OUR LADY OF PERPETUAL SUCCOR COLLEGE

MARIKINA CITY

Module 1
Introduction to Production / Operation
Management in Tourism and
Hospitality Industry
PRELIM - BME 1_1st Semester - A.Y. 2020 - 2021

Prepared by: Engr. John Paolo P. Severino, MBA

Course Description
Operation Management in Tourism and Hospitality Industry
‒ This course tackles the nature, scope, functions and importance of
production and operation management in Tourism and Hospitality
Industry.
‒ It includes discussion on productivity, competitiveness and strategy,
forecasting, production system design, process selection and
capacity planning, facilities lay-out design of work system, quality,
scheduling and just-in-time.
‒ Cases will also be used to illustrate and apply the basic production
and production operation concepts and tolls commonly used in
business firms
Learning Objectives
 Describe the Operation management in Tourism and
Hospitality Industry.
 Illustrate three basic function of business organizations.
 Describe the Scope of Operation Management.
 Describe the Operation Manager
 Describe the Hotel Operation Manager
 Define the System design and operation
 Importance of Operation Management
I. Introduction to Operation Management
1. What is Operation Management?
‒ Operation management is the management
of that part of an organization that is
responsible for producing goods and/or
service.

‒ Operation management the management of

systems or processes that create goods
and/or provide services.
I. Introduction to Operation Management
1. What is Operation Management?
‒ The business function responsible for planning,
coordinating, and controlling the resources needed to
produce products and services for a company.
‒ Operations management seeks to increase the quality,
efficiency, and responsiveness of the firm.
‒ An organization’s core function and management
function.
‒ There are examples of theses goods and services every
book you read, every social media conversation you
have, every e-mail you send and every medical
treatment you receive involves the operations function
of one or more organization. So does everything you
wear, eat, travel in, sit on and access the internet with.
I. Introduction to Operation Management
2. The three basic function of business organizations
‒ It doesn’t matter whether the business is a retail store, travel
agency, manufacturing firms, hotels and restaurant or some
other type of business; all business organization have these
three basic functions.

Finance, Operation, Marketing

I. Introduction to Operation Management
2. The three basic function of business organizations
President or CEO

Finance Operations Marketing

V. P. of Finance V. P. of Operations V. P. of Marketing
Manages: people,
technology, materials Manages:
Manages: Cash
and procedures. Customer demands
flows, assets and
capital investment.
To produce: goods Generates: Sales for
and services. goods and services.
I. Introduction to Operation Management
2. The three basic function of business
organizations

1. Finance. Finance is responsible for

securing financial resources at
favourable process and allocating
those resources throughout the
organization, as well as budgeting,
analysing investment proposal and
providing funds for operations
I. Introduction to Operation Management
2. The three basic function of
business organizations

2.Operation. Operation is responsible

for producing the goods or providing
the services offered by the operations.
I. Introduction to Operation Management
2. The three basic function of business
organizations

3. Marketing. Marketing is responsible for

assessing consumer’s wants and needs
and selling and promoting the
organization’s goods and services
I. Introduction to Operation Management
Value - added

Inputs
Inputs Transformation
Transformation Outputs
Outputs
Land
Land Conversion
Conversion Goods
Goods
Labour
Labour Process
Process Services
Services
Capital
Capital
Information
Information

Feedback
Feedback Feedback
Control
Control

The creation of goods and services involves transforming or converting inputs into outputs. Various inputs
such as capital, labour, and information are used to create goods and services using one or more
transformation process (e.g. storing, transporting, and cutting).
To ensure that the desired outputs are obtained, an organization takes measurements at various points in
the transformation process (feedback) and then compares them with previously established standards to
determine the whether corrective action is needed (control) depicts the conversion system.
II. The Scope of Operation Management
1. Forecasting such things as weather
and landing conditions, seat demand
for flights and the growth in air travel.

2. Capacity planning, essential for the

airline to maintain cash flow and make
a reasonable profit. (Too few or too
many planes, or even the right
number of planes but in the wrong
places, will hurt profits).
II. The Scope of Operation Management
3. Scheduling of planes for flights and
for routine maintenance; scheduling of
pilots and flight attendants; and
scheduling of ground crews, counter
staff, and baggage handlers.

4. Managing inventories of such items

as foods and beverages, first-aids
equipment, in flight magazines, pillows
and blankets and life preservers.
II. The Scope of Operation Management
5. Assuring quality essential in flying and maintenance operations, where the
emphasis is on safety, and important in dealing with customers at ticket counters,
check-in, electronic reservation and curb service, where emphasis is on efficiency and
courtesy.

