Operations Management

Case Study 2

Student Name : Ms. Wyne Myat Noe Maung

Summited Date : 14.6.2019
MBA 6093 Asia Metropolian University
1. In what ways could the Ritz-Carlton monitor its success in achieving quality?

According to the case, a business-like Ritz-Carlton Hotel Company is a service

– based business. To monitor its success in achieving quality is directly depending on
how it sells a service to each of the customer. Good service is needed for each client
to realize the quality of it’s service. In order to know how the customer enjoyed their
experiences, there are ways to get feedbacks from customer through personal
conversation, phone calls, surveys, email list etc. Asking the customer regarding to
services is vital to present high-quality interactions with the customers’ expectations,
comparing internal evaluation scores with customer scores. Most of the great hotel
have fine restaurant, fitness, swimming pool, meeting and conference service etc. The
accomplishments from those places could also be a way to understand the quality of
The Ritz – Carlton that the customer receives. Building up on great incentive makes
the customer happy and makes them return for services as well. For example – hotel
loyalty card with some benefits (discount, free dinning). Getting various loyal
customers positively shows that the Ritz – Carlton is succeeding in quality.

Kashmira, L. (2017, November 15). Customer loyalty: smart hoteliering. Retrieved

from: https://www.hotelogix.com/blog/2017/11/15/8-ways-build-customer-loyalty-
hotel-owners/

Steve, R. (2013, February 11). Quality monitoring that will ensure your organization’s
customer service remains competitive. Retrieved from:
https://www.mycustomer.com/service/management/six-steps-to-successful-
monitoring-of-your-customer-service

2. How could control charts, Pareto diagrams and cause-and-effect diagrams be

used to identify quality problems at a hotel?

In order to develop the services offered, quality control systems are used, which
seek to prove the existence of failures and also to eliminate them. Control charts,
Pareto diagrams and cause-and-effect diagrams can normally be utilized to support
tunnel down into the process to discover the root cause of problems. Moreover, they
can also be beneficial by combining each other to identify its quality and eliminate the
problems. First, related data must be collected and these data are examined by
utilizing control chart to decide if the hotel is dealing with special causes or common
causes in the quality of business. Then, the Pareto diagram is used to determine the
major intention of the causes, which is a problem. And The cause-and-effect diagram
is helped to organize the info about the potential causes. Then, developing a cause-
and-effect diagram with hotel team also assist to compare the relative importance of
unlike causes. For example – hotel manager and team can prioritize the problem and
develop the idea while rooms are not ready for check-in.

BPI Consulting. (2010, November). Pareto Diagrams and Control charts. Retrieved
from: https://www.spcforexcel.com/knowledge/bar-charts/using-pareto-diagrams-
and-control-charts-together

NHS Institute. (2008). Quality Improvement and Innovation. Retrieved from:

https://qi.elft.nhs.uk/resource/cause-and-effect-diagram-fish-bone/

3. What are some nonfinancial measures of customer satisfaction that might be

used by the Ritz – Carlton?

Measuring a company’s performance or success can be classified into two

types, which are financial measure and nonfinancial measure. Vision edge marketing
(2018) states that nonfinancial measure is quantitative measure and that can’t be
included earnings, profit margin, ROA etc. Some of the nonfinancial measures are
customer satisfaction, customer service, market share, employee and customer feed-
back. Value of people (customers as well as employees) in the service of hotel delivery
process has a big significance for the hotel performance. This orientation has led to
ideas that hotels need to improve better performance information relating to such key
areas as employee morale and customer satisfaction. Good employee morale leads
to proper performance and customer service, which can be measured the level of
customer satisfaction. Some proper customer service includes not only best and fast
room service but also easy and convenient check-in/out. The Ritz – Carlton could
possibly encourage the customer in order to get a feedback on their stay. It might also
be a nonfinancial measure of customer satisfaction.

Nagy, A., Băbăiłă, C., & Ispas, A. (2011). Non-financial performance measurement of
hotel activity. Recent Researches in Tourism and Economic Development, WSEAS.
Retrieved from:
https://www.researchgate.net/publication/303177049_Nonfinancial_performance_me
asurement_of_hotel_activity

Vision Edge Marketing. (2018). Non – Financial metrics and leading indicators.
Retrieved from: https://visionedgemarketing.com/non-financial-metrics/