Operation and Productivity
Global Company Profile: Hard Rock Cafe
Operations Management at Hard Rock Cafe
Operations Manager throughout the world are producing products every day to provide for the well-being of society. These products take on a multitude of forms. Hard Rock Cafe produces thousands of complex products every day, to be delivered as the customer ordered them, when customer wants them. Hard Rock does this for over 35 million gusts worldwide every year. Orlando-based Hard Rock Cafe opened its first restaurant in London in 1971, making it over 35 years old and the granddaddy of theme restaurants. Although other theme restaurants have come and gone, Hard Rock is still going strong, with 121 restaurants in more than 40 countries and new restaurants opening each year. Hard Rock made its name with rock music memorabilia, having started when Eric Clapton, a regular customer marked his favorite bar stool by hanging his guitar on the wall in the London Cafe. Now Hard Rock has millions of dollars invested in memorabilia. To keep customers coming back time and again, Hard Rock creates value in the form of good and entertainment. The operations managers at Hard Rock Cafe at Universal Studios in Orlando provide more than 3500 custom products, in this case meals, every day. These products are designed, tested, and then analyzed for cost ingredients, labor requirements, and customer satisfaction. On approval, menu items are put into production and then only if the ingredients are available from qualified suppliers. The production process, from receiving, to cold storage, to grilling or baking or frying, and a dozen other steps, is designed and maintained to yield a quality meal. Operations managers, using the best people they can recruit and train, also prepare effective employee schedules and design efficient layouts. Managers who successfully design and deliver goods and services throughout the world understand operations. Operations management is demanding, challenging, and exciting. WHAT IS OPERATIONS MANAGEMENT?
Production is the creation of goods and services. Operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Activities creating goods and services take place in all organizations. In an organization that does not create a tangible good or product, the production function may be less obvious. We often call these activities services. The services may be “hidden” from the public and even from the customer. The product may take forms as the transfer of funds from a savings account to a checking account, the filling of an empty seat on airplane, or education of a student. Regardless of whether the end product is a good or service, the production activities that go on in the organization are often referred to as operations, or operations management. ORGANIZING TO PRODUCE GOODS AND SERVICES
To create goods and services, all organizations perform the function. These functions are the necessary ingredients not only for production but also for organization’s survival. They are: 1. Marketing, which generates the demand, or at least takes the order for a product or service (nothing happen until there is sale) 2. Production/Operations, which creates the product
3. Finance/Accounting, which tracks how well the organization is doing, pays the bills, and collects the money. WHY STUDY OM?
We study OM for 4 reasons:
1. OM is one of the three major functions of any organization, and it is integrally related to all the other business functions. Therefore, we study how people organize themselves for productive enterprise. 2. We study OM because we want to know how goods and services are produced. The production function is the segment of our society that creates products and service we use. 3. We study OM to understand what operations managers do. By understanding what these managers do, you can develop the skills...
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