SIX SIGMA PROGRAMS AT STARWOOD HOTELS AND RESORTS

Running head: SIX SIGMA PROGRAMS AT STARWOOD HOTELS AND RESORTS

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Mercy Gobede

GSB 901413

Module 2 Assignment: Implementing Six Sigma Programs at Starwood Hotels and Resorts

OSM 5122 / Global Operations Management

University Of Zambia, Graduate School of Business

Instructor: Dr. Danielle Babb

31 May, 2020

Running head: SIX SIGMA PROGRAMS AT STARWOOD HOTELS AND RESORTS

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Six-Sigma is a quality improvement strategy that provides a clear roadmap for

organizations to deliver nearly perfect products and services (Kamar, 2014). After initial

success in manufacturing organizations, Six-Sigma has gradually gained widespread

application in service organizations, including hotels and lodging. Starwood Hotels and

Resorts introduced a team of Six Sigma experts, also known as black belts, to make the

processes in the hotel more efficient and even more satisfying for the customers. It is against

this background that this paper aims to describe the implementation of the Six Sigma

Program at Starwood Hotels and Resorts.

The paper will first explain the concept of six sigma. Second, the paper will describe the

degree to which Starwood successfully addressed issues of top-down commitment,

measurement systems to track progress, tough goal setting, education, communication, and

customer priorities, with the redesign of the Sheraton Service Promise program. Third, the

paper will explain how the Sheraton Service Promise process might help Starwood avoid the

four costs of poor performance and quality. Fourth, the paper will discuss why organizations

may be reluctant to follow the six sigma approach. Lastly, the paper will provide alternative

approaches that Starwood or its competitors could use to improve quality.

The Concept of Six Sigma

Six Sigma is a comprehensive and flexible system for achieving, sustaining, and

maximizing business success by minimizing defects and variability in processes (Krajewski

et al, 2015). In simpler words, it is a set of techniques and tools for process improvement. It

was developed by Motorola in 1986. Today, it is used in many industrial sectors. Six Sigma

seeks to improve the quality output of process by identifying and removing the causes of

defects (errors) and minimizing variability in manufacturing and business processes

(Krajewski et al, 2015). It identifies and aligns improvement initiatives with strategic

Running head: SIX SIGMA PROGRAMS AT STARWOOD HOTELS AND RESORTS

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objectives and business goals while reviewing key processes that drive an organization. It

uses a set of quality management methods, mainly statistical methods, and creates a special

infrastructure of people within the organization (“Champions”, “Black Belts”, “Green Belts”,

“Yellow Belts”, etcetera.) who are experts in these methods. Each Six Sigma project carried

out within an organization follows a defined sequence of steps and has quantified value

targets, for example: reduce process cycle time, reduce pollution, reduce costs, increase

customer satisfaction, and increase profits.

Six Sigma Case at Starwood Hotels and Resorts

At Starwood Hotels and Resorts, the Six Sigma team called Black Belts used the five

step DMAIC process, which consists of defining, measuring, analyzing, improving, and

controlling. On the define stage in order to fulfil the customers’ satisfaction or the Sheraton

Service Promise, three key features were identified as follows: speed, empathy, and

efficiency. In addition, the six sigma team worked with data collected and analyzed by an

independent survey organization known as National Family Opinion. On the measure stage,

call logs were established to track speed, empathy of associate handling the call, and

efficiency of the staff charged with fixing the problem. On the analyze stage, Pareto charts

and other techniques were used for the analysis. On the improve stage, since there is always

space for improvement, the company is looking for ways how to make the parts of the

process (such as: telephone operators’ handling of requests, procedures for determining who

to call, engineering workloads) faster, more emphatic and more efficient in order to increase

customers’ satisfaction. On the control stage, there was controlling and monitoring to ensure

that the six sigma team became part of the property’s culture. There would be 12 to 18

months tracking, with monthly feedback to the manager or department head responsible for

the improvement of the Sheraton Service Promise program.

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Having described the six sigma program at Starwood Hotels and Resorts, this part of the

paper describes in detail the degree to which Starwood Hotels and Resorts have successfully

addressed the following: top-down commitment, measurement systems to track progress,

tough goal setting, education, communication, customer priorities, with the redesign of the

Sheraton Service Promise program.

The redesign of the Sheraton Service Promise program

The Sheraton Service Promise program as launched in the United States and Canada was

designed to give guests a single point of contact for reporting any problems. In addition, it

aimed to focus employee’s attention towards the taking care of service issues during the

guest’s stay within the 15 minutes of first receiving notice (Krajewski et al, 2015).

• Top-down Commitment