The Five Factors of Operation Management Essay

1.0Executive Summary There are four operation objectives in Penang Mutiara which is quantity, speed, dependability and flexibility. Quantity is the number of goods or services. This article, I illustrate the way the hotel management, strategy and long-term strategy to promote the hotel.

2.0 Introduction Mutiara Beach Resort Penang heralds a new standard for Asian resort hotels. Located on a prime beachfront at Teluk Bahang, otherwise known as the ‘glowing bay’, it nestles in 7.3 hectares (18 acres) of landscaped tropical greenery. All 438 of its spacious rooms enjoy sea and garden views. Here in this paradise of comfort and luxury, it has been claimed that nothing is unusual. The name Mutiara means ‘pearl’ and is also a term of endearment in the Malay language. A perfect description for an extraordinary resort with a lively Malaysian personality. Manned by a team of innovative and experienced staff, Penang Mutiara’s service reflects Meritus Hotel & Resorts’ efficiency and tradition of friendly hospitality.[1]

3.0Competitve Priorities of the Organization and Business Level Strategy This part of the strategy used to manage stress Wernie Pearl Hotel in Penang. How to implement the strategy, and making the hotel’s long-term strategy.

3.1 Make sure that the way he manages the hotel is appropriate to the way it competes for business Penang Mutiara, being one of the most prestigious hotels in Penang, has managed to secure a foothold in this lucrative and highly competitive environment. Wernie has the vision and very clear focused beliefs about the importance of running an effective operation where customers have every right to demand for first class service which they are obliged to provide for.

For get a biggest development and get more success, Penang Mutiara has to: Expand its business in other areas to acquire more market shares against other high-class and strong competitors in the whole Asia region, or even in the world. Offer the differentiation, high standard quality and characteristic hotel services, and comfortable environment for customers. Pitch itself as an “up-market” end hotel business that targets customers are those who are high income and high consuming individuals, and the high class business and political unions or organizations.

3.2 Implement any change in strategy Through concessions and travel companies, marine theme park and Wildlife Park and other business alliances, film companies, golf or car clubs, hotels, is tourism, entertainment, commercial exploitation, and a set consisting relaxation. Complete basic services such as transport line services; wireless Internet access. A variety of services, such as the provision to meet different customers different needs of holiday travel package; season meeting market different packages; a variety of food types. The registration form and who can provide more free services or the price of the latest promotions and receive a loyal member of the consumer. Expand existing business to developing e-business; alliance other hotels in other areas.

3.3 Develop his operation so that it drives the long-term strategy of the hotel Building and developing hotel website, including introduction of hotel services, traffic map, resource and promotion information, booking on line, requirement and feedback of customer, online payment; Develop Statistical Process control (SPC) for measuring the service quality, rates of customers’ satisfaction and complaint, cost controlling, deciding for new services which match with customers changing demands; Develop a top-down strategy to reflect what the hotel’s vision and mission, changing strategies, requirement.

Building an automatic system to improve reliable and speed that ensuring JIT for collecting correct information of customer requirement, conveniently e-pay, delivering and exchanging information for corresponding with each departments, ensuring security; Offer continual training for staff to improve the standard quality of services, English and foreign languages speaking, handling these new automatic system and internet using; Adding the advertisement through TV, internet, high-income reader journal or fashion magazines and newspaper; Keeping and developing a high standard quality and low cost supply chain which including ensuring purchasing at the right quality, fast delivery, retaining flexibility, right prices; collecting and utilizing resources form internet or global; building physical distribution management and internet; keeping a high quality materials; building a good relation ship with suppliers.

4.0 How five performance objectives might have internal benefits? 4.1 Quality Quality is placed first in our list of performance objectives because many authorities believe it to be the most important. There are two important points to remember when reading the section on quality as a performance objective. The external affect of good quality within in operations is that the customers who ‘consume’ the operations products and services will have less (or nothing) to complain about. And if they have nothing to complain about they will (presumably) be happy with their products and services and are more likely to consume them again. This brings in more revenue for the company (or clients satisfaction in a not-for-profit organization).

