Lean Hospitality Lean Industries Series Topics • What is Lean? • The Hospitality Industry • Introduction to Lean Hospitality • Applying Lean to Hospitality • Benefits of Lean Hospitality • A Lean Marriot – Case Study • Summary What is Lean Thinking? Value Empowered People Value Stream Perfection Flow & Pull The Hospitality Industry • The hospitality industry consists of companies within the food services, accommodations, recreation and entertainment sectors • The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income • A hospitality unit such as a restaurant or hotel consists of multiple groups such as: ▫ Facility maintenance ▫ Direct operations ▫ Management ▫ Marketing ▫ Human resources Applying Lean to Hospitality • Lean transformation includes the development and generation of the service within the hospitality industry itself, its delivery and management throughout the entire life cycle • Focus is given to the transactional process, operating system, skill and behaviors to sustain the gains • The lean process should be designed end-to-end, to create value from the customer’s perspective and keep information and material flowing rapidly through the system without interruption and backflow The Technical Aspect is just 20% Benefits of Lean Retail • Rebuild every work process from the customers’ perspective to save labor costs and fund improvements in customer service • Make “upstream” improvements and eliminates or simplifies tasks that are invisible to customers • Strengthens standard benchmarking approaches with rigorous performance management tools to compare operating and financial metrics and achieve performance improvements A Lean Marriott • As a result of applying lean to its operations, in less than one year the hotel’s service score rose 10 points to 87 and went from the bottom half to the top 10 percent in its peer group • The improved operations not only positively impacts hotel guests, but it also impacts the hotel’s bottom line through repeat customer stays Summary • Change must be seen as a work process, as a value stream of work that moves a business organization from a wasteful operating system to a more lean effective one • Waste must be eliminated from the change process