Beruflich Dokumente
Kultur Dokumente
Operations Management
Semester Two - 2014
Welcome to HTM209
Hospitality Operations Management
Operations Performance
Refer Slack et al. Pages 37 - 44
Performance Objectives #4
Refer Slack et al. Page 645
Cost
Speed
Dependability
Quality
Flexibility
Reassurance
Efficiency
Working with
criminal justice
agencies
Crime
reduction
Crime
detection
Performance Objectives #1
Refer Slack et al. Page 60
Polar representations...;
Dependability
Baggage handling
Effectiveness
Process planning
Complexity
Expectations
Input Resources
Operations Activities
4 Ds: Direct: Design: Deliver: Develop
Output; Services
Products
Productivity =
Units produced
Input used
Judging Performance #1
Units produced
Productivity =
Input used
Judging Performance #2
Assessing an Organisations
Performance
Refer Slack et al. Pages 37 - 44
Assessing an Organisations
Performance; 1-A
Refer Slack et al. Pages 37 - 44
Assessing an Organisations
Performance; 1-B
Refer Slack et al. Pages 37 - 44
Staff involvement
Flexible staff management
Waste is reduced
Work is efficient
Assessing an Organisations
Performance; 1-C
Refer Slack et al. Pages 37 - 44
Shareholders ROI
Staff fair wages
Sustainable development
Performance Objectives:
Assign priority order to these hotel competitive factors (AG)
For the top three priorities how might these be delivered?
Competitive factors
Performance objectives
A - Low price
B - High quality
C - Fast delivery
D - Reliable delivery
E - Innovative products / services
F - Wide range of products / services
G - Ability to change the timing or
quantity of products and services
Performance Objectives:
Assign priority order in this context (AG)
For the top three priorities how might these be delivered?
Competitive factors
Performance objectives
A - Low price
B - High quality
C - Fast delivery
D - Reliable delivery
E - Innovative products / services
F - Wide range of products / services
G - Ability to change the timing or
quantity of products and services
Performance objectives
Low price
Cost
High quality
Quality
Fast delivery
Speed
Reliable delivery
Dependability
Flexibility (mix)
Being RIGHT
Speed
Being FAST
Dependability
Flexibility
Cost
Being ON TIME
Being ABLE TO
CHANGE
Being PRODUCTIVE
Dependable
delivery
Minimum cost,
maximum value
Speed
Fast
throughput
Error-free
processes
Quality
Dependability
Reliable
operation
Ability to
change
Flexibility
Error-free
products and
services
Frequent new
products, maximum
choice
Output; Services
Products
Operations Activities
4 Ds: Direct: Design: Deliver: Develop
Operations Process Characteristics
4 Vs: Volume; Variety; Variation; Visibility
Productivity =
Units produced
Input used
Performance Objectives #2
Refer Slack et al. Pages 46 - 59
Objective
Quality
Speed
Dependability
Flexibility
Cost
Role
Significance
Business
Advantage
Role
Significance
Business
Advantage
Quality
Conforming to customer
expectations. Error free
products and services
Influences customer
satisfaction levels
Assists OM efficiency
Reduces costs
Assists with
dependability
Speed
Increasing availability of
product or service
Reduces inventories,
risks, matches supply
with demand
Dependability
Provides competitive
advantage. Overrides
other customer
considerations
Flexibility
Making changes to
operations product,
mix, volume, delivery
Allows for
customisation and
variety
Cost
Allowing outputs to be
priced to meet market
Performance Objectives #3
Refer Slack et al. Pages 56 - 57
Performance Objectives #3 -1
Refer Slack et al. Pages 58 - 60
A motel?
A cafe-bar?
A hotel airport shuttle service?
(Note how will you: reduce costs; maintain outputs;
reduce waste: materials, time, underuse of facilities?
