AN ANALYSIS ON THE OPERATIONS MANAGEMENT OF PACIFIC WAVES RESORT

In Partial Fulfillment Of the Requirements for the Course

OPERMAN

Submitted By

Eleazar, Kimberly Gabriel, Claudine Abbie Sumulong, Carmela Tolentino, Trisia Uy, Diane Margret

Submitted to: Mr. Raymund Ganotice OPERMAN Professor

COMPANY NAME: Pacific Waves Resort ADDRESS: Km. 31, Brgy. Sto Cristo, City of San Jose Del Monte, Bulacan TOP MANAGEMENT: Mrs. Warlita Berin, President and CEO Mrs. Roscel Paterno, Treasurer Mr. Charlie Ramos, the Resident Manager CORPORATE WEBSITE: www.wix.com/pacificwaves/ph facebook.com/pacificwavesresort CONTACT NUMBER: (02) 775-3269, 09178333144 NAME OF CONTACT: Mrs. Warlita Berin and Mrs. Roscel Paterno ___________________________________________________________________

COMPANY BACKGROUND
Pacific Waves Resort (PWR) is a leisure hotel and resort located at the City of San Jose Del Monte, Bulacan. The business started their operations on January 23, 2010, making PWR as the most recently established resort in the area. The twohectare area of Pacific Waves Resort allows them to offer a variety of services for their customers, such as: a restaurant, a hotel, an activity center, swimming pools, a pavilion a church.

Brief History Pacific Waves Resorts (PWR) was named after Engr. Pacifico Berin, the late husband of Mrs. Warlita Berin, the President of the company. It was conceptualized to serve beyond the typical configuration of resorts, having pools with slides and array of nipa huts. Pacific Waves Resort offers genuine personal service aimed at a world class level. It has a relaxing ambiance created by its peaceful scenery of greens and distance from the city. The overall design of the resort is incorporated with Filipino elements with the dominant use of wood and earth colors. It was at first difficult for the company to attract visitors, however when it caught the attention of ABS-CBN, it helped them gain popularity in the area. Pacific Waves Resort was then chosen as location for the set of a television show, Kristine, in its last few episodes. Moreover, the resort received a good review from Cruising Travel Magazine in its 2010 December issue. The media highlights served to PWRs benefit and increased public interest. The resort is starting to build its reputation as a perfect venue to host various celebrations due to its Filipiniana-inspired reception area which can fit 250 people in total, chapel, two-storey restaurant, 27-room hotel, and parking capacity that can accommodate a hundred vehicles. Moreover, it is accessible for guests since it is near the main highway. Currently, they have 22 permanent employees and they tied up with three universities in Bulacan namely Colegio San Gabriel, National Polytechnic College, and Bulacan Polytechnic College. They have 38 students from Colegio San Gabriel, 4 undergraduates from National Polytechnic College and Bulacan Polytechnic

College. They have a program with these schools to train the HRM and HRS students inside the resort. From this pool of possible employees, they assess the performance so that in the future, they can recruit and hire them to work in the company.

In the process of expansion, the hotel was crowned with three stars. Hopefully, as PWR continues its operations their goal is to get a higher rating. The company has a lot of plans, in line with their goal to attract more guests and to keep them coming back to new, exciting services. They also aim to consistently innovate for the company and make room for improvements to better satisfy the customers.

Vision To be the best resort in San Jose del Monte City, Bulacan that caters to clients who seek the efficient and excellent services on events and corporate team buildings as well as other special occasions. Mission To be the first resort to reach the triple A category for hotels and restaurants as per the Department of Tourism appraisal, providing the best customers satisfaction. Products and Services PWR has a wide variety of services for its customers: a full-service restaurant serving unique and sumptuous dishes, a hotel which caters from individuals to families, an activity center for the sports enthusiasts, two swimming pools, a pavilion for holding social functions and a church. Nevertheless, the business also focuses on hosting events such as company team buildings, retreats of religious communities, family reunions, weddings, birthdays, and other special occasions. The restaurant and the pools are open for walk-ins. The restaurant can accommodate 100 guests and the pool area provides cabanas, tents, umbrella sheds, nipa huts, and nipa suites. PWR offers seasonal promos to customers. The on-going promos are: the Birthday Promo which entitles their clients to free pool entrance, 10% off in hotel accommodation, 10% discount on pool accommodation for accompanying group, as well as the Rainy Days Promo (July 1 to September 30,

2011) --- a 10% discount on pool entrance fees, pool accommodations, and hotel accommodations to customers. The hotel has three types of rooms: deluxe room, premium room, and the executive room. A deluxe room is good for 2 persons, air-conditioned, with hot and cold shower, hair blower, but no television. The premium room can accommodate up to 3-persons offering the same amenities, and includes television. The last type of room they have is the executive room which is good up to 4 persons. This has the same amenities and additionally entitles the group to free pool entrance. The hotel also has function rooms for conferences and seminars with the capacity of 50 people. The pavilion is available for special events such as weddings, baptism, seminars, and others and can accommodate up to 250 guests. The reservations can only be done through the Reception Area of the resort via e-mail or personal visit. The inclusions of would be the following: fully air-conditioned facilities, all-weather, landscaped and sound proofed venue, ample parking space, high quality basic sound system, free use for pre-nuptial pictorial, a bridal suite inside the pavilion, free use of stage, and a waived fee for outside caterers. Lastly, PWR also offers chapel services which are not exclusive to Catholics, but to other Christian domains as well. Same with the pavilion, reservations can be done through e-mail or personal visit. The rates of all accommodations in the resort are subject to changes without prior notice.

