Caesars LEAN Operations_FINAL_v3

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LEAN IMPLEMENTATION Jason Deane, Mari Herrera, Natalia Loyola, Dave Mueller

Transcript of Caesars LEAN Operations_FINAL_v3

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LEAN IMPLEMENTATION

Jason Deane, Mari Herrera, Natalia Loyola, Dave Mueller

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LEAN Knowledge Work

TOYOTA principles applied to judgement and expertise activities

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The TOYOTA Production System

Taiichi Ohno and Eiji Toyota in 1948

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The System- the Fight to LEAN

• “LEAN is the pursuit to create a culture of continuous improvement. Its not about a magic silver bullet, there’s no secret, it about everyone doing exactly as there supposed to each and every day. The pursuit of perfection”

• HOW…

• “The Toyota system is the playbook.”

• Mr. Troy Gamble, MBA, LEAN Expert, 6 Sigma Green and Black Belt, Disney…

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Tacit vs Explicit Knowledge

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6 Points

Specify the WorkEliminate Waste Structure Communications

Address Problems…NOW One Step at a Time Leaders gotta Lead (and haters gonna hate…)

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Implementing LEAN Operations at Caesars Casinos

By: Nancy Hyer, Brad Hirsch, Karen Brown

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Symptoms of the Problem

• Competition was increasing from new venues

• Metropolis Casino was relocated and renovated

• Non-Gaming options needed to be improved as a significant element of the overall entertainment experience

• Hirsch recognized that challenges lay ahead for LEAN implementation aimed at customer service and operational effectiveness

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Symptoms of the Problem

• The economic environment was a concern• Macroeconomic collapse of the Great

Recession caused reduced customer spending

• Declining revenues• Market Share competition was

intensifying

• Corporate Operating Strategy had embraced the need for enhanced Customer Service performance

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Symptoms of the Problem

• Jobs were viewed as Stressful and that needed to change

• Customer Service Rating needed to change from B to A

• Morale was down and needed to improve

• Team Member bonuses needed to grow positively

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Support the Underlying Problem

• Caesars culture was strongly oriented toward optimizing the customer experience

• They realized there was increasing competitive pressure and new more aggressive corporate financial goals going forward

• Hirsch felt he had the body of experience to effect the needed initiatives and subsequent change

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Support the Underlying Problem

• Experience demonstrated that employees who were engaged viewed the effort as an effective way to instill continuous improvement mindset into the organization

• Hirsch felt that he intuitively saw opportunities for elimination of waste

• Hirsch felt that ignoring the opportunity to improved doomed them to death by a “thousand small cuts”

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Clarify the Nature of the Decision Problem

• The new financial goal had created the needed motivation to intensify improvement efforts at Metropolis

• Successes at earlier efforts clarified the need to address the issues of waste with LEAN processes

• Hirsch felt that “We thought that our behavior would speak louder than our words, and it did” about LEAN processes being GOOD for everyone

• Tunica demonstrated that comprehensive buy in buy all 34 VP’s at kaizen events would fuel overall success of the effort

• Hirsch was convinced that based on experience the “shock and awe” approach was effective

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Major Decision Problem

How can Caesars become more profitable while improving employee satisfaction/bonuses and levels of customer service (B to A) in the face of increasing competition and economic headwinds?

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Solutions/Alternatives

• Implement Organization Wide Process Improvement Initiatives based on LEAN principles and high involvement Kaizen

• Implement LEAN principles using Process Excellence Experts

• Keep it as it is – Open the new operation utilizing current business practices

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Implement Organization Wide Process Improvement Initiatives based on LEAN principles and high involvement Kaizen

Advantages• Hirsch is

committed and trusts the process

• Company has experience with the LEAN process

• Elimination of inefficiencies and waste

Disadvantages• Need for high

involvement causes coverage issues

• Expense in training and on-going implementation

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Implement LEAN principles using Process Excellence Experts

Advantages• Would already

have employees that know this process

• The knowledge from experts that can see the big picture is there

• Other resources could be applied to other projects

Disadvantages• Potential

knowledge from future participants

• Employees may not buy-in to the process as they were not involved with the process

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Keep it as it is:Open the new operation utilizing

current business practices

Advantages• No new resources

needed to do additional training

• Current systems are good and allow for some improvements

• There would be no disruption to current work flow

Disadvantages• Current systems may

not be able to achieve new performance goals

• Increasing competition

• Increase in customer expectations in the non-gaming operations could impact existing gambling operations

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Kaizen - 5 Days

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Kaizen - 5 Whys

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Kaizen - 5S’s

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Post Kaizen

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Lean Management

• Adapted in the West from Toyota Production System

• Philosophy of continuous improvement that seeks to increase the competence with which an organization’s processes can deliver value to costumers

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Costumers journey inside a Casino…

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Choice and Rationale

Implement Organization Wide Process Improvement Initiatives based on LEAN principles and high

involvement Kaizen

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Choice and Rationale

• Monitor progress before proceeding to each subsequent step in the process

• Market competition demands better LEANer ways to do business where waste and inefficiencies are found and eliminated

• Involving greater numbers of employees strengthens the depth of the movement and increases its benefits and probability of success

• Looking to generate the continued momentum from the successes of the previous projects

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Choice and Rationale• The benefits of collective

intelligence are most realized as more participants and perspectives are included in the analysis

• Acceptable ROI might be gotten if this concept were adopted thus allowing for the BEE advantages and social/moral imperatives to be realized and expanded upon

• Management has demonstrated a significant level of support for the overall initiative and therefore would support the enhancement of the new operations inclusion under the leadership of Hirsch and his team

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Action Plan Goal

Improved Profitability along with enhanced Employee Satisfaction and Customer Satisfaction

with associated operational efficiency improvement is the goal despite facing increasing

competition and economic pressure

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Implementation Action Plan

WhoLed by Hirsch

Whenwould start with the kickoff event

and initial engagement of

the

Who involved

personnel.

WhatKaizen events

based around the

How LEAN Team

concept as was the case in previous

successes.

WhatThe 5 day

workshops would

Whenfollow the kickoff event that would be attended by as many team members as

possible.

WhoThe event

facilitators would guide the learning and practical work

to be very productive and specific to the actual work

processes in the environment.

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Action Plan Follow Up

When & How

Once all 5 days of the event had

been completed by all the required

personnel

Then the ongoing effort to maintain

the momentum would ensue

The start to this phase

would be marked with the

same CEO calls that

took place for Tunica

HowThe KPI

Boards and the weekly assessment

s would become the

new standard.

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