Case Studyof Hotel

VEA
Bringing Learning to Life
Program Support Notes

Senior Secondary
Operations 28 mins
Management
A Case Study of a Hotel
Teacher Notes by Debra McNaughton, B.A.,
Dip.Ed.
Produced by VEA Pty Ltd

Commissioning Editor Lisa Tancredi B.A. Dip.Ed.
Executive Producer Simon Garner B.Ed.
© Video Education Australasia Pty Ltd 2009
Reproducing these teacher notes

You may download and print one copy of these teacher notes
from our website for your reference. Further copying or printing
must be reported to CAL as per the Copyright Act 1968.
Suitable for:
Business Management
To order or inquire please contact VEA:

Australia New Zealand E-mail
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Bendigo, Victoria 3550 Shortland St., Auckland
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Phone: (03) 5448 2400 Facsimile: 0800 488 668 www.vea.com.au
Facsimile: (03) 5448 2408
Operations Management – A Case Study of a Hotel
For Teachers:
Introduction
The provision of accommodation is a highly competitive market. As tourists look for the best possible
value for money, hotel operators must ensure that they are providing a quality venue with cost-
effective services. This program is based on the Mercure Hotel in Hobart and covers the key elements
of its operations (the inputs and processes that create the output). The program examines the ways in
which the design of its facility, the control of materials, the use of technology and the quality standards
all contribute to ensuring the hotel remains productive and competitive.
Program Timeline
00:00:00 Introduction
00:01:15 The basics of operations management
00:05:13 Introducing four strategies
00:10:17 Applying the four strategies
00:14:56 Applying the four strategies (part two)
00:20:10 Evaluating operations management
00:26:20 Conclusion
00:26:47 Credits
00:27:37 End program
Website References
http://www.buseco.monash.edu.au/mkt/dictionary/
http://www.ami.org.au/
http://www.lean.org.au/
Other Relevant Programs available from VEA

• Small Business Management Series -The Business Plan
• The Four P's of Marketing Strategies
• Introducing Operations Management - Case Study Rip Curl
Please visit our website for more relevant programs www.vea.com.au
VEA – Bringing learning to life
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You may download and print one copy of these teacher notes from our website for your reference. Further copying or printing must be
reported to CAL as per the Copyright Act 1968.
Student Worksheet:
Before Viewing the Program
1. Define the following terms:
a) Goods
b) Inputs
c) Operations Management
d) Outputs
e) Processes
f) Productivity
g) Services
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While Viewing the Program

1. List two inputs.
2. Name two processes.
3. Name one output of a hotel.
4. Why is the layout of facilities important in a hotel?
5. What is a Master Production Schedule used for?
6. How do hotels ensure they keep their star ratings?
7. How can technology assist with quality checks?
8. Explain the importance of storage, as part of the facilities design and layout, for a hotel.
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9. Why is it important to establish good relationships with suppliers as part of materials management?
10. What is a par level?
11. List two things the Executive Housekeeper Suzie Kelly checks to ensure that quality standards are
maintained.
12. List two new technologies that hotels are expected to provide.
13. List three Key Performance Indicators that can be used to evaluate the success of a hotel such as
the Hobart Mercure.
-5-
After Viewing the Program

Operations management case study
Cathy Sinta and Tony Martino own and run a medium sized business called Delizia that makes fresh
pasta. They supply supermarkets, and over the last ten years have established a loyal customer base.
The pasta is made using fresh ingredients that are delivered straight to their factory in Benalla in
Victoria. In the past some of the pasta lines were hand-made, but now machines make the pasta and
even pack it into the plastic containers and boxes ready for delivery.
Things started to change for Cathy and Tony when complaints started coming in stating that the pasta
was dry and stale. Customers returned stock, demanding their money back. One of the large
Supermarket chains has said that unless the next batch is up to scratch, it will find another supplier
for its fresh pasta.
1. List five inputs that are required to make the output of Delizia; i.e. the pasta.
2. List three processes that are required to make the output of Delizia; i.e. the pasta.
3. The operations manager at Delizia must work fast to find the source of this problem. Suggest ways
in which improvements in the following areas could assist them to improve the pasta:
a) Facility layout and design
b) Materials management
-6-
c) The management of quality
d) Technology
4. Suggest two Key Performance Indicators (KPIs) that Cathy and Tony could use to determine if the
problem of the dry pasta has been solved.
-7-
Suggested Student Responses

