A theory of constraints service systems improvement method: Case of the airline turnaround problem

This dissertation develops a process improvement method for service operations based on the Theory of Constraints (TOC), a management philosophy that has been shown to be effective in manufacturing for decreasing WIP and improving throughput. While TOC has enjoyed much attention and success in the manufacturing arena, its application to services in general has been limited. The contribution to industry and knowledge is a method for improving global performance measures based on TOC principles. The method proposed in this dissertation will be tested using discrete event simulation based on the scenario of the service factory of airline turnaround operations. To evaluate the method, a simulation model of aircraft turn operations of a U.S. based carrier was made and validated using actual data from airline operations. The model was then adjusted to reflect an application of the Theory of Constraints for determining how to deploy the scarce resource of ramp workers. The results indicate that, given slight modifications to TOC terminology and the development of a method for constraint identification, the Theory of Constraints can be applied with success to services. Bottlenecks in services must be defined as those processes for which the process rates and amount of work remaining are such that completing the process will not be possible without an increase in the process rate. The bottleneck ratio is used to determine to what degree a process is a constraint. Simulation results also suggest that redefining performance measures to reflect a global business perspective of reducing costs related to specific flights versus the operational local optimum approach of turning all aircraft quickly results in significant savings to the company. Savings to the annual operating costs of the airline were simulated to equal 30% of possible current expenses for misconnecting passengers with a modest increase in utilization of the workers through a more efficient heuristic of deploying them to the highest priority tasks. This dissertation contributes to the literature on service operations by describing a dynamic, adaptive dispatch approach to manage service factory operations similar to airline turnaround operations using the management philosophy of the Theory of Constraints.

Restaurant Industry Perspectives on Pro-social Rule Breaking: Intent versus Action

The resounding message extracted from the service literature is that employees serve pivotal functions in the overall guest experience. This is of course due to the simultaneous delivery of personalized service provision with resultant consumption of those services. This simultaneous delivery and consumption cycle is at times challenged by a perceived desire to accommodate guest request that may violate, to a greater or lesser degree, an organizational rule. This is important to note because increased interactions with customers enable frontline employees to have a better sense of what customers want from the company as well as from the company itself (Bitner, et al, 1994). With that platform established, then why are some employees willing to break organizational rules and risk disciplinary action to better service a customer? This study examines the employee personality, degree of autonomy, job meaning, and co-worker influence on an employee's decision to break organizational rules. The results of this study indicate that co-worker influence exerted a minimal influence on employee decision to break rules while the presence of societal consciousness exerted a much stronger influence. Women reported that they were less likely to engage in rule divergence, and significant correlations were present when filtered by years in current position, and years in the industry.

Measuring Hotel Service Quality: Tools for Gaining the Competitive Edge

As the hotel industry grows more competitive, quality guest service becomes an increasingly important part of managers' responsibility measuring the quality of service delivery is facilitated when managers know what types of assessment methods are available to them. The authors present and discuss the following available measurement techniques and describe the situations where they best meet the needs of hotel managers: management observation, employee feedback programs, comment cards, mailed surveys, personal and telephone interviews, focus groups, and mystery shopping.

Recreational Food Service is Big Business

In the analysis - Recreational Food Service Is Big Business - by Gary Horvath, President, Recreational Foodservice Division, Service America Corporation and Mickey Warner, Associate Professor School of Hospitality Management at Florida International University, Horvath and Warner initially state: “Recreational food service is very different from routine food service management. The authors review the market and the management planning and challenges that create that difference.” Recreational food is loosely defined by the authors as food for special events. These can be one-time events, repeated events that are not on a fixed schedule [i.e. concerts], weekly events such as football-baseball-or basketball games, or other similar venues. Concessions are a large part of these fan based settings. “An anticipated 101,000 fans at a per capita spending of $5-6 [were expected]. A typical concessions menu of hot dogs, popcorn, soda, beer, snacks, novelty foods, candy, and tobacco products comprises this market segment,” say Horvath and Warner in reference to the Super-Bowl XXI football championship game, held in Rose Bowl stadium in Pasadena, California, on January 25, 1987. Some of the article is based upon that event. These food service efforts focus on the individual fan, but do extend to the corporate-organizational level as well. Your authors will have you know that catering is definitely a part of this equation. The monies spent and earned are phenomenal. “Special events of this type attract numerous corporate catering opportunities for companies entertaining VIP guest lists,” the authors inform. “Hospitality tents usually consist of a pregame cocktail party and buffet and a post-game celebration with musical entertainment held in lavishly decorated tents erected at the site. In this case a total of 5,000 covers, at a price of $200 each, for 12-15 separate parties were anticipated.” Horvath and Warner also want you to know that novelties and souvenirs make up an essential part of this, the recreational food service market. “Novelties and souvenirs are a primary market and source of revenue for every stadium food service operator,” say Horvath and Warner. The term, “per capita spending is the measurement used by the industry to evaluate sales potential per attendee at an event,” say the authors. Of course, with the solid revenue figures involved as well as the number of people anticipated for such events, planning is crucial, say Horvath and Warner. Training of staff, purchasing and supply, money and banking, facility access, and equipment, are a few of the elements to be negotiated. Through both graphs and text, Horvath and Warner do provide a fairly detailed outline of what a six-step event plan consists of.

