Reduction of Absenteeism Level in Hospitality Industry BY ZOYA NASEEM REG.NO: 3511110954 SUPERVISED BY Mr. R.SHIVA KUMAR PROJECT GUIDE PROF. SUNDARARAJAN DATE: 4TH MARCH – 30TH APRIL 2013 1 PREFACE The purpose of this report is to explain what I learned during my summer project in the WOW express department at Sheraton Park hotel & towers, Chennai. This report is also the requirement for the partial fulfillment of the summer project at the conclusion of the 2nd year Masters in Business Administration course. The report focuses on the assignments handled, working environment, success and short comings I had encountered during my summer project at Sheraton park hotels & towers, Chennai. The summer project report contains my Individual observation during the stipulated period granted by the company and it would be imperative that recommendations and suggestions be given, to better my observation skills and knowledge about the company. I firmly believe that this stint at Sheraton park hotels & towers has helped me hone my management skills and also acquire adequate technical skills required for better understanding of the technical subjects I have chosen in my final year Post graduation. 2 ACKNOWLEDGEMENTS This summer project stint at the hotel has been a great learning experience for me personally, especially to be associated with a hotel like Sheraton park hotels & towers, which is one of the successful brands of Starwood hotels groups. I would like to extend my sincere gratitude to Mr. Shiva Kumar – Manager, Learning Services & WOW express and his team for giving me the opportunity to complete my summer project at Sheraton park hotels and towers. I would like to thank Mr. Anurag Mishra , Sheraton Park hotels & towers, for extending his support throughout the summer project and helping me coordinate with the necessary department staff during my stint at the company. This acknowledgement would be incomplete without the mention of Mr.Prasad Pillai, Sheraton park hotels & towers, Chennai under whose assistance and effective guidance the summer project was completed. Also would like to extend my gratitude to the entire team of Learning Services and WOW Express team for their kind cooperation and giving me adequate knowledge of the department they handle. 3 TABLE OF CONTENTS Sl No Content Page No Chapter 1 Introduction 6 1.1 Industry Profile 7 1.2 Economic Growth 8 1.3 Growth of Industry 9 1.4 Organizational Profile 15 1.5 Need for Study 49 1.6 Literature Review 51 1.7 Objectives of the Study 53 1.8 Limitations 56 Chapter 2 Introduction 57 2.1 Sample Design 59 2.2 Tools of Analysis 60 2.3 Scope and Significance 68 Chapter 3 Six Sigma 69 3.1 Introduction 70 3.2 Features 71 3.3 Methodologies 71 3.4 Quality Management 73 tools 3.5 Six Sigma Softwares 73 3.6 Implementation Roles 74 3.7 Application 75 4 Chapter 4 DMAIC 76 4.0 Executive Summary 77 4.1 Define 77 4.2 Measure 80 4.3 Analyze 82 4.4 Improve 87 4.5 Control 88 Chapter 5 Conclusion 90 5.1 Improvement Initiatives 91 BIBLIOGRAPHY 5 CHAPTER 1 INTRODUCTION 6 Starwood Hotels and Resorts Worldwide, Inc. is an American hotel and leisure company headquartered in Stamford, Connecticut. One of the world's largest hotel companies, it owns, operates, franchises and manages hotels, resorts, spas, residences, and vacation ownership properties under its nine owned brands. Some of the brand names included under Starwood are : Westin Hotels, Sheraton Park, Aloft, Le Meridien, St.Regis, The luxury collection etc., The Sheraton Park hotels & towers are the largest brand serving the needs of business and leisure travellers worldwide. It is the first international hotel 7 brand to step into markets like China and captivating several key destinations worldwide. 1.1 INDUSTRY PROFILE (SECTOR PROFILE) Hospitality is the relationship between the guest and the host, or the act or practice of being hospitable. Specifically, this includes the reception and entertainment of guests, visitors, or strangers. The Hospitality industry is a broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry. 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, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.), management, marketing, and human resources. A hotel is an establishment that provides lodging paid on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been 8 replaced by rooms with modern facilities, including en-suite bathrooms & air conditioning or climate control. The Hotel operations vary in size, function, and cost. Most hotels and major hospitality companies that operate hotels have set widely accepted industry standards to classify hotel types. The various categories of Hotel includes :- Conference & resort hotels, Historic Inns & boutique hotels, Select service hotels, Limited service hotels, Extended stay hotels, Timeshare hotels & Botels (Floating Hotels). 