Opm 500 Module 4

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Running head: Operations Mgmt. for Managers

Quality Assurance and Statistical Process Control

OPM 500

Module 4 Case

Quality at the Ritz-Carlton Hotel Corporation

I will give a brief introduction about Ritz-Carlton in 1927, Edward N. Wyner, a local Boston real estate developer, was asked by Mayor Curley to build a world-class hotel.  Wyner, who was constructing an apartment building and was up to the second floor at the time, agreed and changed the apartment building into a hotel, because of the reputation of Ritz in Europe and the cosmopolitan society in Boston, Wyner knew the Ritz-Carlton name would secure immediate success. He received permission from The Ritz-Carlton Investing Company and The Ritz Paris’ for use of the name and set out to create luxury in the heart of Boston.  The Ritz-Carlton, Boston opened on May 19, 1927 with a room rate of $15. In the tradition of Cesar Ritz, Wyner was meticulous about maintaining the privacy of his guests; a policy strictly adhered to today in all Ritz-Carlton hotels.  And thus, the elite were drawn to his hotel.  However, he was also very aware of the role and reputation the hotel had in the community: during the Depression Wyner kept the lights on in vacant hotel rooms to portray an aura of success.

Some of the ways the Ritz-Carlton could monitor its success in achieving quality was inspired by renowned hotelier Cesar Ritz. Micheii (2008) stated the Ritz-Carlton Hotel Co. has long been recognized as a leader in product and service excellence. The Ritz-Carlton has won two prestigious Malcolm Baldrige awards for service quality which contributed to their ability to maintain a very loyal customer base; the company's leadership doesn't leave customer engagement to chance. The Ritz-Carleton like many other great businesses uses a CRM system. Coined "Mystique," the Ritz-Carlton database is used to track information such as guest preferences,...