Implementing LEAN Operations at Caesars Casinos

What is the key issue in the case?

The Situation: In late 2008, the economic environment for the Caesars Tunica casinos was a serious
concern. Revenues declined

Organizational Challenge: To find an industry strategy that can reduce process waste to increase work
performance throughput in order to overcome the consequences of 2008 crisis.

Recommendation: The Senior Vice President and General Manager, Mr. Hirsch, recognized that LEAN,
with its easy-to-understand tools and concepts, could create a consistent and focused approach to process
improvements for all the layers of the business. Utilizing Kaizen as one of the important LEAN tools for
continuous improvement, the five-day kaizen workshops yielded immediate, tangible improvements and
laid the foundation for post-event efforts to establish a LEAN culture throughout the organization.
Accordingly, the trainees of these workshops were trained on using the LEAN tools and techniques on
Day 1, to identify waste by visiting and monitoring the process of each work through a LEAN tool named
GEMBA on Day 2, to identify the root cause of each waste identified by utilizing the 5 whys lean tool
also on Day 3, to propose and test possible remedies to root causes of problems identified the prior day on
Day 4, and to present the work to the property executive team and managers on the morning of the last
day of a kaizen week (Hyer N., Hirsch B., 2015).

Lean Outcome: Service scores had improved in areas across the businesses, and many areas reached the
required three percent shift from B to A scores needed to maximize employee service bonuses. Moreover,
waste elimination had generated documented annual cost savings of $3 million. After witnessing these
positive results and seeing evidence of support from the top, departments began asking for kaizen events
and employees requested opportunities to participate on kaizen teams

Who is (or are) the main protagonists?

 Brad Hirsch (Senior Vice President and General Manager at Caesars Casinos)
 Employees at Caesars Casinos

What is a question you would ask about the case?

Is the 5-day kaizen event enough to pave the foundation for a lean culture in the organization?

References

Hyer N., Hirsch B., B. K. (2015). Implementing LEAN Operations at Caesars Casinos. Retrieved March
25, 2021, from https://files.transtutors.com/cdn/uploadassignments/1206555_2_implementing-lean-
operations-at-caesars-casinos.pdf