Before Viewing the Program
1. Define the following terms:
a) Goods
Products that are tangible can be stored for later use and the consumption can occur
separately from the purchase.
b) Inputs
The resources that are necessary to make the product.
c) Operations Management
The task of managing the process that transforms resources into finished goods and/or
services.
d) Outputs
The finished products (either goods or services) that result when inputs have been
processed.
e) Processes
The actions performed on the inputs to transform them into finished products.
f) Productivity
The amount of output per worker or set of resources per period of time.
g) Services
Products that are intangible, they cannot be stored and the consumption usually occurs
with the purchase, meaning that the consumer is involved directly.
-8-
While Viewing the Program

1. List two inputs.
Inputs may include: furniture, linen, electricity, water, employees, fruit, vegies and meats for
the kitchens, computers.
2. Name two processes

Processes include: cleaning rooms, making reservations, checking guests in and out of the
hotel, room service delivery, organising functions.
3. Name one output of a hotel.

Outputs include the provision of the guest rooms, the food served in the restaurants, the
provision of facilities for functions and conferences.
4. Why is the layout of facilities important in a hotel?

Facilities need to enhance efficiency in a hotel. For this reason the public areas, such as the
lobby, need to be easily accessed by guests and reception must be near the entrance. The
loading bays must be close to where the most frequently ordered stock needs to be placed. In
hotels this is near the kitchens and cool fridge areas.
5. What is a Master Production Schedule used for?

The MPS forecasts sales and business activity, allowing a Materials Requirement Plan to be
generated which will outline the resources that are required for the next time period.
6. How do hotels ensure they keep their star ratings?

Hotels conduct regular internal quality checks and acquire feedback from customers to
ensure that they keep their star ratings.
7. How can technology assist with quality checks?

Online questionnaires allow guests to provide feedback on the quality of the hotel.
8. Explain the importance of storage, as part of the facilities design and layout, for a hotel.
The kitchens in hotels order a great deal of perishable stock, therefore the storage system is
essential to ensure that stock is kept in fridges, freezers or store cupboards that will prolong
its usable condition. Wasted stock equals lost money in a business.
9. Why is it important to establish good relationships with suppliers as part of materials management?
If there is a good relationship with suppliers, then the quality of the goods or services can be
guaranteed, they will meet unusual demands (such as the rock lobster example in the
program), and lead times can be minimal.
10. What is a par level?

A par level refers to the minimum quantity of each item that hotel needs to have in stock at
all times.
11. List two things the Executive Housekeeper Suzie Kelly checks to ensure that quality standards are
maintained.
Any two of the following would be correct:
Suzie Kelly checks that the laundry is washing and ironing guests’ laundry properly, towels
and sheets are properly laundered, there is no mould or body hair in the bathroom, the
mirrors and toilets are clean, the beds are made properly, the guest rooms are set up properly
and the glasses and mugs are all clean.
-9-
12. List two new technologies that hotels are expected to provide.
Any two of the following would be correct:
Hotels are expected to provide widescreen TVs, electronic display boards, wireless internet
access, electronic call buttons, electronic lock systems and a pay movie system in rooms.
13. List three Key Performance Indicators that can be used to evaluate the success of a hotel such as
the Hobart Mercure.
Any 3 of the following would be correct, or the students may think of any number of others
that would also be correct.
Hotels could consider their operations to be successful if:
• The room occupancy rate is high
• Profit has increased
• Market share has increased
• The level of waste has decreased (especially in the area of perishable items in the
kitchens)
• Cash flow and turnover have increased
- 10 -
After Viewing the Program