Key Strategies The main selling point of the resort is their world class service and global appeal, all while staying true to their being Filipino by retaining touches and hints of the Philippine culture. Beneath the Filipiniana inspired rooms comes a caliber of service that is fit not only for the Filipinos, but for all foreign citizens as well. In terms of marketing strategy, PWR utilizes market penetration through various promotional activities (discounts, free accommodations), luring customers from classes A, B, and C.

Industry Background The company belongs to the hospitality industry which has two sub-sectors: hotel and restaurant. Lim (2001) stated that the hotel sub-sector includes the various lodging units of different sizes and standards located both urban and rural communities while the restaurant sub-sector includes places that serve food and drinks. Bulacan is known for a line of cheap resorts that individuals, couples, friends, and families can easily afford. In San Jose Del Monte, Bulacan, there are a total of eight competitors. The different resorts in the area are Albano Resort, Cresta del Mont, Dalisay Farm Garden, Grotto Vista Resort, Manila New Farm, Marina Resort, North Winds Resort, and Recreational Resort. Out of the eight places mentioned, the main tourist attraction is Grotto Vista.

REASON FOR CHOOSING THE COMPANY

The group believes that Pacific Waves Resort is a good company to study for the following reasons: Pacific Waves Resort is a relatively new established business and has been operating for less than two years. Since it is currently in its introduction/growth stages, there is still plenty of room for improvement. In terms of operations and marketability, the business has a very good potential and can be further improved. In addition, businesses in the service industry are subjected to greater variability and often occur at point of consumption, meaning operational processes are crucial and challenging. Learning how to handle and overcome such scopes would be a great opportunity. Moreover, based from previous research works and interviews, the management of Pacific Waves Resort has been really supportive and accommodating; allowing students to learn more and conduct the paper more effectively.

COMPANY PRODUCTIVITY MEASURES/WAYS TO IMPROVE PRODUCTIVITY

As defined, productivity is the effective use of resources, usually expressed as the ratio of output to input. Pacific Waves Resort measures their productivity as the ratio of the number of guests to the number of rooms available. They calculate their productivity at the end of every month. This is shown in this equation.

Type of Room

Number of rooms

Number of occupants/guests per room

Type A Type B Type C Total

12 12 3 27 rooms

2 3 5 27 x 10 = 270 people

As shown in the table, the resort has 27 rooms. There are three different rooms. Two people could occupy type A, Type B could be occupied by three people and Type C could be occupied by five people. Furthermore, there are 12 Type A and Type B rooms and 3 Type C rooms. For example, in a month during peak season, 18 rooms are used. Assuming there would be eight Type A and B rooms and two Type C rooms occupied for the month, there would be 50 guests. The computation would be as follows:

Based on this computation, the resorts productivity would be 1.85. Other sample partial measures could be made to determine the productivity of the company.

Employees get around Php265 to 315 pay a day. Normal working hours a day is at 8 in the morning until 5 in the afternoon with a one hour break for lunchtime.

Multi-factor measures

Productivity Indicators Considered There are three things that are considered in order to determine whether or not the resort is being productive or not. These are the resorts revenues, meeting budget and promo rates. These three indicators are the ones detected first in order

to determine if the company is able to reach its goals and use all of their resources efficiently.

Revenue and meeting budget The companys revenue help the management know if they are serving the customers well and if the performance of the employees are at its best. If the employees are providing good service, more people would come to the resort and it will also increase the companys revenues. High revenues would allow the company to easily cover its expenses and other costs that needs to be paid. The budget of the company helps the management know if they are able to meet the minimum expenses possible to be able to reduce costs. Through this, the ability of the company to pay off its expenses could be an indicator of how productive and quick the resort is in utilizing resources.

Promo rates Currently, Pacific Waves Resort are having promos available for the customers. There are birthday promos, rainy days promos and monthly promos. Birthday promos include free pool entrance, 10% discount in hotel accommodation and 10% discount on pool entrance fee and pool accommodation for the accompanying group. On the other hand, rainy days promo include 10% discount on pool entrance fees and pool accommodations starting July 1 to September 30, 2011. Lastly, they have a promo from August 15 December 15, 2011 which includes a Php 750 discount for a deluxe room for 2, Php 1,125 discount for a premium room for 3 and a Php 1,500 discount for an executive room for 5. Through these promos, it helps the company attract prospective customers and guests to stay at Pacific Waves Resort.

Factors Impacting Productivity

As shown in the diagram above, staff performance, technology and the completeness of utilities are the factors that affect the productivity of the resort. These three factors are the ones responsible in determining what methods or strategies to use in order to be more productive and gain a competitive advantage against their competitors. Through the analysis and evaluation of these factors, the company would be able to apply the best strategy to be used to improve its current productivity rate.

Staff performance Currently, the resort has 22 permanent employees. In addition to this, the resort has undergraduate students trained to work at the resort. They have 38 students from Colegio San Gabriel, 4 undergraduates from National Polytechnic College and Bulacan Polytechnic College. They have a program with these schools to train the HRM and HRS students inside the resort. From this pool of possible employees, they assess the performance so that in the future, they can recruit and hire them to work in the company. As said, these students are trained to serve the customers well and be able to give their best performance possible. The training that these students undergo help them achieve not only their goals but also the companys goals and set their own standards to be able to attain and provide the best service they could offer.

Moreover, the performance of the permanent employees and the students would be very crucial to the productivity of the company. Since the company is a service business, the employees are in direct contact with the customers. Due to this, it would be harder for the employees to satisfy the wants and needs of the customers and establish rapport with the guests. If the employees are not able to satisfy the demands of the customers, negative feedback would be given and this would cause the resort to lose prospective customers.

Technology Technological advancements are very rampant nowadays. Computers are being used by the front desk in checking-in and checking-out of guests to increase productivity; however, computer viruses may also have a negative impact on productivity. Moreover, the lack of information technology workers and other technical workers can also hinder the company to update its software and other computers. The internet, electronic mail or e-mail, cellular phones and the like are being used in order to communicate with guests and other employees quickly.

