Caesars Casino Case Study
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Implementing Lean Operations at Caesars Casinos Case Solution
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- Introduction: The case is about change in management that took place at Caesars Casino by implementing the LEAN operating principles. Caesars Casino’s senior vice president Brad Hirsch, took charge in mid-2014 and realized that there is a need of change in the business.
- In December 2014, Brad Hirsch stood on the gaming floor at Harrah’s Metropolis Casino and Hotel in Metropolis, Illinois, where he had recently been assigned the position of General Manager and Senior Vice President. The property was part of Caesars Entertainment, the world’s most geographically diversified provider of casino entertainment. Evidence from customer surveys and data on loyalty.
Introduction:
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.
Caesars Casino Case Study
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.
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)........................................................................................
Caesars Casino Case Study Questions
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