OPERATIONS

MANAGEMENT FOR
HOSPITALITY
Nikki Eleazar-Banzon
Session 1
 LEARNING OUTCOMES:
1. Define of Operations Management
2. Relate operations Management as it relates to the Tourism, Travel and Hospitality Industry
3. Determine the relationship of Operations to Finance and Marketing
 WHAT IS OPERATIONS
MANAGEMENT?

01 02 03
A discipline that is the production of goods The set of activities that
applied to all productive and services requires creates value in the form
enterprises operations management of goods and services by
transforming inputs into
outputs
• The efficient production of goods and services requires effective application of concepts,
tools and techniques of OM
 DEFINITION OF TERMS

Operations Management-set of
activities that creates value in
Production- the creation of
the form of goods and services
goods and services
by transforming inputs into
outputs
• Tangible (products) and intangible (services)

• Give examples of products and services from various industries

To create goods and services, organizations perform three functions:
1. Marketing
2. Production/ operations
3. Finance/accounting
•Photo taken from Operations Management and Sustainability, p. 5
 WHY STUDY OM?
1. It is a major function in organizations and is related to all other functions. We study how
people organize themselves for productive enterprise.
2. We want to know how good and services are produced.
3. To understand OM as a career
4. It is a costly part of any organization
Image taken from Operations Management, Sustainability and Supply Chain Mgt, 12 th
ed, p. 7
• What is the impact of 15% decrease in operating costs?

• Do you now see the relationship between Marketing, Finance and Operations?
 CONCLUSION
Effective operations is the approach taken by
organizations as they face global competition
 10 STRATEGIC OM DECISIONS
1. Design of goods and services 6. Human resources
2. Managing quality 7. Supply chain management
3. Process and capacity strategy 8. Inventory management
4. Location strategy 9. Scheduling
5. Layout strategies 10. Maintenance
 OM IN THE HOSPITALITY
INDUSTRY
• Restaurant Operations Manager
• Supervise all restaurant activities and ensure compliance to all company standards to increase all
sales of labor costs and prepare various reports accurately and within timeframe.
• Maintain optimal level of sanitary procedures for all food handling and maintain neat and clean
kitchen area and ensure optimal quality of all food preparation and ensure compliance to all
standards.
• Administer performance of all service staff and schedule and evaluate all restaurant operations
and provide training to all employees and maintain all work according to required policies and
procedures and maintain knowledge of all food and beverage trends.
• Prepare estimates of all food and beverage costs and coordinate with corporate staff and assist to
purchase all required supplies and place required orders for all distributors and ensure response
to all complaints.
• Ensure compliance to all security procedures and design strategies to protect all employees and
customers and design strategies to reduce injuries to staff and prepare various accident reports.
• Manage all shifts for restaurant operations and schedule all process and maintain cleanliness at
all times and assist to resolve all complaints and maintain food quality at all times and perform
regular interviews with all employees.
• Perform orientation and provide training to all new employees on restaurant processes and
determine appropriate feedback from employees and maintain all restaurant plans.
 HISTORY OF OM
Stone age- use of stone tools, writing systems,
use of fire, agriculture, domestication of crops
and animals settlements (communities)
• Copper age- tools and weapons

Late Middle Ages- invention of printing, trading

routes

Pre-industrial period- time before the use of

machines and tools to perform tasks en masse
(1750-1850)
• Industrial age-  characterized chiefly by the
replacement of hand tools with power-driven
machines such as the power loom and the steam
engine

• Machine age - 1880 to 1945. WW 1 and WW2.

• Information Age
• OM will continue to evolve as new technologies and social and cultural changes happen.