In this presentation we are showing Highlights of Kaizen Lean Assessment Audit. For more information visit: https://in.kaizen.com/consulting/kaizen-lean-consulting.html

1. 1
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Welcome to
Audit
KAIZEN®/ Lean Assessment
June 24-27, 2013, Abuja

2. 2
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Agenda
1. Management Priorities
2. Highlights
3. Some Metrics
4. Way Forward
5. Potential Benefits
6. Q & A

3. 3
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Top Management Direction:
OE Imperatives for BE
1. Improve Customer Satisfaction: Room supplies; Food
variety, quality & service
2. Upgrade facility and guest amenities for improved
guest perception of VFM
3. Reduce procurement lead time & delivered item cost
4. Reduce % Operating Cost (Food, Energy, R&M)
5. Improve employee morale and engagement in
continuous improvement

4. 4
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Management Priorities & Challenges
Customer value
• Improved customer experience, satisfaction
• Reduced Room turnaround time /Smooth Guest check-in
• Improved Room Service delivery -quality performance
• Timely availability of Room supplies
• Timely approval, procurement & product availability
• Service delivery for short-notice events
Shareholder/ Management value
• Reduced % Food cost
• Reduced Repairs & maintenance bill
• Lower overall operating cost
• Reduced energy bills
• Replacement of aged equipment & infrastructure
Employee engagement (issues)
• Improved safety & security
• Ownership, flexibility, openness to new learning
• Availability of buses
• Team deployment and efficiency
• “One voice” in THTSL
Other issues
• Management of traffic flow and parking
• Training & support for IT
• Reduction in “left behinds”
• Real time guest feedback

5. 9
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Highlights: Some overall observations
Strengths:
1. Clarity of Top Management OE vision and direction
2. Strong customer orientation and focus
3. Open, progressive management team
4. Excellent property, great potential
Challenges & opportunities:
• Lack of “modern” guest amenities (wi-fi, TV, phone ..)
• Need for room/ hotel infrastructure upgrade
• Employee morale needs urgent address

6. 10
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Some Gemba Observations

7. 11
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Stores
Disorderly storage; difficult to retrieve material

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KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Kitchen and Laundry
Cluttered Workspace; difficult to maintain FIFO (First-in
First-out) in cold-store

9. 13
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Operating Cost Break Up
Operating Cost
Break-Up
Operating Cost
Break-Up as a % of
revenue
0%
27%
24%19%
11%
10%
8%
2% PAYROLL COST
OTHER EXPENSES
INSURANCE, MGMT FEE AND
OTHERS
FOOD COST
REPAIR AND MAINTENANCE
COST
ENERGY COST
16%
14%11%
6%
6%
5%
1% OTHER EXPENSES
INSURANCE, MGMT FEE AND
OTHERS
FOOD COST
REPAIR AND MAINTENANCE
COST
ENERGY COST
BEVERAGE COST

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KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Cost Break Up - Utilities
Energy Cost Break-
Up
32%
63%
6%
FUEL
ELECTRICITY
WATER

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KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
F&B Revenue Break Up
Food Revenue Break-
Up.
35% - Food cost as a
% of revenue
15%
27%
58%
1% 0% 3%
BREAKFAST FOOD REVENUE
LUNCH FOOD REVENUE
DINNER FOOD REVENUE
SUPPER REVENUE
COFFEE BREAKS REVENUE
OTHER FOOD REVENUE
Beverage Revenue
Break-Up.
19.5% - Beverage
cost as a % of
revenue
14%
11%
26%
50%
BEER REVENUE
WINE REVENUE
LIQUOR REVENUE
OTHER BEVERAGE REVENUE

12. 16
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Food and Beverage – Daily Covers
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Tue Thu Sat Mon Wed Fri Sun Tue Thu Sat Mon Wed Fri Sun Tue Thu Sat Mon Wed Fri Sun Tue
Total
Dinner
Lunch
High day-to-day variation in Lunch-Dinner covers (42 data points)
Note: This trend needs to be viewed with Actual Lead Time for “short
notice” banquets/ events (data recording needs to be initiated)

