Process Owner: Stephanie Lin

Black Belt: Aiping Qian

Lean IRD Breakfast Process

Opportunity Statement:

The Westin Bund Center Shanghai offers 24-hour In-Room Dining service. Breakfast is

served from 5:00am to 11:00am. Doorknob menu orders account for 60% of the total

breakfast orders. In 2007, it catered to 4,580 covers with about RMB 779,000 revenue for

breakfast.

According to TNS GSI survey, the average In-Room Dining Service score for 2008 YTD was 7.90; dropped from 8.35 in 2007. The most frequently complained problem was slow

delivery. Other complaints include missing items, wrong delivery and wrong cutleries.

Breakfast order accounts for 20% of the total IRD orders, while 30% IRD complaints

occurred during breakfast period.

Scope:

This project will address In-Room Dining breakfast service improvement; focus on

IRD breakfast food assembly, on-time delivery, service accuracy, efficiency and

consistency.

PDF PDF

Goal Statement:

Improve In-Room Dining experience index from 7.90 to 8.20 by June 2008; achieve 99% on-time in full delivery

PDF (Cont.) PDF (Cont.)

SIPOCSIPOC

Breakfast doorknob menu is served from 5:00am to 11:00am

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS

Guests Breakfast door-knob menu set up mise-en-place Breakfast served Guests

Service staff Services place mise-en-place Guest satisfied Associates

Chef & Cooks Breakfast orders place butter, margarine and jams

Managers make juices

pour milk

get bread from kitchen

make toast or warm bread

make coffee or water for tea

get hot food from kitchen

team leader check

deliver to room

back to IRD

S I P O C

VOCVOC

Customer Customer Comment Image/Issues CTQ Requirement

Guests There is no Green Tea in Chinese breakfast Missing items Delivered in full

Guests Breakfast was late & cold. Late delivery On time delivery

Guests Fork was not provided Missing items Delivered in full

GuestsFood was cold. It was delivered way later than Ioriginally ordered.

Late delivery On time delivery

Guests Breakfast was cold Poor quality Better quality

Guests No milk with coffee Missing items Delivered in full

GuestsEnglish breakfast tea arrived without milk (no fresh milkor even powdered milk)

Missing items Delivered in full

Guests Room Service was slow, cold food and incomplete Quality Delivered on time in full

Management We need to fix IRD problemsGuest

satisfactionBetter IRD experience to guests

VOC TRANSLATION TABLE

key measureskey measures

total # of breakfast orderstotal labor hours scheduled for breakfast

periodOTIF

# of doorknob menu orders takt time IRD GSI

# of breakfast a-la-carteorders

lead time breakfast revenue

KEY MEASURES

IRD experience indexIRD experience index

7.507.657.807.958.108.258.408.558.708.859.00

May-06

Jul-0

6

Sep-

06

Nov-0

6

Jan-

07

Mar-07

May-07

Jul-0

7

Sep-

07

Nov-0

7

Jan-

08

IRD workplaceIRD workplace

as is processas is process

Currently no standardized breakfast assembly sequence Lead time is between 14 and 22 minutes ( > 19 minutes) – cannot keep pace

A better way to keep pace is to eliminate wastes in the process, rather than increasing work time.

Lead time could be even longer than 22 min. due to short of operating equipment, such as utensils, milk jugs, etc.

* Making spa juice takes longer time** Delivering to Grand Tower takes longer time

*

****

Time(in sec.) 30 60 90 120 150 180 210 240 270 300 330 360 390 420 450 480

1 Place Mise-en-place 10

2 Place butter, jam, etc. 10

3 Make juice 60-120

4 Pour milk 10

5 Get bread from kitchen 10

6 Make toast 180

7 Make coffee or tea 120

8 Get hot food from kitchen 30

9 Team leader check 30

10 Deliver to room 300-600

11 Back to IRD 180-300

Seq. OperationOperational Time Unit

10"

10"

60"

10"

10"

180"

30"

120"

30"

300'' - 600"

OTIF:Fraction of orders delivered on time, in full during a specifictime period

on time in full measure

Number of Orders On Time in Full

Total Number of Orders

1,720 breakfast orders were taken from Oct 2007 to Feb 2008, 1,629 arrived on time and in full, (91 defects were reported) :

1,629

1,720= 94.71% OTIF

Vision: Vision: 99% OTIF99% OTIF

Night Shift

Morning Shift

3:00am 3:30am 4:00am

6:30am

5:00am

collectdoorknob

menukey intomicros

set upmise

en place

6:00am 7:00am

assemble and deliver breakfast

2 associates

3 associates (incl. one T/L - despatcher)

7:00am 9:00am8:00am 10:00am 11:00am

assemble and deliver breakfast

Senddoorknobmenu listto kitchen

8:00am

staffingstaffing

breakfast delivery time

2 labor hours (120 min.)

