1.
Internship Process Improvement Project
Using
Lean
6σ
tools
Company:
Key West Marriott Beachside Hotel
Project
Title:
Bringing Change to Light
Prepared
By:
Philip G. Spottswood
Supervisor:
Clif Taylor
Supervisor
Contact:
(336) 287-6162 / clif.taylor@marriott.com
Professor:
Brian Lerner
Project
Date:
Summer 2016
This project will elaborate on the idea and process implementation to create large beneficial
savings at minimal cost and zero over-head. There will be an initial cost of this project in
order to implement it properly. As it goes, one must spend money to make money. In this
case we are going to spend money to save money. The immediate cost of this PIP (process
improvement proposal) will be greater than if not initiated but minor when compared to the
ROI (return on investment). The project will be rolled out beginning in August. I would like
to present a structure to replace all current lights with a smarter more efficient system.
Changing the light bulb currently used (incandescent and florescent) to the proposed bulb
(LED) will be an enhancement in all facets including aesthetically, monetarily and
environmentally.
Executive

2. ii
Table of Contents
Message from the Professor......................................................................................................................... iv
About Lean 6σ ......................................................................................................................................... iv
Criteria for the Project.............................................................................................................................. iv
Define……………………………………………………….………………………………………………1
Project Charter and Cost Benefit……………………………………................…………………..…1
Current State Process Map........................................................................................................................ 4
5 Why analysis.......................................................................................................................................... 5
SIPOC ....................................................................................................................................................... 6
Suppliers to the Process: ....................................................................................................................... 6
Inputs to the process.............................................................................................................................. 6
Process .................................................................................................................................................. 6
Outputs.................................................................................................................................................. 6
Customers.............................................................................................................................................. 6
Measure........................................................................................................................................................ 7
Data Collection Plan ................................................................................................................................. 7
Data Collection Results............................................................................................................................. 8
Data Item 1............................................................................................................................................ 8
Data Item 3............................................................................................................................................ 9
Data Item 3.1....................................................................................................................................... 11
Data Item 3.2....................................................................................................................................... 12
Data Item 3.3....................................................................................................................................... 13
Data Item 3.4....................................................................................................................................... 14
Data Item 3.5....................................................................................................................................... 15
Data Item 4.......................................................................................................................................... 16
Failure Modes and Effects Analysis ....................................................................................................... 18
Process Capability................................................................................................................................... 19
Process Cycle Efficiency: Compute Little’s Law................................................................................... 19
Determine Process Capacity ................................................................................................................... 19
Voice of the Customer ............................................................................................................................ 20
Voice of the Business.............................................................................................................................. 21
Waste Analysis – Timwood P - Types of waste: .................................................................................... 22

3. iii
Analyze....................................................................................................................................................... 23
Benchmarking ......................................................................................................................................... 23
General Theory to Explain the Process Problem .................................................................................... 26
Improve...................................................................................................................................................... 27
Improve the Process................................................................................................................................ 27
Future State Process Map........................................................................................................................ 28
Modification to Procedures Manuals (Or Establishment of) .................................................................. 29
Control ....................................................................................................................................................... 30
Entropy Force Analysis........................................................................................................................... 30
10 Day Review (normally 6 months)...................................................................................................... 31
Transition Plan ........................................................................................................................................ 32
Foresight analysis.................................................................................................................................... 33
Lessons Learned.......................................................................................................................................... 34
Supervisor’s Critique .................................................................................................................................. 35
References................................................................................................................................................... 36
Appendices/ Support Documents................................................................................................................ 38

4. iv
Message
from
the
Professor
Why we are using this method in the advanced
internship class
Our internship students are within a semester or two of entering the workforce as managers.
FIU’s Hospitality and Tourism Management School has included a structured internship as part
of the curriculum for over a decade to assist students with this transition into management. A
substantial part of the course has always included a project where the students were to improve
the host company’s operations in a meaningful and lasting way.
About Lean 6σ
This project is a scaled down Lean 6σ (six sigma) project designed to be completed within the
term of the semester. Lean 6σ is a continuous process improvement method which has grown in
use in U.S. and international corporations since the 1970’s. Employed to great success at
companies like Motorola, this method aims to refine a company’s existing processes through
data based analysis and evidence based decision making.
U.S.-based quality professionals who complete any Six Sigma training earn on average $12,642
more than those without it. 2011 QP Salary Survey*
Criteria for the Project
• The project must be based on a real need in the company, and have the support of the
student’s supervisor.
• Must be able to be completed to in 8 weeks or (40 hours)

5. 1
Define
:
Project Charter and Cost Benefit
Start
Date
8/15/2016 Complete
Date
9/25/2016
Project
Name
Bringing Change to Light
Company
Key West Marriott Beachside Team
Members
(if
any)
Department
Engineering Justin Harris (Chief Engineer)
Kara Brown (Head of Accounting)
Clif Taylor (General Manager)
Process
Owner
Chief Engineer – Justin Harris
Sponsor
General Manager – Clif
Taylor
Leader
Intern – Philip Spottswood
LSS
Green
Belt
Coach
Jason L. Stiles, Ph. D.
Problem
Statement/
Business
Impact
Using incandescent light bulbs. Burning more wattage and inefficiently using
electricity/energy. This is environmentally insensitive and exponentially inreases the
time, effort and money to operate. This is an overall negative impact on any business
especially in lodging as it creates far more stress and demand than necessary. In this
case, a hotel property that can be simplified to a far more sustainable and cost
effective process should be taken with any and every opportunity available. The
problem here revolves around the energy (KWh’s (Kilowatt hours)) consumed on
property. Energy especially electricity is a necessity of our everyday functions and
heavily relied upon. The property’s light consumption alone is roughly 1,398,925,000
watts (1,398,925 KWh) per year, which is $171,228.42 annually, 1/3 of the property’s
entire energy bill. This project presents the ability to minimize this large expense by
80% simply by changing the current incandescant light bulbs to LED lights bulbs.
Based upon the proposed small initial investment and the considerable long terms
savings, this looks to be a very attractive option.
Project
Goal

