HRM 513 Operations and HRM in Hospitality PDF

HRM_513 OPERATIONS AND HRM IN HOSPITALITY LESSON 4: RESOURCE MANAGEMENT __________ DR. LILIBETH R. SABILLANO CHTM  TOPIC LEARNING OUTCOMES: After the end of the lesson, the student should be able to: 1.Enumerate and explain the resouce manageme...

HRM_513 OPERATIONS AND HRM IN HOSPITALITY LESSON 4: RESOURCE MANAGEMENT __________ DR. LILIBETH R. SABILLANO CHTM  TOPIC LEARNING OUTCOMES: After the end of the lesson, the student should be able to: 1.Enumerate and explain the resouce management 2.Discuss the importance and significance of lean operating systems. 3.Enumerate and describe the operations scheduling and sequencing. 4.Explain the project management.  Resource Management ❑It refers to the planning, scheduling, and future allocation of resources to the right project at the right time and cost. ❑Resource management plan enables businesses to optimally utilize the skilled workforce and improve profitability. Importance of Resource Management 1. Minimize project resource costs significantly ❑ With enterprise-wide visibility, resource managers can utilize cost-effective global resources from low-cost locations. ❑ Having the right mix of local and global resources helps in reducing project costs. 2. Improving effective/billable resource utilization ❑ Resource management software helps managers forecast the workforce’s utilization in advance. Importance of Resource Management 3. Bridge the capacity vs. demand gap proactively ❑ Demand forecasting, a function of project resource management, allows managers to foresee the resource demand ahead of time. 4. Use scarce resources effectively in a matrix organization ❑ The resource management process brings transparency in communication and hence facilitates to effectively share highly skilled resources in a matrix organization. Importance of Resource Management 5. Monitor and improve organization health index ❑Employees look up to their leaders for their professional development. Resource Management Concepts and its Components 1. Resource scheduling ❑Resource scheduling involves identifying and allocating resources for a specific period to different project tasks. 2. Resource utilization ❑Resource utilization measures the amount of time spent by the employees on different project tasks against their availability. Resource Management Concepts and its Components 3. Resource forecasting ❑ Resource forecasting helps managers predict resource utilization levels in advance and foresee the resources likely to end up on the bench. 4. Resource and capacity planning ❑ Resource planning is the comprehensive process of planning, forecasting, allocating, and utilizing the workforce most efficiently and intelligently. Resource Management Concepts and its Components 5. Business intelligence and reports ❑Business intelligence provides actionable insights by performing extensive data analysis. 4. Resource management skills that every manager should have ❑Resource managers have multiple responsibilities to account for when managing the most significant investment of the firm.  List of must-have skills for a manager to streamline the complex process 1. Communication skills ❑ Resource managers are accountable for fulfilling resource requests from project managers by assigning the job to the right resource. 2. Conflict resolution ❑ Often multiple project managers end up requesting similar-skilled resources. In this case, if the project prioritization criteria are not in place, it may lead to conflicts. List of must-have skills for a manager to streamline the complex process 3. Domain knowledge ❑ Since the onus is on resource managers to allocate the right resource to the right job, it’s important that they understand the skillset very well. 4. Proactive planning ❑ Every project manager aims to complete the project within time and budget, which makes forward planning a critical aspect. List of must-have skills for a manager to streamline the complex process 5. Negotiation skills ❑Resource planning is a complex job and brings forward a myriad of challenges for the resource manager. 6. Risk management ❑What if a resource takes prolonged unplanned leaves? What happens if there is unplanned attrition?  Types of Businesses that Require Enterprise Resource Management? ❑Organizations with a matrix-based set- up, cross-functional teams, and a shared-services model require enterprise resource management. ❑The level of complexity to which they adopt the business processes depends on their size and functions.  Types of Businesses that Require Enterprise Resource Management? ❑These complexities demand enterprise- wide visibility and real-time updates to help the managers stay informed at all times. ❑They need to manage their resources diligently and finish the projects within budget and time.  Consequences of Poor Resource Management Strategy 1. Increased project costs ❑Incompetent allocation or booking high- cost resources instead of the low-cost but similarly skilled workforce spikes project budget. 2. Reduced employee performance ❑Poor employee performance is the first and foremost indicator of sub-optimal resource management.  Consequences of Poor Resource Management Strategy 3. High employee turnover ❑Employees feel disengaged and dissatisfied when their strengths and skills are not exploited at their best. 4. Delays in meeting project deadlines ❑Without visibility of team members and their skill set, resources may get allocated to projects that do not match their competencies.  