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Introduction : Operations Management in Park Hyatt

Operations decisions play a crucial role in the smoothening of business processes in order to

meet strategic goals of the organization. Operations management (OM) decisions that ensures

that the business creates and adopt business practices that lead to the highest level of efficiency

and effectiveness within the organization. There are ten OM decisions that are made by

operations managers. These ten OM decisions address the various activities and strategies that

contribute to the success of the organization. Business success highly depends on these

decisions, and businesses that align their strategies and integrate their business activities with the

ten decisions experience high level of effectiveness and efficiency in their operations and thus

increasing customer value and increased profitability. These OM decisions affect both large and

small businesses. In this paper, we look at how Park Hyatt Hotel applies these ten OM decisions.

Park Hyatt Hotel is a five star hotel with distinctive experiences to their guest. The hotel

provides a number of services to their guests including meals, room services, Spa, and many

other services. In order to deliver quality services to their guests, the hotel relies on the ten OM

decisions. That is why it is important to look at how effective the hotel is employing these

strategies to ensure smooth running of its operations in order to deliver quality services to its

guests.

1st Decision: Design of Goods and Services:

Goods and services are what the business sell to their customers to make money. It is therefore

important that the goods and services are design in a way that attracts and retain customers

because they meet their expectations. Ideally, customers cannot pledge their loyalty to goods and

services that do not meet their expectations in terms of design, and this would lead to loss of

income. Design of goods and services as OM decision defines much of what is needed in other

OM decisions, for example, lower limit costs and upper limit costs, sustainability, and human
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resource needed to meet achieve OM in other areas. To meet customer expectations in terms of

product and service design, it is important for a business to continuously improve, innovate, and

launch new products and services. This can be achieved by conducting marketing research and

understanding of customer needs.

Design of goods and services is an important OM decision for Park Hyatt Hotel. Park Hyatt

Hotel is a world class brand that is inspired by the deep understanding of their customer’s needs.

Moreover, the hotel understands that the customers are not only interested in the meals, but also

in experiences. Moreover, the hotel provide custom services to their guests depending on the

unique demand of the customers. This ensures that the customer have the best experience with

the hotel, and thus they are able to remain loyal to the brand. Park Hyatt Hotel strategy design of

goods and services strategy is led by differentiation since they have unique visual and sounds

that are not replicated in any other hotel to give their customers the unique experience. Ideally,

Park Hyatt Hotel design of goods and services is meant to deliver unique experience from the

meals to the room service. In addition, the hotel also modifies their menus depending on the

location’s social norms and unique taste.

2nd Decision : Managing Quality :

Managing quality is an important aspect of operations management decisions that a business has
to make. This is because, customers have their expectations in terms of quality, and products and
services that fail to meet those expectations can have a negative consequences for the business.
Managing quality OM decisions involves managing customer expectations and establishing
procedures and policies to manage these exactions. Delivering quality services is an important
success factor for the hotel. Because of consistent high quality of its services, Hyatt has
established itself as a strong brand in India by consistently delivering premium services to its
customers. At Hyatt, managing quality comes from different perspective. For example, in
ensuring that their food quality meet their set standards, the hotel ensures that they have the right
ingredients, source their food products from good suppliers, constantly review their menus to
ensure that it is responsive to the guest needs, and also conduct research by surveying the guest
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and their experiences. Moreover, the Hyatt is regularly training its staff to ensure that they have
engaging personality and improve the quality of customer services. Hyatt identifies the needs of
local and high-end travelers to offer excellent memorable experiences that are complemented by
high quality service standards.

3rd Decision : Process and Capacity Strategy :

Process capacity strategy involves determining how goods and services are produced. It also
looks at what is needed in the production process such as specific technology, capital
investments, and human resource factors. In this regard, meeting customer needs requires a
business to have processes and capacity that can efficiently support production goals. Hyatt
works to create their products and services in an efficient manner by carefully analyzing cost,
labor requirement, and quality of the final products and services.

4th Decision: Location Strategy :

Location is one of the key OM decision factor that affects the success of a business. Location is
crucial because it affects the business’s ability to serve its potential customers effectively.
Location strategy involves judging nearness to customers, suppliers, and talent while at the same
time considering other aspects such as infrastructure, logistics, and government regulations. At
Mumbai, Hyatt is strategically located very close to the Airport. Ideally, location is a major
decision that can make or break a business. That is why businesses want to stay close to their
customers, suppliers and other stakeholder as a way of reducing cost while maximizing on the
profitability.