6. 2
The expectancy in this process improvement plan is to create a more eco-friendly, self
sustaining, efficient system where a broken one currently exists. Replacing each and
every light bulb on premise is not only feasible but would be negligent to reject the
notion. Success in considerble cost savings are evident and will be displayed over the
course of the upcoming years of operation within the utility budgets and expenses
incurred. The property will have an inherent transformation that is cleaner and more
appeasing to all guests and employees – better and smarter lighting translates
immidiately to less gas emissions released such as CO2 and Mercury; 150 lbs less per
bulb that is changed. The bi-product of this change will reduce emissions up to
811,050 lbs of GHG (greenhouse gas) released from our property annually. This
proposal will reduce the electricity expense currently incured by nearly 57% over the
first year, 76% over 5 years and 80% within 10 years. Aside from the great cost
savings and the property becomimg naturally more eco friendly reducing its GHG
(greenhouse gas) emissions output into the environment; The reduction in stress on the
facility and its appliances will also be achieved. Electricity burns unnecessary
emmissions and money, especially incandescent bulb. The LED light bulb burns 1/6th
of the watts with the exact same output of lumens (1,100 for common 75 watt
incandescent) and produce 75% less GHG’s.
Benefits
Type 1 Benefits:
Describe Annual cost
savings if your project is
successful
Type 2 Benefits:
Describe Annual
projected increased
revenue if your project
is successful
Type 3 Benefits:
Describe Intangible
benefits like increased
customer loyalty, or
better Yelp reviews.
Annual cost savings within
the first year of
implementation will be
approximately $97,600.20
(32,387.93) and up to as
much as $126,709.03 per
year, within 3 years.
There will be no revenue
generated but there will
be profit gained in the
form of savings. (see
type 1 benefit)
Benefits to be had will be
those of environmentally
sound practices and
operation. Reducing CO2
and other green house
emissions released by 150
lbs per bulb. Great for PR
and opens pandora box for
new enviromentally
conscious clientelle
Scope
Start of the process End of the process What is not included:
Researching potential
alternative light bulbs and
creating an accurate and
realistic budget based upon
new findings.
All old incandescent
light bulbs on site are
replaced with adequate
LED light bulbs. From
then simply watch the
cost savings pile up.
Creating the P.O.,
receiving the order and
the actual labor intensive
portion of the process;
replacing every light bulb
within the scope of the
project. 5,407 light bulbs
with a lead time of 20-25
days.

7. 3
DMAIC
Phase
Schedule
Define Measure Analyze Improve Control
6/15 7/5 7/11 7/21 7/23
Financial
Benefits
Year 1 Year 2 Year 3 Totals all 3 years
Type I 65,212.27 118,147.61 126,709.03 $310,068.91
Type II N/A N/A N/A N/A
Total I&II 65,212.27 118,147.61 126,709.03 $310,068.91
Foundation
The initial investment (LED bulbs) will be more than the total expense incurred in the
first year of operation. To replace each light will cost roughly $32,387.93. This expense is rather
large when compared to the $4,325 in expenses to purchase and install Incandescent lights. The
incandescent costs, although 87% cheaper to purchase will run a 55% greater expense within the
first year of operating than the LED lights.
Breakdown
The costs will get cheaper each year as the costs of replacement is substantially lower for
LED than Incandescent. The LED light bulb has a 25x greater life cycle and will last 12 years vs.
an Incandescent bulb .5 year. Considering the lifecycle, the actual cost per year will be $8,651.20
for Incandescent light bulbs.
Outlook
Over 12 years a property would spend $103,814.40 on Incandescent bulbs vs. $32,387.93
for LED bulbs. The “cheaper” option is costing you $71,426.47 more over a 12 year span than an
LED light bulb. That’s roughly $5,952.21 per year not too mention the 55-82% greater expensed
incurred per consumption of kWh’s.
ROI
6 months

8. 4
Current State Process Map
Problem: Wasted time, energy and money due to inefficient equipment. However, the problem
begins before the equipment (incandescent light bulb) arrives. The problem is introduced at the
head of the table for not specifying desired outcome when selecting lights. Simply purchasing
the cheapest bulb does not translate to cheapest use. The property has currently paid 441,444.99
in it last fiscal years end. Of that total energy bill, 39% of it is allocated towards light usage. This
results in a total estimate of $171,228.42 towards the annual expense incurred for lights.
Replace
lights
with
same
incandescent
bulb
Receive
and
install
all
lights
Purchase
cheapest
available
lights
Create
a
P.O.
and
submit
to
vendor
Incur
and
pay
monthly
bill
($171,228.42)
Property
needs
lights

9. 5
5 Why analysis
Why: The electric bill is extremely high (expensive)
- The electric bill is not biased but symbolic of energy consumption. The energy consumed
comes at a price and is billed accordingly based on Watts used. 1000 watts = 1 Kilowatt. At Key
West Beachside Marriott electricity costs $.122400 per KWh (kilowatt hour).
Why: Watts and KWh consumption are through the roof.
- According to the USEIA (United States Energy Information Administration) energy
consumption is 40.4 KWh per guest/night. At our rate of cost per KWh that would be $4.94 per
guest/night. We are not certain of the energy consumption per guest on our property as our
occupancy vouches for occupied rooms weather there is 1 guest or 5 guests is undetermined. Our
daily/nightly average KWh consumption per room is 55.10 KWh. At our given electricity cost rate,
that is $6.74 per room/day.
Why: guests consume electricity/energy (KWh):
- It is demanded and an absolute necessity relied upon daily/nightly. Not a demand of scarcity
but one of luxury and it is to be enjoyed as needed or even as pleased or simply forgotten about and
used uselessly/inefficiently. Makes no difference to them…
Why: Do guests consume electricty/energy inefficiently:
- They are NOT picking up the BILL!!!! They use and abuse energy/electricty at the hotel
property’s expense. As a property you cannot control this impalpable phenomenon that is energy
consumption and waste or even how to dechypher between the two.
Why: Can’t the hotel property control amount of energy consumption a guest is granted
- This is a completely subjective matter and at the disposal of the paying customer (guest), to
decide what is necessary and what isn’t. There is not a solution to reduce electricty “time” consumed
by a guest but there is a way to exponentially reduce the KWh used which is what is paid for. “Time”
is a constant in this equation that may not be tampered with in any way but the variable that can be
altered is the KWh consumption.
Why: is the hotel property paying for more KWh than it needs to be : Explain the process
- The property is currently using incandescent light bulbs. Incandescents are the most
inefficient light bulb on the market. A 75 watt (most popular watt) incandescent ligthbulb produces
1,100 lumens which is the most commonly required output of light for proper appearance and
functionality of most facilities. The competitor in this case the A19 LED 14 watt light bulb. The LED
produces 1,100 lumens at 19% of the watt consumption of a 75 watt incandescent.
Why: Is the hotel property using Incandescent light bulbs : This is the root cause.
- Because Incandescent light bulbs are approximately 87% cheaper than the LED light bulb