Completeness of utilities As mentioned earlier, the resort has 27 rooms all in all. These rooms are airconditioned, wifi ready and they also have televisions which customers could use. They also have a restaurant wherein they serve excellently cooked food to customers or guests. Some of the facilities that the resort has include the swimming pools, pavilion and the chapel. Use of the pool for an event would require reservation weeks prior. The use of the pavilion and the chapel are to be booked also weeks before since it is built and reserved for special functions such as birthday parties, weddings, debuts, among others. A creative staff can take care of the decors for a certain event. The maintenance staff ensures the status of the equipment and the cleanliness of the venue. They are under the supervision of the maintenance head who receives the reservation schedules from the resident manager. The utilities that are available for use of the customers would aid the companys productivity. This would gain the resort a positive feedback from its customers or guests and thus, attracting prospective customers. When the resort gains more customers, they would be able to increase their productivity because

they would be able to serve more people, thus, the resort would be able to make use of their resources and facilities efficiently.

Improving Productivity

The diagram above shows the steps in improving productivity of a company. The first step is to develop productivity measures. The operations manager together with the top management should set a standard as to what should be the minimum productivity rate of the resort. This standard should not only be based on the companys performance but also, it should be based on the industrys standards. In doing this, the company would be able to determine if they are able to efficiently make use of their resources. The second step is to determine critical (bottleneck) operations. The operations manager should be able to identify which are the crucial processes in the resorts operations in order to know which processes the company should focus more on or improve on. This would help the company increase its productivity through serving more people at a faster speed. After determining the crucial processes, the next step would be to develop methods for productivity improvements. This could be done by reexamining and evaluating the way work is done in the resort. In the examination and evaluation of the procedures of the resort, the operations manager would be able to suggest and create methods to improve

productivity. An example would be to have more advertisements in order to attract more customers during non-peak seasons. Another example would be to observe the customers behavior to be able to determine what the customers want and give it to them. The fourth step is to establish reasonable goals. The company could establish goals such as setting a minimum number of guests that should be accommodated at the resort, financial and performance goals. They could set a budget so that costs would not be too high. Setting these goals would help the company efficiently use its financial, human, physical and informational resources. The fifth step is to get management support. The operations manager should get support from the top management and also from other employees. He could also ask other employees to suggest methods and strategies to be used in order to improve the productivity of the company. Through this, the company will be united and would be working as a whole to achieve the goals that they have set. Lastly, the company should measure and publicize improvements. The company measures its productivity at the end of every month and finalizes results at the end of the year. This is a good practice to observe the productivity growth of the company.

ANALYSIS OF PRODUCT/SERVICE DESIGN AND RELIABILITY

Pacific Waves Resort (PWR) provides its guests with a relaxing ambience since it is away from the city creating peaceful scenery surrounded by greens. The overall design of the resort is incorporated with Filipino elements because of the dominant use of wood and earth colors. The hues that combine browns with pastel colors lull the guests to relaxation that is indeed very refreshing to the body and to the senses. PWS is currently the only resort in Bulacan that caters to the A and B market.

The market pressure for PWR is low due to the fact that the other neighbouring competing resorts are not at par with PWR's amenities and services provided. They cater to different target markets and they make sure to differentiate their products and services from the rest of the competing resorts. PWR practices different techniques to cut down costs such as downsizing the staff to only a need-based amount, lessening electrical consumption by practicing conservation, they stopped kitchen operations and instead provided catering services during events. Good customer relationship is a top priority for PWR, therefore the needs and wants of the guests are always given utmost attention. Aside from being thoroughly and properly trained, staff members are on call 24/7 for any concern or requests of the guests. PWR is also in the process of expanding. Management is planning to put rooms and amenities such as fitness and wellness center, entertainment area and the like, to further provide its customers with services that will cater to their wants. PWD is currently in their Introduction stage of the life cycle. They are a young company who has only started their operations last January 23, 2010 and is still in the process of building product awareness and developing its market. Pacific Waves Resorts (PWR) primary business operation lies in their hotel service. The standardized operating process can be seen from the service blueprint of PWR. The start of the process requires guests to send their room reservation to the hotel via online reservation or through the phone lines. The information would then be place in the system by the person in charge of reservations. Once the said guest arrives, bellboys would then assist the guests by taking his or her luggage and place them in storage while the guest waits for check-in time, meanwhile, housekeeping would subsequently prepare the designated room for the guest and assure impeccable cleanliness and company room standards are attained. During check-in time, receptionists would get relevant customer information and double check with the reservation system. As soon as the reservation is verified, the receptionist hands the guest the designated room key. The bellboy would then deliver the luggage of the guest to the room. In the room, there is a list of services and menu provided that the guest may order or request. In the case that the guest does so, there will be an operator on the other line that will receive the request of the guest and inform the

person in charge of the said service of the request. House-keeping or waiter will be expected shortly after the request has been sent. In the case of room makeover, the guest may call the operator or just simply place the door sign indicating the need for a room makeover. The trained housekeeper will clean the room and replenish the toiletries for the guest. As the guest goes through check-out, housekeeping would check the room for any damages or items taken, once cleared the receptionist would then receive the full payment for the stay and gets back the room key.

Service Blueprint
Materials Computer, internet or telephone Reserves room via online or telephone Arrives at the Hotel Computer, room key Check-in Go to the room Bellboy brings luggage to the room; Telephone, service menu Room Service Door sign hanger, telephone Requested to clean the room Check-out

Customer Actions

Contact Person

Bellboy assists the customers and secures their luggage

Receptionist inputs the customer information and gives them their designated room.

