...Problem Set: Introduction to Operations Management (IOM OS) IOM1 Differences between Goods and Services [20 pts] Explain differences between goods and services in terms of: * Customer contact for goods is low because a customer buying goods will never come in contact where the goods are being produced. Versus for services its high because the customer is usually present during the formation of the service. * Opportunity to correct problems for goods is high because they may be exchanged or tailored versus for a service low because you can’t reconstruct a service that has already been performed. * Variability of input is low because you can always fix or change the goods being produced and output is high because you can’t change the finished product. * Measurement of productivity for goods is simple because you can count the amount of finished goods and inventory, and for services difficult because you can’t keep track of all the services being given. * Evaluation of employees for goods is easy as you can monitor the outcome but for services it is difficult because you can’t supervise all services performed. IOM2 Customization [10 pts] Discuss the impact of higher customization on complexity of manufacturing or service processes, level of worker skills, and productivity. The impact of higher customization compared to standardized products and services is that it is more labor-intensive, and more time-consuming resulting in a slower workflow. In...
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...Hard Rock Café Case Study GSCM-206 Managing Supply Operations 1. Identify the strategy changes that have taken place at Hard Rock Café since its founding in 1971. Hard Rock Café is a globally recognized brand. Since its founding in 1971, Hard Rock Café has made continuous improvements and upgrades to bring the brand to where it is today, changing with the times and markets. Hard Rock started as a London Café serving classic “American” food and eventually became a “theme” restaurant chain selling memorabilia and souvenirs in tourist destinations. From there the company transformed by adding stores, upgrading menus, moving to places that were not, at the time, tourist destinations, and most effective of all, they began playing live music and hosting rock concerts, adding to the overall customer experience. Hard Rock changed dining by making it an “experience”, an event that includes a unique experience not duplicated anywhere else. To create this unique experience, Hard Rock has invested millions of dollars into creating an acoustic and visual scenario for their customers. They also introduced into their “experience” concept their own brand merchandise, souvenirs and products, which is unique to each location which in turn provides a greater income to the company. Hard Rock is known for its museum-worthy, and quite extensive amount of Rock N’ Roll memorabilia and merchandise. Today, its memorabilia collection is estimated to be worth approximately...
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...Case Study: Hard Rock Café Steven Williams Devry University May 7, 2015 1. Identify the strategy changes that have taken place at Hard Rock Cafe since its founding in 1971. The first Hard Rock Cafe opened its approaches to individuals as a rule on June 14, 1971, in London by Isaac Tigrett and Peter Morton. The eatery originated as classic big city eatery and blossomed in a cult following with fans and patrons visiting from around the world. Now in the 21st century the Café has transformed into a really overall marvel. (Tigrett, 1998) Right when Hard Rock Café was introduced in 1971 it was just a direct diner that was focused on providing its patrons with a great dining experience coupled with the culture of Rock and Roll. After at some point or another hard shake proprietors comprehend that it wasn't adequate for be assorted and to be the pioneers on the support and incitement showcase so they realized another technique considering an inclusive experience: reinforced on preoccupation, sustenance and music. The founders decided to execute the thought of a restaurant as a diversion place where patrons could enjoy their food and could have an extraordinary visual and sound spot. 2. As Hard Rock Café has changed its strategy, how has its responses to some of the 10 decisions of OM changed? The Hard Rock has made its image selective and exceedingly looked for after. They offer dinners, they offer cabin rooms.. To attain that goal, they have assembled amid the time a forty...