10. 6
SIPOC
SIPOC analysis (Suppliers, Inputs, Process, Outputs, Customers)
Suppliers to the Process:
•
Sysco
•
1000bulbs,
Inc.
•
Philip
Spottswood
•
Clif
Taylor
•
Justin
Harris
Inputs to the process
•
Observe
and
research
cost
saving
alternatives
•
Share
and
discuss
possibilities
with
higher
authority
•
Create
P.O.
(Purchase
Order)
•
Have
P.O.
and
newly
formed
budget
approved
Process
•
Select
credible
vendor
•
Submit
P.O.
to
vendor
•
Anticipate
arrival
date
•
Begin
initiating
and
communicating
plan
of
implementation
to
staff
regarding
project
scope
&
labor
•
Cross-­‐examine
P.O.
with
invoice
and
product
itself
upon
delivery
•
Begin
replacing
all
bulbs
•
Notify
owners
and
GM
when
all
bulbs
have
been
replaced
Outputs
•
Schedule
date
and
time
of
necessary
delivery
•
Replacement
bulbs
•
Save
money
annually
•
Reduce
emissions
as
much
as
811,050
lbs.
per
year
Customers
•
Guests
•
Entire
hotel
property
•
Employees
•
Justin
Harris

11. 7
Measure
Data Collection Plan
Data Collection Plan
Data Source Operational
Definition
Data
owner
Frequency Measure Sample
size
status
Electrcity
Watt/KWh Meter
The gauge
indicating
time
intervals and
legth of time
electricty
runs
City of Key
West and
Engineering
Daily The number
of Kwh
usage
1 Collected
History of
operating
financial reports
Income
statements
and general
ledger
Accounting Periodic To measure
% of utility
expense to
overall
expenses
3 Collected
(confidential)
Energy bill
(units/convention)
Final
invoice of
amount due
for KWh
consumption
charges and
demand
charges
incurred
Engineering
and
Accounting
Monthly Amount
consumed
and charged
for. KWh
and demand
charge
included
5 Collected
P.O.’s Purchase
orders for
product to
be used.
Engineering Updated as
needed.
Price per unit
of product
1 Collected

12. 8
Data Collection Results
Data Item 1
• Meter
(sub-­‐meter)
readings
of
one
sector
of
property
COA
garage
LED
light
project
Incandescent
Building
Lights
Watts
KWh
Multiplier
Cost
1
12
62,208
62.208
$0.12
7.46496
2
17
88,128
88.128
$0.12
10.57536
3
18
93,312
93.312
$0.12
11.19744
4
16
82,944
82.944
$0.12
9.95328
5
12
62,208
62.208
$0.12
7.46496
6
10
51,840
51.84
$0.12
6.2208
Totals
85
440,640
440.64
$52.8768
LED
Building
Lights
Watts
KWh
Multiplier
Cost
1
12
8,467
8.4672
$0.12
$1.02
2
17
16,993
16.9932
$0.12
$2.04
3
18
19,050
19.0512
$0.12
$2.29
4
16
15,050
15.0528
$0.12
$1.81
5
12
8,460
8.4672
$0.12
$1.02
6
10
5,880
5.88
$0.12
$0.71
Totals
85
73,911.60
73.9116
$8.87
83%
cheaper
LED
bulb
cost
ROI
$509.15
12
days

13. 9
Data Item 3
• Total Monthly Units Billed Sample (1/5)

14. 10

15. 11
Data Item 3.1
• Individual unit billing sample (1/5)

16. 12
Data Item 3.2
• Convention/commercial space total monthly bill sample (1/5)

17. 13
Data Item 3.3
• Convention Space Monthly Bill Sample (1/5)

18. 14
Data Item 3.4
• Blue Bar (pool bar) Monthly Bill Sample (1/5)

19. 15
Data Item 3.5
• Tavern N Town (restaurant) Monthly Bill Sample (1/5)

20. 16
Data Item 4
Reviewed P.O. maintained at property engineering department and determined cost of LED bulb
to be $5.99 vs. $.80 for our current incandescent bulbs.
The data collection above in the chart is displays the cost over a 10-year period of the average
and most commonly used 75 Incandescent vs. 14-watt LED light bulb. The chart provides a
complete breakdown of each bulb (LED & Incandescent) and their associated costs over the span
of 10 years as a single unit. The rate is the actual rate in Key West, FL of $.122400 per KWh and
the bulb prices are what we pay now for our currently used Incandescent on property and what
an equivalent LED retails for on the market today.

