...Forecasting at Hard Rock Café Managing Operations Across the Supply Chain Trapanger Stephens DeVry University Dr.Thomas Knopp 1. Describe three different forecasting applications at Hard Rock. Name three other areas in which you think Hard Rock could use forecasting models. Sales forecasts: • Long range forecasting: in setting a capacity plan • Intermediate term forecasting: for locking in contracts for leather goods (used in jackets) and for food items as beef, chicken, and pork • Short term forecasting: daily forecasts which contain the effect of special events in the town (including staff forecast) Human Resources: • Bonuses for managers: a 3-year weighted moving average is applied to cafe sales and if the cafe general managers exceed their targets, a bonus is computed • Staff recruitment: Adapt the necessary workforce according expected demand. • Staff management: Determine necessary roles on each section of the restaurant. Menu planning/placement: • Regression analysis. • How could affect price variations on one product to the rest of the elements on the menu • How could affect reorganizations of the menu to the sales. Other possible areas of application: • To include seasonal forecasting in the menu planning • To predict customer...
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...Case Study: Forecasting at Hard Rock Café 1. Describe three different forecasting applications at Hard Rock. Name three other areas in which you think Hard Rock could use forecasting models. Hard Rock uses long-range forecasting in sitting capacity plan, intermediate-term forecasting for locking in contracts for leather goods (used in jackets) and for such food items as beef, chicken and pork, and short-term sales forecasts are conducted each month, by cafe, and then aggregated for a headquarters view. Hard Rock could use forecasting for menu items according to season (types of food people generally eat depending on time of year), forecast developing areas where new cafes could be build, and forecast changes in retail as fashion changes. 2. What is the role of the POS system in forecasting at Hard Rock? Point of Sale (POS) system is the heart of the sales forecasting system. POS system captures transaction data on nearly every person who walks through a café’s door. Sale of each entrée represents a customer and everyday those sales are transmitted to the headquarters in Orlando where the financial team begins to forecast monthly guest counts, retail sales, banquet sales, and concert sales in each café. General Managers of each café can also tap into that same information in order to prepare for the daily forecast of their individual cafe. 3. Justify the use of the weighting system used for evaluating managers for annual bonuses. Hard Rock doesn't limit its use of forecasting...
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...FORECASTING AT HARD ROCK CAFÉ* With the growth of Hard Rock Café – from one pub in London in 1971 to more than 110 restaurants in more than 40 countries today – came a corporate wide demand for better forecasting. Hard Rock uses long-range forecasting in setting a capacity plan and intermediate-term forecasting for looking in contracts for leather goods (used in jackets) and for such food items as beef, chicken, and pork. In short-term sales forecasts are conducted each month, by café, and then aggregated for a headquarters view. The heart of the sales forecasting system is the point-of-sale system (POS), which, in effect, computes transactional data on nearly every person who walks through a café’s door. The sale of each entrée represents one customer; the entrée sales data are transmitted daily to the Orlando corporate headquarters’ database. There, the financial team, headed by Todd Lindsey, begins the forecast process. Lindsey forecasts monthly guest counts, retail sales, banquet sales, and concert sales (if applicable) at each café. The general managers of individual cafes tap into the same database to prepare daily forecast for their sites. A café manager pulls up prior years’ sales for that day, adding information from the local Chamber of Commerce or Tourist Board on upcoming events such as a major convention, sporting event, or concert in the city where the café is located. The daily forecast is further broken into hourly sales, which drives employee scheduling...
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...Answering the questions on the text: "Hard Rock Cafe - Forecasting" 1. Describe three different forecasting applications at Hard Rock. Name three other areas in which you think Hard Rock could use forecasting models. Hard rock café divide the forecast in long term methods where the expectations are to establish a better capacity plan and short term methods where they look for good contracts with suppliers for leather goods (clothes etc.) and definately to be more negotiable with the suppliers of food products. Also hard rock café pays attention to potencial revenues using pricing and costing information of every café. Short term of sales forecasts are calculated each month by every established site. Forecasting models could be useful in other areas like: 1. New food product and its impact. Will they be accepted by the consumers? (Long term,Strategic) 2. Human Resource forecasting. Are they good enough on what they are doing or could it be more efficient in another way? (Medium term,Operating) 3. Forecasting economic information like economic crisis or growth. 4. Opening new establishments. Is the market big enough? (Long term, Strategic) 2. What is the role of the POS system in forecasting at Hard Rock? The Point Of Sale system collects diary data of almost every consumer in every single café. That means huge information if we check out the number of visitors in almost every Hard rock Café. Furthermore this huge information means even...
