Lean Six Sigma Implementation in Hospitality
- Six Sigma is a structured and disciplined process designed to deliver services on a consistent basis. It aims at improving the bottom lines by identifying and eliminating the causes of mistakes and defects in business processes.
- In the present strong and pandemic environment, the hotel industry needs to continuously ramp up its operations by improving the quality of services and at the same time reducing its operational costs to remain in the current environment by providing safe and cost effective stay to its customers.
- The aim of Six-Sigma approach is to recognize and pinpoint how defects occur and then plan process improvements by reducing defects which will improve the overall customer experience as well as improve customer satisfaction.
- For instance, Starwood Hotels and Resorts, one of the leading hotel chains, was one of the first hotels in the world that endeavored to espouse Six Sigma philosophy. In 2001, Starwood adopted Six Sigma to develop innovative solutions that focus on the customer and to transfer these solutions throughout the global organization. Recently, Starwood has successfully executed hundreds of Six-Sigma projects in areas involving productivity, customer interactions and evaluations, menu redesign, green room program, workplace safety, e-mail marketing and sales. Although hotels around the world have an increased interest in Six-Sigma implementation and many hotels have reported considerable financial and non-financial benefits as a result of Six-Sigma implementation, the literature is limited and the research of the relationship between Six-Sigma implementation and its performance improvement outcomes is a rarely examined subject in the hospitality context.
Application of Lean Six Sigma in Hospitality
- Enhance customer loyalty
- Reduce employee attrition
- Reduce billing errors
- Reduce cost
- Increase revenue
Front office operations/ Sales & Marketing
- Reduce waiting time during Check – in Process
- Reduce waiting time during Check – out Process
- Increase Bed Occupancy
- Customer Satisfaction Score
Food & Beverages services
- Standard time of delivery of room services
- Room service complaints