21. 17
Description 75 Watt - A19 - Incandescent
Price $0.80
SKU PLT-101459RS
Brand PLT
Bulb Shape A19
Bulb Color Frosted
Bulb Type Incandescent
Life Hours (Hours) 1,000
Wattage (Watts) 75 Watt
Lumens 680
Voltage 130
Base Type Medium (E26)
Length (Inches) 4.33 in.
Diameter (Inches) 2.36 in.
Case Quantity 25
MPN (Part No.) A19X110-75W-E26
Description
LED - A19 - 14 Watt – 75W
Incandescent Equivalent
Price $5.99
SKU LED-10024-SP
Brand SYLVANIA
UPC 046135790843
Bulb Shape A19
CRI 82
Color Warm White
Color
Temperature
(Kelvin)
2700 Kelvin
Life Hours
(Hours)
25,000
Wattage (Watts) 14 Watt
Incandescent
Equal (Watts)
75 Watt
Lumens 1,100
Voltage 120
Height (Inches) 4.6 in.
Diameter
(Inches)
2.5 in.
Warranty 5 Years
MPN (Part No.) 79084

22. 18
Failure Modes and Effects Analysis
• Potentially what can go wrong within the process and the respective reasoning and effects
towards those failures:
Type
of
Failure
Mode
(the
specific
way
the
failure
occurs)
Effect
(immediate
consequences)
Valence
(Seriousness)
1low-­‐
10
High
Light
bulb
that
does
not
fit
Miscalculated
order
Incandescent
bulb
remains
in
the
socket
using
more
energy
(KWh)
and
more
money.
Sunk
costs
regarding
freight
and
potential
product
units
5
Defective
P.O.
Lack
of
attention
to
detail
from
purchaser
Time
delay
of
bulb
replacement,
sunk
cost
of
wrong
bulb(s),
unnecessary
freight
costs
incurred
8
Vendor
error
on
delivery
regarding
bulb
type
Miscommunication
between
vendor
and
buyer
or
poor
execution
loading
up
delivery
Time
delay
in
potential
cost
savings
(bulb
replacement),
time
spent
to
correct
issues
2
Light
fixtures
are
not
compatible
with
new
bulbs
The
socket
excepts
the
bulb
but
fixture
is
proprietary
to
specific
bulb
design
Reconstruct/purchase
new
light
fixtures.
8

23. 19
Process Capability
Minimal room for error and process breakdown of any kind. Very simple process
implementation and easily maintained
Process Cycle Efficiency: Compute Little’s Law
37.55
Days
to
Install
=
54,070
(total
minutes
to
install
units)
1,440
(total
minutes
per
day)
This lead time is in my estimate most realistic. The equation your looking at above
estimates 38 days to completiong at a rate of 10 minutes per bulb (5,407 units x 10 min per bulb
= 54,070 minutes)/(1,440 minutes per day). I understand 10 minutes per bulb is somewhat
conservative when considering actual real time to unscrew a burnt out bulb from a socket and
replacing it with a new bulb. However, Chief engineer Justin and myself spoke on this matter
and considering there are 5,407 bulbs to be addressed and the time it may take to not only
replace a bulb but break down the ladder, walk to, get situated, set up/climb up the ladder,
unscrew and screw in the new ligtht over 5,407 times can be potentially time consuming and
exhausting. This lead time would be contingent on the number of hands on deck working
towards the end goal and hours worked per day. The estimated lead time breaksdown to 142 bulb
changes per day working around the clock through completion. Considering we do have 6
engineers on payroll and 3 including Chief Engineer on premise each day. This seems
completely feasible to complete within the allotted time frame of 54,070 total working minutes,
38 days on a hotel property (running Avg Occ of 84%).
Determine Process Capacity
Determine
how
many
times
the
process
can
be
effectively
completed
to
the
customers
satisfaction
per
hour
and
with
what
inputs.
The literal answer in accordance with the process capacity considering the given lead
time would be 6 bulbs per hour, 48 bulbs per shift for one of our engineers. However, this
process is not necessary to address everyday, every month or even every year or years for that
matter. This process capacity is not condusive to the current process implemented as it is not an
everyday function/activty. Light bulbs do go out and things do happen so if need be, 6 perfectly
ececuted changes can be made per hour within any given shift. These bulbs being put in place
have a life expectancy of 25,000 running hours. If run everyday for 24 hours a day that would be
2.85 years. With the national average of light consumption right around 6 hours per day in theory
they should serve for 11.42 years. The average incandescent ligth holds a maximum life
expectancy of 1,000 hours which at the 6 hrs per day rate would be less than half of 1 year.

24. 20
Voice of the Customer
Our hotel guests’ voices are fairly nonexistent regarding this subject matter. Since May
I’ve read guest surveys and feedback on all review intermediaries and direct messages. I’ve read
back as far as the past year just to understand and get a better feel for the property and
environment I’d be working for the duration of the summer. Many complaints, some very
credible with absolute attractive critisicm and most very insensible and irresponsible. The
customers (guests) will have more of a voice on the matter once this ineffective system is
replaced with an enviromentally sound and effective one. The thought and sound of a property
that genuinelly considers and cares to reduce the carbon footprint it leaves will be a huge PR
advantage. This will improve marketing and open up a new brand of clientelle and even more of
a demand for the already existing one. A story like this with the numbers presented behind it is
the type of act the creates a movement and ultimately the snowball effect.
The primary customer in this process improvement proposal are the ladies and gentleman
assisting to initiate the process. I say this because a “customer” by definition is one who seeks a
product, service or accomodation with a percieved value. In this case the real customer or
benefactor if you will is the property itself (retained earnings) and any investors/owners paying
the bill (net profit) and reaping the benefits of annual monetary gains. They view this problem
with skepticism but a willingness to cooperate and address the necessary underlying issues. Once
the bill is analyzed and broken down, the problem is recognized and the proposal can be better
understood.

