Through this trial, we want to test the feasibility of implementing a management model (Six Sigma) in the service industry.
Is the application of the Six Sigma system possible in the service industry, or not? To what extent, and to what extent, is this management tool applicable in this type of organization?
A system of such high demand can bring very good benefits to the organization, as long as its implementation, as well as its monitoring, are adequate and periodically evaluated.
The process improvement methodology, focused on the elimination of defects or failures in the delivery of a product, can meet the needs of customers who turn to the service industry. For this, it is necessary to "eliminate" any event in which the service offered fails to meet the customer's requirements.
With them it is sought to obtain certain benefits, which, Six Sigma contains in itself: improvement of profitability and productivity. Mainly based on customer satisfaction.
In the production industry, such a model has proven to be feasible. But is it possible to apply it at the service management level? Some organizations started their application through the service department. This is the case of Jack Welch at General Electric.
To argue this proposal, the experiences of various authors specializing in the matter will be used, who will be cited in each of the corresponding pages.
If we take the tools provided by the Six Sigma Management system, for solving problems, variations and customer satisfaction, we will find that these keys (or tools) are applicable to the service industry:
- Reduces defects, until they almost disappear in an estimated period Mechanisms to contain what has been achieved Sets performance targets for all sectors Increases value for the client, since defects caused by bad processes and / or Developments Increases the speed of improvements as interdisciplinary learning is promoted Improves the ability to make strategic changes.
Six Sigma transforms or converts variation into a measure of the success of the service that organizations provide to market. With this, the service company (like a production company) can see if what it is offering meets the requirements that the customer expects, or not.
Six Sigma is a methodology for improving processes and services based on data-based decision-making. For this, there is a methodology and an organizational proposal. Any improvement initiative to be channeled through Six Sigma is implemented following five clearly defined stages that characterize the DMAIC methodology:
- Definition.Measurement.Analysis.Implementation of Improvements.Control.
The Six Sigma methodology is applicable to projects in operational areas as well as in areas of the organization.
We will study the feasibility of implementing said System in the Service Industry.
DEVELOPING
To be able to achieve success in a service organization with this Management System it is necessary to achieve the following keys:
- Leadership, vision and Projects More capable infrastructures Infrastructure Expansion DFSS Management System Processes and wording is confusing.
It is important to take into account the following basic tools that every team leader must have to achieve the objectives. These tools are:
- Understanding of team dynamics: teams work in a parallel way to the DMAMC path itself. This is extremely positive. Facilitation skills: it is necessary to understand and know how to handle the team's human processes well. Data collection: here it is about looking for the right tool at the right time. The most important thing in a Six Sigma team is the provision of data that helps to put into operation the project to be implemented. Organizational communication: usually occurs through black belts and DMAMC teams. It is important that communication occurs at the various levels of the team that makes up the Six Sigma project.
There are seven functions and / or roles that must always be developed. They are:
- Board of Directors: It is made up of the top managers of the organization, meeting in a forum, which helps them learn a new way of running the business. They have a leadership role within the Six Sigma group, as managers that they are Project Sponsors and Champions: A manager who oversees a Six Sigma project, and is accountable to the board of directors for its success or failure. It is important that you do not opt for a passive attitude, since this would lose the role of motivator of the team.Implementation managers: person in charge of managing the day-to-day running of the project Master Black Belt: in charge of advising the owners process and Six Sigma improvement teams in the various areas. Many times, companies in their initial phase of the project,They turn to staffs or external consultations to them Black Belt: person directly responsible for the daily work and results of a Six Sigma project. Their functions are specifically focused on a single work team. Team members: chosen for their work in the process that takes place. They provide their forces for the analysis necessary for the improvement of the process. Process owner: manager in charge of a certain function. You receive the solution proposed by an improvement team and become the owner responsible for directing the process.They provide their forces for the analysis necessary for the improvement of the process. Process owner: manager in charge of a certain function. You receive the solution proposed by an improvement team and become the owner responsible for directing the process.They provide their forces for the analysis necessary for the improvement of the process. Process owner: manager in charge of a certain function. You receive the solution proposed by an improvement team and become the owner responsible for directing the process.
The team should review the problem and objective statement, identify the clients for whom the service being performed is being intended, define their requirements, and write a plan on how the project will be completed.
To define, three steps are necessary:
- Update and develop the DMAMC project chart: you never start from scratch, as the champion has already started the job Identify customer requirements: once the project chart is reviewed and refined, the team is ready to undertake the important work of identifying the client (clients) affected by the problem to be studied.
It is important, more in our case, in which we study the feasibility of implementing this Management System to the Service Industry, the way in which the client wishes to be treated.
- Identify and document the process: This is to get a picture of the process affected by the project by creating a high-level flow diagram.
STEPS NEEDED:
- Establish Overview and rationale Select consultant if necessary Long-term deployment plan with objectives Short-term implementation plan Initial resources and projects Communication plan
LEAD THE CHANGE:
The pillars of Six Sigma are:
- Committed leadership Increased talent Support infrastructure
LAUNCH THE INITIATIVE: Full or partial deployment?
