarrell,
1998; Corbett, Montes Sancho, & Kirsch, 2005)
4. What is Six Sigma?
Six Sigma is a rigorous and disciplined methodology
that uses data and statistical analysis to measure and
improve a company’s operational performance by
identifying and eliminate “defects” in manufacturing
and service-related processes.
5. Five Phases Of Six Sigma method
Define
Measure
Analyze
Improve
Control
6. Six Sigma at Starwood
Since the program was launched in 2001, 150 employees have been trained as
“black belts” and more than 2,700 as “green belts”
Net income margin in 2006 of around 17%, higher then key competitors Hilton
and Marriott.
Figure shows a sample fishbone diagram that investigates the possible reasons
for a hotel room service order to be delivered late to a customer.
7. Conclusion
As a result of these benefits, Six Sigma may be
adopted by other hospitality service providers.
Throughout the hotel industry, quality improvement is
considered the key ingredient to success.
This case study documents the application of Six
Sigma within Starwood, including an increased use of
cross-functional team approaches, effective use of
expanded stakeholder partnerships, and the adoption of
objective techniques and statistical testing to solve
problems and improve the bottom line.
