HTM209 – Hospitality

Operations Management

Semester Two - 2014

HTM 209 – Hospitality

Operations Management

Tutor : Julian Galt

Room : B2-24

E mail : julianv.galt@sit.ac.nz

HTM209 Operations Delivery:

Managing Project Operations

Direct

Design Develop

Deliver

Operations management

Planning and

control

The operation supplies... delivered

products and services

The market requires… products and services delivered to requested time, quantity

and quality

The nature of

planning and

control

Organised… or not???

• In your groups consider, discuss and prepare

to report on the following…; • To what extent do you plan your work or other

activities? Identify examples of things you plan for?

• Are your plans written or unwritten?

• What steps do you take to manage your plan – to

ensure it works out as intended?

• If you want to manage your own plans, what

approaches could you use to keep things on track?

• Which of these strategies do you think would be

most effective for giving a good result?

Planning and Control • Planning

• A record of what is intended to happen at some

future time; an intention, but not guaranteed

• Control • Addresses the changes in circumstances that

arise during plan implementation

• Control Activities • Adjustments made to get a plan back on track,

in order to achieve the plan objectives

PROJECT MANAGEMENT

Planning and Control

Workplace Projects…#1

• In your groups consider, discuss and prepare

to report on the following…;

• Staff frequently get asked to contribute to a

project team…

• What reasons may your employer have for

implementing a project – rather than using

usual operational processes?

• In the hospitality industry what are some

examples of project operations that you may

encounter?

Direct

Design Develop

Deliver

Operations management

Project

Management

Project

management

The operation supplies.. the delivery of the project on-time, on-specification and to

budget

The market requires… specified time, quality and

cost of a project

Figure 16.1 This chapter covers project planning and control

Workplace Projects…#2

• In your groups consider, discuss and prepare

to report on the following…; • If your employer asked you to plan a one-off expo-

event to take place in your hotel conference facility,

in order to promote tourism in the region…

• What information and resources would you need

to have in order to plan your event?

• What would you do to ensure the project

proceeded according to plan?

• In what ways would this operation be different to

“business as usual” operations?

Operations vs. Projects Operations:

Repetitive

Ongoing

Evolutionary change

Stable resources

Balanced objectives

Processes based on; Roles

Experience

Efficiency

Stability

Projects:

Unique

Finite

Revolutionary change

Transient resources

Unbalanced objectives

Processes based on; Goals

Risk and uncertainty

Effectiveness

Flexibility

Project

Management;

What is the purpose?

What is the scope of the work to be

completed?

How is the project to be organised –

what are the requirements?

How much time, and how managed?

What is the cost, and how managed?

What represents quality? What is

expected? Assessment criteria?

Definition and Planning...#1

With reference to the text, pages 497-499...

• Explain the “Typology of Projects” diagram in

Figure 16.2, on page 498

• Despite the differences, projects have five key

elements in common… • With reference to page 497, identify and

briefly explain these, and illustrate with a

suitable example from the service /

hospitality sector

Understanding

the project

environment

Stage

1

Project definition

Stage

2

Project planning

Stage

3

Technical

execution

Stage

4 Project control

Stage

5

Stages in project management

Changes

Corrective

action

Figure 16.3 The project management model

The Project

Geo-social environment

Geography

National culture

Econo-political environment

Economy

Government

Business environment

Customers

Competitors

Suppliers/sub-contractors

Internal environment

Company strategy

Resources

Other projects

The project environment consists of all the factors that

can affect the project

The project environment

Department

1

Department

2

Department

3

Matrix management structures often result in staff reporting to more

than one project manager as well as their own department...

Project A

Project B

Matrix management in projects

Full-time equivalent resource

Reporting relationship

How projects can be defined

Project

objectives

Phase 1 Phase 3

Phase 4

Project strategy

Milestones

Pro

ject

sco

pe

The project

Phase 2

Definition and Planning...#2

With reference to the text, pages 504-506...

• Explain the dynamic relationship between

the three key project objectives of; • Time

• Cost

• Quality

• Then define... • Project scope

• Project strategy, including milestones and

stagegates

Quality

Time Cost

New aircraft

project

Music festival

Fixed-grant

research project

The three project objectives of quality,

cost and time

Figure 16.5 The project objectives triangle

Projects and Planning The Millau Bridge…;

With reference to the text, page 496...

