Operation and Project Management Report: Hilton Hotel Case Study

This report delves into the realm of operation and project management, utilizing Hilton Hotel as a comprehensive case study. It begins with an introduction to operation management, emphasizing its strategic objectives and the formulation of effective operation strategies. The report then explores Hilton Hotel's operational strategies, focusing on the evolution of operational management and diverse design approaches. It examines various operational models, including transformational and top-down models, alongside the application of property technology and marketing models such as SWOT analysis. Furthermore, the report highlights the importance of sustainable competitive advantages and theoretical frameworks, such as Just in Time and Critical Path Analysis, within the context of operational management. Strategic objectives of operations management are also discussed, emphasizing the significance of implementing plans and policies. The report provides a detailed analysis of the operational aspects of the Hilton Hotel, making it a valuable resource for students seeking insights into this field. Desklib offers a wide range of resources for students, including past papers and solved assignments to aid in their academic journey.

OPERATION AND
PROJECT MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................4
Introduction to operation Management.......................................................................................4
Strategic objectives of operations management ..............................................................................6
Operations Strategy .........................................................................................................................7
Operations Development and improvement ...................................................................................8
Evolution of operational management- .........................................................................................8
Different design in operational management - ............................................................................10
Process design -..............................................................................................................................11
RECOMMENDATION ................................................................................................................15
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Operations and project management refer to the process of handling daily basis operation
in effective and efficient manner. Project management aims in delivering such work process that
finally leads to accomplishment of set goals and targets. The present report will include strategic
importance of operational system, various operation strategy that is applied in sustainable mode
so that they can lead to achieve mission and vision for the organisational system. It basically
highlight the process that is executed in service sector organisation which include Hilton hotel. It
is a well established brand in hotel industry and its headquarter is situated in United states. They
render world class facility to their customers of whole nation. Every industry deals in dynamic
environment which keeps on changing with time and they have to consider such modifications in
order to keep in pace with the time. Operation management also focus on managing the resources
of company system in successful manner and intent to use it in sustainable mode. There are
number of roles of operations that are played in hospitality sector is also of prominent nature.
The tools and techniques adopted by the management have specific roles and should be selected
in appropriate manner by the organisation.
TASK
Background
Hospitality sector focuses on managing their project and plans in important mode.
Operation manager is assigned the duty of maintaining the project in successful manner so that
they can able to accomplish final objectives. Project can be of different nature and types that has
to be identified by the manager. Majorly, project can be divided into three types that is material
management, service or both. It basically focus on performing operational functions in
sustainable manner. Hilton hotel was founded by Conrad Hilton in 1919 and purchased the
Statler hotel chain that focused on building largest hospitality sector in the nation. This have to
face numerous challenges in front of them related to violence from outside people. There are
various functional areas in hospitality sector that need to be integrated to run the system and
helps in establishing competitive advantage in market place. Business environment is complex in

nature and consist of many factors that influence the structure in various ways (Nicholas, and
Steyn, 2017). There are number of concepts attached to it.
 Mission statement of Hilton Hotel: They want to be most hospitable institution over
worldwide, by focusing on imparting first class services to their customers.
 Vision: They want to be excel in their services by providing innovative work experience
to people in society.
 Values: HILTON contains its value in its own name, Hospitality, Integrity, Leadership,
Teamwork, ownership, Now.
 Strategic Objectives: Hilton hotel majorly concentrate on giving best customer services
and increasing their share at significant level.
 Goals: Basic goal is to maintain higher market share and growth in the external
environment and establish competitive advantage along with other competitors.
Number of elements that are included in project management process carried out by
Hilton hotel is discussed below:
 Collecting information: At this step project or operational manger identifies the needs
that are generated in market area. Its basic target is to meet all these needs in favourable
manner. Therefore, manager draft proper plans regarding steps to be followed.
 Supply chain management: After finding out the market need or nature of customers, the
other function involves contacting the supplier that will provide the essential
requirements that will full fill the demands of customers.
 Managing Inventory: This aspect has to be carried out in proper way by manager as they
have to take decision related to inventory present in the system. In order to make project
run, inventory or raw materials are needed to reach completion of project. Managing quality of products: This is a major area that need to be looked by manager. It
involves supplying quality products to their consumers in market area. In today's world
customers do not compromise in their quality hence, proper attention is made by the
company(Rosenau, and Githens, 2011).
Models of Operation Management
The operation management can be applied in various level that has to be properly carried
out by the manager. The decisions are taken up by senior most level which frame strategic

