Hotel Sarina Bangladesh

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    1.0 INTRODUCTION

    Services are deeds, processes, and performance. We can not measure services butwe can feel the service quality. Perception towards service varies from person to person.

    Desired service expectation seems to be the same for service provider within sameindustry. On the other hand, adequate service expectation may vary from industry toindustry. For this reason we can not measure any services by using a set standard. Also,services are consumed and produced simultaneously and the intangibility makes it moredifficult for the customers to realize the service quality. Whenever a customer is exposedto a service initially he/she makes an expectation about the services and then matches theexpectation with the actual service encounter. We have chosen Hotel Sarina for ouroperations management analysis and tried to relate the theoretical concept that weacquired from our class with the real life practice of the company. As, Sarina is a servicebased organization it was sometimes difficult to relate the theory with the real life practice because service process is very personalized and significantly vary from

    customer to customer.

    2.0 METHODOLOGY

    To prepare the report we have chosen both primary and secondary source tocollect information. For collecting the primary data we have interviewed several numberofficial of hotel Sarina and also surveyed some customers of hotel Sarina. For collectingsecondary data we have used the websites of hotel Sarina and some library books.

    3.0 OBJECTIVEThe objective of this report is To find out the operations processes of Hotel Sarina

    Analyze the operation management tools used by HotelSarina

    Find out the internal operation process problems

    Provide some recommendations to them

    4.0 THE COMPANY AT A GLANCE

    4.1 Overview

    On the 17 July, 2003, Sarina, the very first boutique hotel in the country wasopened for business. The grand opening of the hotel marked a turning point in the historyof the hospitality industry of the country. Sarina Hotel is located in Banani. It is onlyfifteen minutes drive from Zia international Airport and minutes away from theDiplomatic enclave of Gulshan and Baridhara.

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    4.2.2 RESTAURANTS

    There are four restaurants and a bar inside Sarina

    SUMMER FIELDS

    Summer Fields restaurant offer absolutely adifferent fare in Dhaka. They offer wide selections ofsandwiches, daily soups, and menu selections fromAsia and around the world and in particular aBangladeshi food corner. For a change, come forbreakfast and try our French toast with hot RaisinMaple Syrup, Eggs Benedict, Pancakes and Waffles.

    RISOTTOSea food and Italian cuisine featuring pastas, roast

    chicken, salads, imported steaks, fish and of coursepizzas. Risotto one of the best eating places in the city.It can accommodate up to 200 persons for Breakfast/Lunch/Dinner or any special event.

    AMRITA Restaurant in Hotel SARINA designed to offer

    best finger linking INDIAN cuisine in the city- readyto give customers the divine taste with more than 50items of Indian food.

    ELITE RESTAURANTSThis restaurant is specially built for the club

    members with a sign in amount of $2000. Membersof Elite Club can come in have some rest, drink, orwatch programs in a big screen TV.

    PICASSOAfter a long day of business and meetings, Picasso is an ideal cigar bar to unwind and

    let the stresses of the day slip away. Picasso offers a full range of cocktail offerings withFeet-tapping background music located on the 20th floor with a breathtaking view ofDhaka city.

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    4.2.3 Other facilities

    LOBBY LOUNGEA wonderful spot to enjoy a quick cup of fresh-brewed coffee made of fresh

    ground coffee beans or a cup of our specially blended Masalla Tea with offerings ofhome-baked treats.

    COMMUNICATION & MEETINGSSecretarial services, telephone, FAX, e-mail and Internet connection available

    plus a meeting room for all business requirements. This has 20 to 200 Person Capacities.A team of professional planners are at service to create an ideal place for corporatemeetings, seminars, family functions, etc

    4.3 Mission and Vision

    The mission of Hotel Sarina in their own world is

    Trust our experience to manage your comfort

    We do Care about our customers

    Safety and Comfort

    We only provide the BEST SERVICE

    We always think your satisfaction

    We believe in relationship with the customers

    Hotel Sarina tries to meet the customers expectation by providing them the bestservice as the can afford. They are always keen to give customers total satisfaction. Theyare experienced in managing customer needs and provide best quality services. Finallythey believe in building long term relationship with their customers which means they arenot only interested to bring new customers for their organization they also want to retaincustomers by building relationship.

