Free case study about quality at ritz

Quality At Ritz

In what ways can Ritz Carlton monitor its success in achieving quality?
Ritz Carlton is a leading brand of luxury hotels and resorts with more than 80 properties in major cities and more than 24 resorts worldwide. In the hotel industry, it is not easy to quantify the quality because guests do not purchase a specific product when they stay at Ritz instead they purchase an experience. Hence, customer satisfaction is the main priority. One way to assess the success rate of the quality is through customer satisfaction that can be analysed through non-financial and financial attributes. The customer satisfaction is expressed through their response rate towards the services offered by the hotel. This response can be collected through survey where the customers can be provided with the questionnaires regarding their satisfaction level towards the services. Another way to assess the success in achieving quality is through the yearly increase or decrease in the number of customers that were served in the hotel.

Why might it cost less to do things right the first time?

It is important for every business to try to improve and implement their business operations in the manner that they are able to perform right the first time. Trial and error result in rising costs and also can pose a serious threat to the reputation of the hotel management. Ritz Carlton is a multinational hotel chain and customers expect perfection. They do not provide a chance of error in situations where they have to pay high for to achieve high-quality services.

Non-financial measures of customer satisfaction

There are different non-financial measures that can help the hotel assess customer satisfaction. First, is the retained and repetitive customer – big indication of customer satisfaction. Second is the level of customer service and the quality of service being offered to the customer. Third measure is the market report and performance; Fourth measure is the hotel rating and international awards.

The use of control charts, Pareto diagram and cause-and-effect diagrams

The control charts can be used to monitor the most important factor – the ongoing process of quality improvement measures. This can help in analyzing the possible outcomes of the quality improvement measures. On the other hand, the Pareto chart can help the Ritz Carlton hotel identify a quality issue that is of greater significance to the hotel. The cause and effect diagram can be used to identify an issue because it helps in solving the problem through generating the list of probable causes of the problem along with a list of solution.

The provision of quality as main goal – not just a slogan or buzzword

The most important move for the hotel to maintain and follow its goal towards quality improvement and measurement rather than just using it as a slogan is to organize the employees into self-directed teams. Employees should be trained in a manner that they are able to schedule their work, identify the quality issues in their work areas and what tasks needs to be accomplished first and which ones later. The goals should be defined clearly to the employee teams, and they should be given an opportunity to bring their creative ideas into play. Hence, a more creative, educated and informed employee is able to serve well in changing business dynamics.

Reference

Heizer J. (Sep 2009) “ Operations Management” Pearson Education India