decisions for system in Hilton hotel. It is further divided into various stage which is described
below:
 Planning process: Under this level, planning is performed for future goals that has to be
framed for the system of organisation. It may include planning for various elements
related to product dimensions, processing system, layout planning system and many
more.
 Organizing process: This type of step is concentrate on performing function of
accumulating different type of resources by manager. It involves concept related to
designing specific job that has to be allocated at right place and time.
 Monitoring process: Under this type of step, the actions which are implemented or carried
down in system. These actions that are executed has to be monitor or controlled in such a
way so that deviations can be calculated from the standard performance. The actual
actions that are performed by workers are compared with standard set.
 Controlling process: under this stage, the system that need control so that loss should not
be faced by organisation. It involve various techniques like controlling quality, inventory
management. All these process is performed in this step. There are number of cases that
has to be properly controlled so that any deviations that are find out can be minimized or
removed to significant level (Sears, 2015).
There are several models of operation management which is discussed below:
 Transformational model: This type of model is adopted by leaders to simply the
organisational structure so that complex conditions could not be raised.
 Performance management model: This model focus on continuously enhancing the
performance level of company so that it could be aligned with vision and mission of
business entity.
 Top- down model: This signifies the hierarchy between superior and subordinate level. It
highlights that superior will order their subordinates to perform particular tasks, and
subordinate have to follow their instructions.
Apart from the above models the organisation is applying some other effective model for
better collection of data and planning process some of the effective model for analysing
OPM( Operation and Project management) are as follows:

 Property technology – This process contains all the innovative factors which an
organisation use in their business process. These factors includes hardware, materials,
software. This is commonly known as “PropTech” in encompassing terms. These are also
used in analysing and addressing market problems. This analytical tools survey different
factors in market and gives a statistical analysis on it. This technology build a
information modelling tools which helps the organisation to observe both the internal
and external factors of the organisation. The Hilton hotel use this technology for
observing performance of different competitors and make plan accordingly. They carry
out their operations in consideration of the recent technology that is prevailing.
 Marketing model – There are several marketing model in business organisation one of
them is SWOT Analysis which helps to evaluates the (Strength, Weakness, Opportunity
and Threat ).Through this analysis Hotel Hilton are able to analysis different factors and
separate them accordingly so that they make planning considering every aspect e.g. Hotel
Hilton has observer that they have a better human resource management that is hotel has
a best customer feedback and retention ability. Proper marketing strategies are developed
to work in accordance to it.
 Sustainable Competitive advantage – Competitive sustainable advantage involves cost
leadership( providing values at lower price), focus (focus on service at target market )
and differentiation (delivering better benefits ) which are defined by Porter in his theory.
The Hotel Hilton are using these theory comprehensively in their business activity. This
model help the organisation to provide better service at lower price in competitive
market. This model help to analyse different business factors which allows them to
evaluate their their productivity effectively. Differentiation strategy is adopted to stand
apart from others.
From the above discussed model Hotel Hilton have adopted almost every process in their system.
For instance manager of this hotel applied transformational model in order to covert difficult task
into simple and easy so that everyone can be made acquainted with the process smoothly. On the
other hand Top- down model is also followed that specifies the chain of command between
employee and employer.
Evaluation process:

 There are some benefits attached to these models. Transformation model aids in keeping
pace with the changes that are happening in outside hotel industry. Hilton hotel have to
make strategies according to their competitors and policies that are framed.
 Top- down model signifies proper relation between superior and subordinate hence,
Hilton hotel carry out this process in effective mode.
Theoretical framework of operational Management
Framework provides base to plans and policies framed by company structure, it helps in
attaining the final goals and objectives of the organisation. It basically helps in providing several
rules or principles for controlling the system and align values in accordance with advantage of
framework process. It can be possible that company can draw various operational frameworks
that only aims in increasing the market growth and share. Framework aims in creating base
which provide route and guidance so that final path can be achieved.
Operational management combines the efforts of various key areas that yields maximum
outcome and aids in forming frame work in operation field. There are number of projects that are
carried out simultaneously and that should be incorporated in achievable mode. There are certain
framework which are very effective in operational management such as:
Just in Time : Just in time or Toyota Production System(TPS) is a method which is used
in decreasing time of production by critically analysing different criteria which is consuming
time. Hotel Hilton have effectively used JIT practices in their business activities. For example in
the peak travelling season to fetch more travellers and profit they specifically focus on those
activities which usually takes linger time in of season like they reduce the time of cleaning of
room between the traveller leaving and coming of new one . This sounds to small practice but
has a huge impact in binding the customers in their business activity.
Critical Path Analysis :They are also called as PERT analysis they are powerful
analytical tools which help in managing and scheduling critical processes. Through the use of
CPA Hotel Hilton can analyse and allot timing to their projects. This analysis help in both
planning and scheduling of their resources as well as give the luxury to monitor the each aspect
hence it used to provide transparency throughout their projects. This also allow the organisation
to take remedial action if need in business process.