Housekeeping brings requested toiletries and/or waiter brings ordered food Housekeeping cleans the room

Receptionist receives payment and room key

Backstage Contact

Housekeeping prepares the room for their use

Housekeeping cleans room, checks for any damages and checks the mini-

fridge for goods taken. Support Receives reservation request and inputs it in the system. Receives request for room service Receives request for room cleaning

COMPANY FORECAST Being in the service industry, Pacific Waves Resort is prone to variety and seasonality in terms of market needs. The company can make use of forecasting in order to budget and plan different business functions more effectively. The following techniques were used to forecast: Three Point Moving Average, Exponential Smoothing and Trend Forecasting. Among the three techniques used, it can be inferred that the Three Point Moving Average is closest to the actual performance of the company. The difference in the revenue of the hotel and resort is caused by seasonality. During summer, are the peak seasons of the business, while as rainy seasons of July-September are noticeably weak.

THREE POINT MOVING AVERAGE

EXPONENTIAL SMOOTHING

TREND FORECASTING

COMPANY CAPACITY PLANNING Capacity is the ceiling on the load that an operating unit can handle. For a company that belongs to the hospitality industry demand is most likely fluctuating. There are peak and lean seasons which contribute to the unstable flow of revenue as well as to the underutilization of the facilities. The capacity of a hotel or resort is most likely fixed because of the fact that it is nearly impossible to add or remove rooms whenever demand changes. PWR offers a wide variety of services to its customers. It has full-service restaurant that can accommodate 100 guests, may it be individuals or families. It also offers two swimming pools, a hotel, an activity center, a pavilion which can accommodate 250 guests, and a church. The pool area provides cabanas, tents, umbrellas sheds, nipa huts, and nipa suites. PWR is currently focusing on hosting events such as company team buildings, retreats, family reunions, weddings, birthdays, and other special occasions. The hotel has three types of rooms: deluxe room, premium room, and the executive room. The deluxe room can accommodate and is good for 2-pax. It is airconditioned, with hot and cold shower, and hair blower. The premium room can accommodate 3-pax and it is air-conditioned, with hot and cold shower, hair blower, and television with cable connection. And lastly is the executive room which can accommodate up to 4-pax. This has the same amenities as the premium room only that it entitles the guests to free pool entrance. The hotel has 27 rooms in total. It also has function rooms with the capacity of 50 people for conferences and seminars. The number of guests accommodated by PWR in a week is not fixed and merely depends on the reservation. Since hospitality industry has lean seasons, PWR fills this by offering seasonal promos to customers, promos such as the Birthday Promo which entitles their clients to free pool entrance, 10% off in hotel accommodation, and an additional 10% discount on pool entrance fee and pool accommodation for the accompanying group. And the Rainy Days Promo that run through July 1 to September 30. It entitles the client to a 10% discount on pool entrance fee, pool accommodations, and hotel accommodations.

On the other hand, half of the hotel is occupied during peak seasons. Currently, PWR has 22 permanent employees. The company also has program that trains undergraduate HRM and HRS students from Colegio San Gabriel, National Polytechnic College, and Bulacan Polytechnic College. This program is also a source of income for the company because the students pay a certain amount to the resort for allowing them to train and work inside. Moreover, PWR also has on call employees during peak season. Hiring more employees helps the company give better service to their guests. As for the maintenance of the facilities and equipments, PWR has their own inventory clerk to make sure that everything is still complete. The company also adds more tents, chairs, tables, and umbrellas whenever demand of customers increased. Design Capacity: 27 rooms 250 guests in the pavilion 100 customers in the restaurant 50 people in the function room Effective Capacity: 26 rooms 245 guests in the pavilion 95 customers in the restaurant 48 people in the function room Actual Output during peak season: Half of the hotel is occupied 70 customers in the restaurant

Efficiency: Actual Output/Effective Capacity 14 rooms/26 rooms = 54% 70 customers in the restaurant/95 customers in the restaurant = 74% Utilization: Actual Output/Design Capacity 14 rooms/27 rooms = 52%

70 customers in the restaurant/100 customers in the restaurant = 70% The rooms in the hotel are fully utilized only when there are events, seminars, and retreats. These are some of the instances wherein they have to reject or decline a guest because the hotel is fully reserved. On a normal day, the hotel rooms are underutilized. This results show that the company must still work on and create a plan of action on the things that they can offer during normal days to fully utilized their facilities and services. When it comes to their earnings, the company can use a revenue management system. In this system, the hotel can increase its revenues by raising room prices during peak season. And for the lean season, they can lower prices. This can help in increasing the utilization rate of the company. One of the requirements in capacity planning is learning to monitor the trends. PWR should monitor and know the trend of their customers in order for them to give quality service. The demand for hospitality industry is most likely seasonal. In this case, it would be easy for the company to forecast when to add employees and certain facilities. Lean season for the company usually lasts for 3 months, from July to September, where most rain and typhoons hit the country. It is also a requirement for operations to always coordinate with the marketing department because of the projects or actions that can affect the number of customers. Like for examples are the promos and packages that the company offers, the reservations for events or even the intensity of advertisements that they do. These are just some of the information that the management must take into consideration when planning capacity, may it be short term or long term.

