HTM209 – Hospitality

Operations Management

Semester One - 2014

HTM 209 – Hospitality

Operations Management

Tutor : Julian Galt

Room : B2-24

E mail : julianv.galt@sit.ac.nz

HTM 209 – Hospitality

Operations Management

Operations

improvement

Direct

Design Develop

Deliver

Organizing for

improvement

manages the

improvement

activity

Risk management

stops processes becoming worse

Operations improvement

makes processes better

Operations

Management

Figure 18.1 Operations improvement

Why Improve?

Read the TNT case-study, text page 579...

• Identify the main inputs; transformations, and outputs from this

business operation

• Why is operations improvement considered essential to the survival

of this business?

• Identify the improvement demands that led to the initiation of the GO

programme.

• Outline the main elements of the GO programme, and the objectives

of these.

• Note the roles or place of...

• Process analysis

• Information technology

• Communities of practice

• Training

Why is Improvement Important?

Refer to Slack et al,. Pages 580 – 581....

• Note how the “Red Queen Effect” may apply...;

• In the case of TNT

• In a hospitality business that you are familiar with

• What environmental factors may be driving the following

to engage in improvement processes...;

• Service Adhesives

• Four Seasons Canary Wharf

Approaches to improvement

1. Breakthrough improvement

Innovation based improvement

Example: introduction of a new, more efficient

machine in a factory

2. Continuous improvement - Kaizen

Smaller incremental improvement steps

Example: modifying the way a component is fixed to

an equipment to reduce change over time.

Rate of improvement is not important but the

momentum is.

(a) ‘Breakthrough’ improvement, (b) ‘continuous’

improvement and (c) combined improvement patterns

P

erf

orm

an

ce

Time

P

erf

orm

an

ce

Time

P

erf

orm

an

ce

Time

Planned

“breakthrough”

improvements

Actual improvement

pattern

Continuous

improvement

Combined

“breakthrough” and

continuous

improvement

(a) (b)

(c)

3. The difference between breakthrough and continuous improvement

Long-term, undramatic

Small steps

Continuous, incremental

Gradual and consistent

Everyone

Group efforts

Conventional know-how

Spread

Little investment

People

Process

Innovation... ...KaizenShort-term, dramatic

Big steps

Intermittent

Abrupt, volatile

Few ‘champions’

Individual ideas & effort

New inventions/theories

Concentrated ‘all eggs in 1 basket’

Large investment

Technology

Results for profit

Effect

Pace

Timeframe

Change

Involvement

Approach

Stimulus

Risks

Practical req.

Effort orientation

Evaluation criteria

Approaches to improvement...;Improvement cycle models

Improvement can be represented by a never-

ending process of repeatedly questioning and

re-questioning the detailed working of a

process activity

This repeated and cyclical nature of

continuous improvement is usually

summarized by improvement cycles

Examples of improvement cycles:

PDCA cycle

DMAIC cycle

Define

Measure

AnalyzeImprove

Plan Do

CheckAct

(a) The plan-do-check-act

(b) The define-measure-analyze-improve-control

Control

(a) (b)

Plan

Improvement Cycle Models

Improvement Cycles...;Refer to Slack et al,. Pages 584 - 585

Main elements of the

PDCA Model stages

i. ?

ii. ?

iii. ?

iv. ?

Main elements of the

DMAIC Model stages

i. ?

ii. ?

iii. ?

iv. ?

v. ?

Improvement Cycles...;Refer to Slack et al,. Pages 584 - 585

Main elements of the

PDCA Model stages

i. Plan – examine the current

method. Collect, analyse data

and develop an improvement

plan

ii. Do – implement the plan, and

resolve problems arising

iii. Check – evaluate the

implementation of the change

iv. Act – either, standardise the

change; or re-plan and re-trial

Main elements of the

DMAIC Model stages

i. Define the problem(s) – and the

requirements for process

improvement

ii. Measure and validate the

problem, using data to inform the

process. Is the problem worth

solving?

iii. Analysis – identify the cause of

the problem

iv. Improve the process. Solutions

that are viable are implemented

v. Control – Implementation is

monitored to ensure

improvement is sustained

PDCA Cycle repeated to createcontinuous improvement

Time

P

erf

orm

an

ce

“Continuous”

improvement

Plan

Do

Check

Act

Input/output analysis Flow charts Scatter diagrams

Cause-effect diagrams Pareto diagrams Why-why analysis

Input Output

xx

x x

x xxx

x

x x

Why?

Why?

Why?

The common techniques for

process improvement

16

Problem/

Desired

Improvement

Main Category

Cause

Root Cause

Cause & Effect Diagram

The Cause and effect diagram is also called: Fishbone Diagram-because of the way it looks

Ishakawa Diagram for the inventor, Dr. Kaoru

Ishakawa.

What is a Cause and Effect

Diagram?

A visual tool to identify, explore and graphically

display, in increasing detail, all of the suspected

possible causes related to a problem or

condition to discover its root causes.

Not a quantitative tool

Problem/

Desired

Improvement

Main Category

Cause

Root Cause

Why Use Cause & Effect

Diagrams?

• Focuses team on the content of the problem

• Creates a snapshot of the collective knowledge of team

• Creates consensus of the causes of a problem

• Builds support for resulting solutions

• Focuses the team on causes not symptoms

• To discover the most probable causes for further analysis

• To visualize possible relationships between causes for any problem current or future

• To pinpoint conditions causing customer complaints, process errors or non-conforming products

• To provide focus for discussion

Man

MethodsMachine

Materials Measurement

Five Key

Sources of

VariationEnvironment+

Use cause and effect diagram to single out

variation sources within the “5M’s + E”

Product/Manufacturing

People

ProceduresPolicies

Place Measurement

Five Key

Sources of

VariationEnvironment+

Use cause and effect diagram to single out

variation sources within the “4P’s + M&E”

Transactional/Service

Causes Effect

Shows various influences on a process to

identify most likely root causes of problem

Problem

Main Category

Cause

Root

Cause

Fishbone –Cause and Effect Diagram

MethodsMaterials

Machinery Manpower

Maintenance

Problem

Brainstorm to determine root causes and

add those as small branches off major bones

Constructing a C&E Diagram