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...Lisa Nash Case Study: Hard Rock Café DeVry University Managing Supply Operations Professor Albert Lapierre March 14, 2014 Case Study: Hard Rock Café The definition of forecasting is to compile previous data and predict what will happen in the future. Forecasting will help determine to outcome of future sales projections in the business world. The Hard Rock Cafe` uses the following forecasting types: moving averages, weighted moving averages, exponential smoothing, and regression analysis. The reason that Hard Rock uses forecasting is for the long term, short term, purchasing orders, and buying supplies in their Cafés, hotels, and night clubs. The sales forecast for the company is used by the month, year or five year plans depending on the department and its financial responsibility. It is important that the financial choices are made wisely because it will determine how long the company will need to be in contract with various vendors that supply meat, produce, and condiments just to name a few. When there is a desire to expand the business it is very important to have a forecast report to present to the lending institution so there will be an appropriate amount of funds requested to complete the expansion. The method used to determine a manger’s bonus is the weighted measure 40/40/20 and it is based on the last 3 years of sales at their store. If the store has met their sales goal then the manager will receive their bonus. The POS is formatted based on...
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...1. Describe three different forecasting applications at Hard Rock. a. Long-term forecasting is used to determine capacity for growth of sales per store. b. Intermediate forecasting is used in the creation of contracts for items for raw materials, such as leather to manufacture Hard Rock’s leather coats. c. Short-term forecasting is used to forecast sales by store so that the food and labor is scheduled appropriately. Name three other areas in which you think Hard Rock could use forecasting models. a. Human resources could use intermediate forecasting to evaluate if how much their employees can produce. b. The implementation of a new product and the impact to Hard Rock’s customers could be forecasted using long-term strategic forecasting. c. Long-term strategic forecasting can be used when looking at possible locations to open new restaurants to determine if the demand is going to be large enough to make the restaurant profitable. 3. Justify the use of the weighting system used for evaluating managers for annual bonuses. I think using the weighting system makes certain that managers maximize their present and future results, as well as the company’s. Hard Rock’s concept of their annual bonus considers sales from a period 3 years: • Most recent year: 40% • The prior year: 40% • 2 years ago: 20% It provides incentive for managers to be continuous efficient. If sales are down in one year, this affects the amount of bonus to be...
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... IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load http://www.hwspeed.com/Devry-GSCM-206-Complete-Course-Latest-2015-December-11204585.htm?categoryId=-1 IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM Question Devry GSCM206 Week 1 Discussion DQ 1 & DQ 2 Latest 2015 November DQ 1 What is operations and supply chain management? What career opportunities would you be interested in pursuing in the field of operations and supply chain management? DQ 2 How do operations and supply chain processes provide a competitive advantage in the global arena? How is a firm’s mission related to its strategy? Devry GSCM206 Week 2 Discussion DQ 1 & DQ 2 Latest 2015 November DQ 1 How can forecasting improve your operations and supply chain processes? What are the differences between independent and dependent demand? DQ 2 How important are the product design and the voice of the customer? How important are the product design and the voice of the customer during a new product development? What is the impact of the product life cycle on managing the supply chain? Devry GSCM206 Week 3 Discussion DQ 1 & DQ 2 Latest 2015 November DQ 1 Identify management’s role in linking operations and supply chain processes with quality improvement. Identify how improving quality can lead to reduced costs. DQ 2 Consider the different process strategies and technologies to improve effective and efficient operations. What are the many advantages...