LOCATION PLANNING According to Chuong and Stevenson (2010), location decisions have a significant impact to a business, although made infrequently. Not only does it entail a long-term commitment, but it also emphasizes strategies to increase market share. Poor choice of location, on the other hand affects business operations and over-all competitive advantage; because of this, the location of a business considers a variety of factors: customer convenience, transportation costs, competition, traffic and more. At current, Pacific Waves Resort (PWR) is only established at one location --in City of San Jose Del Monte, Bulacan. As part of the hotel and resort industry, being positioned in Bulacan has both its advantages and disadvantages. Since Bulacan is already known for its wide array of cheap resorts, competition is high in the area and would definitely call for various strategies (promotional events, up-todate services, volume discounts) in order for customers to notice the resort. For the case of PWR, the business makes use of volume and promotional discounts to gather more customers. On the other hand, the publicity of Bulacans industry is also in itself an advertisement since it would be easier to garner potential customers which are already aware of Bulacans resorts. Factors in Location Planning
FACTORS WEIGHT PWRS SCORE PWRS WEIGHTED SCORE 15 25 COMMENTS Many competitors in the area Has a nature-friendly appeal matching its aimed image Customers from Metro Manila might experience traffic Location of suppliers is near Size is sufficient for current operations Minimum wage is cheaper in Bulacan

Location of competitors Environmental domain Accessibility to customers Distance to suppliers Size Costs related to governing laws in Bulacan TOTAL

0.25 0.25

60 100

0.25 0.05 0.15

80 95 100

20 4.75 15

0.05 1.00

95

4.75 84.50

Table 1. Location Planning Factors of Pacific Waves Resort

There are several factors to be considered that are vital in determining the best or most acceptable location to put up a business. This procedure requires a detailed evaluation of factors to be considered to be able to identify the best location. Furthermore, the organization's strategies are also very important in location decisions. This means that location decision should be able to aid and help achieve the organization's overall strategies. Choosing the best location would be of great help to the company because this has a great impact on their business. Costs,

revenues, customers, employees, legal considerations and competitors are the main factors that need to be considered in choosing a location. Accessibility of the location to potential customers is a big factor to be considered. This is so since the more accessible a business is, the higher chances that customers would visit the area. This however does not mean that the location should be extremely near; traffic patterns should be reasonable for customers to consider going to the resort. Although traffic may seem like a small factor, it usually influences a potential customer in going to a destination or not. Two or three hours of traffic would mean a significant time for a customer to change his/her mind. Moreover, the sooner a customer would arrive at the resort, the sooner the business would earn. A too accessible resort however, may not serve its goal or image. People would usually see hotels and resorts as a getaway and would therefore like the idea of distancing their selves from the norm. The competitors' location is also important in identifying the best location. This would avoid overcrowding of resorts in an area and might lead to customers choosing other resorts over Pacific Waves Resort. Due to this, the company might focus more on being better than the other resorts, thus, ignoring and neglecting the company's overall strategies. Laws and environmental regulations should also be considered in determining the best location. Certain laws might restrict the company in maximizing its potential in building infrastructures like the hotel in the resort. Furthermore, the space on the property should also be enough to address potential expansion of the resort. Climate of the area would be a great help because if the area experiences rainfall often, customers would not consider going to resort. This would lead to loss of customers and loss of revenues. All factors that should be considered should aid achieve the company's overall strategies. Through this, the company would gain a competitive advantage against other resorts not only around Bulacan but also other resorts in other areas.

Illustration 1. Geographical Location and of PWR as well as Competitors

As seen above, City of San Jose del Monte, Bulacan is has numerous resorts. At a four-radius proximity, Pacific Waves Resort has five competitors: Grotto Vista Resort, La Hermosa Resort, Dalisay Resort, FMA Private Resort and North Winds Resort. Among the mentioned competitors, Grotto Vista Resort is most popular.

COST-VOLUME-PROFIT ANALYSIS

PACIFIC WAVES RESORT C-V-P DATA Total Revenue for Hotel Function (July 2011) Number of Hotel Rooms Utilized for the month Fixed Cost (Salaries expense, electricity, maintenance, misc.) Variable Cost Total Cost: (FC + VCx) (Php 111,350 + Php 593.87x) Php 320,250.00 116* Php 111,350 Php 593.87 Php 180,238.92

Ave. Charge/room (SP) Contribution Margin (SP VC) Profit:

Php 3,750 Php 3156.13 Php 140,011.08 35.38 Premium

BEP (FC/CM)

Rooms to break even

*Deluxe Rooms = 98, Premium Rooms = 14, Executive Rooms = 3

PROCESS SELECTION AND LAYOUT Pacific Waves Resort (PWR) focuses on the following functions: (1) Food and Dining Services, (2) Accommodations and House-keeping, (3) Resort Maintenance, (4) Recreational Services and (5) Front Desk and the Administration. Core technologies used by PWR are fitted to suit the operational needs of each department, which are all of varying nature, and are then integrated to provide a fun and unique experience to its customers.
Lodging Services Recreational Services Food and Dining Maintenance Service

Wellprepared Accessibility Wellprepared Prompt response

Unique integrated customer experience

Customer Feedback

Figure 2.1.1 Input-Output Framework for Pacific Waves Resort

In general, the lodging experience of a particular customer gravely depends on the consistency and cohesiveness of the different services present in the resort. Every service output of the department has its contributory factor to customer satisfaction and its integration is the focus of the companys core technologies. In order for customer feedback to be positive, the different departments must be at their best proficiency levels. One small mistake your lapse in performance ruins the whole service output since the primary product of PWR is the resort service and not just of a particular departments.