25. 21
Voice of the Business
I’ve brought this to light no pun inteded mostly because of the simplicity, efficiency and
feasability of the process improvement proposal. I’ve understood this issue since last summer
while taking facilities management with professor Nancy Scanlon. I received an A in the class
and an abundance of knowledge on the subject matter particularly regarding POMEC (property
operating management energy cost). I hadn’t realized the numbers within the process until this
class at which point I felt obligated to share with Justin, Chief Engineer of the property. He has
previously acknowledged the fact but yet to implement the process as discussed.
We had a great discussion and he elaborated on his previous background of
understanding the functionality of the LED bulb v Incandescent. He was accurate in his brief
statements and understanding but grossly underestimated the difference that can be made. He has
prolonged the opportunity due to the high initial cost of LED light bulbs which is a huge
hindrance from LED’s penetrating the current market. However, the cost of LED bulbs has gone
down gravely over the past few years and is now considered a very pliable option.
After discussions between Justin Harris, Clif Taylor and myself we all agreed that this
would be a matter of great importance as it translates to potential cost savings.

26. 22
Waste Analysis – Timwood P -­‐ Types of waste:
TIMWOOD
P
is
an
acronym
used
to
describe
the
potential
sources
of
waste.
Look
at
your
process
and
see
if
any
of
these
sources
are
at
work
reducing
the
efficiency
and
effectiveness
of
your
process.
• Transport (moving products that is not actually required to perform the processing)
o Freight costs, shipping and handling fees may apply. However, although it may
apply these types of expenses already exist.
• Inventory (all components and finished product not being processed)
o Inventory will be kept as the old inventory but will be far less demanding and
abundant. The new LED bulbs last 25 times longer than the old incandescent.
This will save space and frequency of ordering.
• Motion (people or equipment moving or walking more than is required to perform the
processing)
o There will be less motion within the newly implemented process. Less room calls
for burnt out lights, less product via shipment and frequency of product shipment.
• Waiting (waiting for the next production step)
o Time involved bewteen initiation or the process and completion is a fairly quick
lead time for a six figure money savings proposal. Start to finish -- no longer than
2 months.
• Overproduction (production ahead of demand)
o Overproduction is an impossible matter involved. The process will do the inverse
and create equal production with exponentially less demand.
• Over Processing (resulting from poor tool or product design creating activity)
o This again will be a non factor as it relates to the process implmenetation
involved. The act of human error can occur, absolutely but with proper protocol in
place is not likely. The process itself will not cause any type of over processing.
This can only occur as a result of poor communication and negligence in the work
place.
• Defects (the effort involved in inspecting for and fixing defects)
o Defects will be miniscule if any at all. The only defect imaginable here would be
a bulb that doesn’t not fit in the current fixture. This should be addressed in the
preliminary stages of the process. That being said, a defect is highly unlikely as
these LED bulbs are manufactured to fit standard lighting fixtures.

27. 23
Analyze
The inefficient use of energy on property by hotel guests and constant use of energy in
common areas and commercial space is an expensive problem. It is an expensive problem that
can be dramatically reduced by one simple practice – installing more efficient lights.
Benchmarking
Conduct peer-reviewed research to determine how other companies address the same or similar
problems.
Since the property first opened its doors in 2008 it has been using the exact system as it
currently uses. The system involves the lighting which simply has been neglected and become
merely an afterthought to most if not all expenses. I believe the simplicity of the issue results in
this problem that reoccurs roughly 10,800 times per year and costs the company upwards of
$130,000 more per year in energy costs than what is necessary.
In this matter I could not find any peer reviewed journal entries/articles or hard
information of any kind revealing the energy costs incurred by any specific property. I can only
assume that properties are currently using one of the 3 readily available and applicable options
on the market.

28. 24
• Below is an energy compliant “success story” from the Loews Hotel. Not a direct
competitor with Key West Marriott Beachside but a qualified property of the highest
order on the luxury resort market.
DRAFT SUCCESS STORY – NOVEMBER 2010-11-10
ENERGY STAR Success Story:
Loews Hotels
Loews Hotels is a luxury hospitality brand with 18 hotels and resorts in the United
States and Canada. Undertaking its first energy reduction measures in 2006, and
joining the ENERGY STAR partnership in 2008, Loews has demonstrated commitment and industry
leadership in addressing its environmental impact and prioritizing sustainable practices. With a goal to
reduce energy use by 10% in 2011 as compared to 2007, Loews has achieved over 7.5% reduction
through October 2010 – well on target to meeting corporate energy targets.
Energy Management with ENERGY STAR
By aligning its approach with the ENERGY STAR Guidelines for Energy Management and by leveraging
the Teaming Up to Save Energy guide, Loews created a Corporate Energy Team that meets monthly and
works with “Green Teams” at each hotel, advising property-level staff on how best to reduce energy
through simple measures. Loews’ Corporate Energy Team established portfolio-wide best practices
protocols and an energy management checklist to institutionalize conservation into property
management. Additionally, energy assessments were performed at each owned hotel – using EPA’s
ENERGY STAR Portfolio Manager tool to benchmark performance and investment grade energy audits
were conducted by a third-party. These baseline assessments allowed the Corporate Energy Team to set
goals, develop energy reduction plans, and prioritize investments for each hotel. Continuously tracking
energy in Portfolio Manager and reassessing properties using the energy management checklist enables
Loews to evaluate energy performance improvements, quantify cost savings, and ensure best practices
are sustained.
Top energy saving projects at Loews Hotels include:
Energy Efficiency Projects Energy Savings
Retrofitted 33,600 guest room incandescent lamps with
compact fluorescent lights across all 18 facilities
60% energy reduction in lighting energy per room,
plus reduced labor to change bulbs
Installed variable frequency drives on large motors
across all 18 facilities
30% reduction in motor electric load
Installed capacitors on large pumps, motors, and air
handler units in some facilities as a pilot
4-5% electricity reduction, plus extended motor life
Installed 5 ozone laundry systems
18% energy reduction, plus extended life of linens
due to fewer chemicals and no hot water
Implemented a pilot hot water storage tank temperature
reset system with computerized tracking sensor
15% natural gas reduction for system
Updated guest room shower heads and toilets, and
retrofitting public restrooms with sensor devices across
all facilities
50% reduction in water flow rate, with lowered
energy demand by pumps and motors
Many of Loews’ projects were made more financially attractive by utilizing rebates offered by utilities and
government agencies. For pilot projects, tracking energy impacts at the system and building levels helped
Loews identify which projects contributed most to overall energy performance improvement, which were
most cost effective, and which should be replicated in other hotels.
Employee Engagement and Communications
Loews places emphasis on fostering energy awareness among staff, and motivating employees to save
energy at work and at home. The company leverages ENERGY STAR communications resources such
as ENERGY STAR videos that play on “Team Member TV,” Bring Your Green to Work campaign posters

