SIGNIFICANCE AND IMPACT OF TRAINING

THROUGH SIX SIGMA IN HOTELS

VSRD International Journal of Business &

Management Research - Iftikhar Akhmed

VSRD-IJBMR,Vol.2 (7), 2012, 374-386

ISSN No. 2231-248X (Online),2319-2194(Print)

HUMAN RESOURCES MANAGEMENT

IN HOSPITALITY & TOURISM

W I W I T N. S I M P O N I

Pascasarjana STP Trisakti

Batch 6

Nim. 1263620060

L e c t u r e r :

P R O F . S Y A M S I R A B D U H

Grade/Score:

90

CONTENT

INTRODUCTION

OBJECTIVE

LITERATURE REVIEW

METHODOLOGY : SIX SIGMA

IMPACT OF SIX SIGMA TRAINING

SURVEY FINDING

CONCLUSION

INTRODUCTION

1. The Hotel industry is one of the oldest trade endeavours in the

world

2. Hospitality is the relationship between guest & host, or the act

or practice of being hospitable

3. Hotel Industry is customer (guest) oriented

4. QUALITY matters when servicing hotel guest

HOTEL AS HOSPITALITY INDUSTRY

INTRODUCTION

1. Six Sigma (SS) seeks to improve the QUALITY of process outputs by

identifying and removing the causes of defects (errors) and minimizing

variability in manufacturing business processess

2. a set of QUALITY management methods, including statistical methods and

creates a special infrastructure of people within the organization (Black belts,

green belts, etc) who are experts in these methods

INTRODUCTION

The roots of SS as ameasurement standard

1711-1855

Carl Frederick Gauss

Introduce the concept of the normal curve

SS as a measurement standard in product variation

1920

Walter Shewhart

Showed that three sigma from the mean is the point where a process requires correction

SIX SIGMA

1986

Bill smith ( Motorola Engineer)

- The traditipnal quality levels measuring defects in thousand of opportunities, didn;t

provide enough granularity

- Motorola developed new standard and created the methodology and needed cultural change

associatesd

- SS helped Motorola realize powerful bottomline results in their organization

-

MOTOROLA documented morethan $16 Bilion in savings as a results in their organisation

- Since then hundreds of companies around the world have adopted SS as a way of doing

business

H I S T O R Y O F S I X S I G M A

OBJECTIVES

THE PRIMARY FOCUS

To find out the significance and impact of training using SS as a

tool in hotel industry particularly

A survey is done to find out whether SS is useful and fruitful by

implementing in the hospitality industry,

which is world’s one of the largest industry

LITERATURE REVIEW

To obtain loyalty and to outweigh other competitors, hotel providers must be able to obtain high levels of

CUSTOMER SATISFACTION for the service supplied .

There are several studies that analyze the needs and the desires of tourist . WUEST ET AL (1996)

Defined the perception of hotel attributes as the degree to which guests may find various services and

facilities critical for their stay in a hotel.

Hotel’s attributes such as cleanliness, price, location, security, personal service, physical attractiveness,

opportunities for relaxation, standard of services, appealing image and reputaion are recognised as

decisive by travelers to assess the quality of the hotel ( ATKINSON,1988,ANNATH ET AL, 1992)

Perception of Hotel’s Attributes

LITERATURE REVIEW

BARTRAM & GIBSON(2000)

The key is to identify what problems can be attributes to training deficiencies an once that

is accomplished, to ensure that the right training is implemented use Training Needs Analysis

Toolkit Agree.

Without the right training, employees can be your (the organisations’s) biggest liability.

Trained effectively, however, they can become your biggest asset

TAYLOR, DAVIES & SAVERY (2001)

It is commonly acknowledged that organisations choosing to provide feedback and training will reap the benefits, they will assist employees in overcoming shortfalls in performance, improve employee commitment, and quality of service and decrease the prevalence of issues of turnover within the organisation

NICKSON (2007)

Training and development can be seen as a key instrument in the implementation of HRM

practices and policies

YAFANG WANG (2008)

Staff training also motivates and inspires workers by providing employees all needed

information in work as well as helps them to recognize how important their jobs are

LITERATURE REVIEW

Training Benefit

SOMMERVILLE (2007)

“Training is the process that provides employees with the knowledge and the skills

required to operatewithin the systems and standards set by management.”