    Hotel Sarina believes that there is always chance of improvement in every aspect.So they thinks, thinks the service they are providing may be satisfactory for theircustomers but they can improve more. So, the Vision of Hotel Sarina

    To become one of leading service provider in their sector

    To increase number of outlets

    To provide customers better service than ever

    Continue building relationship with their customers

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    5.0 Description about the production oroperations department

    5.1 Organization Structure of production/operations department

    Hotel Sarina is a private company and it is owned by couple of shareholders.They are the Board of Directors of the company and they have appointed a ManagingDirector for managing all the activities of the hotel. We here present the organizationstructure of Hotel Sarina but we focus mostly on the production/operations department ofHotel Sarina.

    Figure 1.1 Organization Structure chart of Hotel Sarina

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    Board of

    DirectorsBoard of

    Directors

    Managing

    DirectorsManaging

    Directors

    Human Resource

    DepartmentHuman Resource

    Department

    F&B (Food &

    Beverage) and In-

    House keeping

    Department

    F&B (Food &

    Beverage) and In-

    House keeping

    Department

    Finance

    DepartmentFinance

    Department

    Sales and

    Marketing

    Department

    Sales and

    Marketing

    Department

    Duty Manager

    Duty Manager

    Executive House

    KeeperExecutive House

    Keeper

    Restaurant

    ManagerRestaurant

    ManagerExecutive ChefExecutive Chef

    Front Office

    ManagerFront Office

    Manager

    Supervisor

    Supervisor

    Front Line StaffFront Line Staff

    5

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    Accountin

    g Manage HRM/payroll

    Expenditure

    Cycle

    RevenueC cle

    5.2 Employee Information

    We conducted survey from the F&B and House Keeping Manager. There we

    got this information

    Position Name Qualification Length of

    Experience

    F&B and

    Housekeeping

    Manager

    Saimon Shafi Masters 5

    Duty Manager M ShahdatHaque

    Honours 2

    Restaurant Manager Quazi AzizulKibriya

    Honours 2

    5.3.1 Production cycle of Hotel Sarina (Context Diagram)

    Figure 1.2 Context Diagram of the Production CycleFigure 1.2 Context Diagram of the Production Cycle

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    ProductionCycle

    Customerorders Purchase

    RequisitionOverhead

    Raw materials

    Laborneeds

    LaborCostsReport

    FinishedGoods

    Sales Forecast

    Cost of GoodsManufactured

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    The production cycle of Hotel Sarina includes all the department, so it is anintegrated approach towards serving the customer needs. The cycle starts mainly withcustomer order or sales estimates and goes through expenditure cycle, HR/payroll cycle,

    management cycle, and Accounting system and comes back to revenue cycle. The flowsare described below

    Production cycle actually beginning from the customer order, after takenorder they gets the idea about how much raw materials is required and alsothey can estimate future sales based on current sales.

    On the basis of customer order they estimate the expenditure and thinkalso how much can be overhead expense and then buy the raw materials.

    After receiving of the raw materials, the quality of the raw materials is

    checked by the quality control department.

    They have HRM/payroll cycle, which work is how much labor can needfor this process and how much can be the labor cost. If current labor forceis inadequate they can hire some part time employees to manage theexcess demand. However, Hotel Sarina has adequate level of staffs toserve its customers even if the hotel is running at full capacity.

    Management cycle has the overall control of the production cycle andemployees report to the management, whether everything is workingproperly. They checks whether operation is taking place properly and

    makes modification or changes staffs if necessary.

    The Accounting system actually calculates the revenue and cost of goodssold for the production cycle and estimates how much the net profit or lossis for a particular period.

    Finally the finished goods are served to the customer according to theirorder from the production cycle.

    Based on the current sales and demand, they can estimate future sales forthe restaurants.