Consequences of Poor Resource Management Strategy 5. Client dissatisfaction and loss of business ❑ Inefficient resource management practices lead to poor resource allocation, which causes teams to put in longer hours for meeting project goals. 6. Resource Management trends to look forward to ❑ The emergence of innovative and advanced technology has created a paradigm shift in the ways resources are managed.  List of Trends that will witness in the near future: 1. Going beyond simple scheduling and planning tools ❑ Most of the resource managers implement basic scheduling and planning tools to allocate tasks to resources. 2. Replacing guesstimations with real-time forecasting to plan future projects ❑ Resource managers still deploy resourcing treatments based on mere assumptions and guesstimations.  List of Trends that will witness in the near future: 3. Using Business Intelligence to derive reports and maximize utilization ❑ Modern software is integrated with business intelligence that derives information from the data and provides intuitive reports in real- time. 4. Switching from emails to a well-formulated resource requisition workflow ❑ Project and resource managers still send endless trails of emails to get the required resources.  List of Trends that will witness in the near future: 5. Implementing modeling & simulation to form the best-fit resource plan ❑ Creating a resource plan involves a lot of analysis to eliminate potential bottlenecks in the future. 6. Empowering employees to choose their areas of interest ❑ Businesses have restructured to become employee-centric which helps them grow professionally while the project needs are taken care of.  List of Trends that will witness in the near future: 7. Introducing a well-defined out-rotation policy for employee retention ❑ When a critical resource is working on one project, managers tend to deploy the same resource to similar projects in the future. 8. Over to you ❑ It is now evident that resource management is crucial for the success of any business.  What Is Lean Operations and How Can I Use It to Save Money? ❑Lean operations, and it is a key strategy to improving internal functions, creating a productive and engaged workforce, and increasing profits. ❑Lean operations is a business strategy driven by the principle of doing more with less. It is a minimalist approach to running a business and improving day- to-day operations.  What Is Lean Operations and How Can I Use It to Save Money? ❑According to the Lean Enterprise Institute, “A lean organization understands customer value and focuses its key processes to continuously increase it. ❑The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has zero waste.”  Why Is Lean Operations Important? ❑Running a business as efficiently as possible may seem like an obvious goal, but even the more prolific business leaders can easily get bogged down in the day-to-day operations.  Optimizing Internal Functions has a number of Business Benefits 1.Improves workflow efficiency 2.Creates an agile workforce able to pivot and adapt to new models of operating 3.Eliminates waste  Which Industries Can Benefit From Lean Operations? Retail ❑ Retail operations revolves around the numbers—inventory amount, and total sales. Manufacturing ❑ The term, “Lean operations” is well-known within the manufacturing space — the concept of “lean” originated in the auto industry.  Which Industries Can Benefit From Lean Operations? Hospitality ❑With the rise of the sharing economy, hospitality companies have had to find new ways to stay competitive.  Two Lean Operations Examples ❑Henry Ford first coined the phrase “flow production.” He was a pioneer in linear production, creating steps that followed a sequence that came to be known as the assembly line.  Two Lean Operations Examples Toyota ❑ The Japanese automobile manufacturer might be the most famous lean operations case study out there, driven by the principle of kaizen—a belief in continuous improvement. Nike ❑ While Nike’s brand recognition is unparalleled in the athletic shoe world, its quest to deliver a great product hinges on its dedication to creating value through continuous improvement of its internal structure and processes.  How Lean Operations Management Empowers Workers ❑ Lean operations is more than just a functional approach to business. Lean must be a core value of a company’s culture because operations management intersects directly with the employee experience. Lean Production ❑ Include an organizational flow that ensures that every position is essential to the overall process.  How Lean Operations Management Empowers Workers 2. Lean production in operations management creates opportunities for professional development. 3. Ask employees for feedback that can help map out a lean transformation strategy that will deepen engagement.  Best Practices for a Lean Operations Strategy 1. Assess the organization ❑ Before they can make changes, they need to evaluate the organization the workflows and processes, the structure of the workforce, the inventory, and the physical workspace. 2. Implement new processes ❑ Now, rethink the organizational processes. Map out the value stream from end to end using alternative strategies that are more time and cost efficient than how they are now.  