video case 1

Please read the video transcript and answer the following prompt in 100-150 words. Here is the video transcript (couldn’t upload video)

Prompt: How did The Ritz-Carlton Hotel improve their customer satisfaction through quality improvement?

00:18>> >> Luxury, service, quality,

00:21>> these three words capture the essence

00:24>> of a stay at The Ritz-Carlton.

00:27>> Creating this atmosphere of refined elegance

00:29>> and relaxation may appear effortless to a guess

00:33>> but every employee at any

00:34>> of the company’s 31 worldwide locations will tell you,

00:38>> it takes a daily commitment

00:40>> to make the desired experience happen for each and every guest.

00:44>> >> The Ritz-Carlton Hotel is a place

00:47>> for the genuine caring comfort

00:48>> of our guest is our highest mission.

00:50>> >> We pledge to provide the finest personal service

00:53>> and facilities for our guests who will always enjoy a warm,

00:56>> relaxed, yet refined ambiance.

00:58>> >> The Ritz-Carlton experience enlivens the senses,

01:01>> instills well-being, and fulfills–

01:03>> >> Even the unexpressed wishes and needs of our guests.

01:07>> >> Winning the Malcolm Baldrige National Quality Award in 1992,

01:12>> represented a significant milestone in the company’s quest

01:15>> for quality achievement.

01:17>> Ralph Vick, general manager of the Phoenix Ritz-Carlton,

01:21>> participated in the 1992 application process.

01:24>> >> The preparation for the Malcolm Baldrige application was

01:27>> a very extensive one.

01:28>> It took us a few years to really figure

01:30>> out how we do this thing called Total Quality Management.

01:34>> And I think one of the things that we identified very early

01:36>> on was certain processes that were common throughout

01:40>> of out hotel, all of our hotels.

01:41>> For the very first time in our industry,

01:43>> we looked at how work are done.

01:45>> And through the process and process team management,

01:49>> we were able to discover some significant ways

01:51>> for improving our processes within our hotel.

01:55>> All of which had many ramifications.

01:58>> Most of them financial,

02:00>> but a lot of them had moral applications

02:05>> and really helped us take a look

02:07>> at how we were running our hotels with our people

02:10>> and had morale implications

02:13>> like getting our employees really prompt

02:15>> about getting the involved in the process.

02:18>> >> A list of 20 Ritz-Carlton Basics now guide each days

02:22>> efforts toward a company wide goal

02:24>> of 100 percent customer satisfaction.

02:27>> >> The basics play a very, very important role

02:29>> in quality primarily because quality in a lot

02:32>> of ways is a foreign subject in our industry so we have

02:35>> to break it down to the basics.

02:36>> One of the basics we refer

02:38>> to is a gentleman that we call Mr. Biv.

02:40>> And Mr. Biv is an acronym for mistakes, rework, breakdown,

02:45>> inefficiencies, and variation.

02:47>> And we call him Mr. Biv because he happens

02:49>> to be this little gentleman that runs around our hotel and all

02:52>> of our hotels from time to time and causes complexity

02:54>> and break down on our system.

02:56>> And through that simplification, we really are able

02:59>> to help our employees identify with what some

03:02>> of those defects are, and help relay and give us better answers

03:06>> and better input for how to get rid of Mr. Biv in our system.

03:11>> >> Achievement of quality at the Ritz-Carlton is monitored

03:14>> through a variety of mechanisms: customer surveys and letters,

03:18>> employee reports, and financial performance measures.

03:22>> When problems are detected, they are researched and evaluated

03:27>> so that appropriate action can be taken.

03:29>> >> Quality is monitored in our hotels on a daily, weekly,

03:32>> monthly, and yearly basis.

03:34>> Primarily daily and one of our tools that we have

03:36>> that we use is called the daily quality production report.

03:40>> And it is a conglomeration of a lot of information.

