A New Reservation System

Spokane Creek Cabins & Campground

Keystone, South Dakota

Paige Wells
November 21st, 2014
Productions & Operations Management Prof. Rodgers

1) Section A: Problem Statement

a. Identify and describe the business/organization
The organization I will be working to improve this semester is Spokane Creek Cabins &
Campground, located in Keystone, South Dakota. I worked at Spokane Creek in the summer of
2014 as part of a hospitality internship. The campground functions as a tent and RV camping
area but also has 18 cabins, ranging in size and amenities, a cafe, and general store. The
campground is under relatively new ownership as the owners I worked for were only in their
third year. There were three other interns besides myself and about 14 other employees that were
traveling work campers. The managers, a couple from Texas, work in all aspects of the
campground. All the workers at Spokane Creek are seasonal, including the owners, many of
which are hired new each year.
b. Describe the operational/process problem you will be addressing
The owners of the campground were the most dedicated and involved managers I have
ever worked for. They were very much invested in every aspect of the business; however there
was one area of operations that was constantly encountering problems and that was the
reservation system. Reservations at Spokane Creek are done one of three ways, over the phone,
online, or in person, with the most common occurring over the phone. Many of the errors that
were made with the system were made over the phone due to a lack of attention to detail and
training. Not all employees were overly savvy with technology so the internet system was at
times a struggle and a place of errors to be made. Stress and impatience was also a common
occurrence within the store as all phone calls, regardless of what for, went to the store. Therefore
employees were forced to stop what they were doing or the customer they were helping to
answer the phone and handle the questions or reservation that needed to be made. Although some

training was done to help employees understand the system and the managers requirements,
there were still many issues that occurred.
The problems with the reservation system were not only a hassle for us to deal with but
an even bigger problem for those traveling, commonly thousands of miles, to vacation at the
campground. At least twice we had people drive very far distances to find that their reservation
did not get entered into the system correctly and thus were without a spot to stay for the night. In
many other instances employees failed to get vital information from the customer, registered
them for the wrong dates, or gave them the wrong site.
c. Describe the expected benefits of solving this problem
Reconfiguring the reservation system at Spokane Creek would benefit the campground
immensely. Fewer mistakes in the system would allow the business to operate smoothly and give
customers the relaxing and fun vacation they have spent so much money and time planning. A
new system in place would put less stress on employees as well as the owners. Having a reliable
reservation system and perhaps even more reliable group of employees to operate it is vital to
running a campground business that relies almost entirely on reservations.

2) Section B: Organizational strategy and SWOT

a. Organizational Description
The mission of Spokane Creek Cabins and Campground is to provide customers with a
fun and safe place to vacation in the Black Hills. The campground strives to provide its
customers with the very best service in all areas of the business from housekeeping to their cafe.
The campground is located on Iron Mountain Road in Keystone, South Dakota. Set in the
Black Hills of South Dakota, the campground sits in one of the most popular tourist destinations
in the entire world. Just 10 miles away from Mount Rushmore and 1 mile from the entrance into

Custer State Park, the campground is prime real-estate for an adventure filled stay in the
Midwest. The campground is also located on one of the most beautiful and tourist traveled roads
in American making it that much more of an attraction. It is also the last food and gas stop for
many miles.
The campground has 63 RV and tent sites and 14 cabins differing in amenities and size.
The entire facility sits on about 20 acres. There is much room for expansion for both camping
sites and cabins as well as more amenities.
The campground offers camping sites, cabin rentals, a swimming pool, basketball court,
tether ball, children's playground, two horse shoe pits, and a mini golf course as well as laundry
service and full bathrooms with showers. The facility also has a cafe and store on grounds as
well. Breakfast, lunch, and dinner are served in the cafe, and anything from Spokane Creek
merchandise to grocery store items can be purchased from the store. Because of its vast
amenities Spokane Creek is a very unique campground in the Black Hills, and being a tourist
destination it is important for them to keep their differentiation within the competitive market.
Key customers for the campground are tourists and family vacationers, making their
market the tourist industry within South Dakota as well as families. About 85% of their business
are families, two parents with anywhere from two to five kids is most common. The other 15% is
made up of people just passing through needing a place to stay commonly 20 to 30 year old
singles, also falling into this fifteen percent are senior couples. The most common type of site
rented is the RV sites, followed by four to six person cabins, and then tent sites.
Very few changes have been made to the campground itself sense the Caldwells took it
over three years ago. They knew the campground was already a prospering business and did not
feel the need, nor have the desire to fix something that was not broken. They have made many