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    Figure 1.3 Blue Print of the service process of a restaurant

    5.3.2Blue Print of the service process of a restaurant

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    Start

    Customerplace an

    order

    Orderdelay

    LostSale

    Waiter

    takesorder

    Specify desireDish (es)

    Avail

    able??

    Selec

    tAnoth

    er

    Yes

    Confirmorder

    Serveaccording toInstruction

    Indicatemethod ofpayment

    End

    Possiblelost sale

    Possiblewronginstruction

    Noyes

    No

    Yes

    Possiblelost sale

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    Hotel Sarina provides both restaurant and overnight stay hotel service in theirhotel. So, service blueprint is rather complicated and very difficult. We here first describethe blueprint of service process of the restaurant. There are 4 restaurants and a bar as

    mentioned earlier. We describe the processes of all the restaurants in general.

    The process starts when customer places order for food. The order processing canbe two types-Direct order and indirect order. In terms of indirect order waiter getsthe order in various way. Suppose who are staying the hotel, they may give theorder downstairs via phone call. Supervisor takes the order via phone and passesthe order to the waiter. Sometimes who are the loyal customer, they give the orderfrom home or outside and after certain time they comes to the hotel for get thefood. On the other hand waiter gets the order from direct way or face to face.

    Next, waiter takes the order and communicates with his supervisor. However, if

    waiter is unable to co-operate customer from take the food order then restaurantcan loose to retain the customer. Customers may not have the idea about the foodpreparation and quality. So waiter needs to clarify to the customers everything indetail.

    If the item customer looking for in the menu is not available at that particular timewaiter offers the customer to place order of some other item.

    The waiter then passes on the order to the executive chef in the kitchen andspecifies the order requirement to the cook.

    After the preparation of the food waiter serve the order of customers according totheir given menu.

    If waiter make mistake to serve the food, then customer might get angry or keepsilent but never comeback to the restaurant again.

    While customer is having the food waiter comes to the customer to ask anythingneed to the customer

    They ask the customer how they wish to pay (credit card or cash). Serina has alltypes of facility for their customers. In house customers do not need to pay billsbecause that bill will be attached with his/her total bill.

    According the customer wish waiter brings the bill to the customer.

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    5.3.3 Blue Print for overnight hotel stay service

    In this diagram, we can see the blue print for overnight hotel stay service. As

    Sarina is a 5-star hotel, it has certain a customer comes in and check inn through a certain process. In the vertical line we have divided the service according to its physicalevidence, customer action, and contact employees onstage or backstage and what are thesupporting processes which are helping the overall process. The blue print is describedbelow,

    The customer comes in to the hotel; the contact employee which may be the gatekeeper opens the gate and door. Physical evidence that works here is hotelsexterior parking lot.

    Then the employee goes to the front desk, asks for whether any room available,and tells his /her specification about the room. Reception catalog, receptionistsdress are the physical evidence here.

    If rooms are available as per customer needs, the customer give bags to thebellman, he takes the bag away towards the room from the reception

    The customer than checks inn to the hotel, lobby, key, interior all work as tangiblecues. The front desk employee completes the registration process. The customeronly signs in to the registration document. Registration process is fullycomputerized and they use particular software to manage their registrationprocess.

    Then the customer goes toward the room through elevator or stairs. These acts astangible cues of the service.

    After reaching the room, the customer gets his bags back from the bellman; thefloor supervisor then demonstrates all the room facilities to the customer. Theinterior decoration, room furniture, bed, couch, TV, freeze lighting everythingacts as physical evidence of the service.

    If any kind of room service available customer calls to the room service, a waiterattends the customer or if the customer wants to order some food the order istaken. The order is mainly taken by the room service, who then passes the order tothe restaurant supervisor, restaurant supervisor informs the chief chef about theorder. The food is then cooked and prepared for the customer. A waiter takes thefood to the customer and delivers it to the room.

    Finally, the process of checking out. When customers want to check out, the calls

    to the front desk, front desk then prepares the bills and when the customer comesto the lobby for check out, the bill is given to the customer. Again, registrationprocess helps to keep account of all the bills and payments.

