Running Head: Ritz-Carlton Hotel Company
Ritz-Carlton Hotel Company Case Study
MBA 630: Operations Management
August 11, 2013
The business problem facing Ritz-Carlton Hotel Company is how to continuously improve quality through quantifiable measures. Quality management in any service industry can be very complicated. Customers do not purchase a good, but are looking for an experience that exceeds all expectations. The problem is that each customer has a different view of what an extraordinary experience would be. The exclusion of just one of those elements could mean losing that person to the competition. Without methods for quantifying quality, management does not have the evidence necessary to determine how to improve or alter the experience to meet the dynamic demands of the customers. Ritz-Carlton is a name that is synonymous with luxury in the hotel industry. They were the first hotel to ever win the Malcolm Baldrige National Quality Award. Every single employee lives and breathes quality. Ritz-Carlton recognizes that its own employees are the most important resource in delivering the highest quality experience to each and every person that walks through the door. Ritz-Carlton Hotels consistently win awards every year for having some of the best hotels all around the world. Their goal is to achieve a 100% customer satisfaction rating. On their quest for continuous quality improvement, the Ritz Carlton Hotel Company (RCHC) has taken many steps. The first step was to undergo a self-examination that attempted to quantify and measure quality. They studied a total of 19 processes that included room service delivery, guest reservation and registration, breakfast service, and message delivery. The results from this study were used to establish benchmarks for future ratings. Another key implementation was organizing the employees into “self-directed” work teams. These teams were responsible for making their work...
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