improvements in buildings, cabins, grounds keeping, and general maintenance but very few big
changes have occurred. The one area that has changed or at least been added is the Iron
Mountain Road merchandise that the managers have licensed and sell. They are the only
producers of Iron Mountain Road products (legally) and this product line has become a big ticket
item in the store at Spokane Creek and makes the campground a hot spot for those looking for
merchandise to remember their IRM trip.
b. Strategy
There are many other campgrounds in the area of the Black Hills where Spokane Creek
resides. In fact, less than a mile up the road there is another popular campground, with over 10
other campground in Custer State Park and tens of hundreds more in the South Western corner of
South Dakota. The market for customers is very competitive and there is always a battle for best
amenities, location, and price.
Being one of the top tourist destinations in all of the United States, businesses in the area
are extremely competitive for amenities, service, and price. Having such a wide range of things
to do within the campground and also being right in the middle of such an attraction filled area
helps to promote the business. Being one mile from Custer State Park and on the same road as
Mount Rushmore, puts Spokane Creek at an extreme advantage against their competitors as
South Dakota is very rural and hard to navigate. Having an easy to find location is crucial for
many tourists, especially those traveling with RV's and motor homes. The strengths of the
campground are found in their location, amenities, and managers. The campground is run by a
very qualified hardworking couple who have many, many years experience in both the business
and accounting worlds between them. The location and amenities as explained before are very
vast and set them apart from the myriad of competition in the area.

Although the company thrives in many areas it struggles like any business, in a few.
Because employees are hired new each year and are only seasonal workers, there is a training
process that must occur, that could be run in a more organized fashion. Also the main criteria for
workers is that they are traveling RVer's, previous work experience and computer skills are
sometimes scarce as the majority of these retired RVer's are seniors. Weaknesses are seen in the
reservation system as well, which is believed to be the major problem area of the campground
and is the problem I will be addressing.
The basic corporate strategy set forth by the managers of Spokane Creek is to prioritize
customer service. There is nothing that Spokane Creek does better than meet and exceed its
customer expectations and this is clear just from working their one summer. With the customers
being the number one concern, before profits even, the business thrived. As employees we were
told to put over selfs in the shoes of the customer and to put forth the effort they would want to
receive.
c. Operations
The operational strategy at Spokane Creek is focused on the customers and having the
business run smoothly with little stress and problems. One of the current constrains facing the
business is time. There is always an immense amount of things to be complete at the beginning,
middle, and end of every season and time is always an issue. For the owners and the business
itself, money is not a major concern or constraint. Other than promoting the business more via
social media I do not believe that a new direction needs to be taken as the business is prospering
with the customer base they have already created and they are constantly growing.

d. SWOT analysis
Strengths: Customers first, amenities, location, managers, unique products, scarcity of groceries
and gas in the surrounding area, ties to Custer State Park
Weaknesses: Reservation system, employee training, hiring qualifications
Opportunities: Expanding the current market and customer base they have, increasing social
media and online presence
Threats: High competition in a very close radius, another campground coming in next door
offering more amenities
e. Long Term
Although the idea of not fixing what isnt broken still applies to the owners of Spokane
Creek, in the long term they look to keep improving what already exists and look to make a few
drastic renovations. Due to their extremely high number of customers constantly throughout the
year, there are hopes to redo the shower house and not only put in a new larger hot water tank
but also make the showers feel more like home. The shower and bath house would be completely
renovated with new sinks and showers as well as toilets. In addition, two or three more cabins
are in built in the next two to three years and a major pool renovation as well, putting in a hot tub
and to expand the deep end to eight feet. With those changes being said, customers are always
the number one priority and these changes although costly would greatly improve the customers
experience.
f. Organizational issues
The biggest problem that relates to the reservation system is the lack of training done by
the managers of the campground. Although they take pride in their work and are committed, the
process of training new employees could not only be more organized but also much more

intensive. The training process should also be uniform across all employees and probably done
all at once rather than at different times, to ensure everyone is being told the same information.
Improvements in the training system would be beneficial in all areas of the business not just the
reservation system.