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...Barry Render Charles Harwood Professor of Operations Management Crummer Graduate School of Business Rollins College PEARSON Prentice Hall Upper Saddle River, New Jersey 07458 About the Authors vi Foreword xx Preface xxi PART i l l 1, Introduction to Operations Management 1 Operations and Productivity 1 Global Company Profile: Hard Rock Cafe 2 What Is Operations Management? 4 Organizing to Produce Goods and Services 4 Why Study OM? 4 What Operations Managers Do 7 How This Book Is Organized 7 The Heritage of Operations Management 8 Operations in the Service Sector 9 Differences between Goods and Services 10 Growth of Services 11 Service Pay 12 Exciting New Trends in Operations Management 12 The Productivity Challenge 14 Productivity Measurement 15 Productivity Variables 17 Productivity and the Service Sector 19 Ethics and Social Responsibility 20 Summary 20 • Key Terms 21 • Solved Problems 21 < Self-Test 22 • Internet and Student CD-ROM/DVD Exercises 22 • Discussion Questions 22 • Ethical Dilemma 23 • Problems 23 • Case Studies: National Air Express 24; Zychol Chemicals Corporation 25 • Video Case Study: Hard Rock Cafe: Operations Management in Services 25 • Additional Case Study 26 • Bibliography 26 • Internet Resources 26 Developing Missions and Strategies 34 Mission 34 Strategy 35 Achieving Competitive Advantage Through Operations 36 Competing on Differentiation 36 Competing on Cost 37 Competing on Response 37 Ten Strategic OM Decisions 39 Issues in Operations...
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...Operations Management MBA 530 Chapter 15: Video Case Study – Scheduling at Hard Rock Café 1. Name and justify several factors that Hoffman could use in forecasting weekly sales. 2. What can be done to lower turnover in large restaurants? 3. Why is seniority important in scheduling servers? 4. How does the schedule impact productivity? Chapter 16 Video Case Study – JIT at Arnold Palmer Hospital – Page 646 1. What do you recommend be done when an error is found in a pack as it is opened for an operation? Patient safety should always be the number one priority. If an error is found when a surgery pack is opened for an operation, the surgery team will need to make a quick decision to determine if the error significant enough to require a replacement, how quickly can a replacement be secured, and if the operation needs to be postponed. Some errors might not be significant enough to cause great concern. For example, perhaps the pack was just loaded in the wrong order. Another error could be that a specific item is missing, but it could be readily available from the hospital’s general supplies. Regardless of the error, the issue must be addressed with the suppliers. They need to know the details of the error so that they can determine the source and prevent it from happening in the future. 2. How might the procedure for custom surgical packs described here be improved? The video seems to indicate that the process for JIT delivery...
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...CASE I supply_chain_strategy LAUNCHING CPFR AT TEXAN FOODS: IMPROVING INVENTORY REPLENISHMENT WITH COLLABORATIVE ACTIVITIES AND TECHNOLOGIES Introduction Angela Preston sank back into the cushy leather chair in the Captain’s Club at LAX, and rubbed her eyes. She and her supervisor, Gordon Ross, had flown halfway across the country to Fresno to meet with representatives from a key supplier, Valley Bakers, to review the outcomes of their 180-day CPFR pilot program. When her drink arrived she hardly touched it,except to stir it nervously, until Gordon returned from the ticket counter. When she had agreedto accept the promotion to Category Director last year, she had no idea that the pressures ofthis job would be so enduring. The last six months had seemed like one long, dull headache. Since the initiation of the CPFR pilot program, it seemed that Valley, their supplier, had been making all the demands in this relationship. Wasn’t the customer supposed to be the one who was always right? Gordon eased into the chair next to her and immediately noticed the weary, pained look on her face. As Vice President of Supply Chain Operations for Texan Foods for the last 9 years, he had learned a lot about dealing with employee and customer frustrations. The CPFR pilot with Valley had tested his resolve as well. Valley’s CPFR team was unhappy with the small performance gains – and the occasional significant losses – that the program had delivered for the 34 SKUs that...
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...supply_chain_strategy All questions are compulsory CASE I LAUNCHING CPFR AT TEXAN FOODS: IMPROVING INVENTORY REPLENISHMENT WITH COLLABORATIVE ACTIVITIES AND TECHNOLOGIES Introduction Angela Preston sank back into the cushy leather chair in the Captain’s Club at LAX, and rubbed her eyes. She and her supervisor, Gordon Ross, had flown halfway across the country to Fresno to meet with representatives from a key supplier, Valley Bakers, to review the outcomes of their 180-day CPFR pilot program. When her drink arrived she hardly touched it,except to stir it nervously, until Gordon returned from the ticket counter. When she had agreedto accept the promotion to Category Director last year, she had no idea that the pressures ofthis job would be so enduring. The last six months had seemed like one long, dull headache. Since the initiation of the CPFR pilot program, it seemed that Valley, their supplier, had been making all the demands in this relationship. Wasn’t the customer supposed to be the one who was always right? Gordon eased into the chair next to her and immediately noticed the weary, pained look on her face. As Vice President of Supply Chain Operations for Texan Foods for the last 9 years, he had learned a lot about dealing with employee and customer frustrations. The CPFR pilot with Valley had tested his resolve as well. Valley’s CPFR team was unhappy with the small performance gains – and the occasional significant losses – that the program...
