This case describes some aspects of the operations objectives of the Penang Mutiara Hotel, one of the most luxurious resort hotels in South-East Asia. The hotel's objectives are described through extensive quotes from the manager of the hotel. The operations objectives of the hotel are described in the same order as they are treated in the chapter, namely quality, speed, dependability, flexibility, and cost. Examples are given of what each of these objectives means to the hotel.
This exercise is best used as an introductory exercise towards the beginning of any operations management course. It is a 'soft' exercise in that many of the issues are in the form of opinion (albeit by the chief operations managers of the hotel) and students are probably sufficiently familiar with hotels (if not necessarily of the same class) to speculate. Although the questions to the case exercise refer to operation's role in corporate strategy and the Hayes and Wheelwright Stage 1 to 4 model, the intended use of the case exercise is to give the students practice in identifying the five performance objectives. It is important for them to recognize that there are several dimensions to quality, as well as to the other performance objectives. Asking them to identify what each of the five performance objectives actually means to an operation such as this helps them to understand their multi-dimensional nature.
The exercise may also be extended by asking the students to identify what the various activities of the operations management mean at an operation such as this. For example:
1. What are the design decisions which the hotel's operations managers must make?
2. What do planning and control mean in an operation such as this?
3. How might an operation such as this improve its performance levels?
1. Describe how you think the hotel's management will:
(a) Make sure that the way it manages the hotel is appropriate to the way it competes for business;
(b) Implement any change in strategy;
(c) Develop its operation so that it drives the long-term strategy of the hotel.
(a) Is the hotel's operations management appropriate for its strategy?