    This was only the rough blue print of a overnight stay in a hotel service. However,as service differs significantly from the product, variation can occur during thedelivery of the service process.

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    6.0 Use of Operations Management Tools

    Competitive advantage through operation

    Hotel Sarina operation strategy focuses on the relationship building with long termcustomers. So, they have a competitive advantage embedded within their processbecause when the customers feels they are valued and given importance by theservice organization, customers are most likely to come back again.

    Service Design Strategy

    Sarina Service Design strategy is made in such a way so that it can meet customerexpectation. For example, Sarina prides itself for having a pool of talented andefficient employees who can deliver the service rightly to the customer and canhandle the situation effectively. Hotel Sarina is the personalized service. The hotelgoes every length to make the service personalized.

    Service Recovery Strategy

    Service recovery strategy is considered within the process. Whenever Hotel Sarinafails to deliver any service accurately according to customer need, they quickly takesteps to recover the service so that customer does not get fad up and spread bad wordof mouth about the company outside.

    Role of process employees

    The role of each employees with each other and also with the customer is definedhence there is no chance of role conflict. Front line employees are in frequent touchwith his/her immediate supervisor. In case of emergency or if necessity the supervisorcontact with floor in charge and manager.

    Service Variety

    Sarina has much different kind of services to offer for its customer according to theirneeds. There are 201 rooms including 14 suits, four restaurants, one bar and lobbycaf, swimming pool, health club, Sauna & Stream bath, four Multi functions rooms.Hotel is equipped with safety and security equipment device including fire and smokedetector, water sprinkler, electronic door locks & CC TV.

    Process Capacity

    As mentioned earlier, Sarina has 201 rooms including 14 suits and 4 differentrestaurants. There are banquette halls for big number of customers or corporatemeeting. This type of service capacity is enough to accommodate a large number ofpeople. However, when they operate at full capacity they does not through theircustomers out, they cordially manage customers rooms in some other equal qualityhotel.

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    Planning and managing projects

    As we already know Sarina is very well-organized Hotel. Their managing sector isvery strong. Whatever they plan to do; first of all its going through their managing

    director (MD), who has having 35 years of experience. Before doing anything they plan the thing carefully. Basically they outsource any other company which willanalyze the projects feasibility and give feedback to company whether this newproject is fruitful or not for the company. The organization has to pay a big amountfor this analysis to the outside company

    Inventory Management

    Hotel Sarina restaurants manages their inventory of raw materials (grocery items andother stuffs) based on the approximate demand of their foods. They usually keeps abit extra amount of inventory so that in case of any mishap like hartal, oborodh whensuppliers can not supply items, their service delivery performance does not decline.

    Quality Management:

    As Hotel Sarina is a service oriented organization their main aspect of service is thehuman interaction. So, how the employees are dressed, their appearance, behaveswith customers, their manner of speaking, intention to help, promptness of theservice, quality of the food, room, interior decoration everything is noted by thecustomers. So, a customer of a 5-star hotel searches for quality in almost every aspectof the service in almost all possible dimensions. Sarina has well educated employees,they are cross trained, they are all the time being checked by the immediate upperlevel employee, they believe that customer is always right and so try to provide thecustomers the best service. So, in all aspect of the service Hotel Sarina tries to

    maintain quality service.

    Forecasting

    Hotel Sarina maintains a database for its in house customers but they do not maintainsuch a database for restaurant customers. So, when forecasting about how muchguests are going to come and visit in the next day, month or year they use intuition orjudgmental method. For example, they said, they have pick hour between October toMarch. So, they get themselves prepared for a heavy rush during this time period.Restaurants are also busy with crowd at evening or night time and during theweekend. So, they prepare special dishes for these days.

