1. KAIZEN®/ Lean Assessment
Welcome to
Audit
KAIZEN®/ Lean Assessment
June 24-27, 2013, Abuja

2. Agenda Management Priorities Highlights Some Metrics Way Forward
Potential Benefits
Q & A

3. Top Management Direction: OE Imperatives for BE
Improve Customer Satisfaction: Room supplies; Food variety, quality & service
Upgrade facility and guest amenities for improved guest perception of VFM
Reduce procurement lead time & delivered item cost
Reduce % Operating Cost (Food, Energy, R&M)
Improve employee morale and engagement in continuous improvement

4. Management Priorities & Challenges
Customer value
Improved customer experience, satisfaction
Reduced Room turnaround time /Smooth Guest check-in
Improved Room Service delivery -quality performance
Timely availability of Room supplies
Timely approval, procurement & product availability
Service delivery for short-notice events
Shareholder/ Management value
Reduced % Food cost
Reduced Repairs & maintenance bill
Lower overall operating cost
Reduced energy bills
Replacement of aged equipment & infrastructure
Employee engagement (issues)
Improved safety & security
Ownership, flexibility, openness to new learning
Availability of buses
Team deployment and efficiency
“One voice” in THTSL
Other issues
Management of traffic flow and parking
Training & support for IT
Reduction in “left behinds”
Real time guest feedback

5. Highlights: Some overall observations
Strengths:
Clarity of Top Management OE vision and direction
Strong customer orientation and focus
Open, progressive management team
Excellent property, great potential
Challenges & opportunities:
Lack of “modern” guest amenities (wi-fi, TV, phone ..)
Need for room/ hotel infrastructure upgrade
Employee morale needs urgent address

6. Some Gemba Observations

7. Disorderly storage; difficult to retrieve material
Stores
Disorderly storage; difficult to retrieve material

8. Kitchen and Laundry
Cluttered Workspace; difficult to maintain FIFO (First-in First-out) in cold-store

9. Operating Cost Break Up
Operating Cost Break-Up as a % of revenue

10. Cost Break Up - Utilities
Energy Cost Break-Up

11. F&B Revenue Break Up Food Revenue Break-Up.
35% - Food cost as a % of revenue
Beverage Revenue Break-Up.
19.5% - Beverage cost as a % of revenue

12. Food and Beverage – Daily Covers
High day-to-day variation in Lunch-Dinner covers (42 data points)
Note: This trend needs to be viewed with Actual Lead Time for “short notice” banquets/ events (data recording needs to be initiated)

13. Customer Complaints Source of customer complaints
BTQ/Events customer complaints

14. Customer Complaints Business centre complaints Laundry complaints
Housekeeping complaints

15. Guest Waiting/ Room Turnaround Time (Room TAT)
Room TAT for Last guest check-out time  Next guest check-in time for a specific room
18 data points from front office
Average
05:12
Median
05:02
Min
00:41
Max
11:47
Large variation observed

17. Inventory and Consumption Analysis - Food
No.of Items
Inventory Value (NGN)
NON-MOVING ITEMS
Items with no consumption in Jan-Dec 2012 55 2%
SLOW MOVING ITEMS
Items with stock of >365 Days 25
10%
Items with stock between 100 to 365 Days 41 6%
Items with stock between 30 to 100 Days 82
41%
MOVING STOCK
Items with stock between 7 to 30 Days 77
35%
Items with stock between 2 to 7 Days 18 5%
Items with stock between 1 to 2 Days 16
197233 0%
Items with no inventory in stock
123
Total Items
437
41,134,821
57%
NGN
TOTAL CONSUMPTION (2012)
800,539,217
AVE DAILY CONSUMPTION
2,193,258
INVENTORY ON HAND (AS ON MAY 31ST 2013)
41,036,811
INVENTORY COVER (DAYS) AT 2012 CONSUMPTION RATE
19 Days

18. Interesting, right?
This is just a sneak preview of the full presentation. We hope you like it! To see the rest of it, just click here to view it in full on PowerShow.com. Then, if you’d like, you can also log in to PowerShow.com to download the entire presentation for free.