Operations management concerns with managing of resources that directly produce the organization’s service or product. These resources are brought together by a series of processes so that they are utilized to deliver the primary service or product of the organization. Thus, operation is concerned with managing resources through transformation processes to deliver service or products. (Rowbotham, Galloway and Azhashemi, 2007) With an effective operation management, cost could be reduced, at the same time, guest satisfaction will have positive impact which may lead to bring revenue to the organization. Therefore, maintaining quality service is important to have a success of an organization.
In this essay, Hong Kong Disneyland (HKDL) will be taken as a sample in service industry, to see how design, capacity and queuing management will improve the organization’s performance.
Hong Kong Disneyland Resort combines with amusement park and two hotels. It is owned by a joint venture company, Hong Kong International Theme Parks Limited, with shareholders, the Hong Kong Government and the Walt Disney Company. It is opened in September 2005 and is the fifth Disney Resort in the world. According to the Hong Kong Tourism Board, HKDL is one of the top 10 attractions in Hong Kong. The mission of HKDL is “Inspires happiness and delivers a world-class experience through creativity, great leadership and a passionate Cast”. To reach this mission and in order to avoid service failure and having great service quality, design, capacity and queuing management are vital for its success.
Capacity
Capacity has been referred to as “ demand management” (Crandall and Markland, 1996) or “managing capacity and demand” (Fitzsimmons and Fitzsimmons, 2004). That is, capacity management is the balancing supply and demand. It is set by the rate limiting resource. To increase capacity, Hospitality Manager can either increase the rate limiting resource or shorten the process
References: Choongbeom Choi and Atul Sheel (2012), “Assessing the Relationship Between Waiting Services and Customer Satisfaction in Family Restaurants”, Journal of Quality Assurance in Hospitality & Tourism, Vol.13, No. 1 [i.p. 24-36] Colin G Crandall, R. Markland (1996), “Today’s Challenge for Service Industries. [i.p. 106-120]” David H Davis M., Heineke J. (2005), “Operation Management: Integrating Manufacturing and Services”. 5th ed. Duncan Dickson, Robert C. Ford, Bruce Laval (2005), “Managing Real and Virtual Waits in Hospitality and Service Organizations”, Journal of Cornell Hotel and Restaurant Administration Quarterly. Vol. 46, Issue 1 [i.p. 52-68] Emma Zijlstra, Mark P Fitzsimmons J., Fitzsimmons M. (2004), “Service Management”. 2nd ed. Mark S. Rosenbaum, Carolyn Massiah (2011), “Journal of Service Management” Vol. 22, No. 4 [i.p.471-490] Sasser E., (1976), “Match Supply and Demand in Service Industries” Yasmin Cheng (2012), “Hospitality Operations Management”. http://www.studymode.com/essays/Hospitality-Operations-Management-1027976.html – accessed on 15/8/2013