Tour 10
Tour 10
4. Process Management
Process Management
● A key aspect management of operations management is process management
● A Process consists of one or more actions that transform inputs into outputs. In essence,
the central role of all management is process management.
Managing a Process to Meet Demand
● A process will have enough capacity so that its output just meets demand.
● Excess capacity is wasteful and costly; too little capacity means dissatisfied customers
and lost revenue.
● Having the right capacity requires having accurate forecasts of demand, the ability to
translate forecasts into capacity requirements, and a process in place capable of
meeting expected demand.
● Process variation and demand variability can make the achievement of a match between
process output and demand difficult.
● Therefore, to be effective, it is also necessary for managers to be able to deal with
variation.
Models
● A model is an abstraction of reality,a simplified representation of something
● For example, a child's toy car is a model of a real automobile It has many of the same
visual features relative proportions, wheels) that make it suitable for the child's learning
and playing.
Classification of Models
1. Schematic Model
2. Physical Model
3. Mathematical Model
Models are beneficial because they;
1. Easy to use and less expensive than dealing directly with the actual situation
2. Require users to organize and sometimes quantify information
3. Increase understanding of the problem
4. Enable managers to analyze what if questions
5. Serve as a consistent tool for evaluation and provide a standardized format for analyzing
a problem
6. Enable users to bring the power of mathematics to bear on a problem
Quantitative Approaches
● Quantitative approaches to problem solving often embody an attempt to obtain
mathematically optimal solutions to managerial problems.
Performance Metrics
● All managers use metrics to manage and control operations
Innovation
● Finding new or improved products or services are only two of the many possibilities that
can provide value to an organization
● Innovations can be made in processes, the use of the Internet, or the supply chain that
reduce costs, increase productivity, expand markets, or improve customer service
Quality Problems
● Managing risks starts with identifying risks, assessing vulnerability and potential damage
(liability costs, reputation, demand), and taking
steps to reduce or share risks
● Competing in a global economy
● Low labor costs in third world countries have increased pressure to reduce labor costs
Environmental Concerns
● Stricter environmental regulations
● Sustainability
Ethical Conduct
● making decisions, managers must consider how their decisions will affect shareholders,
management, employees, customers, the community at large, and the environment
● Managers should act responsibly to correct mistakes as quickly as possible
○ Ethics is a standard of behavior that guides how one should act in various
situations
The Need to Manage the Supply Chain
● Supply chain management is being given increasing attention as business organizations
face mounting pressure to improve management of their supply chains.
● In the past, most organizations did little to manage their supply chains.
● Instead, they tended to concentrate on their own operations and on their immediate
suppliers As a result, supply chains experienced a range of problems that were
seemingly beyond the control and the issues include the following:
Lesson 2
DESIGN OF TOURISM & HOSPITALITY SERVICES
1. Total QualityManagement
● Quality
a. means, serving in a manner which suits the tourist wwln the limits of the industry.
b. It also refers to the quality provided to the people who have visited an individual'
s place.
c. The best of the services provided by the operations team is called quality.
● Delivering Quality Service
a. is one of the major challenges facing hospitality managers in the opening years
of the millennium.
b. It is an essential condition for success in the emerging, keenly competitive, global
hospitality markets.
c. While the future importance of delivering quality hospitality service is easy to
discern and to agree on, doing so presents some difficult and intriguing
management issues.
● Tourists/guests, in general, consumers do not tolerate mistakes anymore. They require
quality for money. This has forced agencies,hotels, and other participants of the tourism
offer, to introduce quality control, standards and the system of TQM.
a. USA is at the forefront, and in Europe, Sweden, and Switzerland.
b. American international hotel chains were the first to implement TQM, and very
good results were achieved.
● Good service design satisfies customers, communicates the purpose of the service to its
market and bring financial rewards to the business.
a. The objective of a good design, whether products or services, is to satisfy
customers by meeting their actual needs and expectations.
b. Service design, therefore, can be seen as the starting and ending with the
customer.
c. So, the design has one overriding objective: to provide services and processes
which will satisfy the operation' s customers.
4. Service Development
SERVICE DEVELOPMENT SYSTEM
● An effective service strategy links service decision with cash flows, market dynamics,
service life cycle, and the organization's activities. A firm must have the cash flows for
service development, understand the changes constantly taking place in the
marketplace, and have the necessary talents and resources available.
