OM in a low-budget hotel

process layout

fixed layout

advantages

low set-up costs

flexibility

disadvantages

moving/mess-ups are costly

requires high skills

Low Budget Hotel
Group 7:
*Nanda Prudencia
Nikolas Marcuzi
Shukthi Nama Amaresh
Maud Strik


5 V's

Variation

Process Types

Variety

Volume

Variabilty

Visibility

High Volume

Low Variety

Medium Variation

Low Variability

Low Visibility

Types of operations

Customer Processing Operations (CPOs)

Information Processing Operations (IPOs)

Meaning: Bundle of operations that needs to be done with all the employees including different departments. Internal processes in order to obtain productiveness, quality and excellence (Montenegro, 2023).

Meaning: A process which can turn information into a meaningful form using e.g. computers and digitalized information.

Goal: get to know how people are thinking in terms of how to create the same kind and type of information as computers

Benefits

4 steps in IPOs

  1. Input Processing: Input device will be used to collect data which will be put in a system by humans.
  1. Data Processing: turn raw data into data that can be used later on.
  1. Output processing: Data will be send to a display screen/printer where data can be stored into a new format or turned into an input to another IPOs.
  1. Storage Processing: Data can be processed into new data or stored on e.g. DVD (Bhasin, 2021).

Order Qualifiers

Speed

Basic services

Cleanliness and Hygiene

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Good communication

Employee empowerment

organizational forms

functional structure

advantages

disadvantages

efficient production

clear/simple hierarchy

standardized tasks

less enthusiasm

minimalized flexibility

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Goal: Fulfilled guest experience

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Meaning

Hotels which have as target market people who are willed to spend a minimum price for a room. The hotel is providing a minimum amount of facilities; the basic facilities and has basic rooms (Roshan, 2017).

When compared to other type of hotels, low- budget hotels have more rooms.

''Basic services offered: room, basic breakfast, internet access, limited service or self-service food and beverages services." (Ibis,2017)

"Guests are a mix of leisure and budget conscious business travellers. A large proportion of transient guests on a short stay." (Sorin,n.d.)

Customization is not an option in low-budget hotels. They have their processes fixed. And they have limited options for the types of rooms offered.

Usually, hotels have a low visibility since the guests do not see each and every process that is taking place in the hotel.

Order Winners

Technology (eZee, 2023)

Low price

Additional services (Daoust, 2021)

location

Wifi

Self-check in and check-out

City center

Highways

Materials Processing Operations (MPO)

Meaning: Bundle of operations that turn raw industrial materials into finished end products. MPOs are most of the time part of the back-of-house (The Editors of Encyclopaedia Britannica,1998)

Examples

Drinks and food in the restaurant

Examples

Bills

Taken orders

Safety and Security

Affordable Food (Kettle, 2019)

Longer stay (Kettle,2019)

Strategic operations era

The craft era

Innovation and continuous improvement

New technologies

The mass production era

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Crisis

Stand out

Customer needs change

Low cost competition

Advantage