Forecasting through MRP : Material Resource Planning is computer based system used
for inventory control and and computer based planning. It is involved in both inventory control
and production scheduling hence. This tool can give the better analysis of complex data which
eases the process of control the inventory. For example in Hotel Hilton the manager can easily
analysis the inventory and fulfil the requirement , this has improved the customer services and
enhance ability and productivity of the hotel.
These three models are effective tool which help the organisation for effective control of the
inventory and make effectual future planning for the growth of the organisation.
Strategic objectives of operations management
Operations management play a strategic role in any of the organisation. They have
attached responsibilities that have to be met by management of particular governing body. Some
strategic roles are discussed below:
Implementing plans and policies: This include forming plans in such a way that aids in executing
the set strategy in overall management so that they can able to attain it in operational mode.
There are various practical dimensions that has to be consider while forming particular actions.
There are number of techniques that can be applied in by management. These may consider
forecasting options that may enable to identify demand and supply so that production function
can be performed easily (Fewings, 2013).
Performing supportive function: There are number of divisions that has to be unified
together so that final aims can be realised. The strategy that is formed by superior level of
management should be flexible in nature and provide full support in decision making process.
The techniques which can be used here is Just In Time(JIT) this aids in performing the work task
in approachable way so that wastage of resources can be minimized. There are number of
advantages and disadvantages associated with this method, the manager has to consider these
factors so that loss cannot be faced.
There are some objectives that have to be applied to different parties which are
mentioned below:
 Suppliers: There are parties from which company have to borrow materials to carry out
their process. Hence, this party has to be managed properly so that they can supply
services to their client company.

 Workers: Employees are important asset of any organisational system. They need
conducive working environment for performing so that they can attain institutional final
mission and vision. They should be motivated frequently so that they can line up their
individual aims with organisational vision and mission (Hatziargyriou, 2014).
 Clients: They are indispensable part through whom products and services are produced.
Final products are reached to market place. Clients should be made happy by rendering
them high quality of services. They need to be satisfied with completing their targets or
responses.
 Shareholders: Every organisation have shareholders that have some stake in company's
capital. Therefore, institution have to make their shareholders happy and make them
contribute expeditiously according to economic condition of company establishment.
 External Environment: It comprises of society in which they are operating that include
various elements like generating employment opportunity, producing sustainable
commodities. On the other side company should make sure that environment in which
they are operating should remain neat and clean, it must not be polluted. There are
dimensions having broader scope that has to be consider by the management system.
Operations Strategy
Strategy is formulated for future actions that provide basis for drafting some actions and
functions. It achieve in achieving long term plans that concentrates in linking activities of similar
nature under one group. Strategies has to be connected between various management levels that
apply proper processes or location factor so that, it can be aligned in proper structure. On the
other side, there is another need for framing operational strategy as it assists in forming such
policies and strategies that enable particular firm to work according to their capabilities and
potential (Alexander, 2013).
There are several strategies that are implemented to different segments having some
policy and aims. These functions need to be connected with diverse sections having some path or
route that has to be formulated in accountable way. Hence, operation strategy always aims in
performing operations in such a manner so that each task can be performed in effectual
condition. There are certain strengths and weaknesses that are attached to this type of function in
company. Elements that are included in organisational system comprising number of resources,
materials, divisions that has to be combined together so that final task can be attained in

