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business
hotel operations management

Questions and Answers of Hotel Operations Management

=+2 “Everything we do can be broken down into a process”, said Lucile, COO of an outsourcing business for the ‘back-office’ functions of a range of companies. “It may be more
=+TABLE 11.1 Sophie’s journey times (in minutes)Day Leaving time Journey time Day Leaving time Journey time Day Leaving time Journey time 1 7.15 19 6 8.45 40 11 8.35 46 2 8.15 40 7 8.55 32 12 8.40
=+b) How much time per (5-day) week should she expect to be saved from having to listen to a babbling half-wit?
=+a) Draw a scatter diagram that will help Sophie decide on the best time to leave her apartment.
=+Sophie was sick of her daily commute. “Why”, she thought “should I have to spend so much time in the morning stuck in traffic listening to some babbling half-wit on the radio? We can work
=+ Why is failure management also improvement?
=+b) When posting a package – the elapsed time is between posting the package and it being delivered to the recipient.
=+How much of this elapsed time do you think is value-added time?
=+a) When handing an assignment in for marking if you are currently studying for a qualification, what is the typical elapsed time between handing the assignment in and receiving it back with
=+4 Examine the value-added versus non-value-added times for some other services. For example:
=+What is the value-added percentage for the process? (Hint – use Little’s law to work out how long applications have to wait at each stage before they are processed. Little’s law is covered in
=+3 An insurance underwriting process consists of the following separate stages:Stage Processing time per application(minutes)Average work in progress before the stage Data entry 30 250 Retrieve
=+c) Next time you go on a journey, time each part of the journey and perform a similar analysis.
=+b) Visit the websites of two or three airlines and examine their businessclass and first-class services to look for ideas that reduce the non-value-added time for customers who are willing to pay
=+a) Analyze the journey in terms of value-added time (actually going somewhere) and non-value-added time (the time spent queuing, etc.).
=+Through the gate and on to air bridge that is continuous queue going onto plane, takes 4 minutes but finally in seats by 9.21. Wait for plane to fill up with other passengers for 14 minutes. Plane
=+2 Consider this record of an ordinary flight: “Breakfast was a little rushed but left the house at 6.15. Had to return a few minutes later, forgot my passport. Managed to find it and leave
=+b) How are operations objectives (quality, speed, dependability, flexibility, cost) influenced by the practices that Toyota adopts?
=+a) List all the different techniques and practices that Toyota adopts. Which of these would you call just-in-time philosophies and which are just-intime techniques?
=+Re-examine the description of the Toyota Production System in the‘Operations in practice’ box, ‘Toyota’s lean DNA’.
=+ How does lean eliminate waste?
=+What is lean?
=+b) What do you think are the advantages and disadvantages of these two approaches?
=+a) Draw up a schedule indicating the start and finish time for each activity(prepare, bake, decorate) for both forward and backward approaches.
=+Usually the team is ready to begin work at 8.00 am and the orders are picked up at 4.00 pm. The two people who work in the bakery have different approaches to how they schedule the work. One
=+4 It takes 3 hours for a bakery to prepare, bake and decorate (in that order)a batch of cakes for a business contract. Each batch of cakes takes 1.5 hours to prepare, 1 hour to bake and 30 minutes
=+Determine a sequence based on using (a) the FIFO rule, (b) the due date rule and (c) the shortest operation time rule.Which of these sequences gives the most efficient solution and which gives the
=+3 Mark Key is an events coordinator for a small company. Returning from his annual holiday in France, he is given six events to plan. He gives them the codes A to F. He needs to decide upon the
=+What is the P:D ratio for this retail operation?
=+displayed in a temperature-controlled cabinet. The average time that the sandwiches spend in the cabinet is 6 hours.
=+★ ERP is a development of materials requirement planning (MRP), and is now used to integrate not only internal activities but those of customers and suppliers also.
=+★ Enterprise resource planning (ERP) systems are information technology systems that integrate planning and control information from various parts of the business.
=+★ Pull control is a system whereby demand is triggered by requests from a work centre’s (internal) customer. Push control is a centralized system, whereby control decisions are issued to work
=+● monitoring and control, which involve detecting what is happening in the operation, re-planning if necessary and intervening in order to impose new plans.
=+● scheduling, which determines the detailed timetable of activities and when activities are started and finished;
=+● sequencing, which decides the order in which work is tackled within the operation;
=+● loading, which dictates the amount of work that is allocated to each part of the operation;
=+★ In planning and control, four distinct activities are necessary:
=+2 A specialist sandwich retailer must order sandwiches at least 8 hours before they are delivered. When they arrive in the shop, they are immediately
=+What are the main objectives of this planning and control task, and how does Joanne try to achieve these objectives?
=+Re-read the ‘Operations in practice’ at the beginning of the chapter:‘Joanne manages the schedule’.
=+What is resource planning and control?
=+4 “Our suppliers often offer better prices if we are willing to buy in larger quantities. This creates a pressure on us to hold higher levels of stock.Therefore, to find the best quantity to
=+How big should the batch size be?
=+3 A fruit-canning plant has a single line for three different fruit types. Demand for each type of tin is reasonably constant at 50,000 per month (a month has 160 production hours). The tinning
=+What will be the effect on cycle and pipeline inventories?
=+A supplier makes monthly shipments to ‘House & Garden Stores', in average lot sizes of 200 coffee tables. The average demand for these items is 50 tables per week, and the lead time from the
=+ How can you control inventory?
=+ When should you order? (The timing decision)
=+ How much should you order? (The volume decision)
=+ Why do you need inventory?
=+What is inventory?
=+c) Within a few days another ‘scandal’ hit the airline. A ‘potentially prize-winning’ rabbit (called Simon) reportedly died while in transit from London Heathrow to O’Hare airport in