Mccleland (2002)

“Training, in the most simplistic definition, is an activity that changes people’s behavior.”

Training is a learning process that involves the acquisition of knowledge, sharpening of

skills,concepts,rules or changing of attitudes and behaviors to enhance the performance

of employees. Training leads to skilled behaviour.

Training Definition

LITERATURE REVIEW

1. ORIENTATION TRAINING

2. JOB TRAINING

3. SAFETY TRAINING

4. PROMOTIONAL TRAINING

5. REFRESHER TRAINING

6. REMEDIAL TRAINING

7. APRRENTICE TRAINING

8. CROSS TRAINING

9. LANGUAGE TRAINING

IMPORTANCE OF

TRAINING

Assesing the training needs

Planning the

training

Evaluating the

training

Carrying out the training

TRAINING PROCESS

Yellowbelt Yellow belt professionals are collecting data and analysing

data and discuss the result with the green belt professional.

Greenbelt Yellow belt professionals are collecting data and

analysing data and discuss the result with the green belt professional.

Blackbelt The Individual with the most

knowledge and experience , lead most projects,

Master

Blackbelt The Individual with the most knowledge and experience ,

lead most projects, THE TRAINERS OF SIX SIGMA TRAINING

'Long Term Yield'

(basically the percentage of

successful outputs or

operations) %

Defects Per Million

Opportunities

(DPMO)

'Process

Sigma'

99.99966 3.4 6

99.98 233 5

99.4 6,210 4

93.3 66,807 3

69.1 308,538 2

30.9 691,462 1

Conversion table above tells that the sigma scale is exponential. The difference between the

DPMO equating to each whole number more than doubles as you move up through the scale

METHODOLOGY

NANKERVIS, A.R.1995

The achievement of service excellence and productivity standards is ensured by integrated

and comprehensive human resource management practices including effective recruitment

techniques, training and development programmes, appraisals, incentive and reward schemes,

job enlargement and multi skilling systems

ROWLEY&PURCELL,2001

Training is one of those factors which helps in increasing the employee commitment and

promotes long term employment”. The call of the hour is to welcome Six Sigma in hotel

industry and utilise the skill to enhance employee efficiency and customer satisfaction.

SIGNIFICANCE OF TRAINING

IN THE HOTEL INDUSTRY

NICKSON 2007

Training and development can be seen as a key instrument in the implementation of HRM

practices and policies. Successful hotels always include staff training as their important

development strategy.

Yafang Wang, 2008

staff training is essential in many ways, it increases productivity while employees are armed

with professional knowledge, experienced skills and valid thoughts, staff training also

motivates and inspires workers by providing employees all needed information in work as

well as help them to recognize how important their jobs are.

SIGNIFICANCE OF TRAINING

IN THE HOTEL INDUSTRY

INCREASES CUSTOMER LOYALTY

REDUCING THE COST

REDUCES THE EMPLOYEES TURNOVER

REDUCES THE LOSSES DUE TO BILLING ERRORS

INCREASES THE REVENUE SIGNIFICANLY

HELPS IN INCREASING BALANCE IN EMPLOYEE’S WORKLIFE

SIX SIGMA AND HOSPITALITY

1. Enhance customer (guest) loyalty

2. Reduce employee attrition

3. Productivity/Efficiency improvement

4. Improve work-life balance

5. Reduce billing errors/losses

6. Developing better performance measures/

metrics

7. Increase revenue

8. Reduce cost

9. Capture 'Voice of Customer' data

SIX SIGMA VALUE THROUGHOUT

THE HOTEL OPERATION

IMPACT OF SIX SIGMA TRAINING

1. Reduce wait time during peak check-in time

2. Reduce wait time during peak check-out time

3. Eliminate billing errors and improve accuracy

4. Reduce no shows (a situation where guest does not turn up even having

confirmed booking)