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KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Customer Complaints
38.19%
28.95%
11.01%
7.28% 6.57%
4.80%
3.20%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
BQT/Events Business Center Laundry Housekeeping Engineering Concierge Room Service
45.12%
21.40%
18.60%
11.16%
1.86% 1.86%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
Internet X Luggage Down Safe Witness Internet Cable Chair Delivery Chair Removal
Source of customer complaints
BTQ/Events customer complaints

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KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Customer Complaints
71.17%
28.83%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Internet Down/Slow Internet Cable
35.48%
33.87%
16.13%
9.68%
4.84%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Laundry
Return
Laundry
wrong return
Laundry
Collect
Laundry
Missing
Laundry
Damage
Business centre complaints
Laundry complaints
0%
10%
20%
30%
40%
50%
60%
70%
80%
Amenities Room Make Up
Housekeeping
complaints

15. 19
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Guest Waiting/ Room Turnaround Time
(Room TAT)
0:00
2:24
4:48
7:12
9:36
12:00
14:24
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
18 data points from front office Average 05:12
Median 05:02
Min 00:41
Max 11:47
Large variation observed
Room TAT for Last guest check-out time  Next
guest check-in time for a specific room

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KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute

17. 21
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Inventory and Consumption Analysis - Food
NGN
TOTAL CONSUMPTION (2012) 800,539,217
AVE DAILY CONSUMPTION 2,193,258
INVENTORY ON HAND (AS ON MAY 31ST 2013) 41,036,811
INVENTORY COVER (DAYS) AT 2012 CONSUMPTION RATE 19 Days
No.of Items
Inventory Value
(NGN)
NON-MOVING ITEMS
Items with no consumption in Jan-Dec 2012 55 1024958 2%
SLOW MOVING ITEMS
Items with stock of >365 Days 25 4038938 10%
Items with stock between 100 to 365 Days 41 2358256 6%
Items with stock between 30 to 100 Days 82 16818764 41%
MOVING STOCK
Items with stock between 7 to 30 Days 77 14548844 35%
Items with stock between 2 to 7 Days 18 2147828 5%
Items with stock between 1 to 2 Days 16 197233 0%
Items with no inventory in stock 123 0 0%
Total Items 437 41,134,821
57%

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KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Inventory and Consumption Analysis –
General Store
TOTAL CONSUMPTION (MAY 2013) NGN 28,705,807
AVE DAILY DONSUMPTION (MAY 2013) NGN 925,993
INVENTORY ON HAND (AS ON MAY 31st 2013) NGN 130,757,095
INVENTORY COVER (DAYS) AT MAY 2013 CONSUMPTION RATE
141 Days
No. of
Items
Inventory Value
(NGN)
% of Total Inv
Value
SLOW-MOVING ITEMS
Items in stock, but no demand in May 2013 232 44,642,826 34%
Items with stock > 365 Days 43 33,628,698 26%
Items with stock between 100 to 365 Days 82 27,878,186 21%
Items with stock between 30 to 100 Days 71 20,408,989 16%
MOVING ITEMS
Items with stock between 7 to 30 Days 33 4,063,518 3%
Items with stock between 2 to 7 Days 8 134,696 0%
No Inventory 31 182 0%
Total 500 130,757,095

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KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Technical Services

20. 24
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
“Ageing Infrastructure”
SURVEY OF AREAS & TECHNICAL INSTALLATIONS: ‘A’ ITEMS ARE THOSE THAT
HAVE EXCEEDED THEIR EXPECTED LIFE BY HILTON / INDUSTRY STANDARDS
AREA ‘A’ PRIORITY ITEMS
1. SAFETY EQUIPMENT & SYSTEM 9
2. SECURITY: CCTV – TV, MUSIC SYSTEM 20
3. ELECTRICAL SYSTEM & EQUIPMENT
4. ROOF TOP 13
5. EXECUTIVE FLOOR 7
6. GUEST ROOMS / CORRODOR 9
7. FRONT OF HOUSE (Health Centre) 1
8. PUBLIC AREAS 8
9. F&B OUTLETS 12
10. BACK OF HOUSE 5
11. LANDSCAPE & FAÇADE 9
Source: Study conducted by Chief Engineer