Operations management case study
Cathy Sinta and Tony Martino own and run a medium sized business called Delizia that makes fresh
pasta. They supply supermarkets, and over the last ten years have established a loyal customer base.
The pasta is made using fresh ingredients that are delivered straight to their factory in Benalla in
Victoria. In the past some of the pasta lines were hand-made, but now machines make the pasta and
even pack it into the plastic containers and boxes ready for delivery.
Things started to change for Cathy and Tony when complaints started coming in stating that the pasta
was dry and stale. Customers returned stock, demanding their money back. One of the large
Supermarket chains has said that unless the next batch is up to scratch, it will find another supplier
for its fresh pasta.
1. List five inputs that are required to make the output of Delizia; i.e. the pasta.
Flour, eggs, water, the factory, the pasta-making machines, computers, employees,
packaging materials, delivery trucks, electricity, cleaning materials.
2. List three processes that are required to make the output of Delizia; i.e. the pasta.
Mixing the pasta dough, cutting the pasta into the required shapes, cleaning the pasta-
making machines, taking orders for pasta, packaging the pasta, developing new recipes.
3. The operations manager at Delizia must work fast to find the source of this problem. Suggest
ways in which improvements in the following areas could assist them to improve the pasta:
a) Facility layout and design

Perhaps the storage of the raw ingredients is causing them to deteriorate early, causing
the dry and stale taste. Ensuring that refrigeration is sealed and running at the correct
temperature, and that there is proper storage of the dry ingredients could assist with
this.
b) Materials management
The problem could be that the resources (inputs) are not as good lately. If Delizia has
changed suppliers, it would be worth testing the ingredients to see if they have the same
properties as those when there were no complaints. Perhaps the stock is not being
rotated properly, resulting in old stock sometimes being used. The systems of stock
rotation could be examined to see if improvements need to be made.
c) The management of quality

If quality checks have not picked up this problem, then perhaps a more formal quality
system could be introduced, such as a system based on Total Quality Management. By
setting up teams of workers to look at the problem, concentrating on ensuring that every
single stage of production is the best possible quality that it can be, and always striving
to improve the quality, problems like this might become rarer.
d) Technology
Machines are use to both make the pasta and to pack it. The problem could be occurring
at either of these stages. Thorough examination of the machinery, including cleaning and
maintenance could prevent problems such as this from happening.
4. Suggest two Key Performance Indicators (KPIs) that Cathy and Tony could use to determine if
the problem of the dry pasta has been solved.
Here are a few possible answers to this question:
• If the number of repeat orders increases
• If the number of returned products decreases
• If there is a general increase in sales
• If profit increases
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Case Studyof Hotel

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Formatos disponíveis

VEA

Bringing Learning to Life

Program Support Notes

Produced by VEA Pty Ltd

© Video Education Australasia Pty Ltd 2009

Reproducing these teacher notes

To order or inquire please contact VEA:

Other Relevant Programs available from VEA

Please visit our website for more relevant programs www.vea.com.au

VEA – Bringing learning to life

While Viewing the Program

2. Name two processes.

3. Name one output of a hotel.

4. Why is the layout of facilities important in a hotel?

5. What is a Master Production Schedule used for?

6. How do hotels ensure they keep their star ratings?

7. How can technology assist with quality checks?

10. What is a par level?

After Viewing the Program

a) Facility layout and design

c) The management of quality

Suggested Student Responses

While Viewing the Program

2. Name two processes

3. Name one output of a hotel.

4. Why is the layout of facilities important in a hotel?

5. What is a Master Production Schedule used for?

6. How do hotels ensure they keep their star ratings?

7. How can technology assist with quality checks?

10. What is a par level?

After Viewing the Program

a) Facility layout and design

c) The management of quality

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