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...C H A P T E R Operations and Productivity 1 DISCUSSION QUESTIONS 1. The text suggests four reasons to study OM. We want to understand (1) how people organize themselves for productive enterprise, (2) how goods and services are produced, (3) what operations managers do, and (4) this costly part of our economy and most enterprises. 2. Possible responses include: Adam Smith (work specialization/ division of labor), Charles Babbage (work specialization/ division of labor), Frederick W. Taylor (scientific management), Walter Shewart (statistical sampling and quality control), Henry Ford (moving assembly line), Charles Sorensen (moving assembly line), Frank and Lillian Gilbreth (motion study), Eli Whitney (standardization). 3. See references in the answer to question 2. 4. The actual charts will differ, depending on the specific organization the student chooses to describe. The important thing is for students to recognize that all organizations require, to a greater or lesser extent, (a) the three primary functions of operations, finance/accounting, and marketing; and (b) that the emphasis or detailed breakdown of these functions is dependent on the specific competitive strategy employed by the firm. 5. The answer to this question may be similar to that for question 4. Here, however, the student should be encouraged to utilize a more detailed knowledge of a past employer and indicate on the chart additional information such as the number of persons employed to perform the...
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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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...133307 Hard Rock Café The first Hard Rock Cafe opened its doors to the public on June 14, 1971, in London, England. Founded by Isaac Tigrett and Peter Morton, two enterprising and music-loving Americans, beginning with a guitar, it is only a joke among the friends at first, later on founder of the band -Cream and Derek & the Dominoes sent a guitar of his here, and has booked a desk for a longtime. From then on, the other guitars were sent here continually, have not stopped at all times. Hard Rock Cafe was an instant classic, attracting droves of customers with its first-rate, but moderately priced casual American fare, warm service and ever-present rock 'n' roll music and sensibility. At that time it has been doing things its own way. It was initially decorated with an eye toward eclectic American. What started as an American dinner in the heart of London has blossomed into a way of life. Hard Rock In 2007, Hard Rock was sold to the Seminole Tribe of Florida, and is headquartered in Orlando, Florida. Currently, there are 191 Hard Rock locations in 59 countries including 145 cafes, 21 hotels and 10 casinos. Mission: “To spread the spirit of rock ‘n’ roll by creating authentic experiences that rock.” To spread the spirit of Rock 'n Roll by delivering an exceptional entertainment and dining experience. Hard Rock Services 1. Hard Rock Cafes 2. Hard Rock Hotels 3. Hard Rock casinos From their services I took the Hard Rock Café services Hard Rock Café Locations...
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...Case Study: Hard Rock Cafe - Florence Challenge Hard Rock Cafe is an international restaurant franchise with a strong internal culture and external brand, and it recruits individuals that fit this unique culture. For its new venue in Florence (Italy), Hard Rock decided to supplement its hiring with Facebook, since traditional channels often proved slow and inefficient for sourcing candidates. Hard Rock not only needed to source 120 server to manager-level positions in four weeks, but also had to find candidates that fit their unique culture. Converting fans to hires through social engagement and branding Solution • Hard Rock recognized that its consumers and candidates were often the same person, and launched a multi-faceted Facebook campaign to leverage their strong ‘fan brand.’ • Hard Rock created a Facebook page from scratch, installed the Work for Us app, and uploaded their open positions. They allowed candidates to submit applications directly within Facebook. • They also ran Facebook Ads targeting people around Florence who ‘liked’ such items as ‘Rock and Roll’ and particular rock bands. Dynamic demographic and interest targeting honed in automatically on users that responded most to the job content. • Fans brought to the Page by ads could use social features embedded within the app to socially broadcast jobs. This drove viral fan growth, as the Page went from 0 to 1,000 fans in less than 24 hours and to 6,100 fans in 4 days. • The Hard Rock team responded to applicant...
