Essay about Hospitality Operations Management

4193 Words Jun 29th, 2012 17 Pages
Hospitality Operations Management

Operations management concerns with managing of resources that directly produce the organization’s service or product. These resources are brought together by a series of processes so that they are utilized to deliver the primary service or product of the organization. Thus, operations is concerned with managing resources through transformation processes to deliver service or products. (Rowbotham, Galloway and Azhashemi, 2007) Since the mid-1980s, the rate of growth of major service sector categories as hospitality services, has been approximately double that of other industries (Daley et al., 1998). Due to the unique characteristics of service operations, such as heterogeneity, inseparability,
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In reality, imbalance occurs frequently, so capacity management is therefore required to balance demand and supply (Mabert, 1986; Shemwell and Cronin, 1994).

Adenso-Diaz et al. (2002) state that the aim of capacity management is to minimize customer-waiting time and to avoid idle capacity, with the goal of attending to demand in time and in the most efficient way possible. Capacity planning and control is the task of setting the effective capacity of the operation so that it can respond to the demands placed upon it (Slack et al., 1995). As suggested by Armistead and Clark (1994), “Capacity management is the ability to balance demand from customers and the capability of the service delivery system to satisfy the demand.”

Balancing the supply of and demand for services is the major method for ensuring a smooth operation when managing capacity. Operations managers have to first understand the nature of demand (Lovelock, 1984) and second, the options for managing capacity to meet the expected demand. Moreover, operations managers have to understand the composition of their capacity, the degree to which it can be changed, and the speed of reaction (Slack, 1983) and costs involved (Heskett, et al., 1990) as well.

The accuracy of a forecast of demand is important in capacity planning and control (Slack et al.,

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