5. Increase occupancy

6. Optimal utilisation of the current product mix (rooms) to increase revenue

7. Increase customer delight at the Executive Club

8. Reduce/eliminate loss calls (operator’s area)

9. Accuracy of information

SIX SIGMA VALUE

IN FRONT OFFICE OPERATIONS

1. To maintain inventory control

2. Minimise wastage/pilferage/theft

3. Standardized output (recipe) of Food and Beverage

4. Reduce the time from order placement to service

5. Optimal utilization of current product mix (F&B/Outlets) to increase revenue

6. Amount of time between order placements and deliveries

7. Waste and theft of product

8. Food and beverage output

9. Inventory control

SIX SIGMA VALUE

IN FOOD & BEVERAGE SERVICE /

PRODUCTION (KITCHEN)

1. Reduce the turnaround time of making/turning down a room

2. Standardisation of cleanliness across areas

Six Sigma Value

in Purchase/Stores department

1. Decrease Inventory surplus

2. Cost Benefit Analysis between cost of inventory and cost of storage of

products where prices vary seasonally

3. Standardise the operating procedure of issuance to various departments

4. Reduce the turnaround time of issuance to various departments

SIX SIGMA VALUE

IN ACCOMODATION OPERATION

(HOUSEKEEPING)

1. Payroll accuracy

2. Documentation management

3. Reduce the time of recruitment

4. Reduce the time of relieving/dismissal

5. Boost the employee satisfaction rate

SIX SIGMA VALUE

IN HUMAN RESOURCES

Starwood is the first hospitality company in the world to embrace Six Sigma since

2001

Starwood uses a simple methodology in its ’Starwood Cares’ programme to tackle

simple straightforward problems.

Barry S. Sternlicht, chairman and CEO, Starwood Hotels and Resorts had stated,"The

launch of SS is one of the most important strategic initiatives , and our goal is every

guests to have a flawless experience during each and every visit. SS will help us

reach that goal".

THINKING 'OUT OF THE BOX‘

implementing the SS learning at work/profession makes one streamline work

better, thus increasing work efficiency & effectiveness leading to a higher level of

professional satisfaction & growth.

STARWOOD HOTELS AND RESORTS

WORLDWIDE INC

Methode

• Collected data from articles, interviews, presentations and speeches published in magazines, newspapers and websites. Telephonic and online survey was done of hotel employees and managers.

Results

• There was no shortage of examples of Starwood’s success resulting from SS project metrics uncovered during this research. For example: At the Westin Turnberry Resort, a SS project resulted in an 11.95% increase in incremental spending by customers andan increase in room revenue of more than 19%.

Results

• A SS project improved reservation systems and helped maximize the use of massage therapists and treatment rooms, increasing spa-related revenues from $145 per booking to $225 per booking.

Results • Since then, programs developed under SS have delivered more than $100 million in

profits to Starwood’s bottom line.

S U RV E Y F I N D I N G S

Project

• Another pilot project at the Westin, Atlanta North hotel focused on streamlining the laundry separating process.

Results

• As a result of the project, the laundry department improved productivity by 14%, representing a savings of 291 hours of non-value added time each year.

• The same project at another resort resulted in a savings of 815 hours of non-value added time each year, or $11,415.19.

Results

• When SS was initiated at Starwood, the company incurred $17 million in training costs. At the same time, the company reaped tangible earnings before interest, taxes, depreciation and amortization - increases of more $17 million.

Results

• Another SS project focused on improving the housekeeping service process. That project resulted in :

• An estimated yearly reduction of $500,000 in cost of poor quality

• Reducing the time it takes to clean rooms by 65%, to eight minutes.

• Reducing the number of defects per room from 42% to 3.7%. This resulted in cleaner rooms.

• Increasing the number of rooms that a member of the housekeeping staff can clean each day - from 13 rooms to 17 rooms. This resulted in labor cost savings.

• Reducing a housekeeper’s movement within a guest room by 64%, or 205 feet.

S U RV E Y F I N D I N G S

• Customer satisfaction equals success in the world of

hospitality.

• to make a customer satisfied and delighted we have

to give them best possible services and products and

for that we require a professionally trained man

power, ready to work for the customer diligently.

• Not many organisations in the hospitality industry

worldwide have opted SS as a method of training,

however those organisations that are using SS are

getting very POSITIVE results.

implication

C O N C LU S I O N