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...Managing Supply Operation GSCM 206 Case - Hard Rock Café’s Global Strategy and Pearson Video Library Professor: Craig Williams Jameila Givens July 10, 2015 Week 1 Hard Rock Café’s Global Strategy Identify the strategy changes that have taken place at Hard Rock Café since its founding in 1971. Since the Hard Rock Café was established in 1971, it has constantly redesigned itself to convey the brand where it is presently, by adjusting to the times and changing when change is requested. The organization embraced numerous changes including stores, redesigning it's menu, moving to places that are not really tourist destinations, and best of all, including live music and rock shows into the general customers experience. The Hard Rock put in millions to make a visual and acoustic situation ideal for their visitors. The company also brought into their "experience" to concept their own merchandise, which is one of a kind in every area and it gives an immense income to the organization. Hard Rock is known for its extensive and museum-worthy memorabilia and products. Today, its memorabilia collection is evaluated to be worth $40 Million. Every restaurant rotates their items to keep the experience new. Their merchandise records at 48% of its sales. . As Hard Rock Café has changed its strategy, how has its responses to some of the 10 decisions of OM changed? The strategy of Hard Rock was to change from local to international with upgrades to their Manu for each restaurant destinations...
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...Operation Management decisions (Hard Rock Cafe) The success of Hard Rock Café was to a certain extent determined by the operations management decisions. Let us analyze each of 10 operations management decisions of the Hard Rock networks of cafes. 1. Location The managers of the café are very precise in determining the location of each new café (restaurant, casino, museum) etc. They choose the state, city and even street or corner with regard to customer preferences (Johnston, 2008). Governance of Hard Rock Café believes that every choice is important and that location decisions strongly affect their brand. 2. Human resources and job design The employees of Hard Rock Café are attracted not only by the brand and working conditions; they are chosen basing on their passion for music and they mostly have engaging personalities. Jobs are designed to motivate the employees and make them part of the company. 3. Layout One more issue that makes Hard Rock Cafés unforgettable, is their layout. Everything has its place, from memorabilia, screens and sound to kitchen and bar layout (Lussier, 2008). Also, the connection of bars and cafes with retail shops are a successful decision which allows to increase revenue. The circulations paths are carefully thought out and lead the customer into the Hard Rock empire. 4. Product design The product in Hard Rock Café is food; in retail stores the assortment of the stores can also be accepted as product. With museums, it is the choice of memorabilia...
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...PowerPoint 1) is applied at Hard Rock Cafe. 2. How would you determine the productivity of the kitchen staff and wait staff at Hard Rock? Hard Rock Café is a chain of theme restaurants that was founded in 1971 by Peter Morton and Isaac Tigrett. After the café started covering its restaurant walls with rock ‘n’ roll memorabilia by 1979 it became a tradition that would expand quickly on to other chains throughout the Nation. In 2006, Hard Rock Café was sold to Seminole Tribe of Florida and its largest café and headquarters is now located in Orlando, Florida. There are currently 149 Hard Rock Café locations in 53 countries. The Hard Rock Café has brought the concept of the 'experience economy' to its cafe operation. The innovation is similar to mass customizing in manufacturing. At the Hard Rock Café, the experience concept is not to just offer a custom meal from their menu, but to a customer’s dining event that includes a distinctive visual and sound that cannot be experienced and/or replicated anywhere else. The Hard Rock Café has had a very high brand of recognition percentage throughout the world because of its operations management. Its decisions of operational management consist of the Service and Product Design; Quality; Process and Capacity Design; Location; Layout Design; Human Resource; Supply Chain Management; Inventory; Scheduling; Maintenance. In the Service and Product Design, Hard Rock Café gives a lot of amenities from cafes, to hotels to casinos,...
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...Julien Levesque May 19, 2010 MISM 2301 Hard Rock Café Case Study 1. What problems did the Rank Group find with the Hard Rock’s three main internal information systems (restaurant operations, merchandising, and financial)? Why was this a problem? Internal Information System | Problem(s)/Why | Restaurant Operations | -lack of a standard: differences in descriptions throughout what were planned to be restaurants with matching menus-no efficient way of tracking all transactions on a grand scale (i.e. all restaurants) | Merchandising | -no chain wide merchandising system: in certain instances, this led to shortages in merchandise. These aren’t affordable because of their importance to the total revenue | Financial | -there was too much recording taking place: 50 ledgers and 90 finance staff members were costly, inefficient time wise, and there was more room for error | 2. What’s the solution? * Operations * utilize a database with standardized descriptions of all food options available; arrange for some form of data movement (i.e. EDI, ETL, RSS); ensure there is efficient access of this database for each and every restaurant via an Internet connection * install machines or new software to record all point of sale transaction activity and send it to a database for processing * Merchandising * Install a merchandise system throughout all restaurants; coordinate with all computers to record changes in inventory after...