• What factors made the Millau bridge a

particularly complex project?

• What factors contributed to uncertainty in the

project and how might these factors have

been dealt with?

• Why was the ‘rigour et convivialité’ regarded

as being so important to the success of the

project?

Projects and Planning: The Millau Bridge…;

What factors made the Millau bridge a particularly

complex project?

• First of all, the sheer scale of the project made it

complex.

• Second, it was a public project with significant public

funding and therefore both popular and political

attention focussed on it.

• Third, with any outdoor project of this kind, the weather

and its unpredictability can have a significant effect on

how the project is managed in detail. More than

anything though, the project used pioneering methods

of construction. Usually, ‘pioneering’ means uncertain

and risky.

Projects and Planning: The Millau Bridge…;

What factors contributed to uncertainty in the project

and how might these factors have been dealt with?

• Some factors of uncertainty are described above. • The political uncertainty would have need very careful

stakeholder management as would relationships with local

communities.

• Weather- related uncertainty is more difficult to cope with

but weather forecasts will have played a large part in

project planning.

• The main method of dealing with the uncertainty around

the pioneering construction methods would have involved

both pilot testing and the establishing of detailed

contingency plans.

Projects and Planning: The Millau Bridge…;

Why was the ‘rigour et convivialité’** regarded as

being so important to the success of the project?

• Such an approach would have been particularly useful

because of the disparate nature of the work force and

the fact that it was in place for a long period.

• It also enabled the very large site to be divided into

more manageable units with staff being able to feel

part of a relatively small team.

• Certainly, any construction project of this type where

industrial relations are poor is very unlikely to finish on

time or on budget.

• ** Rigorous quality and friendly cooperation

Projects and Planning... Stakeholders...;

With reference to the text, pages 501 - 503...; discuss

note and prepare to report;

• What is a project “stakeholder”; and why is communication

with stakeholders important?

• Who are the main stakeholders in your BHM “project” at

SIT? Where would you locate the most important 2-3 on the

power-interest grid on p503?

• If a motel business on Tay Street purchased a neighbouring

property for the purpose of removing the house and building

a new accommodation block, • Who would the main stakeholders be?

• Which of these would have the greatest power and interest?

• How should they be managed?

The stakeholder power–interest grid

Stakeholder

power

Stakeholder interest

Keep satisfied Manage closely

Monitor Keep informed

Low High

Low

High

Figure 16.4 The stakeholder power–interest grid

Definition and Planning...: The National Trust Workhouse Project

With reference to the text, pages 503-504...

• Who do you think were the main stakeholders for the

Workhouse project? • How might not involving them damage the project?

• How would involving them benefit the project?

• To what extent were the key project objectives

accomplished?

How projects are planned

Identify activities

Estimate time and resources

Identify relationships and dependencies

Identify schedule constraints

Fix the schedule

So, how do we manage this...?

Plan

• Project Charter

• Scope Statement

• Work Breakdown

Do

• Monitor against baseline plan

• Monitor cost vs. budget; time against schedule

• Monitor against product specification

Control

• Manage performance and progress

• Document and agree all changes to baseline

Project Planning & Monitoring

Tools

Statement of Work

Work Breakdown Structure

PERT/CPM Diagram

Resource Leveling Software

Gantt Charts

Human Resource Matrix

Cost/Schedule Integration Graphs

Identify the

activities in the

project

Adjust as necessary

Stages in the project planning process

Estimate the times

and resources

for activities

Identify the relationships

and dependencies between the

activities

Identify time and resource schedule

constraints

Fix the schedule for time

and resources

Figure 16.6 Stages in the planning process

Definition and Planning...#3

With reference to the text, pages 505-510...

• Note the key purposes of project planning

• Figure 16.6 identifies “what” should happen at each

project planning stage. For each of these stages

record “how” this may be achieved...;

• Identify project activities

• Estimate times and resource

• Identify dependencies

• Identify schedule constraints

• Fix the schedule

Definition and Planning...#3-A

With reference to the text, pages 505-510...

• Note the key purposes of project planning

• Decides project cost and duration

• Identifies resource needs

• Allocates work and provides base for monitoring

progress

• Enables assessment of impact of project changes

Definition and Planning...#3-B With reference to the text, pages 505-510...