21. 25
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Hotel: Critical Equipment (“Show Stoppers”)
1. GENERATORS
2. CHILLERS
3. STEAM BOILER / WATER CALORIFIER
4. MAIN WATER SUPPLY PUMP
5. FIRE PUMPS
6. WATER TREATMENT UNIT
7. FUEL SUPPLY PUMPS
8. BUSES
9. FUEL / GAS STORAGE TANKS
10.RELATED PIPING (etc) INSTALLATIONS

22. 26
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
LAUNDRY
1. DRY CLEANING EQUIPMENT
2. WASHING MACHINES
3. FLAT BED DRYER
Laundry, Kitchen: Critical Equipment
KITCHEN
(Data being listed by team)

23. 27
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Buses: Maintenance Expense
Jan-May 2013 and Forward Estimate
Note: Excludes 5 new buses
No. BUS NUMBER Exp: Jan-May 2013
(NGN)
% of Total Jan-
May Exp
STATUS Est Repair Cost
(NGN)
1 329 (MBO1721) 3,353,854 19.0
2 458 (MBO 1418) 2,564,260 14.5 . UNDER REPAIR
3 310 (MBO1721) 2,480,284 14.1 . UNDER REPAIR
4
911 (MBO1721) 2,162,660 12.3 . Needs New Engine
. Body work
4,800,000
5 922 (MBO1721) 1,883,920 10.7
6 351 (MBO1721) 1,779,715 10.1
7 685 (MBO 1418) 1,075,894 6.1
8 424 (MBO1721) 975,955 5.5
9 459 (MBO 1418) 867,686 4.9 . Needs New Engine 4,200,000
10 352 (MBO1721) 257,250 1.5 . Needs New Engine 4,200,000
11 456 (MBO 1418) 232,455 1.3 . ON SCRAP LIST
12 687 (MBO 1418) Out of Operation . Needs New Engine 4,200,000
TOTAL 17,633,931 17,400,000

24. 57
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Key Initiatives – Phase 1
• Implement 5S in Stores, Kitchen, Laundry, Utilities and Parking
• Streamline flow of Purchasing & Procurement process
• Reduce Room Turn-around Time
• Improve Delivery-Quality of Short-notice Events
• Initiate TPM through Autonomous Maintenance of critical equipment
in Technical Service, Kitchen, Laundry
• Reduce Energy Consumption
• Reduce F&B Costs as a percentage of F&B Revenue
• Reduce inventory of slow moving items

25. 58
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Roadmap & Benefits

26. 59
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
TENTATIVE ROADMAP – PHASE 1 (1/3)
START UP ACTIVITIES
INITIATIVES AREA MEANS OUTCOME
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Month
13
Month
14
Month
15
Month
16
Month
17
Month
18
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
START UP
TOP & SENIOR
MANAGEMENT
CONCLAVE
THTSL, Abuja
Top/ Sr
Mgmt
Conclave
Alignment and role
clarity of key
stakeholders in continual
improvement journey
1
ESTABLISH OE
INFRASTRUCTURE
THTSL, Abuja
. Kaizen Coordinator
. Kaizen Promotion
Office
ESTABLISH HOTEL
STEERING
COMMITTEE
THTSL, Abuja
Senior
Management
+KPO
Top/Sr Mgr Sponsoship
established for direction,
support & review of
improvement activities
KAIZEN BASICS
TRAINING
THTSL, Abuja
Class Room +
On the job
taining
All participants those
who will be part of
execution team
18 Month engagement, consisting of:
1. Start-up Activities
2. Transformation Actions (Implementation in Gemba)
3. Actions to Sustain improvements