6. Motivating and training employees in all phases of operation.

7. Locating facilities according to managers’ decisions on which cities to provide

service for, where to locate maintenance facilities, and where to locate major and
minor hubs.
III. Operation Manager
‒ A primary function of an operations
manager is to guide the system by
decision making.
‒ Operation manager decision affect the
design of the system, and others affect
the operation of the system.
‒ They also analyze and improve
organizational processes, and work to
improve quality, productivity and
efficiency.
‒ They are sometimes known as a chief
operating officer, or COO.
III. Operation Manager
Job requirements:
‒ Candidate must posses at least a Bachelor's/College Degree, Business
Studies / Administration/ Management, Marketing, Commerce or equivalent.
‒ Required skill(s): computer application, customer service, multi-tasking,
conflict resolution/problem solving.
‒ At least 2 year(s) of working experience in the related field is required for this
position.
‒ Preferably Assistant Manager / Managers specializing in Marketing /
Business Development or equivalent.
‒ With strong background and work experience in Sales, Marketing and
Finance.
‒ Excellent communication skills both verbal and written.
‒ With master's degree is an advantage.
III. Operation Manager
The chief role of an Operation Manager is that of planner
and decision maker. These include the following:
1. What: What resources will be needed, and in what
amounts?
2. When: When should the work be scheduled? or when
corrective action needed?
3. Where: Where will be the work done?
4. How: How will resources be allocated?
5. Who: Who will do the work?
III. Operation Manager
Hotel Operation Manager
Job Description
‒ Hotel operations managers oversee the entire operations of a lodging
establishment. Operations include human resources, housekeeping,
security, public relations, food service, sales and finances. It is the hotel
operations manager's job to deal effectively with customers, bosses and
staff workers while keeping the hotel running smoothly.

‒ A hotel operations manager may have assistants or assign department

heads to help manage the hotel. Creating a work schedule, hiring new
employees, and training staff are all duties a hotel operations manager can
perform. While company executives usually set various hotel polices, the
hotel operations manager will sometimes get to assign special discounts or
honor advertising promotions.
III. Operation Manager
Hotel Operation Manager
Job requirements:
‒ Degree or diploma hotel management, Business Management or
other equivalent qualification
‒ Minimum of 5 years relevant Management experience in a 3-4
star rated hotel.
‒ 2 years’ experience with automated Front Desk and Reservations
system.
‒ Highly organized, flexible and strong ability to multitask and
manage people.
‒ Salary: Php 200,000 – 300,000 per month.
III. Operation Manager
Hotel Operation Manager
Duties and responsibilities
‒ Supervises the security, housekeeping, laundry, maintenance and landscaping
functions that are outsourced.
‒ Ensures service providers are audited regularly and reports on this filed.
‒ She / He is in charge of performance appraisals and making recommendations
to management on the team’s composition and performance.
‒ The OM oversees the procurement function and must ensure the Hotel
receives value for all its purchases. The OM should ensure that policy is
followed to the letter.
‒ The OM is responsible for staff management, filling of the muster roll, ensuring
that staff have uniform and are presentable and is responsible for coaching
staff on guest relations in collaboration with HR.
III. Operation Manager
‒ System design involves decision that relate to
system capacity, the geographic location of the
facilities, arrangement of departments and
placement of equipment within physical
structure, product and service planning, and
acquisition of equipment.

‒ System operation involves management of

personnel, inventory planning and control,
scheduling, project management and quality
assurance. Feedback of theses decision
involves measurement and control.
IV. Importance of Operation Management
‒ Operation management involves similar management for
every industry or business irrespective of their nature of
the operation. Planning, organizing, staffing, monitoring
controlling, directing and motivating are its significant
elements.

‒ Operation management is obligatory for organizations to

manage the daily activities seamlessly. With its help, an
organization is able to make good use of its resources like
labor, raw material, money and other resources
IV. Importance of Operation Management
‒ Operation Management is important to improve the overall
productivity. The ratio of input to output is termed as
productivity.
‒ It gives a measure of the efficiency of the manager as well
as the employees.

Thus, marketing, operation and finance must interface on

product and process design, forecasting, setting realistic,
schedules, quality and quantity decisions and keeping each
other informed on the other’s strength and weaknesses.
End of Session Topic 1
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