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...CHAPTER 1: OPERATIONS AND PRODUCTIVITY TRUE/FALSE 1. Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements. True (Global company profile, easy) 2. The production process at Hard Rock Café is limited to meal preparation and serving customers. False (Global company profile, easy) 3. All organizations, including service firms such as banks and hospitals, have a production function. True (What is operations management? moderate) 4. Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs. True (What is operations management? easy) 5. An example of a "hidden" production function is money transfers at banks. True (What is operations management? moderate) 6. One reason to study operations management is to learn how people organize themselves for productive enterprise. True (Why study OM, easy) 7. The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. True (What operations managers do, easy) 8. "How much inventory of this item should we have?" is within the critical decision area of managing quality. False (What operations managers do, easy) 9. In order to have a career in operations management, one must have a degree in statistics or quantitative methods. False (What operations...
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...OPERATIONS MANAGEMENT TESTBANK CHAPTER 1: Introduction to Operations Management TRUE /FALSE 1. Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements. True (Global company profile, easy) 2. The production process at Hard Rock Café is limited to meal preparation and serving customers. False (Global company profile, easy) 3. All organizations, including service firms such as banks and hospitals, have a production function. True (What is operations management? moderate) 4. Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs. True (What is operations management? easy) 5. An example of a "hidden" production function is money transfers at banks. True (What is operations management? moderate) 6. One reason to study operations management is to learn how people organize themselves for productive enterprise. True (Why study OM, easy) 7. The operations manager performs the management activities of planning, organizing, staffing, leading, and controlling of the OM function. True (What operations managers do, easy) 8. "How much inventory of this item should we have?" is within the critical decision area of managing quality. False (What operations managers do, easy) 9. In order to have a career in operations management, one must have a degree in statistics or quantitative methods. False (What operations managers do, easy)...
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...S w STARBUCKS Ariff Kachra prepared this case under the supervision of Professor Mary Crossan solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 1997, Ivey Management Services Version: (A) 2009-09-09 Mr. Howard Schultz, the Chairman and CEO of Starbucks Corporation, had just given a speech on the future of the coffee industry at a well-known business school. As he left the lecture hall, he stopped at the University’s most popular coffee shop, the Brewery. The shop’s sign indicated that it was “Now Serving Starbucks Coffee.” As Mr. Schultz ordered the House Blend, he noticed that the Brewery was a far cry from any Starbucks coffeehouse. The shop was messy, the service was poor, and the coffee was average. As Mr. Schultz was leaving the Brewery, Orin Smith, Starbucks President and COO, called him on his cellular phone. McDonald’s, whom Starbucks had turned...
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...growww.businessmonitor.com Q4 2010 AUStrALiA food & drink report INCLUDES 5-YEAR FORECASTS TO 2014 iSSn 1749-2580 published by Business Monitor international Ltd. AUSTRALIA FOOD & DRINK REPORT Q4 2010 INCLUDING 5-YEAR INDUSTRY FORECASTS BY BMI Part of BMI’s Industry Report & Forecasts Series Published by: Business Monitor International Copy deadline: July 2010 Business Monitor International Mermaid House, 2 Puddle Dock, London, EC4V 3DS, UK Tel: +44 (0) 20 7248 0468 Fax: +44 (0) 20 7248 0467 Email: subs@businessmonitor.com Web: http://www.businessmonitor.com © 2010 Business Monitor International. All rights reserved. All information contained in this publication is copyrighted in the name of Business Monitor International, and as such no part of this publication may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other means, without the express written consent of the publisher. DISCLAIMER All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Business Monitor International accepts no liability whatsoever for any loss or damage resulting from errors...
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