29. 25
Root Cause Impact Analysis
The root causes get to the bottom line of what creates the problem and chronically
introduces its fostering elements. In this chart we want to focus on what can and cannot be
controlled. Not all variables can always be adjusted. Here are the issues researched…
Root Cause Impact
(0 low,
10
High)
To
Improve
(Yes,
No)
Why:
The
electric
bill
is
extremely
high
(expensive)
10 YES
Why:
Watts
and
KWh
consumption
are
through
the
roof.
10 YES
Why:
guests
consume
electricity/energy
(KWh):
1 NO
Why:
Do
guests
consume
electricty/energy
inefficiently:
5 NO
Why:
Can’t
the
hotel
property
control
amount
of
energy
consumption
a
guest
is
granted
8 NO
Why:
is
the
hotel
property
paying
for
more
KWh
than
it
needs
to
be
:
10 YES
Why:
Is
the
hotel
property
using
Incandescent
light
bulbs 10 YES

30. 26
General Theory to Explain the Process Problem
Now that you have studied the problem thoroughly, describe in a few sentences what you
think caused the problem, and what forces must be combatted to prevent the problem from
reverting to the previous situation.
It isn’t necessarily a problem as much as it is and should be labeled a concern or
opportunity to be capitalized on. It currently stands as a concern that needs the necessary amount
of attention and should be entertaiend in order to be resolved and will then translate into the
opportunity foreseen. However, for the sake of argument, the problem began years ago when
deciding to input incandescent light bulbs as the properties source of lighting. This issue has
been managed in a manner that created the original problem. The bulbs have gone out time and
time again and have been addressed and replaced with identical inefficient bulbs. This is simply
a lack of knowledge in the field regarding this subject matter and lack of recognition in areas of
great potential savings
LED lighting systems and bulbs have been around as far back as mid 1900’s. When first
on the scene there were contingencies surrounding the breakthrough before it was considered a
breakthrough. The LED bulbs were only offered at very low wattage and were limited to only a
few colors, red being one of three available options, generally used in smaller apparatuses.
Within the past 10 years LED light bulbs have made enormous strides in reducing manufacturing
costs and broadening the variety of options offered and their respectively functionality. Since
2012 a the potential of the LED smart light bulb has proved a multitude of benefits.
Installing the now competetively priced LED lights will not only eliminate the problem
but will maintain the problem with minimal effort. The proposed process implementation will
eliminate roughly 10,800 light bulb changes per year and will save roughly $135,544 annually.
The process requires an estimated 38 days of installation and minimal upkeep (less than current
process) for the remainder of its cycle.

31. 27
Improve
Improve or optimize the current process based upon data analysis. (Evidence Based Decision
Making)
Improve the Process
This process is intended to eliminate or avoid human error especially in the manufacturing
sector. As applied to our case, we can extrapolate on the poka yoke concept to eliminate or
change the human tendency to not change or to stick with what is already in place. By forcing
this change from incandescant to LED, while simple but uncomfortable, we will achieve
enormous savings at very little cost. There are aslo many downstream benefits such as
environmental conservation, future time savings, less manufacturing processes creating
pollutants, waste, etc.

32. 28
Future State Process Map
Problem: Wasted time energy and money due to inefficient equipment
Management
reviews
proposed
P.O.
and
accounting
creates
budget
Vendor
delivers
lights
with
expected
order
Research
and
conduct
SWOT
analysis
on
potential
alternatives
Engineering
drafts
P.O.
based
on
research
findings
GM/Property
owners
want
to
reduce
costs
-­‐
save
money
Engineering
finalizes
and
submit
P.O.
to
vendor
for
processing
Engineering
checks
in
order
cross
referencing
with
original
P.O.
and
provided
invoice
All
old
lights
are
replaced
with
LED
lights

33. 29
Modification to Procedures Manuals (Or
Establishment of)
As part of this project, I have worked with property management create and / or modify
property manuals and procedures to provide for the use of LED bulbs where applicable.
The program for this project will also include a review after 60 days to determine that all
bulbs have been replaced and then a periodic review of operating expenses to determine that
forecasted operating cost savings are being achieved.
Engineering checklists will be revised to reflect LED bulbs rather than incandescent bulbs.
Cross-referencing P.O. with final invoice and submitting records of light bulb replacement date
and location.

34. 30
Control
Minimal monitoring will be required. Simplicity and cost savings are the words of
emphasis in this process. Only possibilities of mismanagement and their corrective action
necessary are listed below.
Entropy Force Analysis
Force
Corrective
Action
Engineering orders the wrong type of
light bulbs
Have all P.O.’s flow through accounting and/or GM of
the property for adequate validation and approval before
submission
Inventory or lack thereof Keep reasonably calculated par levels of sufficient
supplies for accurate inventory
Wrong bulbs received from vendor Request confirmation emails on all P.O.’s to ensure
accurate communication between both parties.
Defective (broken) product units
delivered from vendor
Cross examine all supply order with original P.O. as well
as invoice and physical product itself

35. 31
10 Day Review (normally 6 months)
Chief Engineer Justin Harris and I surveyed the metering system allocated for the garage
lighting. In our findings we found no defects to speak of but did however find conclusive
evidence of the accurate functionality anticipated. The LED lights consumed far less KWh per
unit and collectively reduced costs by 83%.
The process implementation has not yet taken place to scale of the property in its entirety,
therefore, no garaunteed measurement of defects can be drawn at this point and time. The
process is strictly reliant and based off of data and statistics to prove functionality. The
complexity at hand here regarding this process implementation is minor level 1 with 10 being the
highest level of intricacy.