4.11 Quality increases dependability Good quality leads to stable and efficient processes that less mistake, easy for coordination for matching the standard of processes, dependable and advanced equipments and tools to use adds dependability for internal customers,.

4.12 Quality reduces cost It reduces cost for Mutiara due to it is fewer the chance to make mistakes. First it saves the time to sort out the problem, redoing or correcting mistakes, or to reducing confusion or irritation for each people; second, it also reduces the labor cost. Dispelling some serious troubles or problem always needs more staffs or more time to do it, thus, it results in the labor cost added, such as part-time salary, overtime compensation. The more minimizing mistake, the more minimize the excess labor costs to pay for doing excess works; third, less mistake and using top-class and durable materials also result in saving expenditures such as maintaining fee, cost of materials resulted by mistakes , transporting fees, and other excess expenditures.

4.2 Speed Speed is a shorthand way of saying ‘Speed of response’. It means the time between an external or internal customer requesting a product or service, and them getting it. Again, there are internal and external affects. Externally speed is important because it helps to respond quickly to customers. Again, this is usually viewed positively by customers who will be more likely to return with more business. Sometimes also it is possible to charge higher prices when service is fast. The postal service in most countries and most transportation and delivery services charge more for faster delivery.

4.3 Dependability Dependability means ‘being on time’. In other words, customers receive their products or services on time. Externally (no matter how it is defined) dependability is generally regarded by customers as a good thing. Certainly being late with delivery of goods and services can be a considerable irritation to customers. Especially with business customers, dependability is a particularly important criterion used to determine whether suppliers have their contracts renewed. So, again, the external affects of this performance objective are to increase the chances of customers returning with more business. Internally dependability has an affect on cost. See the figure below: [pic]

4.31 Dependability gives stability Dependability fixes the time and costs overcoming the disruption, enhancing the trust for planning works and collaborating with each operation.

4.31Dependability saves money Ineffectively arrangement will translate extra cost. Reliability arrangement reduced duplication of resources or inputs left some unused resources to maintain or increase storage costs, labor costs or opportunity costs.

4.4 Flexibility This is a more complex objective because we use the word ‘flexibility’ to mean so many different things. The important point to remember is that flexibility always means ‘being able to change the operation in some way’.

4.4.1 Flexibility saves resources According to the specific conditions of the objects or actions and resources re-arrangements can sometimes prevent the unnecessary duplication of planning, consumption and use of resources, such as time, capital, labor, the traditional way of doing things to do.

4.4.2 Flexibility increase speed of response Being able to give fast service for customers depends on the operation being flexible. Flexible operations speedily transfer extra skilled staff and equipment to the urgent conditions and emergencies will provide the fast service with other operations’ needs.

4.5 Cost Cost means ‘do things cheaply’. To Mutiara hotel, it means keeping an appropriate cost for keeping the operations’ effective running. All of other objectives affect cost.

Flexible operations leads to quickly make changes or decisions for changing conditions and overcomes disrupting the other operation. Flexible operation inside can also change tasks timely without wasting time and capacity. Speedy operations cuts down the in-process inventory level and also saving the cost of administrative overheads. High-quality operations prevents wasting time, re-do things, or flowed service which would be inconvenient for internal customers. Dependable operation protects the normal orders don’t be confusion by any unwelcome surprises on internal customers. It ensures delivery exact and reliable. This limits uneconomical disruption and improves the efficiency of micro operations.

5.0 Conclusion Penang Pearl article Wernie hotel management business management model is a typical example. we can find a company’s operating performance on quality, speed, reliability, flexibility, and cost five goals. And how to use the correct management and planning strategy to manage the company more perfect. The operation objective is the way how the hotel operates on certain intention. Usually these objectives are used to cover mistakes or to solve problems within the hotel premises. Especially when the objectives is to meet the customers needs. The action that is taken is the way to solve the problems of certain criteria will be trained to the staff of the hotel.

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