Food inventory Chefs expertise Waiters dexterity

Fresh ingredients Scrumptious meals Prompt Services

Dining experience

Customer evaluation

Figure 2.1.2 Input-Output Framework for the Food and Dining Service

Food and dining services are done by the resorts in-house restaurant and are operating as a separate function entity to that of the other departments. Procurement of cooking equipment, materials and inventories are independently done by the restaurant, in a sense that it would be at their own discretion as to where and how they will be acquired. However, they are integrated with the Purchasing Officer in the treasury department since all payments that are needed for the acquisition of materials are processed through them. They are also integrated with the front desk as customer billings in the restaurant are forwarded to the front desk and are to be settled as the client checks out of the resort. Restaurant staff includes the executive chef, assistant chefs, chief waiters, bus persons and clean-up crew, waiters, a cashier, and an auditor. Head chefs and his assistants indirectly interact with the customers since they prepare the different meals and construct the menu. Bus boys and the clean-up crew are those who remove dirty dishes, clean the kitchen and oversee the cleanliness and sanitation of the whole restaurant. They create the dining atmosphere for the customers. Chief waiters interact with the customers they are responsible for seating their customers, preparing their tables, giving them the menu and in taking their preliminary orders. Waiters may assume the responsibility of taking orders but they are to bring meals to the table. Cashiers would take note of the customers dining bill and forward it to the front desk. Auditors oversee all financial transactions the restaurant has while the executive chef, as part of his responsibility, oversees all operational functions. Using Perrows framework, the Food and Dining service of Pacific Waves Resort falls under the Craft category because of the low analyzability and variety. Task variety is minimal in the restaurant with procedural and intuitive day-to-day requirements. Employees follow a series of task plans - experienced chefs concoct

their own recipes, waiters equipped with the best familiarity in restaurant management respond to their customers, clean-up crew thoroughly inspecting the area for litter, among others. In terms of the department design, since it is classified under craft technology, food and dining services employ a mostly organic structure. The department has moderate formalization since they designate tasks to smaller work groups which are governed by certain rules but workers are still free to act upon their own discretion. Worker skill-level is gravely dependent on the workers experience.

Beddings and Linen Toiletries and towels

Housekeeping personnel training

As runners As cleaners

Refined Lodging experience

Customer evaluation

Figure 2.1.3 Input-Output Framework for House-keeping Services Accommodations and house-keeping are the easiest to monitor since employees are assigned to clean and arrange certain rooms. They are allotted a certain number of toiletries (shampoo bottles and soaps), towels, linen and beddings. These materials are then checked by the Chief Housekeeper hourly to make sure that inventory is still complete and are enough for a certain shift. The employee under this department serve as the runners (the ones who deliver items to guest rooms when customers request it) and cleaners before and after a room is used. This is one of the most critical departments of PWR since it highly reflects their efforts in reaching their vision of rating a Triple-A in the resort business, a first in the industry. Procedures are critically detailed so that it can prevent lapses in performance and be able to adapt to unforeseen problems in the service. This department falls under the routine category since it exhibits high analyzability with low variety. Employees undergo skills training on proper housekeeping protocol and are even practiced through room service simulations. The series of tasks are routinely and standardized in order for the services quality consistency would meet company and customer expectations. They use a mechanistic structure with high formalization, as evidenced by their established methods that are up to par with industry standards. Worker skill level is honed by the repetitive work itinerary and training sessions.

Customer Demands Department Demands Routinary check-ups

Prompt response Prompt response Detailed evaluation

Maintenance Services

Customer Evaluation Department Evaluation

Figure 2.1.4 Input-Output Framework for Resort Maintenance Resort Maintenance is more general in scope since it captures the entire resort, much like the Front Desk but more independent in nature. They tend to every other departments needs when it comes to the upkeep of their facilities and in accompanying repairs. They directly report to the Maintenance head and employees are designated to the different sectors in the facility and are. The employees in this department are constricted to working within their area boundaries in order to ensure the quality of their job processes. This is another critical department in PWR since it adds to the over-all vibe of the resort. The Maintenance department makes sure that every aspect of the customers experience is met with a quality atmosphere highlighted by cleanliness, security, availability and efficiency. Resort maintenance utilizes a routine framework because of the tasks high analyzability and low variability. Maintenance work is crucial to the reputation of the resort since it is responsible for the fluidity and capability of the services to cater to the demands of the customers so the people directly involved in this endeavour should be well-equipped not only by skills but actual experience in the industry. Maintenance staff in the resort should be wary of the firms needs not only in the technicalities of the renovations but also in aesthetics. Task variety is minimal because of the uniform processes involved in this task. The department uses a mechanistic structure because of high formalization, centralization and the vertical communication system. Maintenance services are standardized and the division of labor is specifically stated and designated. Overlaps in functions are avoided so that the employees would be more focused they are able to see and evaluate minor and major improvements and eventually implement it in the future.

Reservations Customer demands

Staff creative expertise

Scheduling Innovative thinking

Facility wellorganized

Customer evaluation

Figure 2.1.5 Input-Output Framework for Recreational Services

Recreational Services include the private use of the swimming pool, pavilion and the chapel. Use of the pool for an event would require reservation weeks prior. The use of the pavilion and the chapel are to be booked also weeks before since it is built and reserved for special functions such as birthday parties, weddings, debuts, among others. A creative staff can take care of the decors for a certain event. The maintenance staff ensures the status of the equipment and the cleanliness of the venue. They are under the supervision of the maintenance head who receives the reservation schedules from the resident manager. The department is under the non-routine category given its high variability and analyzability. Employees under the recreational services department are thinking and acting contingently since it is their departments nature they rely on their experiences as they accomplish their daily tasks. Task variety is relatively high since the conversion process, particularly on the pavilion and the chapel, is dependent on the customers demands and stipulations. A grave deal of their efforts and concerns are geared towards analyzing activities and they are devising several equally acceptable options for the customer to choose. This department adopts an organic structure with low formalization and centralization. The main function of this department is to cater to a varying customer preference. In order to meet this expectation, the employees must be formally trained and are able to have exercised these theories in actual work experience. In the case of these recreational activities, the workers involved in providing these services must know the technicalities of it and through work experience, be able to anticipate problems and answer them, manipulate facilities that would ensure customer satisfaction, among numerous other goals and functions.