Figure 16.6 identifies “what” should happen at each project planning stage.

For each of these stages record “how” this may be achieved...;

• Identify project activities – break project into parts, and subdivide

these into work packages; each with time cost quality requirements.

This is the “Work breakdown structure” (WBS)

• Estimate times and resource – Identify time and resource

requirements of each work package. May range from optimistic to

expected, to pessimistic times

• Identify dependencies – Some activities need to be in particular

order, and tasks cannot start till others are completed; “dependent”

relationship. Others are “independent”

• Identify schedule constraints – Project requirements are compared

with available resources. Projects may be “resource constrained”, not

exceeding available resources, or “time constrained”, time is priority...

• Fix the schedule – In accordance with project objectives

Produce

boiled

egg

Obtain

egg

cup

Produce

toast Obtain

butter

Obtain

plates

and

cutlery

Obtain

tray

Obtain

egg

Obtain

water

Obtain

bread

Work breakdown structure

Arrange

tray

Produce

buttered

toast

Produce

boiled

egg in

egg cup

Produce

glass of

orange

drink

Serve breakfast in

bed

Obtain

juice

Obtain

glass

Figure 16.7 A work breakdown structure for a simple domestic project

‘Making breakfast’– do activities at earliest time

0 1 2 3 4 6 7 8 9 5

Orange

Tray

Water Boil water Boil egg Bed room

Sta

ff r

eq

uir

ed

0 1 2 3 4 6 7 8 9 5 0

1

2

3

4

Bread Toast Butter

Time (mins)

Time (mins)

Activities requiring

operator time

Figure 16.9 Initial project plan for a simple project, with resources

0 1 2 3 4 6 7 8 9 5

Water Bed room

Sta

ff r

eq

uir

ed

0 1 2 3 4 6 7 8 9 5 0

1

2

3

4

Orange

Tray

Boil water

Bread Toast

Boil egg

Butter

Time (mins)

Time (mins)

Activities requiring

operator time

‘Making breakfast’ – minimizing staff requirements

Figure 16.10 Revised plan with levelled resources

0 1 2 3 4 6 7 8 9 5

Water Bed room

Sta

ff r

eq

uir

ed

0 1 2 3 4 6 7 8 9 5 0

1

2

3

4

Orange

Tray

Boil water

Bread Toast

Boil egg

Butter

Time (mins)

Time (mins)

Activities requiring

operator time

‘Making breakfast’ – minimizing staff requirements (Cont)

Figure 16.11 Revised plan with levelled resources and warm toast

Form and

train user

group

Install

systems

Specify

sales

training

Design

initial

screen

interface

Test

interface

in pilot

area

Modify

interface

Training Installation Testing

Work breakdown structure for a project to design an information

interface for a new sales knowledge management system in an

insurance company.

Work breakdown structure (Continued)

Design information

interface for new sales

knowledge management

system

a Form and train user group

b Install systems

c Specify sales training

d Design initial screen interface

e Test interface in pilot area

f Modify interface

0 10 20 30 40 50 60

Activity

Time (days)

A Gantt chart for the project to design an information

interface for a new sales knowledge management system in

an insurance company

Gantt charts

Project lifecycle example; house

extension

Management

and Control

Work Breakdown

Structure

(WBS)

Hierarchical breakdown

Ref: Larsen, E. & Gray C. (2011). Project

management.. New York. USA. McGraw-Hill

Companies Inc.

WBS, and costing – house

project...;

Ref: Burke, R. (2007). Introduction to

project management. UK. Burke

Publishing

Once you have the work “broken

down” (WBS)...

...you can then decide; Who will do the work for each...

How long to spend on each one

What the budget for each part will be

You are then able to control these within your Baseline Plan...

Project Deliverable

Sub-deliverable

Work-packages

Create a WBS using the following

template

Discuss and develop this in your groups...;

Apply this to a simple plan for a new service or product

Identify the service / product at Level 1, main deliverables at

Level 2, and the key work packages at Level 3...

1

2

3

WBS template;

1

2

3

Why work in this way..?

In your groups, consider and come up with four

reasons and advantages to a project manager, of

breaking the project down in this way...;

Reason Advantage

1

2

3

4