5th Decision : Layout Strategy :

Layout of a facility plays an important role in the effective management of workflow. For
example, when all the ingredients are within the reach of the kitchen crew, they are able to
prepare the meals on time and meet reduce customer waiting time. This is because efficient
layout reduces work inefficiencies and increases production output. Layout strategy involves
integrating capacity needs, technology, personnel levels, and inventory that are required for the
effective flow of materials and information in order to create value for the customer. At Hyatt,
the layout strategy is designed to reflect the local surrounding and thoughtfully curated
experience that are meant to connect the guests to a world-class offering. The hotel caters for
various groups of customers such as couples who are seeking getaway, business executives on
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meetings, and families wanting to enjoy vacations together. Moreover, the hotel is continuously
improving on its layout to maximize service delivery. In order to offer unique experience to their
customers, the lighting, sound, the circulation path and the layout are designed to make
customers feel the joy of being in a great place.

6th Decision : Human Resources and Job Design :

Employees are important asset of an organization because they drive strategy and help business
achieve its goals. It is therefore important for a business to get the right set of employees to drive
its business strategy and achieve success. Employees that are happy and motivated are more
productive and thus a company needs to ensure that they create a working environment that
supports creativity and offers the employees opportunity to reach their goals. This should start
from employee’s recruitment, training, and orientation into the company’s culture. Human
resource and hob design determines how to recruit, motivate and retain employees to achieve
high level of success. Hyatt has continued to experience a continued growth leading to
expansion. Thus the need for talents to keep up with the expanding business has been a key
factor. The human resource plays an important role in recruiting, training, and constantly
developing the employees. In addition, the hotel also offers competitive remuneration as a
strategy to keep employees motivated. In the recruitment process, Hyatt looks for candidates
with the right skills and attitude and continuously train them to ensure that they are able to meet
the unique demands of customers.

7th Decision : Supply Chain Management:

Supply chain management is important because it decides on the strategies of integrating supply
chain into a firm’s strategy. Supply chain involves decision on what to purchase, the supplier as
well as the cost. Hyatt only works with qualified suppliers both locally and internationally. The
suppliers must meet their specific standards. The qualified suppliers supply the right amount of
ingredient on time. The food supplies needs to be fresh, high quality, and grown using ways that
are more humane. For example, contracts for meat and poultry are signed in advance and the
farmers need to produce their products using means that are both environmentally acceptable
and humane.

8th Decision : Inventory Management:

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Inventory management plays an important role in the company’s health since limits the risk of
too much stock and too low stock leading to stockout. It plays a key role as it sustains business
success by ensuring that the business meet the demand by customers. Thus operations managers
must consider ordering and holding decisions and how to maximize customer satisfaction. Like
any other five star hotel, Hyatt has key inventory issues that requires maintenance of food
supplies at an appropriate level and swift turnover of its products. Hyatt also uses JIT inventory
management system to manage its inventory. By analyzing and understanding their inventory
turnover cycle, they are able to maintain their reordering level and not experience shortages and
excessive stockwhich could increase holding cost.

9th : Scheduling :

Normal day-today operations determines it long-term success. Scheduling helps in determining

short term and long term business needs by effectively utilizing personnel and facilities to meet
the needs of customers and market demand. Employee at Hyatt takes into consideration many
aspects of work before making their schedule. For example, they have to consider seasonality,
any event for the day or season that may require additional staff, and many other factors of
consideration. The hotel prepares their week schedule and forecast by focusing on the previous
week’s sales and taking a look at the trends in the past. The sales forecast and seasonality are the
basis of Hyatt scheduling. Therefore, they can hire more staff during the peak season to
effectively respond to the demand.

10th Decision : Maintenance :

Business needs are ever-changing, and a business that wants to have a sustained success needs to
continuously review its current process and strategies in order to remain competitive.
Maintenance are decisions that consider production demand, production capacity, facility
capacity, and the needed personnel to maintain a reliable and stable process. Maintenance as an
OM decision is a crucial part of Hyatt success as it ensures that the company is able to maximize
efficiency and meeting the needs of their customers. Hyatt invests considerable amount of money
in maintenance and purchase of new kitchen equipment.

Moreover, the employees are also trained regularly to ensure that they are able to provide quality
services to the guests.