3) Section C: Supply Chain

a. Describe and illustrate the supply chain in detail
First of all the issue I am addressing is the reservation system used by the campground
therefore it is a service, not a product, thus the supply chain isn't as concrete as one would be for
a hamburger for example. Supply chains differ in our reservation system because production of
the reservation and consumption happen at the same time. Depending on how the reservation is
made, either over the phone, online, or in person the customer takes part in the production
process. The customer hand picks the aspects of the reservation and then receives. That is how
supply chains work in the service industry.
The supply chain for the reservation system at Spokane Creek begins when the
employees are hired as they are the main service providers. Management then arrives at the
campgrounds, followed by the employees hired. After that the proper stationary and paper work
is made for potential customers and campers to fill out in the reservation process. Computers and
the reservation system needed is soon purchased if not all ready on hand. With the computers in
place employee training begins for both the hard paperwork and the online system as well. All
that is left now if for the customers to arrive which can be done online, over the phone, or in
person and so the reservation process begins in one of the three medians. Once the reservation
has been completed the customer will arrive to check in according to designated dates. Once

officially checked in the customer is free to move into their new camping spot or cabin and the
final step is for the customer to check out at the end of their stay.

Pens
Coolworks.com
RVers
Interns
Reinhart
Walmart
Costco

Spokane Creek
Stationary Made

Computer
System
Purchased

Reservation
Paperwork
Training

Computer
Reservation
Training

Customer
Arrives
In Person

Online
Reservation
Process Begins

Over Phone

Reservation in
Completed

Customer Arrives
to Check In

Customer is
Officially Checked
In

Customer Stay
at Campground

Customer
Checks Out

In Person

The process of making reservations has many strengths as it offers customer three
different ways to make a reservation allowing flexibility for our customers. Many customers still
prefer making reservations over the phone but in a ever evolving technological world, making
reservations online is becoming very popular. The ability to make reservations in person is
common of campground but vital to those traveling on a whim in search of a place to stay. The

process is also very straight forward and is carried out step by step in most cases, that is if the
employee is doing it the way they were trained. Certain paperwork is given to the customer upon
arrival and when making the payment on the reservation. Certain things need to be done within
the online system as well, regardless how the reservation was made.
The weaknesses in the reservation are the most significant downfall at Spokane Creek as
camping is based off reservations and that makes up about 68% of the facilities income. A
weakness first lies in who is hired as the job requires good technical skills as well as
interpersonal and phone skills. Although these can be trained and taught it helps to have
employees come to the campground with these skills already in hand. Next the training system is
different for everyone and should all be done at once so we all get the same information.
Training manuals should be always present as well as any information one might need when
making a reservation. There is leniency at times within the system and this produces mistakes
and bad judgement calls that should and could also be avoided. Although the online system
works well, at times our internet connections are down and we thus cannot enter the system nor
make and new or change existing ones. This poses a huge problem. The system also has a
tendency to time out for people who are at home making a reservation which leads to a myriad of
problems especially when they think the reservation went through when it did not. Upon arrival
for checkin the system in place runs smoothly although there are some aspects that could change
to increase speed of process. One of the biggest issues with the reservation and checkin/out
system is that it is run in the store, alongside the cash out counter for things bought within the
store and cafe. This causes employee stress when they are checking out a customer and someone
is calling for a reservation, the areas should be made separate.

Spokane Creek is a thriving business and despite the fews challenges they face there are
many opportunities for them in the future. Rearranging the reservation area would all for more
space and less stress for the person handling reservations. Having separate phone lines for
reservations, directions, and general information is also an opportunity worth exploring as
commonly the phones are tied up with four different callers, meanwhile someone my need to be
checkout for the food they purchased in the cafe.
As this is just a supply chain for the reservation system, which is one of the three main
services offered at Spokane Creek in addition to the store and the cafe, all steps are vital in the
process of improving the reservation system. Each element effects the problem I am addressing.
Strategic plans and planning is done at all levels of the supply chain and the three levels
of strategic plans such as corporate planning, strategic business unit planning, and functional
planning. The levels are all interconnected and linked and all influence each other even at times
in the slightest ways. Each area is apparent within the reservation system and each level has
concern within it. The corporate strategy related to the overall mission of the firm which in this
case is to provide guests with the very best place to vacation in the Black Hills and this all starts
with our reservation system. The business unit strategy draws on how the business will compete
with others and how to manage different products and markets. The reservation system in place
at hospitality related businesses is extremely important when looking to compete with others and
that is what we are focusing on here is the current system we use. The functional strategy
planning addresses the overall business as a unit and how it functions and as stated before, the
reservation system is the backbone behind nearly 70% of the business so managing it wisely is
vital to the overall business.

Section D:

The process that I will be addressing is vital to the entire business at Spokane Creek.
Although the campground has many other aspects and moving parts such as a cafe and a store,
the key to its success is carried out through the reservation system. If improvements are made in
the reservation system all other areas will benefit and the successes will trickle down.
Improvements in the reservation system will make the process go more smoothly with less errors
and thus improve the reservation making process. Making reservations easier for customers
makes their experience with Spokane Creek that much better. The better the initial experience
with Spokane Creek the more reservations made and in turn the more people come into the store
and cafe. The reservation system is the most important aspect of Spokane Creek and any
improvements that can be made here, benefit the entire campground.