SOURCES OF IDEAS
a. Marketing people see the need for something their customers want.
b. Production people see opportunities to improve methods and processes.
c. Everyone in an organization is a potential source of ideas
d. Quality circles, to stimulate ideas
e. Outside the company, as from its customers, or the public, or from sources within
the firm not directly responsible for new service ideas like its employees.
5. Organizing for service development (approaches)
1. Traditional US approach to product development is an organization with distinct
departments.
○ A research and development department to do the necessary research.
○ An engineering department to design the service.
○ A service engineering department to design a service that can be provided.
○ An operations department that provides the service. The distinct advantage of
this approach is that fixed duties and responsibilities exist.
2. Assign a service manager to "champion"
○ The service through the service development system and related organizations
3. Use of teams.
○ This is perhaps the best used in US. Such teams are variously known as service
development teams, and value engineering teams.
○ These teams are charged with the responsibility of moving from market
requirements for a service to achieving a service success.
○ Such teams often include representatives from marketing, manufacturing,
purchasing, equality assurance, and field service personnel. Many teams also
include representatives from vendors.
4. Japanese approach.
○ They bypass the team issue by not subdividing organizations into research and
development, engineering, production, and so forth.
○ Consistent with the Japanese style of group effort and teamwork, these activities
are all in one organization.
○ Japanese culture and management style are more collegial (power or authority
vested equally in each of a number of colleagues) and the organization less
structured than in most Western countries.
○ Therefore, the Japanese find it unnecessary to have "teams" provide the
necessary communications and coordination.
6. Value Engineering
● Value engineering (usually done by design engineers) or value analysis (usually done by
the purchasing department) means that everything that is made or purchased is thought
of as being made or bought to serve a particular purpose.
● Value Engineering answers...
a. Would another lower-cost design work as well?
b. Could another less costly item fill the need?
c. Would less expensive material do the job?
d. On purchased items, are the vendors' prices as low as they could be for the level
of quality and delivery dated required?
7. Service Design
● Designing services is challenging because they often have unique characteristics.
● One reason productivity improvements in services are so low is because both the design
and delivery of service products include customer interaction.
● When the customer participates in the design process, the service supplier may have a
menu of services from which the customer selects options.
● At this point, the customer may even participate in the design of the service.
Documents for Service
● The documentation for a service will often take the form of explicit job instruction that
specify what is to happen at the moment of truth.
● Example of service documentation for production (drive-up teller stations)
a. Be especially discreet when talking to the customer through the microphone.
b. Provide written instructions for customers who must fill out form you provide.
c. Mark lines to be completed or attach a note with instructions.
d. Always say "please" and "thank you" when speaking through the microphone.
e. Establish eye contact with the customer if the distance allows it.
8. Concept Screening
● Concept screening is a process that helps organizations select the best ideas for new
products or services.
● It's a systematic way to evaluate potential solutions and ensure that the most promising
ones are developed further.
9. Sustainability
1. Managers
● may find it helpful to think in terms of the four R's as they address sustainability.
These are....
○ RESOURCES: Operations is often the primary user of the firm's
resources. This puts speciat pressure on using human, financial, and
material resources in a sustainable way.
○ RECYCLE: As managers seek sustainability, they should realize that
there are only three things that can be done with waste: burn it, bury it, or
reuse it.
○ REGULATION: Laws and regulations-are affecting transportation, waste
and noise are proliferating and cars are as much of a challenge as
reducing resource use.
○ REPUTATION: The marketplace may reward leadership in sustainability.
Imaginative, well-led firms are finding opportunities to build sustainable
production processes that conserve resources.
LESSON 3&4
SPECIFYING QUALITY FOR TOURISM & HOSPITALITY SERVICES
Introduction
● A service's quality is embodied in its characteristics.
● The organization's managers decide these characteristics and then they have their
designers try to develop products and services which incorporate these characteristics.
A "service provider"
● does not object to high quality as such. He is as much in favor of it as everyone else, but
he has to contend with cost.
● As a rule, the higher the quality, the higher the cost. Worse, even, costs usually go up
faster than quality. A little more quality usually costs a good bit more money.
● The end product of managerial decisions on quality may take the form of quality policy
statements.
● In these form, these statements cannot be used by the factory because they don not
contain instructions telling it what to do.
Rationale
● A firm that manufactures shoes may either produce shoes that fit exceedingly well, last
for many years, and are very stylish, or it can produce satisfactory shoes that give good
service and wear moderately well.
