In: Operations Management
Case Brief for Caesars Casino
Please identify the following:
A.) Problem Statement
B.) Situational Analysis
C.) Recommendation
D.) Implementation Plan
Case Reading: file:///C:/Users/MKhan/Downloads/caesar_casinos.pdf
Problem Statement: Harrah's Metropolis Casino's relocation and expansion have been focused on increased demand. The recently passed law allowed video-gambling machines to be operated by bars, restaurants, and other such enterprises. Caesars Casino's management had recognized that the investment had to be made in Hurrah's facilities to provide the consumers with an amusement environment that could smash video gaming options and provide the well-being beyond knowledge. The company, therefore, had to develop strategies that might increase customer spending on non-gambling activities and provide value-added hospitality experience.
Situational Analysis:
Challenges and behavior to overcome each challenge during the Lean implementation process: The economic downturn of 2008 saw a decline in revenues and increased competition. The business had to implement the lean principle at its facilities in Tunica to sustain the market. Hirsch has now built a lean team for optimizing processes in Tunica. The team agreed to create a series of kaizen workshops that would include workers from different departments and ranks to work together to define areas of development and then improve these processes.
The initial challenge faced by the management during the implementation of the lean principle was that the employees had a misperception of the lean principle and thought this process would reduce their jobs. Therefore, to tackle this challenge; the kaizen team introduced continuous contact with workers to remind them about the lean system built to remove the waste cycle from the operations, which will effectively enhance the customer experience, cycle quality, teach problem-solving techniques, and increase the morale of workers. Thus, they should not cut their jobs by the lean process.
In comparison, the other obstacle encountered by the kaizen team in introducing lean related to securing financial resources to make such physical improvements possible. The top management of the organization refused to accept the higher-level funds, which were also needed to put in significant casino improvements. However, when the kaizen processes started, the top management understood their value and started to offer concrete benefits as a result of which reluctance to finance improvements in infrastructure diminished.
Key performance metrics to track the improvements: No reform is deemed successful if positive outcomes are not produced. Measurement, therefore, played a significant role in signaling areas that needed change during the kaizen event. Hence, several main success metrics would be recommended to the company's management to assess the efficacy of the kaizen incident. The organization will, therefore, change the processes if the performance against the calculated KPI is unsatisfactory.
Recommendation:
Expert-driven method Pros and cons: At the Tunica casinos the company saw good outcomes from the expert-driven strategy. The service score for the customer showed positive results in nearly all business areas. The other aspects of the sector are supposed to have hit A score from B value. In fact, the most critical aspect of the kaizen case was waste disposal, which was done at the end; waste disposal produced annual savings of $3million. The organization also got a positive response from staff, as the workers were involved in attending kaizen events.
Implementation Plan:
Days | Activities | Tools | Agenda |
Days 1 | The event will concentrate on growing workplace consciousness to reduce waste. | It should expose the employees to practical work. | Employees should be taught a basic problem-solving approach to increase efficiency. |
Day 2 | Where enhancements are necessary the staff should be trained. | The list of waste practices that need to be removed should be provided to the employees. | Feedback from workers was collected to determine how much they had heard and understood. |
Day 3 | The employees must be aware of why it was necessary to eliminate certain operations. | Five types of lean techniques may be used to determine the cause. | The workers should follow methodologies that could aid in continuing the overtime care activity. |
Day 4 | The staff will be working towards causal research and solutions. | 5S Japanese methodology-type, put in sequence, highlight, standardize, and maintain. | To build an effective working environment that can be easy to grasp and sustain. |
Day 5 | Measure goal success. | Relevant success metrics should be identified. | Measure the success and review the findings for the assessment of the effectiveness. |