DEPARTMENT OF HOSPITALITY MANAGEMENT
Learning Objectives
o Describe the importance of operations management,
o explain the functions involved in the creation of goods and
services,
o explain the tasks of operations manager
o describe the history of the operations management,
o apply the functions involved in the creation of goods and
services.
DEPARTMENT OF HOSPITALITY MANAGEMENT
Operations Management
Area of management concerned with designing and controlling the
process of production and redesigning business operations in the
production of goods or services.
It involves the responsibility of ensuring that business operations
are efficient in terms of using few resources as needed and
effective in meeting customer requirements.
DEPARTMENT OF HOSPITALITY MANAGEMENT
History of Operations Management
Pre-Industrial Revolution
One of the first people to address the
issues of operations management was
the Scottish philosopher -- and father of
modern economics -- Adam Smith. In
1776 Smith wrote "The Wealth of
Nations," in which he described the
division of labor. According to Smith, if
workers divided their tasks, then they
could produce their products more
efficiently than if the same number of
workers each built products from start to
finish. This concept would later be used
by Henry Ford with the introduction of
the assembly line.
DEPARTMENT OF HOSPITALITY MANAGEMENT
History of Operations Management
Post-Industrial Revolution
During the industrial revolution, machinery
allowed factories to grow in capacity and greatly
increased their output. Despite this growth, there
was considerable inefficiency in production. Two
individuals helped to overcome these inefficiencies
in the early 20th century: Frederick Winslow Taylor
and Ford. Taylor developed a scientific approach
for operations management, collecting data about
production, analyzing this data and using it to
make improvements to operations. Ford increased
efficiency in production by introducing assembly
line production and improved the supply chain
through just-in-time delivery.
DEPARTMENT OF HOSPITALITY MANAGEMENT
History of Operations Management
➢ Post World War 2
During 2nd world war 2 created new possibilities for managers looking to
improve their operations. Modern producers are now able to track their
inventory from raw materials, through production and delivery.
➢ MODERN DAY
Quality management systems are popular in today's operations
management. Quality management is a system for mapping, improving and
monitoring operations processes. A variety of quality management systems are
in use among top firms, the most notable systems being the ISO systems and
Six Sigma. These systems aim to increase the efficiency of business
processes. Although operations management has typically dealt with the
manufacturing process, the growth of the service industry has created a field of
service operations management.
DEPARTMENT OF HOSPITALITY MANAGEMENT
Task of
Operations Manager Task:
I. Develop, Implement and review processes and procedures
II. Assist with Budgeting and Planning
III. Identify quality control issues and offer ways to improve
IV. Formulate strategic objectives for different departments
V. Help Ensure the company remains legally complaint
VI. Recruit, train and supervise staff
VII. Examine data and help forecast any long-term planning
DEPARTMENT OF HOSPITALITY MANAGEMENT
Task of
Important Operations Manager Skills:
I. Proven experience as an operations manager or similar role
II. Strong interpersonal and communication skills
III. A degree in business, operations management or a related field
IV. Expert-level organizational skills
V. Data-processing skills
VI. Ability to manage budgets
VII. Strong problem-solving capability
DEPARTMENT OF HOSPITALITY MANAGEMENT
Task of
Successful Operations Manager:
I. Emphasize appropriate metrics
II. Invest in keeping up with technology
III. Delegate competently and confidently
IV. Prioritize high-quality production
V. Develop a high-level of stress tolerance
DEPARTMENT OF HOSPITALITY MANAGEMENT
Importance of Operations Management
Operations management is the execution of backend business functions. It involves overseeing
manufacturing, inventory, and quality control to ensure market-ready products and service.
Whether it’s a single operations manager or a whole department, excellent operations
management helps ensure business efficiency.
Operations management is the administration of business structure, practices, and processes to
enhance efficiency and maximize profit. It refers to the management of functions that a business
needs to run effectively day-to-day, including:
o Overseeing multiple departments and providing goals
o Overseeing and streamlining processes
o Balancing revenue and costs
o Developing strategic plans
o Production, logistics, and supply chain
DEPARTMENT OF HOSPITALITY MANAGEMENT
Operations are the foundation of how a
business works (in terms of supply chain
and logistics) and profits rely on lean,
efficient operations. Poor business
operations can threaten a business’s
survival, so processes must be optimized,
the right staff need to be employed, and
physical locations must be strategic, ethical,
and safe.
DEPARTMENT OF HOSPITALITY MANAGEMENT
Creation of Goods and Services
What is GOODS
Goods are items, articles, products or commodities that customers purchase from companies.
They are tangible items with physical attributes you can touch, feel and see, like color, size, shape
and weight. Consumers might use a good a single time or multiple times. They might also share
the good or give it to someone else without changing its essential nature.
Some examples of goods include:
Computers Cars
Books Jackets
Notepads Cell phones
Laptop bags Desks
Water bottles Lamps
DEPARTMENT OF HOSPITALITY MANAGEMENT
Creation of Goods and Services
What are services?
Services are intangible activities, amenities, benefits or assistance that one person or business
performs or provides to another. The receiver of the service or their representative pays for the
service. In some industries, service output can come from an individual, like someone who cuts
your hair. In others, a group performs a service, such as a team of doctors working together to
perform surgery on a patient. While the consumer of the service can utilize it, they don't own the
service they receive. Instead, the service provider owns the service.
Some examples of services include:
Computer repairs Transportation
Meal deliveries Events management
Air conditioning installations Internet access
Tutoring Massages
Waste collection Dry cleaning
DEPARTMENT OF HOSPITALITY MANAGEMENT
Creation of Goods and Services
Differences between services and goods
Tangibility
Transferability
Presence of Inventory
Ownership
Returnability
Time Management
Quality Measurement
Customer Interaction
Variability
DEPARTMENT OF HOSPITALITY MANAGEMENT
Creation of Goods and Services
Everyone has different meanings for what service is. Write an essay about service by exploring its
various definitions, here are helpful examples and ideas to consider.
Service is divided into three categories: personal, social, and business. First, personal services,
such as recreational and restaurant services, are offered to customers depending on their needs.
Second, non-government organizations or individuals give social services to help others in need.
Lastly, companies offer business services to conduct their work activities.
DEPARTMENT OF HOSPITALITY MANAGEMENT
DEPARTMENT OF HOSPITALITY MANAGEMENT