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    7.07.0 Problems identification

    Inappropriate service cape: The services cape for Hotel Sarina is not at allappropriate. In a narrow street packed with universities, fast-food shops, beautyparlors and small shopping malls, the traffic flow in the road 17 of Banani isunbearable sometimes and foreigners also find such a crowded atmosphere of thecommercial area with heavy traffic flow most of the time quite disrupting. It lacksproper car parking facility and the place always has a heavy traffic flow. Byobserving the hotel we also found that it is not that spacious compared to otherfive star hotels. Besides, as Sarina claims itself a five star hotel it does not havethe swimming pool of international standard.

    Inadequate customer research: Sarina does not practice any formal customerresearch. They only does customer research for those corporate and long termcustomers but do not focus their marketing research on those short termcustomers. Though Sarina prides itself for building relationship with its customersbut if they practice this marketing research for the short term customers then theywould have increased their growth of customer share more.

    Inability to retain employees: Hotel Sarina has qualified, expert employeesbecause they have the most rigorous recruitment policy. However, Hotel Sarinahas contractual term of two years after that if the employees found any goodopportunities they shift to better jobs. The turnover of Hotel Sarina is quite high

    and they do not have any better retention policy.

    Over promising: Hotel Sarina promises its customers to be a five star hotel butthey do not have such a spacious hotel or big swimming pool compared to otherfive star hotels. When it is running at full capacity the hotel may look like a lousyplace instead of a 5-star hotel, which indirectly tells us that Hotel Sarina is overpromising and increasing customers expectation. Customers expects 5-star hotelto be something very special.

    Forecasting the demand: To forecast demand, Hotel Sarina basically depends ontheir intuition and experience. However, the intuitions at times do go wrong due

    to lack of proper information and professional method of forecasting.

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    8.0 RECOMMENDATION

    Hotel Sarina should start practicing formal marketing research from which theycan find the customers expectation in general. They can do it themselves or by

    outsourcing. As Sarina focuses on building customer relation but they only focus on their

    fixed and regular customer. They should also take into consideration their short-termcustomers, which may be the potential client in the future.

    As they have a reputation of a five star hotel they should enlarge thesize of the swimming pool. Also Sarina they should increase the capacity of their existinghotel. Since the positioning of the Hotel Sarina is a disadvantage because of the crowdedatmosphere, Sarina can engage few employees to clear the traffic as many of theircustomers becomes annoyed of the heavy traffic flow.

    They should increase the incentive to hold their existing employees.They can offer higher salary, bonuses, other benefits and promotion based on

    performance. To forecast the demand more accurately, Sarina might use marketing

    expertise to reduce the cost of excess production or lessen up the risk of shortages.

    9.0 Lessons Learned from the Project

    While we were doing the project one thing we specially feel that-far now we donelot of project for different faculty member of north south university. But the most of the

    project was to garments industry, pharmaceutical company and so on. Although it wasdifficult for us to match with their service industry of operation process. But to do thisproject-we are acquainted with one new environment where we introduced some upperclass of people and also talked with some foreigner. We also observed their operationwork and how service interaction takes place with the customer. The most interestingthing what happened here; for the purpose of this project we went there several times. Butthe final time Sarinas human resource manager was highly satisfied to see our activitiesand he said their probably need to do some project and they took our cell number. Theoverall of the project given us more enjoyment and taught new lesson. Finally we cansay that it is completely different item we learned.

    10.0 ConclusionHotel Sarina is very well-known organization from the perspective of Bangladesh.

    Their most of the customer are foreigner. Their business is also basically based on them.Their every function is beautifully organized. As a compare of other five star hotels theyare also providing as much better quality service as they can. They always try to take careof their customer and provide best service to them. As they are one of the 5-star hotels of

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    the country they have to manage a huge process and they are successfully doing theirpart.

    11.0 Bibliography

    1. Krajewski, L., Ritzman, L., 2005, Operations Management-Processesand Value chains, 7th edition, Prentice-Hall-India

    2. Zeithaml, V., Bitner, M., 2003, Service Marketing 4th Edition,Prentice-Hall-India.

    3. www.sarinahotel.com

    4. www.sarina-restaurants.com

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    http://www.sarinahotel.com/http://www.sarinahotel.com/