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Operations management of hotel accommodation

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1 Operations management of hotel accommodation
РОССИЙСКИЙ ЭКОНОМИЧЕСКИЙ УНИВЕРСИТЕТ имени Г. В. ПЛЕХАНОВА Operations management of hotel accommodation ТЕМА: Introduction to operations management АВТОР: к.э.н., доцент Кошелева Анна Игоревна

2 Unit content: Core definitions Operations Management (introduction)
History of Operations Management Operations inputs and output Characteristics of operations processes Operations Strategy

3 Core definitions Operations can be defined as a transformation process where e. g. materials, labour is transformed into e.g. goods, services. Transformation can be: Example: • Physical Manufacturing operations • Locational Transportation/warehousing • Exchange Retail • Physiological Health care • Psychological Entertainment • Informational Communication

4 Operations processes structure

5 Operations system Everett E. Adam & Ronald J. Ebert defines as ‘An operating system is the part of an organization that produces the organization's physical goods and services’. Ray Wild defines operations system as ‘a configuration of resources combined for the provision of goods or services’.

6 Environment of operations

7 Concept of operations

8 Core definitions Operations management is the activity of managing the resources that create and deliver services and products. The operations function is the part of the organization that is responsible for this activity. Every organization has an operations function because every organization creates some type of services and/or products. Operations managers are the people who have particular responsibility for managing some, or all, of the resources which comprise the operations function. ‘operations’ as a function, meaning the part of the organization which creates and delivers services and products for the organization’s external customers; ‘operations’ as an activity, meaning the management of the processes within any of the organization’s functions. all operations consist of a collection of processes (though these processes may be called ‘units’ or ‘departments’) interconnecting with each other to form a network.

9 The relationship between the operations function and other core functions of the organization

10 Operations within organization

11 General model for managing operations

12 History of operations management
Craft production is the process of handcrafting products or services for individual customers. Mass production is the high-volume production of a standard product for a mass market. Lean production is an adaptation of mass production that prizes quality and flexibility.

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14 Operations inputs One set of inputs to any operation’s processes are transformed resources: Materials; Information; Customers. The other set of inputs to any operations process are transforming resources: Facilities – the buildings, equipment, plant and process technology of the operation; Staff – the people who operate, maintain, plan and manage the operation. These are the resources which act upon the transformed resources.

15 Operations inputs Materials – operations which process materials do so to: transform their physical properties (shape or composition, for example); change their location (parcel delivery companies, for example); change the possession of the materials (like retail operations; store materials (like warehouses). Information – operations which process information do so to: transform their informational properties (accountants, for example); change the possession of the information (for example market research companies sell information); store the information, for example archives and libraries; change the location of the information (like telecommunication companies).

16 Operations inputs Customers – operations which process customers might: change their physical properties (for example, hairdressers or cosmetic surgeons); accommodate customers (hotels, for example); transform the location of their customers (airlines, mass rapid transport systems and bus companies ); transform their physiological state (hospitals). Some are concerned with transforming their; transform their psychological state (for example, entertainment services). But customers are not always simple ‘passive’ items to be processed. They can also play a more active part in many operations and processes. When customers play this role it is usually referred to as co-production (or co-creation for new services) because the customer plays a vital part in the provision of the product/service offering.

17 Dominant transformed resource inputs of various operations

18 Operations outputs just services just products
combination of services and products Customers may be an input to many operations but they are also the reason for their existence. If there were no customers (whether business customers, users or consumers), there would be no operation. So it is critical that operations managers are aware of customer needs, both current and potential.

19 The nature of service How do services (i.e. the products of ’service industries’) differ from material goods? Much less tangible Much more perishable Simultaneous Heterogeneous All this means that the ‘service product‘ depends very much on the way the staff behave.

20 comfortable, pleasant and relaxing
Hotel product Tangible needs Intangible needs comfortable, pleasant and relaxing

21 Hotel product Easy access to reception and somewhere to leave his car.
On the one hand, a guest’s needs may include: Easy access to reception and somewhere to leave his car. A room key so that he can be sure of privacy. A cozy bed so that he can sleep and relax in comfort. Something to eat and drink. Somewhere to exercise, such as a sauna, gym or swimming pool. Alternatively, facilities so that he can work in his room, or possibly hold a meeting. Some form of individual or group entertainment, such as a TV in his room, or perhaps a karaoke bar. On the other hand, intangible needs include the measures taken to make the guest feel welcome and psychologically relaxed. These can be divided into: The ambience (i.e. style and decor) of the building. The amount of hospitality or customer care displayed by the staff.

22 The five performance objectives

23 Characteristics of operations processes

24 Strategy formulation

25 Strategic planning hierarchy

26 Operations strategy framework

27 Рекомендуемая литературы по теме
Hotel management and operations / Ред. D.G. Rutherford. – 5rd ed. – New York: John Wiley & Sons, Inc., 2011. Nigel Slack, Alistair Brandon-Jones, Robert Johnston Operations management / Pearson, 7th edition, 2013 Savita Sharma, “Accommodations Operations”, Published for YCMOU by Vikas Publications, Delhi 2016 Vaskar Sengupta, “Front Office Operations”, Published for YCMOU by Vikas Publications, Delhi 2016

28 Учебно-методическое обеспечение для самостоятельной работы студентов
Describe how you think the hotel’s management will: make sure that the way it manages the hotel is appropriate to the way it competes for business; implement any change in strategy; develop its operation so that it drives the long- term strategy of the hotel. How do quality, speed, dependability, flexibility and cost impact on the hotel’s external customers? Explain how each of these performance objectives might have internal benefits.


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