● The former sells for several times the price of the latter, to a much smaller clientele, and
requires different materials and processes. Both have a place in the total market.
● Similarly, retail establishments may differ in their service to customers. Some are able to
sell items for less because they reduce total costs purposefully, specifying that they will
not service the merchandise they sell.
● Competition may well be on the basis of design quality rather than price, with firms
spending large amounts for advertising designed to create a "quality" image.
● In this manner they can charge premium prices for their "quality" products. Cars are sold
because of fuel efficiency, appearance power and safety features.
1. Inspection
a. Visual
b. Judgmental
c. Broad (Ex. Garments)
2. Testing
a. Specific
b. Quantified
c. Involves physical and chemical properties (min and max ranges/limits).
● Physical properties establish identity like color, taste, odor, specific gravity, BP, FP
viscosity (when quantified). Ex. is NaCl vs. sugar on taste. Chemical properties show
behavior when subjected to the action of other substances or factors causing its
composition to change
d. Deals with properties termed variables (measurable).
● If the inspector measures "how much,""how big, "how thick," "how round, "and so on, he
is dealing with "variables"
WHERE TO INSPECT?
● Inspection can take place either at the job or in a central inspection crib.
● If it is done at the job, it is called "FLOOR INSPECTION".
1. FLOOR INSPECTION
● Sometimes called "patrolling,""roving," or "first piece" inspection where inspectors move
from machine to machine to approve setups before production starts and to catch
defective work before a large quantity has been produced.
● They also check the products of semiautomatic machines from time to time and record
the measurements on quality control charts.
● Floor inspection saves extra handling of materials to move faster through the plant by
eliminating their need to be hauled to and from central inspection.
● One disadvantage of floor inspection is that workers and machines have to wait for the
inspector before they can continue. Another disadvantage of floor inspection is that
inspector has to carry around the inspection tools.
2. CENTRAL INSPECTION
Materials are trucked to a central inspection crib, where they are left to be inspected.
● This inspection saves inspector's time because they never have to wait for jobs to
inspect.
● The work can be done by less costly inspectors who work under close supervision and
are away from the pressure of the people whose work they inspect.
● Special equipment can be used to good advantage at the central inspection.
PROCESS CONTROL
● A different approach to the problem of mechanized inspection is to build machines which
check their own work. This is called process control.
● The inspection of the work turned out by these machines now is usually done by
microcomputers which analyze hundreds of performance checks every minute and then
adjust the machine if it needs it.
SELECTIVE INSPECTION
● This is sorting inspected parts by size so that over- and undersize parts can be matched.
● This is importante where parts have to fit together and work as mating parts. Instead of
rejecting or reworking parts just over or just under the tolerance limits, they are put into
piles by size for use with mating parts having offsetting discrepancies in size.
QUALITY CIRCLE
● Involvement of production workers in job improvement and quality improvement and
control has always been around to some extent, but only in the last few years has this
process become more formalized.
● Again, we have taken our lead from Japan where their extensive quality circle programs
abound and account for part of their success. welfare counselors, and so on), who meet
regularly to identify a broad
● A quality circle consists of a small group of production workers (or engineers, or office
clerks, or salespeople, or quality inspectors, or array of problems related to their task
and work toward developing ways to solve them.
● It is a small group of workers from the same working unit or work area who meet
regularly to voluntarily identify 269nd solve problems within their areas of responsibility
FISHBONE DIAGRAM
Quality Education
● In the country remains to be an elusive dream. The list of woes that continue to plague
Philippine education is both long and all-too-familiar:
○ (a) lack of classrooms
○ (b) lack of facilities,
○ (c) lack of teachers,
○ (d) lack of a faculty development program,
○ (e) inadequate pay for teachers and other education personnel, and
○ (f) a host of other inadequacies.
● There is a keen and heightening call for renewal within the education community. The
poor quality of education in the country goes beyond these shortcomings.
● Improving it lies heavily on constructing new educational methodologies, tools and
systems that can lead to a holistic learning (balanced, whole, organic and functional).
● What is more significant is for the educators to take time and extra effort to lead students
through the rest of the learning process that ensures more lasting knowledge.
● Many students are lost because teachers do not understand how students learn.The
way teachers teach is not compatible with the learning style of those they are teaching.
Learning style banks on the fact that each person has a unique learning style that
students learn at different paces, some faster and some slower than others