Lheimer Gail Potot August 29, 2017

Cyrell S. Salig
Operations Management Assignment

A Case Study on Hard Rock Caf

Question Asked: From your knowledge of restaurants, from the video, from the Global
Company Profile that opens this chapter, and from the case itself, identify how each of
the 10 OM strategy decisions is applied at Hard Rock Cafe.
In my experience of having a family business involving the food industry with the same
operations as the hard rock caf - the 10 Operations Management strategy decisions are
very essential for managers to improve business operations. The goal is to formulate
operations that satisfy business objectives, and improving efficiency at the same time. At
Hard Rock Caf, these 10 decisions are applied to ensure that the brand, company
reputation, and financial targets are met, as follows
10 Operations Management strategy decisions
1. Service and Product Design.
Service and product design decisions are what maintains the Hard Rock ambiance and
image. It is these decisions that are assessed and analyzed by managers as to its
different attributes of target markets and make a few slight modifications to the products
and services but of course the modifications must consistently follow the Hard Rock
Cafs brand and company reputation.
2. Quality Management.
Quality management is applied by Hard Rock Caf by maintaining a specific quality
assessment role for its operations manager. The manager utilizes the firms quality
standards to identify strengths to focus on, issues and weakness, opportunities and
threats. Recommended changes are then applied to ensure compliance.
3. Process and Capacity Design.
Hard Rock Cafs process and capacity design refers to internal business processes and
the target capacity of facilities. Internal business processes include food preparation,
order routing, reservations, and others. The target capacity of Hard Rock Caf facilities
is based on the condition of the local markets. The company applies process and
capacity design decisions to maximize capacity utilizatio

4. Location.
By basing the market and conducting market and industry analysis is where Hard Rock
Caf decides on the location of its. Market research is applied to determine if the market
generally the population (as to age, income, etc.) in that certain location can support a
Hard Rock Caf. Industry statistics are used to determine if expanding the firm through
additional Hard Rock Caf locations is feasible.
5. Layout Design.
The company assesses the expected influx of customers and the nature of business
operations in facilities and then these studies become the foundation that decides on
layout design. Hard Rock Caf themed restaurants, casinos and hotels have different
layout requirements. The companys operations managers apply layout design for
efficient workflow in the limited space available in these facilities.
6. Job Design.
Hard Rock Cafs job design decisions are reached and applied through an analysis of
needs and expectations of the company and its employees. The appropriateness of job
design is evaluated based on employee feedback and company standards. The
companys operations management is focused on optimizing workers person-job fit,
while making it easy for employees to do their jobs to maximize efficiency.
7. Supply Chain Management.
Market demand, variety of suppliers, and inventory management costs these are the
foundations of Hard Rock Cafs supply chain management decisions, among other
factors. The
supply chain management decision is applied through the operations manager and
location manager.
8. Inventory Management.
Hard Rock Cafs operations management uses demand fluctuations and historical
records to predict changes needed in the inventory through using an inventory
management software. The inventory is then adjusted accordingly.
9. Scheduling.
Hard Rock Caf evaluates current operations effectiveness and then makes decisions in
scheduling. The schedules must satisfy capacity requirements .Also, operations
managers disseminate planned schedules to staff and use their feedback to make
adjustments. The adjusted schedules are then applied to ensure flexibility and resilience
of the business. This operations management is essential to ensure that the brand,
company reputation, and financial targets are met.
10. Maintenance.
After a series of analysis and a comparative evaluation of assets and the firms
standards, maintenance decisions at Hard Rock Caf are then made and applied. For
example, the company has standards on how much equipment wear and tear is allowed
before the equipment needs repair or replacement. Hard Rock Caf also has standards
and policies on how maintenance should be conducted involving qualified personnel.
Productivity of Kitchen and Wait Staff at Hard Rock Caf
In determining the productivity of kitchen and wait staff, Hard Rock Caf sets a distinct
quantitative and qualitative criteria that reflect performance of staffs. Productivity of
kitchen staff is the number of meals produced over hours spent producing them. While
productivity of wait staff is the number of orders served over hours spent serving them.
Productivity of Kitchen Staff = number of meals produced/labor hours
Productivity of Wait Staff = number of served customers/ working hours

Difference in Application of OM 10 Decisions

Goods and service designs

A car must be design and tested properly. An engineer or car specialist skills are
needed. While in Hard Rock Caf, the foods served and ambiance of the place is based
on the taste and needs of customers. A chefs skill is needed.

Quality Management
In Hard Rock Caf, the taste of foods and quality of items and services. While in Ford
Company, the durability, form and tolerance of car.

Process and Capacity Design

Theres likely an assembly process.

Location
Low fixed and variable cost locations for both Ford and Hard Rock Caf with
consideration to factors such as proximity to suppliers. But giving importance to tourist
destinations for Hard Rock Caf.

Layout
Assembly line criterion is the basis for Ford Company.

Human Resource Management

Factory skilled workers are much needed for Ford Company while music enthusiast and
has pleasing personality are needed for Hard Rock Caf.
 Supply Chain Management
Auto plant need suppliers that have low cost.

Inventory
Ford Company tracks expensive inventory while Hard Rock Cafs inventory are less
expensive.

Scheduling
Ford Company gives importance in scheduling materials while Hard Rock Caf is on
scheduling people.

Maintenance
High fixed and variable cost on routing alternatives makes maintenance on Ford
Company important.