Customer Reservations Customer Billings Customer Demands Front Desk

Scheduling Prompt response

Confirmed Reservation

Customer Evaluation

Figure 2.1.6 Input-Output Framework for the Front Desk

The Front Desk is the center of all transactions. They receive reservations from clients which are either walk-ins or those who have booked days or weeks before. They schedule room and venue assignments, keep track of service availability and monitor input and output flow. They are to receive feedback reports from the other departments regarding a particular clients stay in the resort. This includes payments for the restaurant and the usage fees for the recreational centers. This department performs check and balance as to whether the clients expectations were met. He then relays these reports to the resident manager for further evaluation.

It utilizes a routine framework, as depicted in Perrows framework because of the high analyzability and low variety of the tasks nature. The series of tasks in order to complete a particular clients reservation is methodological from confirming a rooms availability, check-in and check-out times, usage status of the different recreational services, up until the clean-up of the room for another client. When dealing with the demands of the customer, the department must be able to respond with subtle respect and affirmation that it will be met, which is quite intuitive in nature. They also use a mechanistic structure with high formalization, as evidenced by the procedural reservation system they have to follow when dealing with customers. Skill level is also inculcated and polished through experience. Since they are at the forefront of the resort interacting with the customers, common courtesy and etiquette are required when dealing with them, an innate quality that the department has upheld in their employees.
Administration Lodging Services Recreational Services Food and Dining Maintenance Service

Support Services

Treasurer

Figure 2.1.7 PWRs Support Services

Support Services of PWR would include the administration (represented by the President and the Resident Manager) and the treasurers department (with the chief accountant, purchasing head and system administrator). They are considered the companys non-core technologies, or the work processes which are not directly related to the attainment of the firms mission. These support services take care of the minute requirements in order for the firm to continually operate. Considering the brevity of the tasks they do, these departments should have a Routine framework in order to robustly support the core technologies and supplement their performance. Support technologies of PWR take care mostly of the financial and legal requirements, therefore they must be able to suitably adhere to the procedures and methods set by regulating agencies, thus indicating the works low variability. This however, entails high analyzability, since a slight mistake in accomplishing the requirements will cost the company not only financially, but also time, effort and all other intangible costs.

PACIFIC WAVES RESORTS PROCESS FLOWCHART Front Desk Front Desk serves as the core of all transaction in the hotel. They are the ones who welcome the guests, receive reservation, either from walk-in or those who booked ahead, keep track of service availability and monitor input and output flow.

Figure Flowchart Desks

2.2.1 of Front

Processes/Interaction

Housekeeping

Housekeeping is the department that deals with the cleanliness of the hotel. In the PWR hotel, employees assigned to clean and arrange certain rooms. They are allotted a certain number of toiletries (shampoo bottles, and soaps), towels, linen and beddings. The housekeepers also serve as runners who deliver items to guests whenever such are requested.

Figure 2.2.2

Flowchart of Front Desks Processes/Interaction

PACIFIC WAVES RESORTS LAYOUT As part of a hotel and resort industry, Pacific Waves Resort makes use of a service layout. Service layout is needed since there is a combination routine and non-routine process. Moreover, there is variability in customer requirements. The layout also has to be functional and aesthetic. Overall, the layout must also reflect the business goals: maximize profit, minimize costs and customer convenience.

As mentioned, the functions of PWR are mixed, and would therefore have different workstations, some work independently, most are subject to customer variability. Front Desk

WORKSTATION 1

The front desk or reception makes use of only one workstation. That workstation is in-charge of all responsibility of receiving feedback reports from other departments regarding a particular stay of a client in the resort. This includes payments for the restaurants and the usage fees for the recreational area. They perform check and balance as to whether the clients expectations were met, and then relay the information to the resident manager for further evaluation. Housekeeping

WORKSTATION 1

WORKSTATION

WORKSTATION

WORKSTATION

Housekeeping also makes use of one workstation. Technically, housekeeping has a fixed-position layout. The item worked on (room) remains stationary; the staff and cleaning equipment are moved about by room-to-room. The workstation can be divided into three staff: Staff in-charge of (1.) fixing the bed, (2.) cleaning restroom and (3.) overseeing facilities and bedroom. Restaurant
WORKSTATION 1 Kitchen (meat) WORKSTATION 2 Kitchen (garnish) WORKSTATION 3 Kitchen (grilling)

WORKSTATION 4 Service

WORKSTATION 5 Cashier

In the restaurant, the workstation can be divided into three: the kitchen, the service crew and the cashier. The kitchen can actually be further divided into groups depending on the task: meat, garnish and grilling. Working on a food item would be independent to another food item, and would therefore minimize time. Service crews on the other hand are responsible for taking orders, delivering food and cleaning up. Lastly, the cashier would receive the payment or forward it to the front desk. LINE BALANCING

Line balancing refers to deciding on how to assign tasks to workstations. According to Stevenson and Chuong (2010), tasks are grouped into manageable bundles to be assigned to workstations. To use line balancing, a sequence should be present. A fixed sequence however, can only be observed from front desk to housekeeping.

WORKSTATION Front Desk

WORKSTATION Housekeeping

WORKSTATION

WORKSTATION

WORKSTATION

WORKSTATION

Front Desk

Housekeeping

Housekeeping

Housekeeping

5 min.

1 min.

6 min.

6 min.

A
3 min.

B
3 min.