Rewarding Non-productivity In the Hospitality Industry

The industry has not clearly focused on many important problems, such as rewarding service workers based on productivity. Instead, many industry leaders have focused on "straw men issues," issues that are more rhetoric than substance. The authors examine some of these so-called is- sues in detail: governmental wage policies, immigration laws, the quality of the work force, service worker training, and gratuity management, to provide a fresh look at worker productivity beyond the rhetoric and myths that prevail

Leadership in the Lodging and Non-Commercial Food Service Industries

The qualities of vision, communication, trust, and perseverance are strongly identified by leaders in the lodging and food service businesses as characterizing effective leaders. The authors report on their research into essential qualities which mark the innovative industry leader.

Quality Performance In our World: What Fast Service Should Really Mean

The service-producing industries have experienced problems in quality in the 1980s because of intense competition. The author discusses how these problems have been compounded in the fast food industry and how quality control can lead to success.

Application of a PERT-Type System and "Crashing" in a Food Service Operation

A pert-type system, a combination of the program evaluation and review technique (PERT) and the critical path method (CPM), might be used by the hospitality industry to improve planning and control of complex functions. The author discusses this management science technique and how it can assist.

Competencies of a Recreational Food Service Manager

Recreational food service is a newly-identified industry segment. It represents over 3 percent of the total industry and has its own specific competency requirements, in addition to core food service management competency needs. The education, training, and development needs for professionals in this industry segment have not as yet been ascertained. This article is an effort to establish a benchmark for future research in this area.

Financial Planning by Contract Food Service Management Companies

Drugs in the workplace is a growing problem that threatens a valuable human resource - the employee. Managers in the hospitality industry can take a proactive stance in meeting the problem head on. The authors discuss what managers can do.

Timeshare Owner Preferences - An Analysis of Program and Service Relationships during Recessionary Times

Since the 1970s various industry studies have indicated that the vacation ownership industry has enjoyed unprecedented growth in unit sales, resort growth, and the number of owners (American Resort Devleopment Association [ARDA], 2007; ARDA, 2009a; ARDA, 2009b). However, due to the recent economic downturn these growth metrics are no longer obtainable. This external impact has caused developers to retrench and therefore reflect upon their existing product and service offerings, financial metrics, and consumer markets (ARDA, 2010a; ARDA 2010b). The crux of these findings indicates that the industry has shifted to maintaining and enhancing product and service offerings as a reaction to changing economic conditions. The findings reported in the body of this manuscript represent product and service preferences as collected from a random data pull of their existing ownership base. The study also revealed current preferences of timeshare owners with relation to services provided and products/amenities offered. Management implications and limitations of the current study are discussed.

Dive Tourism: Evaluating Service Quality

Through the application of importance- performance analysis (/PA), the author investigated the conceptualization and measurement of service quality for tour operators in the scuba diving industry Findings from a study of consumer perceptions of service quality as they relate to a dive tour operator in Western Australia revealed the core service quality dimensions hat need to be improved for the operator and demonstrated the values and relative simplicity of the importance-performance analyses for dive tour operators generally

Recreational Food Service Management: A New Academic Challenge

The School of Hospitality Management at Florida International University recently offered a new course, recreational food service management, in an effort to address the specialized needs of that segment of the industry. The author discusses the size and scope of this area, its history and presentations, its specialized operational nature, its menu structure and style of service, and the unique management requirements for success.

Systems Engineering Perspective of the Cruise Industry

The maturation of the cruise industry has led to increased competition which demands more efficient operations. Systems engineering, a discipline that studies complex organizations of material, people, and information, is traditionally only applied in the manufacturing sector; however, it can make significant contributions to service industries such as the cruise industry. The author describes this type of engineering, explores how it can be applied to the cruise industry, and presents two case studies demonstrating applications to the cruise industry luggage delivery process and the information technology help desk process. The results show that this approach can make the processes more productive and enhance profitability for the cruise lines.

Management Retention Factors in the School Foodservice Industry

Management retention in the school foodservice industry has been a growing concern for school district decision makers due to the large numbers of managers reaching retirement age and the shortage of qualified people to fill the positions. As with other foodservice positions, turnover rates and the shortage of service employees will continue to be challenges well into the 21st centery. The current study employed by a self-administered questionnaire and asked 101 school foodservice managers in Central Florida to rate their perceived importance of and their perceived experience with 20 employment characteristics of their job. There were significant differences in 17 of the 20 characteristics thus highlighting significant gaps between perceived importance and perceived actual experience on the job and what would keep them from changing jobs. Management and human resources implications are discussed.