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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

Operations
Management

Deliver
Figure 18.1 Operations improvement

Develop

Organizing for
improvement
manages the
improvement
activity

Operations
improvement
makes processes
better

Risk
management
stops processes
becoming worse

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.

2.

Breakthrough improvement

Innovation based improvement

Example: introduction of a new, more efficient


machine in a factory
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.

Actual improvement
pattern

(a)

Performance

Planned
breakthrough
improvements

Continuous
improvement

Time

(b)

Performance

Performance

(a) Breakthrough improvement, (b) continuous


improvement and (c) combined improvement patterns

Combined
breakthrough and
continuous
improvement

Time

(c)

Time

3.

The difference between breakthrough and continuous


improvement

Innovation...
Short-term,
Big

dramatic

steps
Intermittent
Abrupt, volatile
Few champions
Individual ideas & effort
New inventions/theories
Concentrated all eggs in 1
basket
Large investment
Technology
Results for profit

...Kaizen
Effect
Pace
Timeframe
Change
Involvement
Approach
Stimulus
Risks
Practical req.
Effort orientation
Evaluation criteria

Long-term,

undramatic
Small steps
Continuous, incremental
Gradual and consistent
Everyone
Group efforts
Conventional know-how
Spread
Little

investment
People
Process

Approaches to improvement...;
Improvement cycle models

Improvement can be represented by a neverending 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

Improvement Cycle Models


Define

Plan

Do
Measure

Control

Act

Check

(a)

(a)
(b)

Improve

Analyze

(b)

The plan-do-check-act
The define-measure-analyze-improve-control

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

Main elements of the


PDCA Model stages

Main elements of the


DMAIC Model stages

i.

i.

ii.

ii.

iii.

iii.

iv.

iv.

v.

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

Main elements of the


PDCA Model stages
i.

ii.

iii.

iv.

Plan examine the current


method. Collect, analyse data
and develop an improvement
plan
Do implement the plan, and
resolve problems arising
Check evaluate the
implementation of the change
Act either, standardise the
change; or re-plan and re-trial

Main elements of the


DMAIC Model stages
i.

ii.

iii.

iv.

v.

Define the problem(s) and the


requirements for process
improvement
Measure and validate the
problem, using data to inform the
process. Is the problem worth
solving?
Analysis identify the cause of
the problem
Improve the process. Solutions
that are viable are implemented
Control Implementation is
monitored to ensure
improvement is sustained

Performance

PDCA Cycle repeated to create


continuous improvement

Plan
Act

Do
Check

Continuous
improvement

Time

The common techniques for


process improvement
Input/output

analysis

Flow

charts

Scatter

diagrams
x

Input

Output

x
x
x
x

Cause-effect

diagrams

Pareto

diagrams

x
x

Why-why

analysis

Why?
Why?
Why?

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.

Main Category

Problem/
Desired
Improvement
Cause

Root Cause

16

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
Main Category

Cause
Root Cause

Problem/
Desired
Improvement

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

Product/Manufacturing
Man
Methods

Machine
Five Key
Sources of
Variation

Materials

+ Environment
Measurement

Use cause and effect diagram to single out


variation sources within the 5Ms + E

Transactional/Service
People
Procedures

Policies
Five Key
Sources of
Variation

Place

+ Environment
Measurement

Use cause and effect diagram to single out


variation sources within the 4Ps + M&E

Fishbone
Cause and Effect Diagram
Causes

Effect

Main Category

Problem

Cause
Root
Cause

Shows various influences on a process to


identify most likely root causes of problem

Constructing a C&E Diagram


Materials

Methods

Problem

Maintenance
Machinery

Manpower

Brainstorm to determine root causes and


add those as small branches off major bones

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