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Operations Management in Hospitality

The document provides an overview of operations management, detailing its history, principles, and specific applications within the hospitality and tourism sector. It highlights key historical figures and developments, such as Adam Smith and Taylor's scientific approach, and outlines major operational segments in hospitality, including food production and lodging. Additionally, it discusses the scope of operations management, covering aspects like forecasting, capacity planning, and quality assurance.
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0% found this document useful (0 votes)
17 views3 pages

Operations Management in Hospitality

The document provides an overview of operations management, detailing its history, principles, and specific applications within the hospitality and tourism sector. It highlights key historical figures and developments, such as Adam Smith and Taylor's scientific approach, and outlines major operational segments in hospitality, including food production and lodging. Additionally, it discusses the scope of operations management, covering aspects like forecasting, capacity planning, and quality assurance.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

OPERATIONS MANAGEMENT - BAM 123

History and Operations in the Hospitality and Tourism Sector

Learning Outcomes:
At the end of this chapter, you should be able to:
a) Discuss the history of operation Management.
b) Enumerate the different operations in the hospitality and tourism industry.
Overview of Operations Management
• Operations management is the act of controlling and directing the design,
production, and delivery of products.
• Formerly called production management. Later, it was named as production and
operations management or simply they call it now as operations management – to include
the service industries.
• Although people have been producing and selling products since the very beginning of
civilization, the implementation of operations management is a relatively new
phenomenon.
.
History of Operations Management
• It came to prominence in the 20th century, but its roots can be traced back to the 18 th and 19th
centuries.
• On pre-industrial revolution (1750-1850), one of the first people to address the issues of
operations management was the Scottish Philosopher and father of Modern economics.
• Adam Smith (1723-1790) stated on one of his works that if workers divided their tasks, then they
could produce their products more efficiently than if the same number of workers each built
product from start to finish (division of labor).
• During post-industrial revolution, machinery allowed factories to grow in capacity and greatly
increased their output
• Taylor developed a scientific approach for operations management, collecting data about
production, analyzing this data, and using it to make improvements to operations.
• During World War II technological developments created new possibilities for managers
looking to improve their operations.
• At present, Quality management systems are popular in today's operations management.
• Quality management is a system for mapping, improving, and monitoring operations processes.
Principles of Operation Management
1. Economic Order Quantity – it is said to be the deal order quantity a company should purchase
to minimize inventory costs.
2. Division of Labor – segmentation of tasks, with each person focusing on a specific part of the
production process.
3. Right Selection for right job - Every person you hire fits into your organization like a puzzle
piece in a much larger canvas.
4. Harmony among workers and management – A vibrant workplace draws people to it – a quality,
talented employees want to work in a healthy context and become a part of the life-exuding
process.
5. Specialization of workers and management – Employees who specialize in a skill are apt to be
able to focus better, work easier and produce more of the same product.
6. Time and Motion Study – Reducing useless tasks or at least doing them more efficiently can
free up huge amounts of time for what is important.

7. Projects Management – Helps in dividing activities function wise and responsibility wise which
makes it possible to coordinate the works in different agencies involves in the completion of the
project.

8. Computer Aided Design and Manufacturing – Reduces the time required for production
planning and allocation of jobs to various resources.

9. Operation Research – Helps the managers to take better and quicker decisions.

Operations in the Hospitality and Tourism Sector


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 airports to accommodation
7. Guest reception and queuing at the entrance to a theme park or other major attraction
8. Handling customer complaints at a major tourist venue.
Major Segments in the Hospitality Industry
1. Food and Beverage – considered the largest segment in the hospitality
a. Restaurant
b. Food Stands
c. Cafeteria
2. Travel and Tourism – Offers service that are related to moving people from place to place
a. Travel Agencies
b. Tour Operators
c. Tour Guide
3. Lodging – offers accommodation for a period of time, or a place to stay for one more night.
a. Hotel
b. Hostel
c. Motel
d. Inns
e. Villas
4. Recreation – Involves any activity that people do for rest, relaxation, and enjoyment.
a. Theme parks
b. Resorts
c. Casino
The Scope of Operations Management
1. Forecasting – Such as weather and landing conditions, seat demand for fights and the growth in air
travel.
2. Capacity Planning – essential for the airline to maintain cash flow and make a reasonable profit.
3. Locating Facilities – According to managers’ decision on which cities to provide service for, where
to locate maintenance facilities, and where to locate major and minor hubs.
4. Facilities and Layouts – Important in achieving effective use f workers and equipment.
5. Scheduling – of a restaurant for deliveries and for routine maintenance, scheduling of manpower.
6. Managing Inventories – of such items as foods and beverages, first aid equipment, inflight
magazines, pillows and blankets, and life preservers.
7. Assuring Quality – Essential in flying and maintenance operations, where the emphasis is on safety,
and important in dealing with customers at ticket counters, check-in, telephone where the emphasis
is one efficiency and courtesy.
8. Motivating and Training of Employees – in all phases of operation.