Best Practices for a Lean Operations Strategy 3. Streamline communications ❑ To truly have a lean operations management approach, communication needs to be direct and enterprise wide. Use a mobile-first digital platform to connect everyone in the company that allows them to communicate in real time. 4. Restructure your workforce and include them in lean transformation ❑ As part of evaluating the organization, they need to examine every role in the workforce.  Best Practices for a Lean Operations Strategy 5. Embrace automation ❑A lot of company waste happens due to human error. From administrative functions to production lines, many tasks can now be automated to avoid costly errors and workflow disruptions.  What Is the Definition of Lean? ❑The Wall Street definition of Lean – Lean is good for stock prices. Many investors see Lean in the context of expense reduction—reductions achieved mainly through layoffs. ❑The Public Relations definition of Lean – PR is all about managing the public-facing image of the company or organization.  How to Achieve Lean Operations ❑Lean initiatives are usually accomplished through the efforts of senior- management sponsorship and team- oriented execution. ❑Team members need to have analytical skills that can see beyond specific personalities involved in a given process and be able to visualize how the process itself needs to function.  Steps to Implementing Lean Operations 1.Enterprise-wide Review ❑ Review each process and compare it with an “ideal” or world-class version of that process. 2.Publicize and Educate to Improve Operations ❑The team and the general population of the company will want to know what exactly your team is going to accomplish.  Steps to Implementing Lean Operations 3.Start with the Physical Organization ❑ Wasted movement, wasted effort and wasted space all can be alleviated through the intelligent arrangement of tools on the workstation relative to the person using that station. 4.Product and Process ❑ Review processes by examining where and how the product moves through the organization.  Steps to Implementing Lean Operations 5.Think in Terms of Cellular Design ❑ Rather than designing long assembly lines, look at how the product is actually built. 6.Look at Traditional Lean Tools that Improve Operations ❑ Consider the notion of mistaking proofing processes, employing simple visual controls such as Kanban to reduce the set-up time, the replenishment process and other resource- constraining processes controlled through human language.  Scheduling in Production and Operation Management ❑Scheduling can be defined as “prescribing of when and where each operation necessary to manufacture the product is to be performed.”  Principles of Scheduling ❑The principle of optimum task size: ❑Principle of optimum production plan: ❑Principle of optimum sequence:  Inputs to Scheduling 1. Performance standards. 2.Units in which loading and scheduling is to be expressed. 3.Effective capacity of the work centre.  Scheduling Strategies ❑Detailed scheduling: Detailed scheduling for specific jobs that are arrived from customers is impracticable in actual manufacturing situation. ❑Cumulative scheduling: Cumulative scheduling of total work load is useful especially for long range planning of capacity needs.  Scheduling Strategies ❑Cumulative detailed: Cumulative detailed combination is both feasible and practical approach. ❑Priority decision rules: Priority decision rules are scheduling guides that are used independently  Types of Scheduling Forward scheduling ❑is commonly used in job shops where customers place their orders on “needed as soon as possible” basis. ❑Forward scheduling determines start and finish times of next priority job by assigning it the earliest available time slot and from that time, determines when the job will be finished in that work centre.  Types of Scheduling Backward scheduling ❑ is often used in assembly type industries and commit in advance to specific delivery dates. ❑ Backward scheduling determines the start and finish times for waiting jobs by assigning them to the latest available time slot that will enable each job to be completed just when it is due, but done before.  What is Project Management? Project management is defined as a collection of proven techniques for proposing, planning, implementing, managing, and evaluating projects, combined with the art of managing people. Stages of the Project Planning Process Stage 1: Visualizing, selling, and initiating the project ❑An effective way to get buy-in for a project or idea is to link it to what is important to the person or group you are approaching. Stage 2: Planning the project ❑Assuming the project concept and feasibility have been determined, the plan-do-check-act (PDCA) cycle. Using the PDCA Cycle for Project Management Stages of the Project Planning Process Stage 3: Designing the processes and outputs (deliverables) ❑When the project is approved, the project team may proceed with the content design along with the persons or items needed to implement the project. Stages of the Project Planning Process Stage 4: Implementing and tracking the project ❑The project design team may also implement the project, possibly with the help of additional personnel. A trial or test implementation may be used to check out the project design and outputs to determine if they meet the project objectives. Stages of the Project Planning Process Stage 5: Evaluating and closing out the project ❑The implementation team officially closes the project when the scheduled tasks have been completed. Thank You!