Performance Objectives #3 -1
Refer Slack et al. Pages 58 - 60
Input Resources
Output; Services
Products
Units produced
Input used
Output; Services
Products
Operations Activities
4 Ds: Direct: Design: Deliver: Develop
Operations Process Characteristics
4 Vs: Volume; Variety; Variation; Visibility
Productivity =
Units produced
Input used
Performance Objectives #3 - 2
Refer Slack et al. Pages 57 - 60
Performance Objectives #3 - 2
Refer Slack et al. Pages 57 - 60
Operations Management dilemma (page 57)
How achieved:
Operations Management
STRATEGY
What is strategy?
Strategic decisions means those decisions which
Operations
operational
Operations are the resources that create
products and services
Operational is the opposite of strategic,
meaning day-to-day and detailed
So, one can examine both the operational and
the strategic aspects of operations
Slack et al. (2013)
Demand
Time scale
Short-term
for example, capacity
decisions
1-12
months
Micro
level of the process
Level of
analysis
Detailed
Level of
aggregation
For example
Can we give tax services to the
small business market in
Antwerp?
Level of
abstraction
Concrete
For example
How do we improve our
purchasing procedures?
Operations strategy
Long-term
for example, capacity
decisions
Demand
Operations management
1-10
years
Macro
level of the total operation
Aggregated
For example
What is our overall business
advice capability compared with
other capabilities?
Philosophical
For example
Should we develop strategic
alliances with suppliers?
Implementing
Supporting
Driving
Demand
Time scale
Short-term
for example, capacity
decisions
1-12
months
Micro
level of the process
Level of
analysis
Detailed
Level of
aggregation
For example
Can we give tax services to the
small business market in
Antwerp?
Level of
abstraction
Concrete
For example
How do we improve our
purchasing procedures?
Operations strategy
Long-term
for example, capacity
decisions
Demand
Operations management
1-10
years
Macro
level of the total operation
Aggregated
For example
What is our overall business
advice capability compared with
other capabilities?
Philosophical
For example
Should we develop strategic
alliances with suppliers?
Organisation strategy:
model!!!
Challenges
for operations
Give an
operations
advantage
Be clearly
the best in
the
industry
Link strategy
with
operations
Correct the
worst
problems
Externally
neutral
Stop holding
the
organisation
back
STAGE 1
Externally
supportive
Internally
supportive
Be as good
as
competitors
Adopt
best
practice
Operations
are expected
to be .
Internally
neutral
STAGE 2
STAGE 3
STAGE 4
Redefine the
industrys
expectations
Be clearly
the best in
the
industry
Link Strategy
With
Operations
Correct the
Worst
Problems
Externally
neutral
Stop holding
the
organisation
back
STAGE 1
Internally
neutral
STAGE 2
The
ability
to
Implement
strategy
Slack et al. (2013)
Internally
supportive
Be as good
as
competitors
Adopt best
Practice
Externally
supportive
STAGE 3
The
ability
to
Support
strategy
STAGE 4
The
ability
to
Drive
strategy
Corporate strategy
Business strategy
Operations strategy
Operational
experience
Customer
Needs
Performance
Objectives
Market
Positioning
Competitors
Actions
Required
performance
Understanding
markets
Tangible and
Intangible
Resources
Operations
Capabilities
Operations
Strategy
Decision Areas
Operations
Processes
Understanding
resources and
processes
Strategic
decisions
Tangible and
Intangible
Resources
Operations
Capabilities
Customer
Needs
Operations
Strategy
Decision Areas
Performance
Objectives
Competitors
Actions
Operations
Processes
Understanding
resources and
processes
Market
Positioning
Strategic
decisions
Required
performance
Understanding
markets
Market Requirements
are.