differential account. It is responsibility of top level of management who have to frame such
strategy for each level working in management. It include definite structure namely, Inventory
control, location or place, quality, product designing concept, and many other areas. All such are
included in framing strategy for hospitality sector, which mainly engross for performing such
strategy in controllable stage.
The operation strategy of Hilton Hotel:
 Property Technology: This hotel have applied appropriate technology in accordance to
current business environment so that they can have pace with changes. For instance they
have proper booking channels for customer.
 Marketing: The marketing department of Hilton hotel work efficiently and effectively to
achieve their market growth and share.
 Sustainable competitive advantage: They always concentrate on delivering quality
services that aim in fulfilling needs and wants of their prospective customers.
 Environment: They always direct in creating healthy and conducive working
environment.
 Differentiation: This concept directs on providing unique and differentiated services to
their customers so that they can stand apart from other constituted competitors.
Operations Development and improvement
Operation development refers to accepting and introducing some changes that have to be
incorporated in system for developing process. Due to number of reasons need is arise to make
many amendments in various sector. There can be possibility of small improvements in certain
areas hence these does not require much alteration in these processes. Operations improvement
defines in increasing the productivity and efficiency of existing system so that operations should
be managed. There are number of lacking areas that require continuous improvements thus, set
target can be acquired in specific time frame. Hence, operation manager have to examine various
elements that are present inside and outside the business entity that should be adopted for
improving or developing operational areas.
Evolution of operational management-
Operation management has a long history it has been designed in different ways for
different types op management practices. Operational management practices have started during

the time of industrial revolution in around 1770s in England and has been spread in different
parts of Europe and ultimately reach American continents. This management practices helps new
organisation to manage the whole industry as well as help them to expand their business in Asian
countries. A proper organisation of human resources will help them to expand their businesses.
With industrial evolution new and advanced machinery have overtaken role of human labour
this has increased efficiency of organisation as well as increased their productivity. One of the
first machine which contributes in effectual way is steam engine which has contributed in
different sector of an organisation (Hwang, 2012).
Some of the advancement of industrial revolution which demands need of operational
management -
 Production activities have become past which lowered cost of production.
 Economic growth and stability
 Evolution and development of gauging systems.
 Increase of small scale industries. Increase in jobs and opportunities for people
Scientific management practices
 This approach of scientific management was developed by Frederick Winslow Taylor,
regarded as father of scientific management.
 Analytical surveys and practical overview have changed the measurement criteria of
industries hence ultimately change the business practices and approaches of the
organisation
 the management practices have changed in may industries with inclusion of movable
assembly lines which leads to mass production in industries
 With the introduction “ Interchangeable Parts” helps in standardisation of party which
increase efficiency of batch production
different Masters have widen their theory on the management practices so that better
coordination between their human resource and machinery will increase which will eventually
help them to increase their productivity in industrial organisational structure(Lianying, 2012.).
 Concept of division of labours was used by many organisation especially in auto mobile
sector. This division of labour will allow organisation to divide their task in smaller

groups hence it allow senior level manager to observe and monitor working of the
organisation.
 With the revolution have also lead to evolution of motion economy which can be
applicable to different task in organisational sector , this theory of evolution was founded
by Frank Gilbert.
 Henry Gantt gives theory of providing rewards to their employee which can turn out to be
a motivational factor for an organisation
There is a constant evolution in industrial revolution so as their managing practices. There are
certain theories which can be found out in business organisational which has helped in
controlling and regulating different activities for an organisation. Effective management and
operational practice have increase growth rate for an organisation.
e.g. Henry Ford have affected different management tools and theories in his organisational
structure to dominate the business of automotive industry.
Different design in operational management -
Designing in operational management is an important aspect in Hilton Hotel as it focus in
increasing the efficiency in different factor of operational works like process design, product
design, facilities design and operational research. All these factors must be analysed thoroughly
which will help an organisation to increase their productivity in business market (Lindström,
2012).
Design of product and services
For formulation and designing product and services some of the basic principles must be
considered which includes customers wants, refining existing services and products , developing
new product and services, formulation of goals, translate services and product into processes.
This is a stepwise process which includes motivation, ideas, capabilities of organisation and
demand forecasting. For making advantages the organisation must be aware about of
technological changes, economic and demographic changes as well as competitive market.
Defining product and service design
Service design – it is about planning, communication and managing components to
improve quality of services. It forms fundamental interaction between customers and service
providers. It is an activity that is done for clients and deliver successfully. It has two important