Question

In: Operations Management

Read the details regarding “The Plaza Hotel” and answer the questions below: The Plaza Hotel is...

Read the details regarding “The Plaza Hotel” and answer the questions below:

The Plaza Hotel is a 20-story luxury hotel and condominium apartment building in Midtown Manhattan in New York City. It opened in 1907 and is now owned by Katara Hospitality. The Plaza Hotel has many services including a butler on every floor, baby-sitting and concierges, a shopping mall, the Palm Court under the restored stained glass ceiling, the Champagne Bar located in the hotel lobby with views of Grand Army Plaza, the Edwardian Room, the Terrace Room, the Rose Club, the Grand BallRoom, The Plaza Food Hall and The Todd English Food Hall Restaurant and Marketplace, as well as meeting rooms and conference rooms. Guests not only come from the 50 states but from all over the world. The hotel scores in the top 5% of the

national benchmark studies in terms of customer satisfaction. The hotel managers analyze the data received through customer questionnaires on a daily basis. Corrective measures are taken without any delay in case of any problems. The Plaza believes that quality improvement is a never ending process and the staff and management are continuously striving to come up with strategies to improve customer satisfaction. When the staff observes some kind of problem, they take care of it themselves; delay in room service is followed by small gifts to the guests, delay in food service is followed by a complimentary dessert and so on. Katara Hospitality keeps a check and balance on the hotel’s performance. Different areas are monitored, compared to a selected standard and the feedback report is shared on a monthly basis with the hotel. Automated inventory system is used for inventory management. Whenever an item is removed from the inventory for customer use, the item is automatically billed to that account, and usage is noted at the main supply area. Supplies are delivered on a Just-in-time basis to keep the costs low and to avoid any quality related problems. From their one-of-a-kind Eloise Suite, to their ultra-luxurious Penthouse Suites, The Plaza’s unparalleled accommodations are as unique as they are elegant. Their spacious guest rooms offer classic appointments and furnishings as can only be expected from New York’s most legendary address. Their contemporary Legacy Suites offer beauty in every detail, some suites with striking partial views of Central Park, outdoor terraces, and connecting rooms. Pareto charts and flowcharts monitor processes and facilitate the management in spotting problematic areas graphically. The philosophy that customers come first is taught to all the employees at the very first day of their orientation. The guards at the gates or the waiters in the hallways will never be heard commenting on each other’s personal lives or discussing confidential issues. This quality culture at the Plaza hotel makes the hotel visit a warmer and more comforting experience for the guests.

a. What TQM concepts and tools have been employed by the Plaza Hotel? Identify and briefly explain them.

b. What tools would you recommend them that they can use in future and how can they use them?

please solve it in a word doc and be brief

Solutions

Expert Solution

Answer 1) Some of Total quality management concepts that have been employed are -

1) Customer focus- Customer comfort is considered as priority for the business. Proper emphasizes is made on satisfying the customer

2) Continous improvement- Continous improvement is done to enhance the quality of services. It improves the customer experience.

3) Factual approach to decision making - Organisations succeed when they work on an evidence based process which involve gathering data from sources facts, feedbacks etc.

Some of the TQM ools employed by the plaza hotel are as follows-

1) Pareto principle- The pareto principle indicates that most of events are caused by few of the causes. Pareto charts are used.

2) Flow chart- Flow charts represent flows or processes.

3) Histograms or bar graphs- A bar graph or histogram is graphical representation of data that helps in analysis.

Answer 2) Some of the tools that they can use in future -

1) Check sheets - Check sheets are used to collect real time data at the place where the data is produced. The data that is recorded is either quantitative or qualitative.

2) Checklists - Checklist can be defined as a list of tasks to be done. It is an easy way of memorizing what do when and ensuring if it is done.


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