Production Management Essay

4112 words - 17 pages


“Production Management” practices of an organization that you know of, or have worked in.

(Wyndham Hotel Group)

Individual Assignment,
Yuliana Lakhtina.

January, 2013

Tables of Contents


Abstract 3
Introduction 3
The body 4
Operation Management 4
Staffing and Organizational Chart (Cycle time) 6
Input- Transformation - Output Process 8
Yield/Revenue Management 9
Pricing 11
Room-Inventory Management 11
Wyndham Hotel Group 12
Lean Philosophy in Hospitality 13
Conclusion 15
Bibliography 16

This document’s goal is to identify and describe the way operation and ...view middle of the document...

The body
Operation Management
The hotel industry is a billion dollar industry that mostly depends on the availability of free time and disposable income. The hospitality industry covers a wide range of organizations offering food service and accommodation, meeting and events, gaming, entertainment, recreation and tourism services (STR Global, 2012).
To be succesfull in the large hospitality industry and to lead a big company like Wyndham Hotel Group it is very important to think about its management operations. In order to stay competitive on the market, managers need to use specific strategies which create and control the process of transformation inputs into services and goods. It is series of small operations which work as a function.The use of the right operations helps not to only improve the quality and service of the hotel company, but drive down the costs. They have to follow the Input-Transformation-Output process to maximize their revenue. Moreover, in case with the hotel industry, we are dealing not with only the core product, but also with complementary services which play an essential role for the industry. Thus, in the hotel business 80% job depends on the services, the rest 20% are products whaich refer to the manufacturing sphere of the business. This has an important impact for the quality management in the tourism and hospitality industries, in that the level of the manufacturing sector is less influencible. However, to provide total customer satisfaction, managers should pay attention to the collaboration of both.

Tangible & Intangible resources
Many ‘manufacturers’ provide service and many service firms make products. Managers of service organizations need to work hard to eliminate unexpected negative surprises and make sure the guests get what they expect. Getting more into details, we have to concentrate on intangibility and tangibility of the products and services.

Figure1.  Tangible and Intangible Characteristics

Only focusing on the tangible aspects will not bring a success to the company, that is why in Wyndham Grand Plaza Royal, management was also oriented on service delivery to the hotel guests. More and more hotels nowadays have a special department concentrated on the Guests’ Relations in order to satisfy customers’ needs.
To be successful, companies in hospitality industries offer a combination between both, tangible and intangible elements. For example, if take airlines, the transportation would be a form of the intangible service while other aspects like, food, seats, pillows or blanquettes would be the tangible elements. Similarly, hotels offer atmosphere in the lobby which clearly you cannot touch or store and at the same time, there are elements like design, comfortable furniture, architecture which are part of the services.
The service cannot be shown, touched or stored, leisure industries will only able to deliver the service. The specialty of this industry is that there are...

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