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
- Input Processing: Input device will be used to collect data which will be put in a system by humans.
- Data Processing: turn raw data into data that can be used later on.
- 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.
- 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