Summarize of the article "Implementing LEAN Operations at Caesars Casinos

Introduction

The provided article explores the implementation of LEAN in Caesars Entertainment. As such, the

author seeks to provide information about the economic problems that faced the company, necessitating the deployment of LEAN operations. This paper will give a summary of this article by providing a review of Kaizen Day 1. This summary will be utilized in the presentation.

Summary

As has been established in the article, Caesars Entertainment, an organization based in Nevada, L.A.,

was among the globally recognized brands when it comes to casino entertainment. This business has a rich background with more than 68,000 employees and operations in more than 50 countries such as Egypt, Canada, and the US among others. Some of the factors that contributed to its success as of 2014 include the introduction of refined customer-service management, application of concepts associated with process improvements in their casino operations, and the development of a loyalty-card program, as has been elucidated in the article.

Nonetheless, starting in 2008, the company began experiencing difficulties in its economic

environment. One factor that contributed to this situation was the collapse of the US economy during the Great Recession. As a result, they faced a reduction in customer spending, resulting in decreased revenues and increased competition for a share of the market. Caesars pride themselves in their customer services, which form the core of the companys corporate strategy. The article explains that they continued undertaking surveys to aid them develop and implement effective measures geared towards customer satisfaction. 

Data was collected and analyzed to determine ways in which customer spending can be enhanced. Furthermore, their studies were utilized as key factors in the determination of bonuses for their staff. Their studies primarily focused on scores to provide crucial information on how they can increase staff bonuses and maximize employee satisfaction and loyalty. One of the findings that Caesars executive team recognized is that addressing the reduction in revenues and negative impacts on profitability required comprehensive engagement across the organizational structure. It is a strategy that would also help in improving scores and market share.

Following the appointment of Hirsch as Reginal Director tasked with the implementation of LEAN at

the selected Caesar casinos, an urgency for change was identified. Effective decision making was a prerequisite for sustainability, team-work, and process improvement. The team created by Hirsch sort out to implement LEAN through a series of kaizen events characterized by workshops that involved diverse employees. Initially, the organization faced a challenge of communication as some employees perceived the LEAN program as a strategy to cut jobs. However, the executive team employed effective communication to create awareness of the intended goals and objectives.

Each of the five-day kaizen workshops was based on an identical structure that enables the

organization to realize concrete and instant improvements, allowing them instill a LEAN culture within the organization. In total, Hirsch successfully led his team through 63 five-day events, resulting in improved scored in terms of customer service as well as savings estimated at $3 million. Specifically, the kaizen events were described according to the activities aimed at enhancing knowledge, developing solutions, problem-solving and improving participation.

Kaizen Day 1

The initial steps of kaizen activities included education about LEAN concepts. It is a strategy that ensured that employees were aware of waste recognition. To achieve this, Hirsch and his team focused on the acronym DOWNTIME which stood for (Defects, Overproduction, Waiting, Not engaging people, Transportation, Inventory, Motion, and Extra-processing. This analytical tool used across the five days of kaizen events is proved effective enough in improving processes within the organization. Moreover, the participants enhanced their experience in the context of stream-mapping, pull discipline, and problemsolving approaches among other organizational concepts. Generally, the undertaking provided Caesar with opportunities for reducing wastage and improving customer service.