Operations Management PDF

TMBME1 OPERATIONS MANAGEMENT Presented by: Gladys Bacsa IN TOURISM AND HOSPITALITY INDUSTRY LEARNING OBJECTIVES Define operations management and identify its key features. Identify characteristics of the tourism and hospital...

TMBME1 OPERATIONS MANAGEMENT Presented by: Gladys Bacsa IN TOURISM AND HOSPITALITY INDUSTRY LEARNING OBJECTIVES Define operations management and identify its key features. Identify characteristics of the tourism and hospitality sector that impact the management of operations. Describe examples of the operational features of the main sectors within tourism and hospitality industry. 02 /10 03 /10 LESSON 1 WHAT IS OPERATIONS MANAGEMENT? Defined as the supervision of the procedures that generate or deliver goods and services. Decisions in operations management has a direct impact in the size, shape, quantity, quality, price, profitability, and speed of delivery of the output of tourism and hospitality establishments, regardless of the if it is in the luxury end of the market or a budget product or service.  04 /10 TQM Operations management is also “concerned with the design and control of transformation systems to deliver the services, including products, of an organization at the right quality, at the right place and at the right time.” (Southern, 2000) The term right quality in the definition above is clearly intangible, particularly in the case of tourism and hospitality industry. Services which are intangible serves as the primary output that the industry offers to its consumers. Thus, defining quality in the tourism and hospitality industry is not that simple.  OPERATION FUNCTIONS IN TOURISM AND HOSPITALITY INDUSTRY: The function of operations management in the industry of tourism and hospitality includes a wide range of activities. Majority of which are essential to the experience of guests and customers. 05 /10 06 /10 EXAMPLES OF TOURISM FUNCTIONS 1. Food production under the management of a Head Chef; 2. The dispatch function for an airline; 3. The check-in function at an airport; 4. Fast food restaurant production and service; 5. City bus tours organization for visitors; 6. Organization of guest transport arrangements from airport to accommodation; 7. Guest reception and queuing at the entrance to a theme park or other major attraction; and 8. Handling customer complaints at a major tourist venue.  07 /10 MAJOR SEGMENTS IN HOSPITALITY INDUSTRY A. FOOD AND BEVERAGE B. TRAVEL AND TOURISM C. LODGING D. RECREATION  08 /10 CHARACTERISTICS OF THE TOURISM AND HOSPITALITY INDUSTRY Unlike any other business industry, the tourism and hospitality industry offer a wide variety of services and products to its consumers. Therefore, managing its operations is unique and complex on its own. 1. Intangibility 2.Limited Lifespan 3.Aggregability 4.Heterogeneity 5.Simultaneity of production and consumption  09 /10 SYSTEMS THINKING Systems thinking is a holistic approach that looks at how different parts of an organization interact and work together to achieve common goals. Instead of focusing on individual components, systems thinking considers the entire system and how changes in one area can affect the whole. “Operations management owes much to systems thinking, which is central to the concepts of managing change.” (Southern, 2000)  10 /10 Key Components of Operations Management Planning: Establishing business objectives and strategies to achieve them. Organizing: Structuring resources and activities to accomplish objectives. Coordinating: Aligning efforts of different departments and teams. Controlling: Monitoring and evaluating performance to make necessary adjustments.  10 /10 Key Components of Operations Management Planning: Establishing business objectives and strategies to achieve them. Organizing: Structuring resources and activities to accomplish objectives. Coordinating: Aligning efforts of different departments and teams. Controlling: Monitoring and evaluating performance to make necessary adjustments.  07 /10 Core Functions Product/Service Design: Developing offerings that meet customer needs and preferences. Process Design: Creating efficient workflows and processes to deliver services. Quality Management: Ensuring that the services provided meet established standards and customer expectations.  07 /10 Types of Operations Service Operations: Focuses on delivering intangible products like experiences and services. Manufacturing Operations: Involves producing tangible goods. In hospitality, it includes aspects like food production.  07 /10 Key Roles Operations Manager: Oversees daily operations, manages staff, and ensures smooth functioning of the business. Skills Required: Leadership, problem-solving, communication, and analytical skills.  07 /10 Daily Responsibilities Overseeing Operations: Ensuring all processes run smoothly and efficiently. Managing Staff: Hiring, training, and supervising employees. Ensuring Customer Satisfaction: Addressing customer needs and resolving issues promptly.  07 /10 Long-Term Responsibilities Strategic Planning: Developing long-term plans to achieve business goals. Improving Operational Processes: Continuously seeking ways to enhance efficiency and service quality. Budgeting: Managing financial resources to ensure profitability and sustainability.  07 /10 Operational Efficiency Cost Savings: Reducing operational costs through efficient resource management. Resource Optimization: Ensuring optimal use of resources to maximize productivity. Improved Productivity: Streamlining processes to increase output and efficiency.  07 /10 Competitive Advantage Differentiation: Standing out in the market through unique and superior services. Adaptability to Market Changes: Quickly adapting to changes in customer preferences and market trends. Innovation in Services: Continuously improving and innovating service offerings.  CAPACITY PLANNING & INVENTORY MANAGEMENT Capacity Planning- involves determining production capacity to meet changing demands. Inventory Management- involves supervising the ordering, storage, and use of components. Think about a restaurant in our hotel. 