Operations objectives at the Penang Mutiara

8 August 2016

The case circle around Penang Mutiara Hotel located in Malaysia’s Indian Ocean coast. Also, the case focuses on how important to run an effective operation inside the hotel, because when problem occurs regards managing operation, the customer sees them immediately and that’s the biggest motivation for the hotel management to take operations performance seriously. To view the full case study, kindly refer to Reference [1]. Questions 1. Describe how you think the hotel’s management will: a)Managing the hotel in ? appropriate way to competes for business.

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Business environment is changing it demand more on what is expected from operations management. Organization has to adapted with more challenging environment thru operating their function to help them react. Beside operations function gives the capability to compete with other by providing the ability to keep the customers happy and by developing the abilities that will keep the organization ahead from its competitors in the future. Applying the five basic ‘performance objectives’ which illustrate in the (figure 1.

Will ensure the hotel to compete for business. The hotel management already is doing their best in operating the hotel thought making sure the customer is satisfy by providing error-free goods and services that will ensure the hotel quality. As well as, doing things fast and minimizing the time between a customer asking and receiving for product or service, giving a hotel a speed advantage. Additionally being on time gives the customer senses of dependability since the hotel was able to keep the delivery it.

Furthermore being able to change far enough and fast enough to meet customer satisfaction or being adaptable with unexpected circumstances gives a hotel the characteristic of being flexibility. Being productive (Cost) means produce goods and services at a cost that allows them to be priced suitably for the market while still allowing for a profit to the organization. b)Implement any change in strategy Most organization has some kind of strategy however it is the operation that sets thus strategies into practice. That’s why the operations basic role is to implement strategy.

Furthermore, without effective implementation even the most magnificent strategy will be unproductive. I think that changing strategy first require the hotel’s staff to be flexible to be able to adopt the changes of any of the operation’s activities, or to cope with unexpected events. Also since the hotel is taking the five objective performance objectives into consideration, they only need to improve and monitor the changes of the external factor, which may lead to reducing the performance that the hotel currently has. c)Develop its operation so that it drives the long-term ?bstrategy of the hotel. Developing an operations strategy for the hotel helps the hotel management to generate set of general principles that can guide decision-making towards the organization’s longer-term goals. Since operations management focuses and involves around day-to-day decisions. I believe that operation strategy is measure by operation performance, which helps to keep the operation effective. So the hotel need to developed there operation performance to met their specification together with customers’ expectation.?

Internal And External Benefits Of The 5 Operation Performance Objectives Operations performance is extremely important in any organization, besides operations can help through cut the costs, achieve customer satisfaction, reduce the risk of operational failure, reduce the amount of investment and provide the basis for future innovation. a)Quality The Penang Mutiara hotel consider on many luxurious hotels in the South-East Asia region with the, a 440-room top-of-the-market hotel in Malaysia’s Indian Ocean Coast.

Also, it is mention on the case that the quality of service has to be flawless, which means dealing with the basics and simple day-to-day tasks. Since customers expect first-class service. That benefits the hotel internally and externally. Externally: quality is an important feature of customer satisfaction or dissatisfaction. Nevertheless of a product or service’s quality design, it must be produced in a way that it follow specification always brings benefits to an operation, which will improves the product or service in the market, or at least prevents customer complaints [1].

Internally: quality operations brings other benefits to the operation like reduce costs, increase dependability and avoids errors causing internal unreliability and wasted time and effort. b)Speed Externally: doing things fast and minimizing the time between a customer asking and receiving for product or service. Also speed is an important trait of customer service. It often increases the value of the product or service to customers. Internally: reducing inventories and reducing risks. c)Dependability

Externally: dependability often increases the value of the product or service to customers. Or at least prevents customer complaints. Internally: dependability within operations increases operational trustworthiness, therefore saving the time and money, which would be taken to solve consistent problems and also offering steadiness to the operation. Also prevents late delivery as well as lateness causing by disturbance, furthermore prevents wasted time and effort, therefore saving cost. d)Flexibility Flexibility lit the operation face unexpected chances.

Any organization needs to adopt flexibility on its operation to produce goods or services and adding extra value by changing the range, volume or delivery time. Also flexibility effects on different form such as product/service flexibility mix flexibility, volume flexibility and delivery flexibility Externally: flexibility can provide the customers with new products or services, and offer wider range or mix of both products and services as Mix Flexibility. Also, flexibility produces different quantities of products and services for customers as Volume Flexibility.

In addition, flexibility on delivery time provides extra value for customers to have their products or services at different times. Internally: flexibility deals with the side effect of changeovers and dependability by making response time faster and reducing waste. It also gives the operation ability to produce new or customize products and services. As Mix Flexibility, the operation has wider range or mix of products and services. Also, it produces deferent quantities or volumes of products and services by having the ability to change the level of the output or activity.

In addition, flexible timing gives the operation ability to change the delivery time of its products and services. e)Cost As it explained in the case the hotel major cost concerned is on go on food and beverages since the total hotel’s operating expenses around 60 per cent. They try to keep the costs down is by making sure that food is not wasted, never compromising the quality. Keeping the expanses down has and external and internal benefits. Externally: low costs allow the hotel to reduce their price in order to gain higher volumes or maybe, increasing their profitability on existing volume levels.

Internally: cost performance is affected by good performance in the other performance objectives. •Quality operations help reduce the cost thru not wasting time or effort having to re-do things since the operation is error-free. •Speed operations help reduce the cost thru reducing the level of in process inventory between and within processes, as well as reducing risks. •Dependable operations help reduce the cost thru customer trusting that the product or service to deliver exactly as planned. This reduces the wasteful disruption and allows the other operations to operate efficiently.

Flexibility operations help reduce the cost thru adapting to change quickly and without troublesome the rest of the operation. Conclusion In conclusion, operation management is very important because either ‘make or break’ any business. Also it develops the capabilities that will keep the business ahead of its competitors in the future. Also the five-operation performance objective is extremely vital in any organization, because it can help cut through the costs, achieve customer satisfaction.

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