27. 60
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
TENTATIVE ROADMAP – PHASE 1 (2/3)
TRANSFORMATION ACTIONS
INITIATIVES AREA MEANS OUTCOME
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Month
13
Month
14
Month
15
Month
16
Month
17
Month
18
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
TRANSFORM (Theme)
REDUCE PROCUREMENT
LEAD TIME
GENERAL STORES:
- Approval process
- Order to Delivery
process
TFM Tool Box
. Current State Map
. Future State Map
. Specific projects
IMPROVE STORE ITEMS
AVAILABILITY
. Food store
. Gen store
. Room supplies
Inventory
Management
(PFEP)
. Reduced stock outs
. Controlled nventory
IMPROVE WORKPLACE
. Stores: Gen,
Food, Wine
. Kitchen, Laundry
. Utilities, Car
Parking
5S
. Reduced Search time
. Space freed up
. Improved productivity
IMPROVE MACHINE
UTILISATION
. Kitchen
. Laundry
. (Utilities)
Autonomous
Maintenance
(Steps 1 & 2)
. Reduced downtime
. Reduce Maintenance cost
REDUCE ENERGY
CONSUMPTION
. Hotel
LOSS TREE
ANALYSIS
. Reduced Energy Cost
REDUCE ROOM
TURNAROUND TIME
. Housekeeping TFM Toolbox
. Reduced Customer Wait
time
REDUCE FOOD COST AS %
OF FOOD REV
. Food
LOSS TREE
ANALYSIS
. Reduced Food Wastage

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KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
TENTATIVE ROADMAP – PHASE 1 (3/3)
ACTIONS TO SUSTAIN CONTINUOUS IMPROVEMENT
INITIATIVES AREA MEANS OUTCOME
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Month
13
Month
14
Month
15
Month
16
Month
17
Month
18
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
SUSTAIN
INITIATE DAILY
MANAGEMENT
ALL OPERATING
AREAS
NGK
. Consistancy of results
. Quick Response to
Problems
. Daily Accountability
Certified Kaizen
Practitioner
ALL FUNCTIONS CKP Training
. 25 Kaizen Trained Internal
Resources
PHASE I PROGRESS
REVIEW
KI + Co Kaizen Audit . Phase II Roadmap
KAIZEN PROMOTION KI + Co
. Setup KPO
. Setup Obeya
Room
. Communication
. R&R

29. 62
KAIZEN and GEMBAKAIZEN
are the trademarks of KAIZEN Institute
Potential Benefits (First estimates)
No. Particulars Current State Future State/Benefits
Annualised
Savings (Est)
1 5S - Workplace Organisation Cluttered . Reduced Search Time
. Improved Productivity
. Space Freed Up
2 Purchase & Procurement process
flow improvement
(TBD) . Reduced Lead Time
. Improved item availability
. Lower Inventory
3 Food & General Stores Inventory
Management
31-May-13 Stock ~
NGN 170,000,000
. 35% Reduction in Wrkg Cap
. Freshness: First-in, First-out
. Space released
. Improved productivity
$55,000
4 Autonomous Maintenanace
(Steps 1&2)
High Breakdowns, Low
Utilisation
. Improved Equipment
Availability
. 10% cost reduction
$472,000
5 Spares Inventory Management Non-Availability Of Critical
Spares
. Quicker Mean Time to Repair
(MTTR)
6 Improve Service Response Time Low Customer Sat . Repeat Customers
7 Reduce Energy Costs (% of overall
Rev)
5% of Revenue . 5% lower cost
$195,000
8 Reduce F&B Costs (% of F&B Rev) Food:35.5% of Food Rev
Beverage:19.5% of Bev Rev
F:33.3% & B:18.9% $350,000
9 Steering Committee and KPO Sponsorship, Direction and
Support10 Obeya Room KPI Management and Control
11 Certified Kaizen Practitioner Internal Expertise for Kaizen
Savings: ~ US$1,072,000
PROCESS & SYSTEM IMPROVEMENTS
SUSTENANCE & INTERNAL CAPABILITY BUILDING