03:44>> It comes from all over the hotels such as comment cards,

03:48>> guest incident action form which is a tool that we have

03:51>> for detailing a guest incident if it happens,

03:56>> housekeeping reports, engineering reports,

03:59>> defect reports that are pulled in from our employees

04:02>> when they’re telling us what’s going wrong

04:04>> in their work environment on a daily basis.

04:06>> And with that information, we were able

04:08>> to identify what our top 10 defects are

04:11>> in our hotel per month for instance.

04:14>> And we can take a look at those top defects and project

04:18>> by project implement a plan for getting rid of that defect

04:24>> through use of our quality–

04:25>> and with the use of our quality tools.

04:27>> All our employees are trained in the TQM processes and one

04:31>> of the suggestions that we hear

04:33>> from them quite often are ideas for improvement.

04:37>> With those ideas of improvement come, in general

04:40>> and occasionally, a cost associated

04:42>> for what it’s gonna cost to do that improvement.

04:44>> And we have trained all our employees along

04:47>> with our management staff to take a look at using one

04:49>> of our quality tools, referred to as the cost benefit analysis

04:52>> for determining if that project is a worth while project or not.

04:55>> Sometimes, a great idea may be a wonderful idea,

04:58>> may add tremendous value to our customers feelings and business

05:03>> in our hotel but, unfortunately,

05:05>> it may not be a financially feasible product.

05:08>> And the use of our cost benefit analysis really enables us

05:13>> to determine whether that project

05:15>> or that idea is one worth implementing or not.

05:19>> >> In an industry where the word quality can be just a buzz word,

05:22>> Ritz-Carlton’s employees, working as a team,

05:26>> know they must be on their toes at every turn.

05:29>> >> Quality is on occasion a creative way of dealing

05:33>> with stress in a hotel particularly as it relates

05:35>> to self-directed work teams.

05:37>> When we teach and our employees learn traditional management

05:42>> responsibilities, they take on an awesome responsibility,

05:45>> a responsibility that in other industries

05:48>> and in other hotels they do not take.

05:52>> And they take it home with them, quite honestly.

05:54>> It’s an issue such as payroll and forecasting and scheduling

05:57>> when our employees are doing this traditional management task

06:01>> whereby they actually go home at night thinking

06:04>> about who’s not gonna show up for work tomorrow morning?

06:07>> So it does add a great deal of stress in the work environment

06:11>> and quite frankly, we know, through our studies

06:13>> and in other areas in other businesses that [inaudible]

06:16>> in particular self-directed work teams are not for every one.

06:19>> We know to expect casualties; some people do not operate well

06:24>> within a self-directed work team because in our industry,

06:28>> we traditionally manage from what we refer

06:30>> to as a command and control point.

06:33>> And in a self-directed work team,

06:35>> we realize that our [inaudible] has to relinquish

06:38>> that command and control.

06:40>> Well, that command and control is picked up by someone

06:42>> and it’s our employees.

06:44>> So it does create stress but most of our employees working

06:48>> for a career advancement and looking for education

06:51>> and looking to continue their own growth have been extremely

06:54>> receptive to the idea

06:56>> and we have seen our internal customer surveys,

06:58>> our employee opinion surveys improve greatly as a result

07:02>> of the implementation of total quality management

07:04>> and self-directed work teams.

07:06>> >> What’s the biggest quality challenge facing the

07:08>> Ritz-Carlton today?

07:10>> >> Quality is not a fad or a phase

07:12>> or a program [inaudible] here at Ritz-Carlton.

07:14>> It’s a way of life for us.

07:15>> We have very high expectations upon Ritz-Carlton by all facets

07:19>> from our owners, from our employees, and from our guests.

07:22>> And through TQM and the use of self-directed work teams,

07:25>> it will enable us to continue a path of continuous improvement

07:29>> and reach the levels

07:30>> that everyone expects from a Ritz-Carlton.

07:34>> [ Music ]

 

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