12.5 labor hours (750 min. excl. despatcher)

time analysistime analysis

Takt time is 19-30 minutes per order Our process must be capable of handling the maximum flow rate,

i.e. during peak hour

Takt Time =(5:00am – 6:00am)

available production timeproduction demand

120 min* 4 orders***= = 30 min.

Takt Time =(6:00am – 11:00am)

available production timeproduction demand

750** 39 orders***= = 19 min.

1.

2.

* Two associates work during this hour** Four associates work during this period on different working schedule*** Maximum # of order during the period (data source: record from Oct 07 to Feb 08)

1. Productive work time: 39 orders x 22 min/order = 858 minutes

2. Available time:90min x 1 + 120min x 1 + 270min x 2 = 750 minutes

3. WCE (work capacity efficiency):858 / 750 = 114.40%

Available time is not sufficient to meet demand; therefore, we need toa) eliminate wastes in the processb) better workplace organization

production capacityproduction capacity

6:00am 6:00am –– 11:00am:11:00am:

value stream mappingvalue stream mapping

Three persons (associates and team leader) work within this process

make juice and place on IRD cart

2

get bread from kitchen

2

BF doorknob menu orders

Guests Guests

place prepared mice-en-place

on IRD cart

2

Deliver to room

2

VE NVANVA(transportation)

fetch milk from fridge; pour milk in milk jug;

place on IRD cart

2

make toast or warm bread;

place on IRD cart

2

place butter, Margarine and

Jams on IRD cart

2

Team leader check

1

VA

NVA(process inefficiency)

NVA(process inefficiency)

NVA(transportation)

NVA(motion)

NVA(process inefficiency

？？？？？？ ？？

？？10’’

10’’ 60’’-120” 10’’ 10’’

180’’

Get hot food from kitchen; place in cart

2NVA(transportation)

30’’

make coffee or water for tea;

place on IRD cart

2NVA(process inefficiency)

120’’ 30’’300’’-600”

“Set in Order” Opportunitiesbefore after

workplace organizationworkplace organization

Inventory of jam (3 boxes par store)

Folded napkin

Put on the table from left to right

Inventory of napkin and tray map

Standard process posted on the wall

Take away

BB plate

standardized work sequence diagramstandardized work sequence diagram

Lead time is reduced from 14-22 min to 12-18 min; changes include: combine few steps into one eliminate some non-value-adding steps standardize work process in a logical and efficient order work some steps concurrently

Time Operational Time Unit(in sec.) 30 60 90 120 150 180 210 240 270 300 330

1 Place Mise-en-place 10

2 Get hot food, bread, fruits from kitchen 30

3 Make toast 180

4 Make coffee or tea 120

5 Make juice 10-30

6 Pour milk 10

7 Place butter 10

8 Team leader check 10

9 Deliver to room 300-600

10 Back to IRD 180-300

Seq. Operation

10"

10"

30"

10"

10"

180"

120"

300'' - 600"

30"

Minutes RMB % RMBtime saving/order (process) 3 OTIF baseline 94.71%

time saving/order (rework) 16 OTIF goal 99.00%

av bf order per month 344 incr. OTIF % 4.29%

saving per month 1,268 548 incr. OTIF orders/mon 15 2,885

3,433 41,196

Labor SavingsIRD Breakfast IRD Breakfast

Defect Avoidance

Total savings per month: Total savings per year:

“Set in Order” Opportunitiesfinancial impactfinancial impact

*** ****

Assumption:* average time saving per order: difference between 14-22 min and 12-18 min** rework: rework due to defects, i.e. time spent on answering phone + redelivery to room + back to office*** average salary + benefits per associate: RMB 4,500 per month (173.6 hours)**** waive: average price per order: RMB 170++

*

**