DEVELOPMENT OF THE DEPLOYMENT PLAN:
To begin, an adequate planning with a clear idea of the end is required. For this it is necessary:
- Training of Senior Management Training of Champions Selection of initial projects to define the short-term implementation strategy for its success Initial selection of BB Training of BB, GB and Finance
IMPLEMENTING SIX SIGMA
Six Sigma is like a path to a new and better future for our organizations.
This highway has three possible itineraries or approaches, each one chooses a different route that may lead to a different destination. The path chosen will determine the scope and depth of Six Sigma's impact on the organization.
- Business transformation: Attentive employees and managers can often see the need for a company to break old habits and transform. Communication will be extensive and intensive: videos with executives and colleagues extolling the virtues of Six Sigma, business lunches and conferences explaining and discussing what Six Sigma is and how it will help us, articles in the employee magazine and explanations from department directors. Strategic upgrade: This itinerary offers the greatest number of options. A strategic improvement initiative can be limited to one or two critical business needs, with teams and training geared toward addressing major opportunities or weaknesses. 0 good,It can be a Six Sigma initiative focused on a limited business unit or functional area of the organization. Problem solving: This pathway uses the Six Sigma improvement path that leaves more free time. This initiative addresses long-standing and noted issues that have often been the focus of old failed improvement programs, using staff trained in the Six Sigma toolkit.
WHICH ROUTE IS CORRECT?
Each itinerary has its advantages and risks. The strategic improvement option can help a service company focus on the highest priority opportunities and limit the challenges of directing and selling change to the entire company. However, this itinerary can create frustration by leaving some feeling isolated from the process or insecure about how to align the parts of the organization that are implementing Six Sigma with those that are not.
The problem solving approach is the least difficult and gives a company an opportunity to test how Six Sigma tools work.
Unfortunately, this itinerary is also deceptively risky. It does not solve organizational problems or take a vision of achieving change successfully.
CONCLUSION
Through the established path, it has been demonstrated that the Six Sigma Management System is applicable to the Service Industry.
We have been able to observe that there are no differences, for said implementation, with the Goods Production Industry. We can affirm that the steps and methodologies to follow are, in both cases, similar.
By way of conclusion, we can affirm that the DMAIC method is not only applicable to the Service Industry, but necessary.
I would like to end the present with these fundamental aspects:
D (DEFINE)
Possible Six Sigma projects are identified and must be evaluated by management to avoid inappropriate use of resources.
M (MEASURE)
It consists of characterizing the process by identifying key customer requirements, key product characteristics (or outcome variables), and parameters (input variables) that affect the operation of the process and key characteristics or variables.
A (ANALYZE)
The team evaluates current and historical performance data. Hypotheses about possible cause-effect relationships are developed and tested using the relevant statistical tools.
I (IMPROVE)
In the improvement phase, the team tries to determine the cause-effect relationship (mathematical relationship between the input variables and the response variable of interest) to predict, improve and optimize the operation of the entire process.
C (CONTROL)
It consists of designing and documenting the controls to ensure that what has been achieved through the Six Sigma project is maintained once the changes have been implemented. When the objectives have been achieved and the mission is complete, the team informs the management and disbands.
With all this, I maintain that the presented System is one of the best tools for the contemporary Service Industry. Industry that seeks to provide the customer with a service of greater excellence.
BIBLIOGRAPHY
- - Brue, Grez: “Six Sigma for managers” - Ed. Mc Graw Hill - Mexico - 2002.– Molteni, Raúl; Cecchi, Oscar: “Lean Six Sigma leadership” - Ed. Macchi.com - Second Edition - Buenos Aires - 2005. - Pande, Meter; Holpp, Larry: "What is Six Sigma?" - Ed. Mc Graw Hill - Madrid - 2002.– Chowdhury, Subir: “The power of Six Sigma” - Ed. Prentice Hill - Spain - 2001.– Pande, Meter; Neuman, Robert; Cavanagh, Roland: “The practical keys of Six Sigma” - Ed. Mc Graw Hill - Madrid - 2005.– MERCADO Magazine: “Six Sigma: the new trend in quality” - January-February 2004.– Trejo, Ximena: “Program Six Sigma Training Program ”- Córdoba - 2006.– Riguetti, Andrea:“ Six Sigma Training Program ”- Córdoba - 2006.
Bibliography on the Internet
- -
PRACTICAL IMPLEMENTATION
If Field Work I is approved, the practical application carried out in Field Work II will be developed at the Alvear Palace Hotel.
Reference persons for said application:
- Dr. Alejandro Bernhardt, MBA.
- Mr. Luis Alberto Lisanti - Front Office Manager -
Alvear Palace Hotel.
FIELD WORK II
PRACTICAL APPLICATION
Interview with Mr. Luis Lisanti. Manager Front Office Manager. Alvear Palace Hotel. Buenos Aires.
QUESTIONNAIRE
1. Does the Alvear Palace Hotel use the Six Sigma Management System for the continuous improvement of its services? If not, what system do you use?
