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BHM 311: HOSPITALITY OPERATIONS MANAGEMENT

Operations Management is: The business function responsible for planning, coordinating, and controlling the resources needed to produce products and services for a company

Operations Management is:

* A management function

* An organization’s core function

* In every organization whether Service or Manufacturing, profit or Not for profit

WHY STUDY OPERATIONS MANAGEMENT?

1. Operation is the core function of the organization and continuously manages the flow of resources through it. Heart of every organization.

2. The output of the operation system is the bundle of goods and services which is consumed in society. An organization can obtain competitive advantage by improving operations.

3. All organizations have an operations activity. The techniques and skills of operations management can be applied across a range of apparently diverse businesses. This means that many skills learnt in one context can be transferred to another. Operations are the tasks that create value.

4. Operations management is management in that it offers to challenge, complexity and the responsibilities which are part of any managerial role. A good operation manager does not define the tasks as merely tinkering with techniques to run part of the business on a day-to-day basis. The role is larger than this, being also concerned with developing operating processes, products, locations etc to meet the demands and pressures of the changing environment.

*********complexity in terms of decision making about simple issues e.g. which loaf of bread to buy is simple but deciding for a restaurant chain can cost millions. Improvements in operations can simultaneously lower costs and improve customer satisfaction.

MAIN DECISION MAKING AREAS IN OPERATIONS MANAGEMENT

Three main decision making areas in operations management are:

a. The nature of the products and services to be supplied

b. The nature of the markets to be...