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Using Six Sigma at Starwood Hotels and Resorts

Submitted To:Mr. Bhupendra GehlotUsing Six Sigma at Starwood Hotels and ResortsSubmitted By:Rohan Patel(k11023)

Table Of ContentsIntroductionWhat is Six Sigma?Five Phases Of Six Sigma methodSix Sigma at StarwoodConclusion

IntroductionDuring 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)

What is Six Sigma?Six Sigma is a rigorous and disciplined methodology that uses data and statistical analysis to measure and improve a companys operational performance by identifying and eliminate defects in manufacturing and service-related processes.

Five Phases Of Six Sigma methodDefineMeasureAnalyzeImproveControl

Six Sigma at StarwoodSince the program was launched in 2001, 150 employees have been trained as black belts and more than 2,700 as green beltsNet 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.

ConclusionAs 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.

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