4/21/2018 GMOE - Class 12

GBUS 7608 - General Management and Operational Effectiveness

Class 10

Thursday, April 15, 2010 rev 4/10/10

Topic: Quality Analysis and Management Systems Design

Material: The Ritz Carlton Hotel: The Quest for Service Excellence (080203)
Sections 7.1-7.2, Pages 95 - 99; "Visualize Your Process Behavior" (4/08/10 in Class)
Section 14.2, Pages 216 - 218; "Traditional Charts for Count Data" (4/08/10 in Class)

Excel data file: ritz1.xls

Assignment:
The Quality Manager at the Ritz-Carlton Buckhead GA. have asked you, as an intern on assignment to their
property,
o to analyze the daily performance data ritz.xls file, and to make recommendations regarding the severity of the
defects, and how they should be addressed; and then monitored over time for management purposes..
o To help them understand how to operationalize (understand, hypothesize and test using six sigma thinking and tools)
the possible linkages between defect free service operations and 100% customer retention

1. What do you find as the key MRBIV’s in the ritz.xls file? (see file descriptive information below)
a. Create Pareto charts for (suggestion: Use Excel: Data/Pivot Table and Insert/Chart):
i. all defects by keyword
ii. all defects by day of the week
iii. each defect by day of the week
iv. any other useful Pareto charts

b. Construct a p-chart for all days from January through November.— What does the chart tell you?
(Note that the “sample size” varies each day; A defect p parameter as a fraction of occupancy is shown in
column Q in the Summary Counts tab).
i. Use the formulas in Chapter 14 (page 216) to prepare a time series chart showing the daily defect data, Pbar and
upper and lower limits or

ii. Alternately for DAO elective students: You may want to use StatTools for creating the P-Chart—use this
guidance
To create the data-set for use in StatTools
· In StatTools tab select “Data set manager”

· On “Excel range” clic in the button

· Select range A2:Q330 from sheet “Summary Counts”

· Click OK
To build the P-Chart
· On “Quality Control > P-Charts” select the data-set created previously

· In Sample Size select “Use common size” and input 1

· Select TOTAL PER GUEST as VAL and check the box
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4/21/2018 GMOE - Class 12

c. Give special attention to any out of control days. What days were out of control? What defects occurred on
these out of control days?

2. If you were to select a defect category to address from the DQPR data, which category would you address?
Why?

3. Using the data and your general knowledge of hotel operations, what are possible root causes of the defect
category that you selected?

4. What additional data would be helpful to your root cause analysis?

5. How can The Ritz-Carlton Hotel Company improve the day to day pursuit of zero defects? Be specific as
possible with ideas for improving their Total Quality Management System

6. In particular, drawing upon GMOE six sigma studies, what would you want to propose to help deepen
understanding and test possible linkages between defect-free service operations and 100% customer retention?
(understand, measure, hypothesize and test)

Ritz.xls file description

The file ritz.xls contains a subset of all “Defects Data” reported in the DQPR (Daily Quality Problem Report)
for the Ritz-Carlton, Buckhead from January to November 1997. The subset contains data for twelve defect
categories that impact the customer and are identified as causes for customer dissatisfaction.

The "Summary Counts" worksheet contains total counts of defects by keyword for each date (Date 2). This
workbook also has the occupancy data (estimated number of guests) in the hotel on each day.

Explanation of fields in ritz.xls file:

Field Name Explanation
ID Unique ID number assigned to each defect in report used to easily identify
a specific defect
Date1: The date the defect was recorded in the DQPR
Date2: The date the defect occurred
Time: The time the defect occurred
Count: The number of defects of this type
Cost: Any immediate cost incurred as a result of this defect (such as monetary
compensation to the guest or the cost of a free meal) (n/a)
Keyword: The category of defect type that the defect is assigned to
Memo: Detailed description of the defect
Employee: The name of the employee who reported the defect (n/a)
Source: Source of information of this defect to the DQPR
Guest: The name of the guest involved with the defect (n/a)
Room: The room number assigned to the guest involved with the defect
Department: Quality personnel assign each defect to the department where they believe
the root cause of the defect lies.
Total per Guest: Ratio of total defects to occupancy

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