=+b) After the incident attracted so much negative publicity, United announced a new upper limit of $10,000 in compensation for passengers who agree to give up a seat on a flight where United needs
=+a) How should the airline have handled the situation?
=+4 When footage shot by a fellow passenger showed a bloodied and unconscious man being pulled off of a United Airlines flight, the clip caused a sensation on social media. The incident began when
=+b) What else could the card companies do to cope with demand fluctuations?
=+a) What seem to be the advantages and disadvantages of these strategies adopted by the card companies?
=+3 Seasonal demand is particularly important to the greetings card industry.Mother’s Day, Father’s Day, Halloween, Valentine’s Day and other occasions have all been promoted as times to buy
=+2 In a typical 7-day period, the planning department of the pizza company programmes its ‘Pizzamatic’ machine for 148 hours. It knows that changeovers and set-ups take 8 hours and breakdowns
=+b) Prepare a demand chase plan. What implications would this have for staffing levels, assuming that the maximum amount of overtime would result in production levels of only 10 per cent greater
=+a) Prepare a production plan that keeps the output level. How much warehouse space would the company need for this plan?
=+A pizza company has a demand forecast for the next 12 months that is shown in Table 7.4. The current workforce of 100 staff can produce 1,500 cases of pizzas per month.
=+ How can operations understand the consequences of their mediumterm capacity decisions?
=+ What are the ways of coping with mismatches between medium-term demand and capacity?
=+ What are the main medium-term capacity decisions?
=+ What are the main long-term capacity decisions?
=+Visit three shops that are local to you and ask the owners how they select their suppliers. In what way were their answers different from what you thought they might be?
=+4 If you were the owner of a small local retail shop, what criteria would you use to select suppliers for the goods that you wish to stock in your shop?
=+c) Find examples of how supply chains try to reduce this bullwhip effect.
=+b) What happens if all operations in the supply chain decided to keep only half of the period’s demand as inventory?
=+That is, period 1 has a demand of 100, period 2 has a demand of 95, period 3 a demand of 100, period 4 a demand of 95 and so on?
=+a) Using the same logic and the same rules (i.e. all operations keep one period’s inventory), what would the effect on the chain be if demand fluctuated period by period between 100 and 95?
=+3 The example of the bullwhip effect shown in Table 6.2 shows how a simple 5 per cent reduction in demand at the end of the supply chain causes fluctuations that increase in severity the further
=+would like us to be more flexible in changing our volumes and delivery schedules. I admit that we could be more flexible within the season. Partly, we can’t do this because we have to buy in
=+2 A chain of women’s apparel retailers had all their products made by Arropa Limited, a small but high-quality garment manufacturer. They worked on the basis of two seasons:Spring/Summer and
=+What approach to sourcing these components would you recommend?Component Cost (as a proportion of total material cost) Suppliers Ease of changing supplier The innertubes 3% Many alternative
=+The COO of Super Cycles was considering her sourcing strategy. “I have two key questions, for each of our outsourced parts: ‘what is the risk in the supply market?’, and ‘what is the
=+ How should the demand side be managed?
=+ How should the supply side be managed?
=+ How should you manage supply chain relationships?
=+ How do supply chains compete?
=+c) If the burger shop has a three-stage process for making burgers and stage 1 takes 2.0 minutes, stage 2 takes 3.0 minutes and stage 3 takes 2.2 minutes, what is the balancing loss for the process?
=+ (b) Assuming that each burger has 7.2 minutes of work required, how many servers are required?
=+5 A gourmet burger shop has a daily demand for 250 burgers and operates for 10 hours. (a) What is the required cycle time in minutes?
=+(b) If there are not enough cubicles, how long should the interval be to cope with demand?
=+(a) Does the theatre have enough toilets to deal with the demand?
=+4 At the theatre, the interval during a performance of King Lear lasts for 20 minutes and in that time 86 people need to use the toilet cubicles. On average, a person spends 3 minutes in the
=+(c) If department coordinators could be persuaded to submit their batched claims earlier (not always possible for all departments), so that the average time between submission of the claims to the
=+(b) If a more automated process involving electronic submission of claims could reduce the average processing time to 15 minutes, what effect would this have on the required staffing levels?
=+a) How many staff does the process need, on average, for the lowest demand and for the highest demand?
=+different types of expenditure, checking all calculations, obtaining more data from the claimant if necessary and (eventually) sending an approval notification to salaries. The total processing
=+The number of claims submitted over the year averages around 3,200, but this can vary between 1,000 during the quiet summer months up to 4,300 in peak months. Processing claims involve checking
=+Part of her department’s responsibilities includes checking and processing expense claims from staff throughout the metropolitan authority and authorizing payment to the salaries payroll section.
=+3 “It is a real problem for us”, said Angnyeta Larson. “We now have only ten working days between all the expense claims coming from the departmental coordinators and authorizing payments on
=+ If the process is rearranged so that all the tests are performed in the same area, thus eliminating the time to move between test areas, and the tests themselves are improved to half the amount of
=+themselves took 30 minutes, moving the samples between each test area took 10 minutes and double-checking the results took a further 20 minutes.What is the throughput efficiency of this process?
=+2 A laboratory process receives medical samples from hospitals in its area and then subjects them to a number of tests that take place in different parts of the laboratory. The average response
=+One of the examples at the beginning of the chapter described ‘drivethrough’ fast food processes. Think about (or, better still, visit) a drive-through service and try mapping what you can see
=+ Is process variability recognized?

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