It is about how starwood capitalize knowledge management thru six sigma. This paper has been presented in Quality in Research Seminar (UI)

1. Six Sigma e-tools: An Overview of Knowledge Management Application
for Improvement Activities in Hospitality Industry
Yudha Satya Perdana

2. Abstract
• Six Sigma has been developed into a practical management system for
continuous business improvement.
• In 2001, Starwood became the first hospitality company to embrace Six Sigma
and began to develop a knowledge management system. Six Sigma e-Tools
Knowledge Management System (SSeKMS) was initiated as an integrated
systematic approach in managing all of information assets, including
database, documents, as well as expertise and experience for improvement
initiatives (Six Sigma Project) held by 1,081 hotel chains world wide
• SSeKMS enables each hotel property to identify improvement opportunities,
develops innovative customer focused solutions, track the bottom-line result
and transfer those innovations rapidly. This paper aims to give an overview of
knowledge Management System implementation which supports the
successive of Six Sigma adoption in hospitality industry

3. Introduction
• In recent days the consumers is no longer in the passive market where goods
or services are offered at the exact face value.
• The developments of recent technology have support them in providing
information about market and its competition. This has initiated new and
radical changes in the business world.
• The ability to improve and the ability to learn are the key drivers for a
company to survive in market competition
• Many organization already know the importance of process improvement
and learning organization and try to implement it, but the result is not essential
for their company. The reasons are: Lack of understanding on the level of
maturity, Process improvement not link to the strategic plan and the criteria
for success not establish, Inappropriate resource allocation, Lack of
Coordination throughout the organization, Lack of Data Management

4. Process Improvement and
Organization Learning
Process
Improvement
Organization
Learning
Reflection
Perform
Enhance Skill
• Common aspirations
• Looking for better ways
• Forward looking
• Basic team building
• Communication
• Creativity/ innovation
• Knowledge
Improved
process
• Update documentation
• Knowledge management
• Process testing
• Efficiency
• Effectiveness
• Other performance measure

5. Six Sigma &
Knowledge Management
• Six Sigma provides set of tools, proven methodology, and
management system to boost profitability, increase market share
and improve customer satisfaction. As a result of those, Six Sigma
eventually increases the company’s competitiveness
• Knowledge management provides strategy of putting tacit and
explicit knowledge into action by creating context, an infrastructure,
and learning cycles that enable people to find and use the
collective knowledge of the enterprises
• Knowledge management and Six Sigma share a notable distinction
in a corporate universe full of change initiatives and improvement
philosophies. These two approaches have been integrated into
regular operations at leading companies to guide and maintain the
learning cultures within organizations

6. Company Info
• Starwood is the world’s largest hotel and leisure (1,081 hotels) . Starwood
brand include: St. Regis, Sheraton, Luxury Collection, Le Meridien, W, Aloft,
Element, Bliss, Westin, and Four Points
• Before established Six Sigma in 2001, which was noted as the first hospitality
company to embrace Six Sigma, Starwood already has SIS and SCE as a
management improvement system. By Six Sigma, SIS and SCE have been
enhanced as management system that enables associates to develop
innovative customer focused solutions and transfer those innovations rapidly
across an organization which known as the first hosp
• Starwood has seven divisions: Asia Pacific, Latin America, North America,
Europe & Middle East (EAME), SVO, Franchise, and Corporate. Each division's
Six Sigma organization reports to divisional leadership and is aligned with the
division's goals and priorities

7. The Milestone
2001 20052004 2006 200720032002

8. The Organization Structure
• Black Belt assigned to a number of Starwood
properties, who is part of a larger SIXSIGMA
project team. Black Belts are coached by a
Master Black Belt, who has regional
responsibility.
• Each property has several Green Belts with
primary role to take on the extra responsibility to
drive improvements that positively impact their
business.
• At each property, a SIXSIGMA Council meets
regularly to select and monitor projects.
• Other leadership roles include area and division
management, who are responsible for
approving projects, sharing best practices, and
coaching Master Black Belts.

9. DMAIC
QUICK
HIT
BEST
PRACTICE
InnovationInnovation TransferTransfer
Innovation Transfer Process
Projects that follow the DMAIC methodology led
by a Black Belt; will generally have a duration of
3-4 months and can cross functional boundaries.
Transfer project that follow iDMAIC to ensure
consistent and rapid transfer of innovation
throughout Starwood. Best Practices project is
identified as a transfer project when it has
potential value to many other properties.
Quick Hits are small projects that can be quickly
implemented and can be completed within the
boundaries of a single function or department.
Quick Hits follow DMAIC method, but are not
subject to as many tollgate reviews.

10. Six Sigma Best Practice

11. Six Sigma e-tool
The Six Sigma eTool application is a web-enabled, global repository of Six Sigma projects.
It is focused on data recording and houses project information from the initial project
proposal through the completed project. The eTool improves Six Sigma performance
assessment, knowledge capture, best practice transfer and senior leadership reporting.
Providing Knowledge management

12. Six Sigma e-Tools Knowledge
Management System
• Six Sigma e-Tool for Project Reporting and Tracking . Six Sigma e-Tool is a
robust warehousing capability houses project information from the initial
through the completed project. The format of the Six Sigma reports and
document are standardized and regulated for projects progress and
tracking
• Six Sigma e-Tool for Financial Reporting and Tracking. Six Sigma e-Tool
provides financial report for leadership council. The benefit from projects can
be tracked and validated. Financial benefit for Quick Hit is recorded for 12
months; DMAIC and i-DMAIC are recorded for 18 months. In the e-Tool,
• Six Sigma e-Tool for Sharing Knowledge. the implementation of Six Sigma e-
Tool knowledge management system is to speed up process learning.
Different with DMAIC and Quick Hit project which starts with problem or
opportunity and focuses on developing and implementing a solution, a
project transfer (i-DMAIC) stars with a known solution and focuses on
implementing that solution to address a problem that property has in
common with the exporting property

13. Conclusions
• Six Sigma is a proven management system for process improvement.
On the other hand, Knowledge Management (KM) is a modern
approach that deals with the greatest capital of organization.
• Six Sigma achievements are also based on proper knowledge and its
flow.
• As a systematic approach to managing knowledge and process
improvement activities with the aid of an information system in
Starwood, Six Sigma e-Tool knowledge management system has
been strongly emphasized and promoted throughout hotel chain.
• Six sigma e-Tools Knowledge Management System has played
important role in support growth, profitability and powerful tool to
speed up organization learning process to become market leader