No. The Alvear Palace Hotel does not use the Six Sigma System. It considers that the benefits of this system can be placed in the Hotel with short-term benefits, but it would imply a high cost of implementation.
The Hotel has certain rules and procedures of its own. These procedures can be consulted by all the Hotel staff.
These procedures and standards are divided by item, for better development and control of them.
2. Do you think the implementation of the Six Sigma System in the Hotel is feasible?
The implementation of the Six Sigma System in the Hotel is not clear. According to the managers, this business management system is not compatible with the hotel industry (which does not imply its implementation in the industry of other services).
It is seen as something very complicated to reach the "Zero Error" that Six Sigma proposes in this field.
It is not denied that, in the future, it can be implemented, when the Hotel grows in buildings and in other branches. In that case, it is seen as a possible and functional tool.
Today, the hotel does not have a volume of processes necessary for the implementation of Six Sigma.
3. In what areas do you most likely see that it can be implemented? In which areas not?
You cannot think in what areas it could be implemented today. It is calculated that in all areas, since the quality process is developed in all of them. It is believed that it could work in all of them.
There can be no rules that do not help the relationship between the hotel and its customers. All must be based on that relationship.
There is always a tendency to "zero error", but we do not seek to reach it. What the Alvear Palace hotel seeks is to be a leader in the hotel market.
4. What results do you expect to obtain from this implementation?
It seeks to achieve the best position in the market. The Six Sigma System would be good in that it would help to achieve better results. But, as already said previously, its application in the structure that the hotel has today is not feasible.
5. Do they have trained and qualified personnel to control the steps and phases of the implementation?
All personnel are trained to audit. Everyone is prepared to seek the best for the clients who come to the hotel.
The hotel offers its employees a complete department-specific hotel training service. Its professionals know the latest trends in hotel management and operation.
Likewise, they are offered a complete audit analysis of their business whose complete report warns the hotel of the risks and new opportunities for their yes.
We complete our services by offering you the possibility of making mystery shopper reports, which show the level of real service that the Alvear hotel offers its clients.
Hotel management is becoming more complex every day and extensive training and experience is necessary to achieve the expected profitability. The Alvear Palace Hotel offers its employees a complete hotel management service with a proven methodology and flexibility in which the hotel will not lose its personality.
6. When launching the initiative, and according to the structure of the Hotel, would you make a total or partial deployment of the System?
Any initiative that is taken in the hotel is at a total level. A partial application cannot be considered within the hotel structure. It must be applied to all areas of the hotel.
For this, there are two managers. Human Resources does the induction of the staff.
It is audited at least once every two years. There are two types of audits:
to. Internal Audit: carried out by the General Management of the same hotel.
b. External Audit: carried out by members of Leading Hotels Of The World.
These audits include:
Analysis of the planned investment
Investment of work
Land investment
Financial and amortization plan
Number of rooms
Restoration
Other services
Preparation of a market study of the area
Identification of potential competitors
Number of hotel beds in the area
Average prices and occupations
Analysis of demand
Creation of the Economic Feasibility Analysis
Full operating account projection
Treasury budget
Analysis of rentability
Template
Periodic meetings are held, applying the “Brainstorming”, in which managers, bosses and other administrative personnel from the various areas belonging to the hotel participate.
7. Do you think that the functions and / or roles that must be developed in the application of the System can be carried out by the Hotel staff?
Everything that is done is approved and accompanied by the entire hotel staff.
All personnel are trained to develop the implementations of the new initiatives.
8. Do you think that “Zero error” can be achieved within the hotel structure?
No. You can not reach zero error in hospitality. In this industry, the evaluation that can be made is very subjective.
9. Would you implement the Six Sigma System in the Hotel?
No. We would not implement it as it is not compatible with the audits carried out by Leading Hotels Of The World.
If the qualifications do not agree with those that this group establishes, it cannot continue belonging to it.
That is why by requiring a “zero error”, it is setting a goal that is too high, which could cause the evaluations of Leading Hotels to fall.
10. How long, do you estimate, it would take to develop this system, including training of personnel?
It is open and perpetual. There is no set time for the implementation of quality management systems.
The Alvear Palace Hotel has never set "strict" times for implementations. Time does not matter, but rather that the system of standards and guidelines is known to all staff, is accessible from the various terminals, and is put into practice.
CONCLUSION
Although the appreciation of the managers of the Hotel Alvear Palace is that the Six Sigma Management System cannot be implemented in it, it is my opinion that, in practice, the system is developed in the hotel.
In my opinion, there is a fear of incorporating the hotel under the category of "Six Sigma" due to the relationship with the Leading Hotels of the World, since if a "Zero Error" is not achieved, the hotel would find itself in trouble as far as to their membership in said group of hotels.
But in practice, all hotel control, rules and procedures are in function (in some way) of achieving Zero Error.
To do this they use various tools, such as internal and external audits, which allow them to appreciate where their strength lies and where their weaknesses lie.
These audits are recorded both on paper and on the intranet system. This procedure is carried out so that all hotel employees, from the receptionists to the various managers, know their level. It also allows them to see where they need to improve, to achieve (in my opinion) the "Zero Error".
