Ritz Carlton

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RITZ CARLTON

Ritz Carlton has adopted a focus strategy to differentiate by offering high end services to an elite customer base. This allows the company to charge a premium for its services and provides greater brand recognition. Ritz Carlton's operations strategy is to proactively manage the quality of its services through TQM with a view toward achieving a high level of service excellence. The operations strategy supports the business strategy by proactively reducing service related problems before they are necessarily seen in financial results.

The data indicates that quality problems are heavily concentrated in a particular area – ‘Room Clean'. There are 14 specific days when the defects are particularly out of control. These days are highlighted in the attached analysis. With respect to the room clean defect only, there are 8 days out of control. Looking at room clean defects by day and total defects as a percent of occupancy indicates that weekends (especially) Sunday are the days most likely to result in a higher number of defects. The most significant defects on the out of control days are room clean and reservation incorrect. Of the two, the room clean defect appears more significant as these defects are spread throughout the out of control days. The reservation incorrect defects are mainly focused on one out of control day (March 12th) where there were 14 reported defects due to incorrect reservations. While this is a problem, it does not appear as a defect with the same consistency as the room clean issues.

Based on these numbers and an analysis of the 14 out of control days we would focus on reducing room clean defects. 34% of total defects and 24% of defects on out of control days are attributable to room cleanliness. Reducing these numbers would significantly reduce Ritz Carlton's overall defect summary.

The ‘room clean' category is a general category that encompasses many different defects; hence there is more room for...
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