02 Lesson  19/24 SUPPLY CHAIN MANAGEMENT & PROCESS DESIGN Supply Chain Management- is about managing the flow of goods and services. This involves managing the flow of goods and services from the supplier to the customer. Process Design- This is about creating efficient workflows and processes to deliver services effectively. It involves creating efficient workflows and processes. 20/24 HUMAN RESOURCE MANAGEMENT AND QUALITY MANAGEMENT IN OPERATIONS Human Resource Management in Operations- This involves overseeing the recruitment, training, and management of employees. Overseeing the recruitment, training, and management of employees. Quality Management- involves monitoring and improving service quality. Quality management also means addressing issues promptly. Ensuring services meet established standards and expectations.  21/24 CUSTOMER RELATIONSHIP AND TECHNOLOGY INTEGRATION CRM- This involves managing a company’s interactions with current and potential customers. It involves using data and technology to understand our customers better and personalize their experience. Technology in Operations Management- involves leveraging tools and systems to streamline processes and improve service. Leveraging technology to improve efficiency and effectiveness in operations. 22/24 FINANCIAL AND RISK MANAGEMENT Financial Management- involves planning, organizing, directing, and controlling the financial activities such as procurement and utilization of funds. Risk Management- involves the process of identifying and mitigating potential risks. In our hotel, risks could range from natural disasters and economic downturns to health and safety incidents or reputational damage. 23/24 INNOVATION MANAGEMENT AND SUSTAINABILITY Innovation Management- is about fostering creativity and implementing new ideas. Involves the process of managing ideas, creativity, and innovations in a business. Sustainability- is about adopting practices that reduce our environmental footprint. This involves integrating eco-friendly practices and policies to minimize the environmental impact of our operations while enhancing social and economic benefits.  EFFICIENCY AND PROJECT MANAGEMENT Lean Operations- focus on minimizing waste without sacrificing productivity. A systematic method for waste minimization without sacrificing productivity. Project Management- This involves leading teams to achieve project goals within given constraints like time, budget, and resources. The process of leading the work of a team to achieve all project goals within the given constraints. 24/33  Lesson 3/26 PERFORMANCE MEASUREMENT AND IMPROVEMENT Key Performance Indicators (KPIs): Metrics used to measure the success of operations, providing insight into performance and highlighting areas for improvement. Continuous Improvement: An ongoing effort to enhance products, services, or processes by making incremental changes that lead to significant enhancements over time.  Lesson 3/27 CUSTOMER SERVICE EXCELLENCE Customer Service Strategies: Approaches and tactics designed to create a welcoming and responsive environment, ensuring guests have the best possible experience. Handling Customer Feedback: The process of collecting, analyzing, and responding to guest feedback to understand their experiences and make necessary improvements.  Lesson 3/28 CUSTOMER SERVICE EXCELLENCE Customer Service Strategies: Approaches and tactics designed to create a welcoming and responsive environment, ensuring guests have the best possible experience. Handling Customer Feedback: The process of collecting, analyzing, and responding to guest feedback to understand their experiences and make necessary improvements. 29/33 INNOVATION AND FUTURE TRENDS IN TOURISM AND HOSPITALITY INNOVATION- Introducing new ideas, methods, or products in tourism and hospitality to improve services and maintain competitiveness. Examples: 1. Smart room technology 2. Farm-to-table dining 3. Virtual reality tours 30/33 BENEFITS OF INNOVATION: 1. Enhanced guest satisfaction- Customized experiences lead to higher satisfaction levels. 2. Competitive differentiation- Sets apart from competitors by offering unique services. 3. Operational efficiency- Streamlined processes reduce costs and enhance service delivery.  31/33 FUTURE TRENDS IN OPERATIONS MANAGEMENT 1: Use of AI and Machine Learning: Predictive maintenance to reduce downtime and costs. 2: Importance of Sustainability: Energy-efficient buildings and zero-waste initiatives attract eco-conscious travelers. 3: Automation in Kitchens: Robotic chefs ensure consistency and efficiency, freeing up human resources. 4: Personalized Travel Experiences: Data analytics for tailored travel packages meet individual preferences. 32/33 IMPACT OF FUTURE TRENDS  Meeting Guest Expectations - Trends align with evolving guest demands for tech integration and sustainability.  Operational Strategy and Market Positioning - Strategic adoption ensures relevance and competitive edge in the market.  33/35 CULTURAL COMPETENCE AND DIVERSITY MANAGEMENT Cultural Competence- is the ability to understand, communicate with, and effectively interact with people across cultures. Diversity Management- is about fostering an inclusive environment where everyone feels valued and has equal opportunities to succeed. Cultural competence and diversity management significantly enhance operations management in the tourism and hospitality industry by fostering an inclusive and respectful environment, improving guest satisfaction, and driving innovation.  34/35 CULTURAL COMPETENCE AND DIVERSITY MANAGEMENT Inclusive Marketing Strategies- this involves creating marketing campaigns and materials that resonate with a diverse audience and reflect the values of inclusivity and respect. The Role of Inclusive Marketing in Operations Management: 1. Broader market reach 2. Brand loyalty and trust 3. Enhanced customer engagement 4. Positive brand image 5. Competitive advantage  TMBME1 THANK YOU ANY QUESTIONS?