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WhySixSigmaStarwood,WeThinkWereDifferent!,Today,if2.5(84%yield)then10dissatisfiedcustomerseveryday,everyproperty!,WhySixSigma,Complex,multi-stepprocess,Starwood=25MillionGuestsAnnually,90%,Widevariabilityofperformancetocustomerexpectationsincoreprocessesacrossbusiness:MajoropportunityMajorriskNocommonmethodforsustaining,leveragingandtransferringinnovationacrossStarwoodLackofrobustprocessestosustainaboveaverageEBITDAgrowthrates:InternalviewthatStarwooddoesntsystematicallysupportcollaboration,processimprovement,peopledevelopment,andbestpracticesharing.,“CaseforChange”,TheCaseforChange:GuestSatisfaction-25MillionGuests,GlobalGSIComposite,“HighlySatisfied”=3-6xmorestaysvs.“satisfied”,Opportunity,Satisfiedcustomers=$2bn+Revenue,Billionsofrevenuefromincreasedsatisfaction,“Dissatisfiedcustomers”tell8-10people.,“internet”allowsdissatisfiedcustomerstobroadcasttothousandsofpeople,20,250,000peopleawareofdissatisfaction,BillionsofpotentiallynegativeimpressionsZagatsExpediaTravelocityE,Threat,Ifnot“highlysatisfied”,thencustomersdefectforpriceorlocation.,12,500,000“atrisk”customers,ProvideCustomersCompellingReasonToReturn,WhatIsSixSigma?,Youlistentothecustomer.Yougetthefacts.Youeliminatenon-valueaddedwork.Yougivethecustomerwhatshewantsconsistently!,SixSigma:Whatsnottolike?,TheFoundation,SixSigmaisVoiceoftheCustomer-Measure:-Goal:Systemofmanagement:,ToBenefittheBusinessyourassociatewhoyoucanleastaffordtolose!Analytical“horsepower”,intellectualcuriosity2002benefit:$480mm(Sponsor:Norton)DevelopmentProcess(12437)Producednewbusinessplan,dealparameterguidelines,andnewapprovalprocess.Benefitnotquantified.(Sponsor:Goldman)CORPHQPROJECTSIN-PROGRESS2002WarrantyInsuranceProgram(12036)Reducerepairandmaintenanceexpense;L/Topportunitytarget20%reductiononabaseof$52mmspentinNADin2001AirlinetravelServices(11965)Newtravelguidelinesandtrippre-approvalprocess;PartIIwillexamineAmericanExpresspricingandservice.PartIbenefit2002:$200k.PartIIbenefit:TBD.HotelAccountingStandardizationandAutomationReengineer5coreprocessesRevenueAudit,Cash,PurchasingandAP,AR,andtheClose.Estimatedbenefit:$3-5mm,STARSPROJECTSCOMPLETED2001MultipleCCCConversionProjects(11721,10693,43166,40821,19251)Aseriesofprojectstoassessrecruiting,training,reporting,andperformanceofCCCassociateswiththegoalofincreasingconversionrates.2002benefit:$1.3mmSTARSPROJECTSIN-PROGRESS2002E-MailAddressCollection(40483)Increasethecaptureratefore-mailaddressesfromproperty-enrolledSPGmembers.2002benefit:$162kPromotionLoading(14060)Improvethemethodforprocessingmarketingpromotions.GDSRateModification(42369)Reduceturn-aroundtimeandimprovetheaccuracyofratesloadedinGDSbyStarlink/GDSdesk.2002benefit:$280k.OptimizeCallHandlingTime(44847)MinimizeATTvariancebycalltype.2002benefit:$384k.,MajorSTARSProjects,GlobalProjectsApproved12/01,Check-in(26373)Twogoals:(1)Avisionforawinningcheck-inprocessthatdeliverscompetitiveadvantage;and(2)identifyandimplementincrementalimprovementstothecurrentprocess(sponsors:TedDarnallandSteveHankin)GuestIncidentsDesignproceduresforhandlingthesubsetofguestcomplaintsthatcouldpotentiallyexposeStarwoodtolegalexpense.(sponsor:PaulScottandTonyRodolakis).OvertimeNotaDMAICproject;rather,itisanefforttoassembletheresultsof40similarprojectsanddisseminateanOTreductiontoolkitviatheinnovationtransferprogram(sponsor:JosePonte).BusinessPlanningProcess(35240)Designaplanningprocessthatlinksbudgeting,annual/initiativeplanning,andstrategicplanning(sponsor:DeneRogers)Aafterthat,proposeasuiteofDMAICandQHprojects(sponsor:NormanMacLeod&JamesHyman),NADInitiativesandProjects,5)TheDMAICProcess,“DMAIC”,Projects:ConsistentMethod,1.Whatistheprojectcharter?2.Whatisthe“VoiceoftheCustomer”,Gettherightdata.nottheeasy,availabledata.,Whatdoesthedatatellus?Whatisthe“rootcause”?,Fixtheprocess“Improve”“Redesign”,Istheimprovementdeliveringresults?,FivePhasesofSixSigmaProjects:,DMAIC,ProcessImprovementMethodology,TollgateChecklistDefine,Forourproject,wehave:,1.ConfirmedthatourprojectisaworthwhileimprovementpriorityandissupportedbytheQualityCouncil.2.Beengiven(orwritten)abriefbusinesscaseexplainingthepotentialimpactofourprojectoncustomers,profits,anditsrelationshiponbusinessstrategies.3.ComposedandagreedtoatwotothreesentencedescriptionoftheproblemasweseeittheProblemStatementfocusingonsymptomsonly(notcausesorsolutions).4.PreparedaGoalStatementdefiningtheresultswereseekingfromourproject,withameasurabletarget(orplaceholdertoaddone).NosolutionsareproposedintheGoalStatement5.PreparedotherkeyelementsofanDMAICteamcharter,includingalistofconstraintsandassumptions,areviewofplayersandroles,apreliminaryplanandschedule,and(ifneeded)aprocessscope.6.ReviewedyourCharterwithyoursponsorforthisprojectandconfirmedhis/hersupport.7.IdentifiedtheprimarycustomerandkeyrequirementsoftheprocessbeingimprovedandcreatedaSIPOCdiagramoftheareasofconcern.8.Preparedadetailedprocessmapofareasoftheprocesswhereweexpecttofocusourinitialmeasurement.,EveryStageoftheDMAICProcesswillhaveatollgatechecklistEveryStagewillrequireSixCouncilandMBBreviewandapproval,Measure,I,P,O,Input,Output,DevelopMeasures,Process,BasedonCTQsandprocess,Stratification,Who?What?When?Where?,Checksheets,Sampling,ProcessCapability,Tollgate,Analyze,DeploymentMapping,Value-AddedAnalysis,Cause&Effect,HypothesisStatements,Regression,DataAnalysis,?,Tollgate,RunChartvs.Boxplot,SheratonPompeiiRoomOccupancy1998-2000,Time,OccupancyRate,5,0,6,0,7,0,8,0,9,0,SheratonPompeiiRoomOccupancy1998-2000,Year,OccupancyRate,StarwoodStation,?,Improve,SolutionGeneration,Sho
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