Common questions

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The historical development of operations management, characterized by principles such as division of labor and scientific management, connects with modern practices in the hospitality and tourism industry by establishing foundational methodologies that enhance efficiency and service delivery. As operations management evolved, concepts like quality management and project management were integrated, reflecting a broader focus on customer satisfaction and process improvement . These principles are evident today in the structured coordination of complex hospitality operations, ranging from food service to logistics and guest management in tourism .

Major segments of the hospitality industry implement the principles of operations management through various strategic and operational practices. In the food and beverage sector, principles like economic order quantity help in managing inventory efficiently, while specialization ensures that kitchen and service staff are highly skilled in their specific roles . In lodging, quality management systems ensure guest satisfaction through consistent service and facility standards, while effective scheduling and inventory management optimize resource use and customer service . These segments utilize operations management to streamline processes and improve service delivery.

Adam Smith's concept of division of labor had a significant impact on operations management by laying the foundation for increased efficiency in production processes. Smith argued that dividing tasks among workers allowed them to specialize, which led to greater efficiency and productivity than if each worker completed an entire product independently . This principle became a cornerstone in the field of operations management, influencing later developments in industrial and production processes.

Operations research and computer-aided design (CAD) both aim to enhance decision-making and operational efficiency in operations management. Operations research focuses on using mathematical and analytical techniques to provide better and quicker management decisions . In contrast, CAD specifically aids in reducing the time required for production planning and job allocation . Therefore, while both improve efficiency and decision-making, operations research is more analytical and strategic, whereas CAD is more focused on physical production and design processes.

The scope of operations management has expanded to include motivation and training of employees, recognizing the importance of human resources in achieving operational efficiency and effectiveness. Ensuring that employees are motivated and well-trained is essential in phases of operations where interaction with customers and the delivery of services require both technical skills and soft skills . This expansion indicates a holistic approach to managing operations, highlighting that successful outcomes depend not just on processes and systems, but also on the capabilities and attitudes of the workforce.

The implementation of Quality Management systems reflects the evolution of operations management by shifting the focus from solely optimizing production outputs to encompassing quality and customer satisfaction. Quality management involves mapping, improving, and monitoring processes to ensure products and services meet certain standards . This evolution indicates a broader scope in operations management, integrating systematic methodologies for continual improvement and customer-focused strategies.

Assuring quality is a critical component in the operations of an airline due to the high emphasis on safety and customer satisfaction. Quality management ensures that safety standards are met in flying and maintenance operations, which is vital for preventing accidents and ensuring regulatory compliance . It is maintained through systematic processes such as regular maintenance checks, staff training, and process audits, ensuring that both technical and customer service standards are adhered to, ultimately enhancing the overall flying experience and operational reliability.

Coordinating guest reception processes at major tourist venues presents challenges such as managing large crowds, ensuring efficient queuing, and handling customer inquiries and complaints effectively. Effective operations management addresses these challenges through principles like time and motion study to optimize guest flow and reduce waiting times, as well as quality management practices to handle customer concerns promptly and professionally . Additionally, staffing and scheduling strategies ensure that adequate resources are available to meet peak demand, enhancing the overall guest experience.

Capacity planning plays a crucial role in the profitability of airlines by ensuring that available seating and flights align with demand while maintaining cash flow and profit margins. Efficient capacity planning involves forecasting demand, scheduling, and managing resources appropriately, which directly impacts the airline's ability to optimize load factors and minimize operational costs . This strategic planning element is integral to balancing operational efficiency with economic viability, directly affecting the airline's financial performance.

Project management enhances the completion of projects within the hospitality and tourism sector by dividing activities both functionally and in terms of responsibility. This coordination is crucial for orchestrating various operations across different agencies, ensuring that tasks are aligned with project objectives and timelines . Efficient project management facilitates effective resource allocation, improved communication, and ultimately more successful completion of complex projects such as organizing guest transport or tourist activities.

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