For Ann Harris

Hotel Performance Measurement and Improvement

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Introduction

Hospitality services and products by a hotel franchise seeks to implement quality standards for customer and consume satisfaction. Companies in the hospitality sectors strive to offer quality products by meeting the competiveness in the industry and allocating quality products. It is important for Escargo chain hotels to implement different plans using the six sigma quality control model to plan on the reduction of costs, mitigating defects in its processes and enhancing consumer satisfaction. In the hospitality industries, companies seek to develop different strategies and use different resources to keep ahead of other companies in the business. The logical solution is to implement the quality control methodology of the six sigma to enhance and improve customer satisfaction. Escargo chain hotels’ plan is to increase customer enhancement by generating value through change in processes of the hotels.

Six Sigma Plan

According to Kamar, (2014), “six sigma is a is a process improvement methodology that allows companies to drastically improve their bottom line by designing and monitoring everyday business activities in ways that eliminate the causes of defects or mistakes in business processes by focusing on the outputs that are important to the customer satisfaction.” Therefore, the plan of the hotel should focus on offering quality processes and products (Kamar, 2014). To achieve the necessary integration of quality services and products, the hotel should consider using six sigma as a methodology to lay its plan. The plan to focus on include:

1. Management Commitment

The top management of the hotel should consider developing and focusing on the performance of the company. This performance should be measured through a metric performance that focuses on the performance of the hotel’s employees and management (Kamar, 2014). The focus is on defining the commitment of the management of the company and ascertain that through establishing performance metrics.

1. Organizational Structure

Hotel management will also be affected if there is emphasis on company and leadership structure. The six sigma model through the DMAIC method, uses the strategy of defining the issue. Hence, structure of the hotel company becomes an issue to improve and increase organizational performance. The hotel should develop a dimensional organizational structure to lay the foundation for supervision and employees motivation.

1. Business strategic Plans

Another important consideration of the DMAIC method is measuring the quality processes and this can be attributed by selecting the objectives to use for improved service and product quality. Align business plans to company mission and strategy (Pfeifer, Reissiger, & Canales, 2004). This aims at increasing the operations, relations and means to increase output, performance, while reducing operational costs.

1. Readiness for adopting process change

Another concept of DMADV as another method of six sigma is to analyze and design the different obstacles to performance. This can be identified by performance metrics created by the commitment evaluation of the top management. This will define, design and verify the readiness of employees, company culture and allocation of resources by the hotel to improve its services and products (Kamar, 2014). The hotel management should ensure that the company has motivated employees, they resolve to the right and work within the expectations of the company and its processes.

1. Education and Training

Finally, the hotel should train and educate its employees on the benefits of controlled processed and marinating a great and winning attitude. Sometimes the effects of complex processed but lack of skilled personnel is wastage of resources. Using the methodology of DMADV, the hotel should develop training programs for its employees, while focusing on developing a culture to meet the expectations of its customers (Dahlgaard & Mi Dahlgaard-Park, 2006). This will target and improve employee, organizational performance and customer satisfaction.

Measuring Future Process performance

Before the deployment of the six sigma methodologies, it is important and crucial to develop a performance metric as indicated on the plan to implement the six sigma DMAIC method. Thus, measuring future performance will constitute:

1. Financial Performance

To measure the success of the future processes, the hotel management should review the company’s financial health. Success will entail increased profitability while a reduction in costs will indicate control of the company’s operations and cost reduction strategies (Pfeifer, Reissiger, & Canales, 2004). There is also need of measuring market share and revenues generated through sales and products allocations.

1. Operational Performance

This will be comparative to the effectiveness of hotel services ranging from internal processes and customer service allocation (Goetsch & Davis, 2014). Performance will be gauged through customer retain and satisfaction such as measuring frequency of customers, service or product quality and customer feedback on hotel reviews.

1. Competitiveness Performance

Measuring the hotel’s competitiveness is through measuring its customer base and frequency of customers’ influx to use and render the services of the hotel. More importantly, it is through processes and improvement standardization of the hotel’s services and products (Pfeifer, Reissiger, & Canales, 2004). The hotel’s position on the industry and its reputation will also determine and illustrate the performance of the company from a competitive aspect.

1. Quality Performance

Quality focuses on different aspects which could be effective in determining the company’s performance and success. These entails aspect such as comfort of the hotel services, resources and products, cleanliness and competence of the staff in timely services, quality awareness and training of the hotel human resources (Goetsch & Davis, 2014). More so, quality can be measured through security, responsiveness and communication with additional appearance features.

References

Dahlgaard, J. J., & Mi Dahlgaard-Park, S. (2006). Lean production, six sigma quality, TQM and company culture. The TQM magazine, 18(3), 263-281.

Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: Pearson.

Kamar, M. A. (2014). Six-Sigma Application in the Hotel Industry: Is It Effective for Performance Improvement. Research Journal of Management Sciences, 3(12), 1-14.

Pfeifer, T., Reissiger, W., & Canales, C. (2004). Integrating six sigma with quality management systems. The TQM Magazine, 16(4), 241-249.

Raisinghani, M. S., Ette, H., Pierce, R., Cannon, G., & Daripaly, P. (2005). Six Sigma: concepts, tools, and applications. Industrial management & Data systems, 105(4), 491-505.