Difficult to change
Dynamic
Technically
constrained
Heterogeneous
Complex
Slack et al. (2013)
Ambiguous
Operations
Resources
Market
Requirements
What you
HAVE
What you
DO
What you
WANT
in terms of
operations
capabilities
to maintain
your
capabilities
and satisfy
markets
from your
operations to
help you
compete
Strategic
Reconciliation
Slack et al. (2013)
What you
NEED
to compete
In the market
Operations Resources
Market Requirements
Market
Segmentation
Operations
Resources
Operations
Competences
Operations
Strategy
Decisions
Performance
Objectives
Competitor
Activity
Operations
Processes
Understanding
Resources and
Processes
Market
Positioning
Strategic
Decisions
Capacity
Supply networks
Process technology
Development and
organisation
Required
Performance
Quality
Speed
Dependability
Flexibility
Cost
Understanding
Markets
and
External
Understanding of
the processes
Competitiveness
Competencies
embedded in the
operation
Strong
marketing
World Class
Operations
High
margin
Capabilities enhance
innovation and improvement
Investment
Developing customers
competitors and stockholders;
perceptions and expectations
Operations
resources
perspective
Operations
strategy
What operations
resources can do
Market
requirement
perspective
Bottom-up
perspective
Top-down
perspective
Bottom-up
perspective
Market
requirement
perspective
Operations
resources
perspective
Strategic Focus
Key requirements
for operations...
Operations
resources
perspective
Operations
strategy
What operations
resources can do
Market
requirement
perspective
Bottom-up
perspective
Corporate strategy
Business strategy
Operations strategy
Operational
experience
Operations Resources
Market Requirements
Market
Segmentation
Operations
Resources
Operations
Competences
Operations
Strategy
Decisions
Performance
Objectives
Competitor
Activity
Operations
Processes
Understanding
Resources and
Processes
Market
Positioning
Strategic
Decisions
Capacity
Supply networks
Process technology
Development and
organisation
Required
Performance
Quality
Speed
Dependability
Flexibility
Cost
Understanding
Markets
Ryanair
Top-down
Clear
Low
Operations
Resources
Efficient
operations
Fast
turnaround times
High
employee productivity
No
strategy
cost operation
Basic
Efficiency
Internet
airports
bookings
Lowest
Safe
Operations strategy
frills travel
Secondary
Market
Requirement
services
poor contractors
Cut
costs
Operate
Selling
service
On-time
No
Cut
fares
service
add-ons
only 737s
directly
Bottom-up
Flextronics
Top-down
Outsource
supplier
Electronics
Operations
Resources
Vertical
Global
Efficient
- network
Market
Requirement
integration
supply chain
operations
Integration
Supply
parts
Low
cost components
Responsive
Operations strategy
chain management
Flexible
Cost
Design-produce-distribute
Efficient
service
service
effective delivery
operations
Industrial
parks
Fast
delivery
High
Low
distribution costs
Bottom-up
Sales
volume
Introduction
Volume Slow growth in
sales
Customers Innovators
Competitors Few or none
Variety of
product /
service
design
Possible high
customization or
frequent design
changes
Growth
Maturity
Decline
Rapid growth in
sales volume
Market needs
largely met
Early adopters
Bulk of market
Laggards
Increasing
numbers
Stable number
Declining
numbers
Increasingly
standardized
Emerging
dominant types
Possible move to
commodity
standardization
Sales
volume
Introduction
Maturity
Decline
Availability of
quality
products/services
Low price
Dependable
supply
Low price
Price
Range
Quality
Range
Dependable
supply
Flexibility
Speed
Cost
Cost
Quality
Dependability
Dependability
Growth
Quality
Customers
Competitors
Structural...; and
Infrastructural decisions in operations strategy (p84-85)
(Also refer Table 3.3, page 84)
Penang
Mutiara
Top-down
Clear
strategy
Operations
Resources
Efficient
Market
Requirement
operations
Luxury
service
Operations strategy
Cut
costs
Bottom-up
Performance
Objectives
Product / product
range
Quality
Speed
Dependability
Flexibility
Cost
For Members
For Non-members
Performance
gaps