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...Suggestions and recommendations | 21 | Conclusion | 22 | Bibliography | 23 | Introduction Hard Rock Cafe Bengaluru is a part of worldwide franchise that spans from America till Australia with 168 venues with some being just cafes then the rest having a combination of hotel, casino and restaurant. The first hard rock was opened in 1971 which was in London and then spanned the rest of the world after the year 1982 and jumped to different continents. The branch in Bengaluru is a restaurant / bar, which is based on a corporate theme which is a rock vintage appeal. The restaurant /bar are located on MG road in the book society building. The book society is one of the oldest buildings in Bengaluru. Hard rock cafe opened on estimated 29th December 2007. With its rock n roll theme the restaurant chose a building that would represent its ideals as a franchise and bring the look. Their main element of the restaurant / bar would be its memorabilia of rock legends displayed all over the area. As quoted by the hard rock website “Today, Hard Rock International, with Hard Rock Cafe at its core, is an entertainment and leisure company that continues to successfully expand the Hard Rock Brand through myriad music-related ventures, breath-taking properties, collectible fashions, and a great rock 'n' roll attitude.” The architect of Hard rock cafe Bengaluru are Khosala associates and the interior designer is Final Joshi,...
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...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 4 Hard Rock Café Location Strategy 1.From Munday’s Standard Market Report Checklist, select any other four categories and provide three subcategories that should be evaluated? A) Demographics (local, city, region, SMS, with trend analysis 1. Economic indicators: - Changes in foreign currencies - Inflation rates- Unemployment rates B) Visitor Market 1. Hotels ` - Current number of hotels in market are - Age of existing hotels in market area - Occupancy rate of current hotels, as well seasonality of occupancy - Rates of new hotel construction (could indicates per year during last ten years) C) Political Risk - What type of government system is in place - Nationalization of major industries - Reduction of foreign interest in local business ventures D) Real Estate Markets - Liquidity of real estate - Current vacancy rates/occupancy rates - Number of real estate properties owned by global companies - Real estate turnover rates (how often are properties sold and converted to new business venture) - Cost of buying versus leasing commercial real estate 3. Why does the Hard Rock put such serious effort into its location analysis? Location decisions for Hard Rock Café begin with a global view which involves analyzing a country, then a region within the country and then finally a city location (Amer,1999). Specifically...
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...problem is to decide how large her station should be. The annual returns will depend on both the size of her station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Susan developed the following table: Size of First Station | Good Market ($) | Fair Market ($) | Poor Market ($) | Small | 50000 | 20000 | -10000 | Medium | 80000 | 30000 | -20000 | Large | 100000 | 30000 | -40000 | Very Large | 300000 | 25000 | -160000 | For example, if Susan constructs a small station and the market is good, she will realize a profit of $50,000. e) Develop a decision tree. Assume each outcome is equally likely, then find the highest EMV. • A.3 Clay Whybark, a soft-drink vendor at Hard Rock Cafe’s annual Rockfest, created a table of conditional values for the various alternatives (stocking decision) and states of nature (size of crowd): | States of Nature ( demand) | Alternatives | Big | Average | Small | Large Stock | $ 22000 | $ 12000 | -$ 2000 | Average Stock | $ 14000 | $ 10000 | $ 6000 | Small Stock | $ 9000 | $ 8000 | $ 4000 | The probabilities associated with the states of nature are 0.3 for a big demand, 0.5 for an average demand, and 0.2 for a small demand. a) Determine the alternative that provides Clay Whybark the greatest expected monetary value (EMV). b) Compute the expected value of perfect information (EVPI). For more Assignments visit...
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