Caesars Casino Case Study
Implementing Lean Operations at Caesars Casinos Case Solution
Introduction:
For this assignment, you’ll read and analyze a case study about a Lean implementation at Caesars Casinos. Then, you’ll write a 6-8 page paper that describes how challenges were handled during the process, your own proposal for a similar kaizen event, and your recommendation for a Lean implementation. CASE 5.3 Caesars Entertainment Corporation The gambling known as business looks with austere disfavor upon the business known as gambling. Ambrose Bierce In the early 1930s, the Great Depression forced engineering student William Harrah to drop out of UCLA. One of the main tools used almost universally in LEAN operations is the Kaizen event. Kaizen means “continuous improvement.” “A kaizen event is a focused analysis of a particular activity or set of activities to discover ways to improve efficiency and effectiveness in meeting customer needs.” (Pesch, 2016) A Kaizen event typically extends several days in duration. Implementing LEAN Operations at Caesars Casinos Case Solution. Enhanced Quality: Quality is the most important aspect, which requires constant navigation of the management to enhance their business level. Caesars Casino Case Study. Autor: Maryam. November 24, 2018. 2,121 Words (9 Pages). 169 Views. Kaizen Day 2- Analyze the current state of.
Initially, in 2008, there was a far-reaching problem for the Caesars Tunica Casinos, because the U.S macroeconomic fall of the Great Depression led to decreasing customer spending on entertainment, which resulted in adecline in revenues as well as itintensified the competition with related to market share. In order toget rid of the risk of customer disappointment, every week Caesars surveyed a random sample of recent customers for each property, which showed a 12% increase in customer spending. Survey showed ahigher percentage shift off; for example, B score to A score when compared to the same quarter resulted in higher bonus for the team members. After the survey, at the end of 2008, the Caesars Tunica Leadership team wanted to deliver more customer satisfaction, increase customer loyalty as well as wanted to maximize team members’ bonuses and enhance the employee satisfaction.
The membersof the Tunica Executive Team documented identified the decline in revenue as well as they challenged theprofitability and tried to improve the market share, customer service and required engaging the entire organization. One of the biggest problems was the absence of a consistent and systematic problem-solving approach. Hirsch recognized Lean concept waseasy to understand that might create a coherent and focused approach to bringimprovement.
Lean Operation:
Employee Engagement:
In December 2008, Hirsch was appointed as a Regional Director of LEAN for three Caesars Casinos in Tunica. Hirsch and his executive team saw the need for change and decided to bringright improvements and tosustain them.
Caesars Casino Case Study Lean Operations
Lean operations thatwere moved around the series of kaizen events involved five days’ workshops by involving employees from multiple positions, and then those employees worked together and improved the target processes. Initially, lean implied cutting jobs therefore,for improving employee engagement in the casino, executive members regularly communicated that eliminating the waste via Lean methodto improve customer satisfaction as well as to improve staff work environment (conducting kaizen events). Hirsch and his executive management team put their full efforts to establish Leanculture throughout the organization. In Casino, during the process, patrons and employees had towait to resume gaming activities, which ultimately affected the profitability of the operations. While incurring the waste,the organization didn't ask employees for any service requirement, since the employees were not being appreciated and also the managers could not fully understand delivering system process, which resulted in long spending time and employees facing fatigue.
By introducing Leanconcept, it would help in reducing various types of waste in work process. The Leanmethodwill enhance motivation among employees, and this process will present the greatest opportunities to improve customer service and reduce waste.
Support from senior leaders:
Before the introduction of Leanconcept, waste would have a large impact on 1) safety of the product, 2) quality of the product, 3) errors in the delivery of transportation of the product, 4) inventory management problem and 5) productivity and cost related to the product or service. These mistakes may be due tomismanagement by senior management.
After Leanconcept, senior management or leaders identifythe goals, help in understanding the employees’ performance as well as they support the direction where the team moves to. The second benefit from Lean concept is the checkpoint meetings, which provide an opportunity for senior leaders in removing barriers the team anticipated (need to purchase equipment, andhelp in rearranging a workspace). The last benefit for senior management is to involve team's presentations that assist in ensuring the commitment to the changes that the company was developing.
What has led Brad Hirsch to believe he needs to introduce LEAN concepts in Metropolis?
The Metropolis, Illinois, Casino was opened in 1993 and was initially located at Ohio River along the border between Illinois and Kentucky. In 2000, Caesars acquired the facility as well as it operated it. The Casino included many convention centers, restaurants and a 258-rooms hotel.
Harrah's Metropolis hosted almost 600000 visitors or guests. In November 2014, Harrah's Metropolis Casino changed its location from riverboat to the former convention center (land-based hotel). This aim of this new project was to progressthe casino's competitive position by bringing upnew games, offerings, morefood and beverages as well as improved the reliability and comfort for the customers.
One of the main reasons behind introducing the LEAN tool was the increasing competition (competing gaming options in both Illinois and Kentucky). Caesars’ management team renowned that the Harrah's Metropolis property required to viewed by patrons as well as potential supporters because of offering an entertainment experience that went well ahead of video gaming options obtainable in other location. Hurrah's Metropolis team also observed that non-gaming sociability was another concern for casino industry (to ensure that organization proficiently delivered hospitality services)........................................................................................