Cycle Time = 180 minutes = 7 minutes C27 rooms

Nmin = .

t . = 24 mins = 3.4 or 4 Cycle time 7 min

The cycle time is computed by dividing operating time by the desired output rate. The interrelated sequence of housekeeping and the front desk is observed during check-in which is during the morning from 8 AM 11 AM. The desired output rate, on the other hand is a fully utilized hotel with 27 rooms. TASKS FOR LINE BALANCING A Housekeeping (cleaning restroom) B Housekeeping (fixing bedroom) C Housekeeping (overseeing facilities and bedroom) D Housekeeping (inform front desk available rooms) E Front Desk (confirmation of room availability and reservation) F Housekeeping (delivery of baggage)
TIME WORKSTATION REMAINING (in minutes) ELIGIBLE ASSIGNED TASK TIME REVISED (in minutes) IDLE TIME (in minutes)

7 2

A, B, C -

A -

2 2

7 4 1

B, C C D E F -

B C D E F -

4 6 6 1 1
4 minutes

3 4

7 6 7 1

Percentage of idle time = idle time / cycle X 100 = 4 min. = 14.28% Nactual X Cycle time 4X7 Efficiency = 100% - 14.28% = 85.72% Assuming a fully utilized hotel, percentage of idle time is 14.28 while efficiency rate is 85.72%. INTERDEPENDENCY OF PROCESSES (1) Food and Dining Services, (2) Accommodations and Housekeeping, (3) Resort Maintenance, (4) Recreational Services and (5) Front Desk and the Administration are said to be the main functioning departments of the company that either have high interdependency with each other or severally work on its own to accomplish tasks and responsibilities that would contribute to the common good of the organization (Daft, 2010). This helps the business owner understand how each unit depends on the performances of others and how it will affect the flow of work of the whole system. Inside PWR, employees are trained to specialize and master the artistry of a certain task to attain efficiency and order within the resort. Job rotation is not done in the company, so that the auditors for each department can easily check and balance the beginning and ending inventory. It helps management avoid lapses, leakages, and from incurring losses. Also, this is to maximize the available resources in the organization. The three types of interdependency by James Thompson is all being put to practice, but most of the departments can work independently. The Accommodations and Housekeeping unit has a set of standards enforced by the management. The job of the employees is to maintain the good condition of facilities inside the hotel to create a one of kind experience for the customers. In preparation for hotel visitors, the Hotel Manager or the Chief Housekeeper is given prior notice by the Front Desk Manager. This allows Hotel Manager to assign who is to ensure that the reserved rooms are ready for lodging. Evaluation of work is done by the head of the said unit and feedback from the end users who are the customers.

Figure 3.1 Information Flow in the Accommodation and Housekeeping Department

The Recreational Services only functions when there are special events and occasions. Reservations for the space can be done through the Front Desk and the Front Desk Manager delegates the work to be undertaken by the employees. The decorations and aesthetics are handled by the creative staff of the department and the maintenance faculty takes care of the installations and conditions that will be utilized in an event.

Figure 3.2 Information Flow in the Recreational Services Unit

Resort Maintenance follows a strict criterion of keeping the conditions of the whole property; those facilities only that is not under a department. An example would be the activity center. This is one area in the resort that allows customers to enjoy sports and play video games. Other areas supervised by this unit are the

gardens, playgrounds, and the employees headquarters Maintenance Head monitors the performance of the employees.

or

lounge.

The

Figure 3.3 Information Flow in the Resort Maintenance

These three departments espouse pooled interdependency. According to Thompsons theory, pooled interdependence is where each organizational department performs completely different tasks. These then would have a subtle contribution to the company as a whole. If for example, the Accommodations and Housekeeping carries out their job extremely well, it would have a positive feedback from the customers. This possibly increases the good image and reputation of the organization. However, if for instance the Resort Maintenance fails to preserve the beauty of the area, it can as well affect the company. The job of the management here is to make sure that the employees assigned to each task can execute well on their own. Coordination between departments is minimized so as to give priority to responsibility held at hand. Standardization is highly implemented where rules and routines should be consistent and followed from the simple folding of bed sheets to the skirting of table for a special affair. The superb services rendered by these departments are the mediating technology that allows the company to easily interact with external entities. The Sequential type of interdependence is adopted by the Food and Dining unit. This department functions inside the restaurant and they acquire their inputs from other units or from their own. The raw materials they need are all bought by the Purchasing Head. When there is a special event in the resort, the department requires the customer to choose from a list of concoctions and give the number of guests so they can estimate the ingredients and materials to be used and send the shopping list back to the Purchasing Head. They would also depend on the clerks in-charge of getting the orders of the guests within the hotel, pool area, and restaurant. If these clerks took note of a different request, the chefs will prepare a wrong set of meal. Thus, leaving a negative impact on the customers of how poor the service is.

Food orders from different departments (hotel, restaurant, and pool area)

Customers satisfied with food served

Figure 3.4 Information Flow in the Food and Dining Team

This department is highly dependent on how other departments do their tasks. The Food and Dining unit needs to get an accurate output from another unit for it to operate. Lastly, the Front Desk and the Administration handles all the transactions by the different functioning departments. The services provided in the hotel, pool area, restaurant, and activity center will all back to this department. The food ordered in the restaurant will be encoded in their Point of Sale system which is networked back to the Front Desk. The receipt will be issued by the restaurant waiter and payment will be forwarded to the Front Desk and same as follows with the pool accommodations. The use of cabanas, nipas, huts, etc. are transacted in the said department and any additional proceedings while inside the pool area will be sent back to the Front Desk department.

Figure 3.5 Information Flow in the Front Desk Department

Thompson theorized that when the output of other units becomes the input of another, it follows a Reciprocal type of interdependence. This pushes for a wellcoordinated system that practices high communication between departments. This is to secure that all the concerns raised by the customers will be attended to and meetings are held weekly for performance appraisal of each functioning unit. These meetings will help Pacific Waves growth and development in serving their customers. The different products and services offered to the customers serve as the intensive technologies. The purpose of these is to increase the satisfaction level of the clients when inside the resort.