1.2 ECONOMIC GROWTH – LIBERALIZATION MEASURES The economic liberalization in India refers to on-going economic reforms in India that started on 24 July 1991. In 1991, after India faced a balance of payments crisis, it had to pledge 20 tons of gold to Union Bank of Switzerland and 47 ton to Bank of England as part of a bailout deal with the International Monetary Fund (IMF). The new neo-liberal policies included opening for international trade and investment, deregulation, initiation of privatization, tax reforms, and inflation-controlling measures. The overall direction of liberalization has since remained the same, irrespective of the ruling party, although no party has yet tried to take on 9 powerful lobbies such as the trade unions and farmers, or contentious issues such as reforming labour laws and reducing agricultural subsidies. The fruits of liberalization reached their peak in 2007, when India recorded its highest GDP growth rate of 9%. With this, India became the second fastest growing major economy in the world, next only to China. The growth rate has slowed significantly in the first half of 2012. An Organization for Economic Co-operation and Development (OECD) report states that the average growth rate of 7.5% will double the average income in a decade, and more reforms would speed up the pace. 1.3 GROWTH OF INDUSTRY – LAST DECADE The constant transformation has made the Indian hotel industry more functional and practical and has gained a level of acceptance world over. The standards of facilities and services offered have evolved over the last decade towards the extensive use of technology, environment friendly services, pricing, market segmentation, regional preferences etc., The Indian hotel industry has seen a significant growth in room inventory across categories from upscale luxury to limited services and, boutique and budget hotels. 10 With the continued growth in India's GDP, improvement in the per capita income, and increased aspirational spending, the Indian hospitality sector is expected to grow faster than most countries around the world. According to the Consolidated FDI Policy, released by DIPP, ministry of Commerce and Industry, government of India, the government has allowed 100 per cent foreign investment under the automatic route in the hotel and tourism related industry. According to World Travel & Tourism Council, by 2020, travel and tourism investment is estimated to should reach US$ 109.3 billion or 7.7 per cent of total investment. Federation of Hotel and Restaurant Associations of India states that India currently has over 200,000 hotel rooms spread across hotel categories and guest-houses and is still facing a shortfall of over 100,000 rooms. The Indian hotel industry is seeing huge spurt of foreign investment and international brands entering the fray. Most major international hotel brands such as Starwood, Hilton, Marriott, Hyatt and Accor already have a growing presence in India 11 1.3.1 GROWTH DRIVERS OF HOSPITALITY INDUSTRY IN INDIA: Regulatory External Drivers Internal drivers Drivers Incentives by Central & Strong Economic Growth Hosting major sporting State Governments events GDP growth rate of 9% Elimination of Customs p.a was achieved for the International sporting duty on the import of year 2010. Growth rate of events like Formula One raw materials, 8.7% p.a has been race in the National Equipment, Liquor etc., forecasted till 2016 to Capital Region (NCR) in Fringe benefit tax enable hospitality sector 2011 are set to boost exempted on crèche, growth. hospitality. employee sports, guest FDI inflow increased due Ministry of Tourism house facilities. to allowance of 100% FDI estimates a shortage of Five year tax holiday & better infrastructure 0.15 mn hotel rooms in granted to 2-4 star hotels availability. 2011, of which two-thirds in specified districts Hospitality sector are in the budget having UNESCO world handled 5.58 mn category. heritage sites. international tourists Rising disposable Exemption of Luxury and arrivals(8.1% Y-o-Y incomes, cheaper sales tax for 5-7 years for growth) and 740.21 mn airfares, changing new projects. domestic tourists in 2010 consumer