Question

Question no.2 (10)

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?

Answer 1

a. TQM i.e. Total Quality Management is a set of tools and concepts which focused at maintaining and improving quality of services or product, in this case, service to customers. They are completely focused on customer satisfaction. And, the staff is trained to provide best services to customers. Also, in case of any delays, they compensate the same by rendering some benefits like gifts or a complimentary desert.

Further, they use Kaizen i.e. continuous improvement tool to make improvements in their processes. Thus, creating and adding value to customers. Just-in-time system is used to manage inventory the supply chain.

b. I would recommend them to use tools such as performance management system in order to monitor and control their employee performance. Design an appropriate rewarding system which would boost employee morale and motivate them to improve their performance in order to reap higher rewards, benefits and promotions.

Also, improve upon the feedback system along with value stream mapping so that they can plan and implement changes to improve the processes. Further, a kanban system could be used to improve supply chain efficiency. It is a signaling system used for inventory management.