Reservations

Maintenance

Make
Reservation

Cabin
Maintenance

Check In Customer

Check Out
Customer

Cafe

Store

Housekeeping

Take Orders

Greet Customers

Clean Cabins

Campground Clean
Up

Make Food

Check Out
Customers

Clean
Bathrooms

Mowing/Weedwackin
g

Serve Food

Restock Low
Items

Do Laundry

Firepit Clean Up
Cleanup

Answer Phone

Reservations

Housekeeping

Store

Cafe

Maintenance

Reservation
Made
Designated
Cabin Cleaned

Customer
Checked In
Order
Food/Purchase
Items

Laundry Done
for Customer

Customer
Checks Out

Cabin Cleaned
Maintenance Fixes
Cabin Damage

Section E

The process I am looking to improve is the reservation system at Spokane Creek Cabins and
Campground located in Keystone, South Dakota. I would like to improve multiple areas of this
system including employee training, the reservation software itself, the area in which

reservations and check-ins are completed within the business, and how they are done. The reason
I would like to improve this process is because it is the most important aspect of the business and
it could be run in a much more productive manner with less errors. A reservation system with
fewer errors would benefit the whole business and all of its other moving parts.
The reservation system process consists of the following inputs; customers, their money, an
employee to handle the reservation, the software, a computer, a telephone, paper work, printers,
ink, paper, and a writing utensil. The current process involves the following activities; answering
the telephone, greeting the customer, communication between the customer, choosing the proper
site for them, doing the proper paper work, having the customer fill out required paper work,
putting the reservation into the computer, the customer pays for their reservation, money is taken
by the employee, proper change is given, final signature is taken, keys are given to those staying
in cabins, maps and directions are given to those staying in sites, and final questions are asked.
Outputs include a happy customer, a receipt of the reservation and/or money taken, and payment
from the customer.
The main bottleneck issue that this reservation system presents is its reliance on technology and
internet, being that the campground sits in an area of sporadic cell service and with minimal WiFi options, this is a serious issue. If the internet is down no electronic payments can be taken,
limiting us to only cash transactions. In addition, the reservation system software runs through
the internet and without connection we have no way to access the information in regards to what
sites are reserved and for when. Also a bottleneck caused by the internet and computer system is
the lack of tech savvy people hired at the business. If people are not seasoned in the ways of
computers and the internet, it poses an enormous problem and leads to many mistakes. This day
in age a lack of technological knowledge may not seem like a problem however the campground

consistently hires traveling work campers who tend to be in the older age groups and frequently
have issues with the technology. A bottle neck also exists in the paper work process as paper
work must be filled out and then entered into the computer. This process takes up too much time
and produces many errors.
The entire step has a quality problem from start to finish. The customer is waiting a lot of time
regardless if they come in to make the reservation in person, make the reservation online, or call
in to make the reservation. If a customer comes in to make a reservation they must first fill out
paper work, then wait while we enter it into the computer. This normally only takes a couple
minutes but can take many if the internet is having issues or depending on how booked we are.
After the information is entered they must then go through a payment process that can be time
consuming as well, as we have to do some calculations on a calculator and then enter them into
the point of sale system or run the card through the computer system. Although these moments
only last typically about 5 to 10 minutes, it can be a hassle to the traveling customer or a hassle
for us if we have a lot of reservations coming in at a time.
The technology we use creates most of the delays we experience but some also occur when
employees do not exactly what they are doing or need to ask our manager for help who is
typically doing other activities around the campground. The reservation process in place allows
for one reservation to be done at a time and is at mercy of an internet connection and an online
software program.

Section F: Problem/Opportunity Analysis

The desired outcomes for the new process is to run a new reservation system and initial
training seminar that runs more efficiently cutting down on time for each reservation and check-