36. 32
Transition Plan
I have discussed with Justin Harris (Chief Engineer) and Clif Taylor (Genral Manager).
They are both aware of the transition plan and its surrounding parameters. Due to the efficiency
and hardiness of the new bulbs lifetime there is not much to keeping the process running
effectively. It is quite simple and was self explanatory when regarding this particular process
implementation.
The process should be measured and analyzed each billing cycle (monthly) and at each
fiscal year’s end (annualy). The actual bulbs themselves do not have to be addressed or tampered
with in any way until necessary which if properly maintained should be every 9-12 years. Should
something arise such as a light bulb burning out prematurely the appropriate action would be to
replace that bulb with another one of the same caliber (LED). An approriate par count of LED
bulbs should be stored as inventory on premise to avoid use of any other bulbs other than the
new standard that is LED.

37. 33
Foresight analysis
In
this
section,
please
describe
how
you
see
the
problem
you
addressed
playing
out
in
5
and
25
years.
I foresee the problem no longer being a problem. I expect nothing short of great returns
in annual cost savings beginning as early as the first year, roughly 57%. In five years I anticipate
even greater cost savings at 77% and 25 years up to 82% annual savings on light KWh
consumption. This is a hard prediction here, as 25 years from now is a long time and so much
can change and innevitably will change. That being said, my process improvement has a cap on
its savings at roughly 13 years at which point it will peak and plateau. The cap is reached once
the new LED bulbs need replacing, which is about 13 years from the roll out date. The new bulbs
(LED’s) have a life cycle of 25,000 hours and at an average consumption rate of 6 hours per day
for a 14 watt bulb servicing a property running an average annual occupancy of 84% should last
approximately 13 years at which point maximum savings will be established.
5 years: 77% savings
• Current expense = $171,228.42
• After PIP expense = $39,382.54
• $131,845 annual savings
• Total foecasted cost savings YTD = $580,464.35
25 years: 82% savings
• Current expense = $171,228.42
• After PIP expense = $30,821.12
• $140,407.30 annual savings
• Total foecasted cost savings YTD = $3,388,610.35

38. 34
Lessons Learned
I’ve learned that business is a multifaceted operation that requires superior knowledge,
self awareness and a great team espeicially as it pertains to hospitality. These 3 components only
scratch the surface when illuminating all characteristics, intangible and tangible of what it takes
to succeed in business and run a successful operation. However, these 3 stuck out most to me as
the immidiate basics during my inetrnship as I reflect upon the past 10 weeks and addressing this
PIP (process improvement proposal).
The GM of the property, Clif Taylor has said numerous times that “we will learn as much
from the intern as he will from us.” He has harped on this multiple times during my time on
property, during my first day on property introducing me to the different divisions and their
respective department heads and again during numerous staff meetings. This sounds so
ridiculous but holds great truth if you pay attention to what he was actually saying. It means that
knowledge and understanding can come from just about anywhere and anyone if you care
enough to pay attention. If you have spent mulitple years in the industry and a vast majority of
those years on one property this can become very routine and problems may become disguised
after some time. Having a fresh pair of eyes, different perspective on matters and a millenial like
myself to provide some potentially beneficial insight; something may trigger innovative
thoughts. Each department head had a great sense of what is going on each day on site and their
responsibilities and duties as a functioning unit within the daily operation. There is a special
attention to detail required and communication is pivotal and a component that this property does
not lack in. I learned an immeasureable amount of great insight working every division within
the entire property.
The project proposal presented in this internship was not anything I did but rather
a collective effort from my peers a lot more wise than me providing an opportunity for
themselves. They have given me an opportunity to gain great exposure and experience but also
accepted my criticisms and suggestions this being the most valuable one. This is a great lesson
for me as I am only a juvenile in this industry when compared to those I have had the great
pleasure of working with this internship. However, numbers are numbers and can be calculated
by anyone willing to research and understand. The very business you run is predicated on what
you can do with those numbers and any entrée seen to improve upon those numbers should be
taken. The lesson is that not only can opportunity to improve a business come from any or
unexpected source but can also come from any and unexpected segment within an operation.
Usually thoughts towards improving numbers and profitability begins with creation of new and
improved revenue centers, introducing new product and/or services, raising rates/prices, reducing
quality of product, etc. Sometimes great thoughts and process improvements can stem from the
most general origins of operation that are often overlooked.

39. 35
Supervisor’s Critique
!

40. 36
References
Brainard/GM at Embassy Suites Chase Pavilion, J. (2014, July 21). How a Hotel Turned Energy
Efficiency into ROI. Retrieved July 22, 2016, from
http://hospitalitytechnology.edgl.com/news/How-a-Hotel-Turned-Energy-Efficiency-into-
ROI94117
Coode, H. W. (2014, January 22). Energy-efficient hotel lighting strategies Hotels are turning to LED
technology for its energy-saving potential. Retrieved July 22, 2016, from
https://www.reminetwork.com/articles/energy-efficient-hotel-lighting-strategies/
ENERGY STAR. (n.d.). Energy Savings Tips for Small Businesses: Lodging. Retrieved from
https://www.energystar.gov/buildings/facility-owners-and-managers/small-biz/lodging
Hotel Industry Finds Success in Energy Efficiency Retrofits - AM Conservation Group. (2014,
December 02). Retrieved July 22, 2016, from http://www.amconservationgroup.com/blog/hotel-
industry-finds-success-in-energy-efficiency-retrofits/
Johnson, H. (2015, April 29). Light Bulb Showdown: LED vs. CFL vs. Incandescent - The Simple
Dollar. Retrieved July 18, 2016, from http://www.thesimpledollar.com/the-light-bulb-
showdown-leds-vs-cfls-vs-incandescent-bulbs-whats-the-best-deal-now-and-in-the-future/
Koch/USA TODAY Network, W. (2013, December 18). Let the hoarding of 60-watt and 40-watt bulbs
begin. Retrieved July 21, 2016, from
http://www.usatoday.com/story/news/nation/2013/12/18/incandescent-phaseout-leds/3828627/
Lee/USA TODAY Network, J. (2013, December 27). Why people still use inefficient incandescent
light bulbs. Retrieved July 21, 2016, from http://www.usatoday.com/story/news/nation-
now/2013/12/27/incandescent-light-bulbs-phaseout-leds/4217009/
Managing Energy Costs in Hotels and Motels. (2014, August 19). Retrieved July 22, 2016, from
https://bizenergyadvisor.com/hotels-and-motels
Profis, S. (2016, March 25). Five things to consider before buying LED bulbs. Retrieved July 21, 2016,
from http://www.cnet.com/how-to/five-things-to-consider-before-buying-led-bulbs/

