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At the same time, it helps to increase service quality and generate higher profitability.
Ava Restaurant in Hotel Panorama in Hong Kong is the organization of choice for evaluation for this essay. Definitions of one of the operation’s functions, capacity management, will first be given. It will be used as a practical example to evaluate and analyze the effectiveness of capacity management in the industry. Existing problems with capacity management in Ava Restaurant will be identified, and potential solutions and recommendations will be suggested. A summary of the key points and final recommendation will be presented in conclusion.
In the service industry, achieving efficient capacity management has always been one of the challenges of all operations managers (Klassen & Rohleder, 2002). Lines (1996) states that customers have grown accustomed not to have to wait, and if the goods they require are either not in stock or unavailable at short notice, they will go …show more content…
It is also the only decision option, which reacts to the actual relationship between demand and capacity. For example, if the demand for Ava Restaurant is very high, cross-trained employees from the in-room dining section can provide assistance. The flexibility of the employees can ensure the smoothness of the operation for the entire hotel, while service standards and quality remain unchanged.
Apart from the level strategy and chase strategy raised by Sasser (1976), Armistead and Clark (1994) argue that level and chase strategies are not enough for all service organizations, it was suggested that another totally different strategy which is known as
coping strategy. Armistead and Clark (1994) note that it is inevitable that all service organizations will at times run out of capacity to satisfy demand within the time-frame expected by customers. This is the area that most operations managers would recognize as coping. In these situations, there are two possible courses of action: first, to allow service quality standards to fall in an uncontrolled way and second, to try to control the fall in service standards, therefore protecting the service standards for the core
Ava Restaurant in Hotel Panorama in Hong Kong is the organization of choice for evaluation for this essay. Definitions of one of the operation’s functions, capacity management, will first be given. It will be used as a practical example to evaluate and analyze the effectiveness of capacity management in the industry. Existing problems with capacity management in Ava Restaurant will be identified, and potential solutions and recommendations will be suggested. A summary of the key points and final recommendation will be presented in conclusion.
In the service industry, achieving efficient capacity management has always been one of the challenges of all operations managers (Klassen & Rohleder, 2002). Lines (1996) states that customers have grown accustomed not to have to wait, and if the goods they require are either not in stock or unavailable at short notice, they will go …show more content…
It is also the only decision option, which reacts to the actual relationship between demand and capacity. For example, if the demand for Ava Restaurant is very high, cross-trained employees from the in-room dining section can provide assistance. The flexibility of the employees can ensure the smoothness of the operation for the entire hotel, while service standards and quality remain unchanged.
Apart from the level strategy and chase strategy raised by Sasser (1976), Armistead and Clark (1994) argue that level and chase strategies are not enough for all service organizations, it was suggested that another totally different strategy which is known as
coping strategy. Armistead and Clark (1994) note that it is inevitable that all service organizations will at times run out of capacity to satisfy demand within the time-frame expected by customers. This is the area that most operations managers would recognize as coping. In these situations, there are two possible courses of action: first, to allow service quality standards to fall in an uncontrolled way and second, to try to control the fall in service standards, therefore protecting the service standards for the core