in, and also limits errors severely. Check-ins and reservations would be run by two particular
people each trained in both areas. Both of these activities would also take place in an area only
for them and ideally have their own office space to work in.
The causes of the issues are primarily the web reliant software and employees who are
not trained well or are incapable of doing the job without error. One effect of the internet system
is timed out online reservations that are not flagged and known to us until the customer comes in
to check in. Another effect is long wait times or the inability to complete the reservation in
person or via the phone because of a down system. Another effect arises when employees cannot
do the reservation properly which causes problems all throughout the business as one wrong
detail can clog up the entire system and create a very unhappy customer. These issues and effects
not only affect our customers in any area of the business but also destroy or business image and
employee/manager relations.
Problems are caused by a lack of employee training and this is an issue that can be easily
fixed. Stemming out for the lack of employee training is a disorganized system to make the
reservations in, whether online, in person, or over the phone. The first priority would be to
establish a more reliable and fool proof internet system, regardless of the cost. The business
relies too heavily on online access with few other options to choose so a solid connection is a
must for the business. The next step would be to offer a concrete employee/reservation handbook
and have training coincide with it. There are many different rules and protocols for making
reservations at differing times of the year and the information is commonly unknown or given
incorrectly. The area in which reservations and check-ins occur should also be re organized or
better yet set aside in a different area of the store, maybe even have its own private office. Only

the most qualified people should be in allowed to make reservations as it is the most important
aspect of the business and is vital to its current and future success.

Fishbone Diagram Cause and Effect

Man

Machine

lazy

internet is down
mistyping

computer is not working

asking the wrong questions

software program is down

not paying attention
being rude/cooperative

man does not follow process

process is not helpful
Method

disorganized
process does not exist

Section G

wrong paperwork completed

paperwork filled out wrong

Materials

copied wrong into computer

Effect: Reservation
data is entered into
the system
incorrectly causing
problems with other
reservation dates
and over charging
customer.

The problem I am trying to solve is the errors that occur within the reservation system at
Spokane Creek Cabins and Campground located in Keystone, South Dakota.

The process I am looking to improve is the entire process that occurs when a reservation is made
at the campground. Reservations come in three forms; in person, over the phone, or over the
internet and there are errors within each system. The errors are similar across the three medians
and fixing an issue in one area will result in an improvement across the other areas. Any of the
suggested options would improve the reservation system as a whole and thus the process for each
of the three types.

Option One: Have a specific area/office where reservations are made.

Option Two: Instill a better employee training process for the reservation system.
Option Three: Different phone lines for reservations, customer help, and directions.

Option One: This improvement option would potentially be the most beneficial to the
campground and the reservation system as a whole. Separating the area where check ins and
reservations are made would eliminate many distractions, missed information, and give a more
organized experience to our customers. All reservations and check-ins would be done in a
separate office, off of the store. Although it would cause a slight delay for our customers to have
to walk into the store, to then be instructed on where to go and place another responsibility on
store workers to tell customers where to go, the benefits would outweigh the extra tasks.

Customer would go to an office with two desks and two computers, and be helped by one or two
customers. All of the paper work and registration forms needed would be within grabbing
distance from the desk reducing the time it takes to find and grab forms in the current system,
thus increasing the speed of the reservation or check in. The computer would only be used for
reservations and always be ready to work with a strong internet connection delivered to this area.
Having a separate area for reservations would reduce the amount of work having to be done by
the staff within the store and result in a lower number of errors in our reservations because of the
increased specialty that would occur within the new office.
PROS: organization, increase speed of reservations and check ins, reduction of errors, less work
for store staff, happier customers
CONS: extra space needed, another computer needed, increase in time due to having to direct
customer

Option Two: This improvement is vital to implement within all areas of the business at Spokane
Creek, not just the reservation system. Spending a two week period before actual reservations are
made, training employees on answering phones, working with the system, and dealing with
customers, would greatly increase the employees familiarity with the online system Spokane
Creek uses. Training a certain small number of employees thoroughly in the reservation and
check in system would reduce the amount of time it takes to decide on schedules as well as time
wasted on employees learning other areas of the business in depth. Employees at Spokane should
be diverse and able to work within each different area of the business but should be specialized
in one.

PROS: specialization, more information, better trained employees, less errors later on,
happier customers, happy employees, less stressed employees and managers
CONS: more time needed to train, less diverse employees

Option Three: Adding two new phone lines to Spokane Creek would help to organize the store,
the staff, and help the customers have a better idea of what they are doing. Whether customers
are calling for general SD questions, directions on how to get to us, or make a reservation, there
is one main phone line to use and one corresponding computer. This seems efficient but when
the store gets busy the process of answering the phone while waiting on customers is very
difficult and leads commonly to unhappy, impatient customers as well as stressed workers. Being
able to quickly answer the phone and transfer them to someone directly that can help rather than
put them on hold would be a much more efficient and less stressful process for employees and
customers alike.
PROS: easy, organized, helps increase time for all tasks, reduce errors as employees are
less stressed, reservation would be done by someone better trained
CONS: another task for store staff to do