41. 37
Top 10 Industry Trends Driving Hotel Lighting. (2016, March 18). Retrieved July 22, 2016, from
http://hub.currentbyge.com/h/i/226637769-top-10-industry-trends-driving-hotel-lighting

42. 38
Appendices/ Support Documents
APPENDIX 1: Percentage Breakdown of Energy Concumption
Energy Use in Hospitality Facilities
Hotels and Motels Restaurants

43. 39
APPENDIX 2: Comparison Chart LED Lights vs. Incandescent Light Bulbs vs. CFLs
Light Output
Light Emitting
Diodes (LEDs)
Incandescent
Light Bulbs
Compact Fluorescents
(CFLs)
Lumens Watts Watts Watts
450 4-5 40 9-13
800 6-8 60 13-15
1,100 9-13 75 18-25
1,600 16-20 100 23-30
2,600 25-28 150 30-55
Important Facts LED Incandescent CFL
Sensitivity to low
temperatures None Some
Yes - may not work under
negative 10 degrees
Fahrenheit or over 120
degrees Fahrenheit
Sensitive to humidity No Some Yes
On/off Cycling
Switching on/off quickly
No Effect Some
Yes - can reduce lifespan
drastically
Turns on instantly Yes Yes No - takes time to warm up
Durability
Very Durable - LEDs can
handle jarring and
bumping
Not Very Durable - glass or
filament can break easily
Not Very Durable - glass can
break easily
Heat Emitted 3.4 btu's/hour 85 btu's/hour 30 btu's/hour
Failure Modes Not typical Some
Yes - may catch on fire,
smoke, or omit an odor

44. 40
Environmental
Impact
LED Incandescent CFL
Contains the TOXIC
Mercury
No No
Yes - Mercury is very toxic to
your health and the
environment
RoHS (Restriction of
Hazardous Substances)
Compliant Yes Yes
No - contains 1mg-5mg of
Mercury and is a major risk to
the environment
Carbon Dioxide Emissions
(bulb per year)
Lower energy consumption
decreases: CO2 emissions,
sulfur oxide, and high-level
nuclear waste.
15.03 pounds/year 150 pounds/year 35.03 pounds/year

45. 41
APPENDIX 3: Demand of Energy Consumption
Addressing demand you can either use less (X) for more time (Y) or use more (X) for less time
(Y) to achieve the exact same output. In the case of electricity usage and lodging in particular.
You do not have the luxury to control energy “time” (Y) consumed but you can alter the other
variable that is (X) and use less for extended periods of time.
Demand rate is $8.45 and is incurred by the level of demand a commercial facility consumes
energy. Does NOT apply towards guest units only common space (convention center, ballroom,
restaurant, lobby, kitchen, offices, etc.). The consumption component is based on the amount of
electricity (in kWh) that the building consumes during a month. The demand component is the
peak demand (in kW) occurring in a particular month for every month in the current year.
Peak

46. 42
APPENDIX 4: Definitions, Statistics/Data and Projections
4.1: Definitions
Demand charge - That portion of the consumer's bill for electric service based on the
consumer's maximum electric capacity usage and calculated based on the billing demand charges
under the applicable rate schedule.
Joule - a unit for measuring work or energy
Kilowatt (kW) - a unit for measuring electrical power, containing 1000 watts.
Kilowatt hour (kWh) - a unit of energy equal to the work done by a power of 1000 watts
operating for one hour
PIP – Process Improvement Proposal
ROI – Return on Investment
Watt - a unit for measuring electrical power, measured in joules per second
4.2: Stats/Data & Calculations
2015 Utility Rate - $.122400
Demand Rate - $8.45
2015 Fiscal Year End Electricity Expense - $435,744.88
• (Units) + (Convention/Commercial)
2015 Electric Expense (Convention/Commercial) - $241,081.76
2015 Electric Expense (Units) - $194,663.12
2015 Convention/Commercial Electrical (light) Expense - $60,270.44
• (Total expense) x (percent allocated to light) | (241,081.76) x (.25)
2015 Units Electrical (light) Expense – $110,957.98
• (Total expense) x (percent allocated to light) | (194,663.12) x (.57)

47. 43
2015 Electric (light) Expense Total - $171,228.42
• Convention/Commercial (light) + Units (light) | (60,270.44) + (110,957.98)
Hours of Light Consumption/year - 2,190
LED Cost/Unit – $5.99
• Year 1: $32,387.93
• Years 1-12: $32,387.93
Incandescent Cost/Unit - $.80
• Year 1: $8,651.20
• Years 1-12: $103,814.40
# of Units (lights) – 5,407
4.3: Projections
PIP projected lighting expense:
Year 1 - $106,016.15 (38% below current expense)
Year 2 - $53,080.81 (69% below current expense)
Year 3 - $44,519.39 (74% below current expense)
TOTAL = $310,068.91 (savings/3 years)
ROI:
Difference (+/-) Per month LED vs. Incandescent
• (Incandescent) – (LED) = Difference (+/-)
(9,779.55) – (4,389.94) = $5,389.61
• Initial cost of LED bulbs / (Difference)
32,387.93 / 5,389.61 = 6.01 Months