HARD ROCK CAFE MODULE 1 CASE ASSIGNMENT OPM - Essay Example

Introduction The instructions indicate that, in its 30 years of existence, Hard Rock has grown from a modest London pub into a global power managing110 cafes, three hotels, casinos, live music venues, a rock museum, and a huge annual Rockfest concert. This puts Hard Rock firmly in the service industry—a sector that employs over 75% of the people in the U.S. The purpose of this paper is to identify how each of the 10 decisions of operations management is applied at Hard Rock Café and note how the productivity of the kitchen staff and wait staff at Hard Rock would be determined.

Question 1 The 10 critical decisions of operations management and how they would be applied at Hard Rock are as follows: 1. Service and Product Design: Goods and services that should be sold in their restaurant and merchandise stores; how those products and services should be designed 2. Quality Management: How they define quality as far as their goods and services are concerned and who is responsible for it 3. Process and Capacity Design: What processes it will take to prepare their food or sell their merchandise; what equipment and technology is necessary to make that happen 4.

Location: Where their restaurants/stores are located and what criteria they should base those decisions on 5. Layout Design: How their restaurants and stores should look on both the inside and outside; how the kitchen and behind-the-scenes should be laid out for maximum efficiency; how large the facility must be to accommodate their goals 6. Human Resources and Job Design: How to provide a good work environment for their employees; what they can expect of their employees 7. Supply Chain Management: Should products be made in-store or ordered; what suppliers should be used 8.

Inventory, Material Requirements Planning, and JIT: How much inventory they should keep in stock; when do they reorder that inventory 9. Intermediate and Short-Term Scheduling: Is it in their best interest to keep people on the clock when it is slow; what jobs are coming up next 10. Maintenance: Who is responsible for restaurant and store maintenance and when it should be done (Scribd 2008) Question 2 Besides just observation, there are a number of calculations that can be performed in order to measure the productivity of the kitchen staff and wait staff at Hard Rock.

These include Wage Cost % (of sales), Total Labor Cost % (wages, insurance, retirement, superannuation, payroll taxes), Total Labor Hours (hours worked in each section measured against sales), Function Labour Charge-Out (need consistent mark-up on charge-out to service staff that caterers offer), Sick Days Taken (measure of morale and management skills), Labor Turnover (number of new staff in a time period—should be low), Average Length of Employment (success of keeping staff), and Average Hourly Pay (total payroll divided by all staff’s work hours).

(Profitable Hospitality 2008) Conclusion The purpose of this paper has been to identify how each of the 10 decisions of operations management is applied at Hard Rock Café and note how the productivity of the kitchen staff and wait staff at Hard Rock would be determined. According to the resources accessed, the above describes how each of these tasks should be accomplished.