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Assignment 1: Case Study – Caesars Casinos
Due Week 4, Day 7 (Weight: 20%)
Lean operations are used to improve processes in a wide variety of industries, not just manufacturing. Organizations worldwide are using Lean to eliminate waste, reduce inventory, increase throughput, and provide better customer service. As a result, improved operations are positively impacting the bottom line.
For this assignment, you’ll read and analyze a case study about a Lean implementation at Caesars Casinos. Then, you’ll write a 6-8 page paper that describes how challenges were handled during the process, your own proposal for a similar kaizen event, and your recommendation for a Lean implementation.
Answer the following questions about the Caesars Casinos case study:
1. Describe two challenges that Caesars experienced during the Lean implementation process. What actions were taken to overcome each challenge? Were they effective?
2. Assume you manage hotel housekeeping at Harrah’s Metropolis location, and service scores have declined over the past year. As part of the Lean rollout, you and some of your front-line employees will participate in a kaizen event focused on improving guest-room housekeeping operations.
• What KPIs (key performance indicators) would you propose to track to determine whether the changes implemented through the kaizen effort actually improve performance? Explain your choice of KPIs.
• Develop a detailed agenda for this kaizen event. Your agenda should outline the event’s activities, timing, duration, and Lean tools. Explain your rationale for each agenda item.
3. At the end of the case study, Caesars’ SVP/GM Brad Hirsch is faced with a choice between two process improvement approaches, expert-driven or employee-centered.
• What would be the advantages and disadvantages of an expert-driven approach to process improvement at the Metropolis facility, in contrast to the employee-centered approach used at Tunica?
• Which approach would you recommend for the Metropolis facility, and why?
Your assignment must follow these formatting requirements:
• Be typed and double-spaced, using Times New Roman font (size 12) with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
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Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills, using the following grading criteria.
Caesars Casino Case Study
Weight: 20% | Assignment 1: Case Study – Caesars Casinos | ||||
Criteria | Unsatisfactory | Low Pass | Pass | High Pass | Honors |
1. Describe two Lean implementation challenges that Caesars experienced and the actions taken to overcome each challenge. Weight: 20% | Did not submit or incompletely described two Lean implementation challenges that Caesars experienced and the actions taken to overcome each challenge. | Partially described two Lean implementation challenges that Caesars experienced and the actions taken to overcome each challenge. | Satisfactorily described two Lean implementation challenges that Caesars experienced and the actions taken to overcome each challenge. | Completely described two Lean implementation challenges that Caesars experienced and the actions taken to overcome each challenge. | Exemplarily described two Lean implementation challenges that Caesars experienced and the actions taken to overcome each challenge. |
2. Develop KPIs and a detailed agenda, including a supporting rationale, for akaizenevent. Weight: 35% | Did not submit or incompletely developed KPIs and a detailed agenda, including a supporting rationale, for akaizen event. | Partially developed KPIs and a detailed agenda, including a supporting rationale, for akaizenevent. | Satisfactorily developed KPIs and a detailed agenda, including a supporting rationale, for akaizen event. | Completely developed KPIs and a detailed agenda, including a supporting rationale, for akaizen event. | Exemplarily developed KPIs and a detailed agenda, including a supporting rationale, for akaizen event. |
3. Describe the advantages and disadvantages of two process improvement approaches, and recommend one process improvement approach with a supporting rationale. Weight: 35% | Did not submit or incompletely described the advantages and disadvantages of two process improvement approaches, and recommend one process improvement approach with a supporting rationale. | Partially described the advantages and disadvantages of two process improvement approaches, and recommend one process improvement approach with a supporting rationale. | Satisfactorily described the advantages and disadvantages of two process improvement approaches, and recommend one process improvement approach with a supporting rationale. | Completely described the advantages and disadvantages of two process improvement approaches, and recommend one process improvement approach with a supporting rationale. | Exemplarily described the advantages and disadvantages of two process improvement approaches, and recommend one process improvement approach with a supporting rationale. |
Weight: 20% | Assignment 1: Case Study – Caesars Casinos | ||||
Criteria | Unsatisfactory | Low Pass | Pass | High Pass | Honors |
4. Clarity, logic, and writing mechanics.Weight: 10% | Multiple mechanical errors; much of the text is difficult to understand or the text does not flow; fails to follow formatting instructions. | Several mechanical errors make parts of the text difficult for the reader to understand; the text does not flow; the discussion fails to justify conclusions and assertions. Partially applied concepts from across the course. | More than a few mechanical errors; text flows but lacks conciseness or clarity; assertions and conclusions are generally justified and explained. | Few mechanical errors; text flows and concisely and clearly expresses the student’s position in a manner that rationally and logically develops the topics. | None to limited minor mechanical errors; text flows and concisely, clearly, and exemplarily expresses the student’s position in a manner that rationally and logically develops the topics. |