1.

INTRODUCTION

Services are deeds, processes, and performance. We can not measure services but we 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 same industry. On the other hand, adequate service expectation may vary from industry to industry. 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 more difficult for the customers to realize the service quality. Whenever a customer is exposed to a service initially he/she makes an expectation about the services and then matches the expectation with the actual service encounter. We have chosen Hotel Sarina for our operations management analysis and tried to relate the theoretical concept that we acquired from our class with the real life practice of the company. As, Sarina is a service based 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 to collect information. For collecting the primary data we have interviewed several number official of hotel Sarina and also surveyed some customers of hotel Sarina. For collecting secondary data we have used the websites of hotel Sarina and some library books.

3.0

OBJECTIVE
The objective of this report is To find out the operations processes of Hotel Sarina Analyze the operation management tools used by Hotel Sarina 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 was opened for business. The grand opening of the hotel marked a turning point in the history of the hospitality industry of the country. Sarina Hotel is located in Banani. It is only fifteen minutes drive from Zia international Airport and minutes away from the Diplomatic enclave of Gulshan and Baridhara.
Operations Management of Hotel Sarina Prepared for Mr. Mesbahuddin Chowdhury

This 20 storied steel-framed building with a space of 72,000 square feet was completed in record time of about two years. The Hotel has 90 lavishly yet tastefully decorated centrally air-conditioned rooms. The rooms are decorated in ethnic European style with carpeted floors and contemporary furniture. Sarina offers the comfort and the warmth of a home and has also managed to make sure that guests can keep in touch with rest of the rapidly changing world around. The beautiful hotel has made every provision to cater to every needs of the guest. Guests can enjoy the services provided by the Business Centre that is open twenty four hours for secretarial services, telephone, fax and internet. Provisions have also been made to make sure that the guest can use the internet from the privacy and the comfort of their own rooms. Sarina boasts one of the finest Indian and Italian restaurants in the vicinity. The view from the fabulously designed bar, that is on the twentieth floor of the building is simply breath taking. 4.2 Service Information Serina provides mainly two types of services for its customers. Overnight stay service that is the accommodation and restaurant service. Each is described below. 4.2.1 ACCOMODATION 90 centrally air-conditioned rooms, IDD facility, voice mail, 60-channel satellite TV, honor bar, bath robe, bathroom slippers, hair dryer, daily newspaper, 24-hour room service, in-room Internet, and safe box and e-mail connection.201 Rooms including 14 suits. All the room have high speed internet connection along with dedicated port for laptop, mini bar, in room safe, satellite TV with 65 channels and working desk. Exclusive club room with personalized service for all suite guest and members only.24-hours business centre and room service. Four restaurants, one bar and lobby caf, swimming pool, health club, Sauna & Stream bath, four Multi functions rooms. Hotel isequipped with safety and security equipment device including fire and smoke detector, water sprinkler, electronic door locks & CC TV.

Operations Management of Hotel Sarina Prepared for Mr. Mesbahuddin Chowdhury

4.2.2 RESTAURANTS There are four restaurants and a bar inside Sarina SUMMER FIELDS Summer Fields restaurant offer absolutely a different fare in Dhaka. They offer wide selections of sandwiches, daily soups, and menu selections from Asia and around the world and in particular a Bangladeshi food corner. For a change, come for breakfast and try our French toast with hot Raisin Maple Syrup, Eggs Benedict, Pancakes and Waffles. RISOTTO Sea food and Italian cuisine featuring pastas, roast chicken, salads, imported steaks, fish and of course pizzas. 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. AMRIT A Restaurant in Hotel SARINA designed to offer best finger linking INDIAN cuisine in the city- ready to give customers the divine taste with more than 50 items of Indian food.

ELITE RESTAURANTS This restaurant is specially built for the club members with a sign in amount of $2000. Members of Elite Club can come in have some rest, drink, or watch programs in a big screen TV.

PICASSO After 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 with Feet-tapping background music located on the 20th floor with a breathtaking view of Dhaka city.
Operations Management of Hotel Sarina Prepared for Mr. Mesbahuddin Chowdhury

4.2.3 Other facilities LOBBY LOUNGE A 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 of home-baked treats. COMMUNICATION & MEETINGS Secretarial 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 corporate meetings, 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 best service as the can afford. They are always keen to give customers total satisfaction. They are experienced in managing customer needs and provide best quality services. Finally they believe in building long term relationship with their customers which means they are not only interested to bring new customers for their organization they also want to retain customers 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 their customers 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

Operations Management of Hotel Sarina Prepared for Mr. Mesbahuddin Chowdhury

5.0 Description about the production or operations 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 Managing Director for managing all the activities of the hotel. We here present the organization structure of Hotel Sarina but we focus mostly on the production/operations department of Hotel Sarina.

Board of Board of Directors Directors

Managing Managing Directors Directors

Human Resource Human Resource Department Department

F&B (Food & F&B (Food & Beverage) and InBeverage) and InHouse keeping House keeping Department Department

Finance Finance Department Department

Sales and Sales and Marketing Marketing Department Department

Duty Manager Duty Manager

Executive House Executive House Keeper Keeper

Restaurant Restaurant Manager Manager

Executive Chef Executive Chef

Front Office Front Office Manager Manager

Supervisor Supervisor

Front Line Staff Front Line Staff

Figure 1.1 Organization Structure chart of Hotel Sarina

Operations Management of Hotel Sarina Prepared for Mr. Mesbahuddin Chowdhury

5.2 Employee Information We conducted survey from the F&B and House Keeping Manager. There we got this information Position F&B and Housekeeping Manager Duty Manager Restaurant Manager Name Saimon Shafi M Shahdat Haque Quazi Azizul Kibriya Qualification Masters Honours Honours Length of Experience 5 2 2

5.3.1 Production cycle of Hotel Sarina (Context Diagram)

Revenue Cycle

Customer orders Sales Forecast Finished Goods Product ion Cycle

Purchase Requisition Overhead

Expendit ure Cycle Raw materials

Cost of Goods Manufactured Report

Accountin g

Labor Costs

Labor needs
HRM/ payroll

system

Manage ment

Figure 1.2 Context Diagram of the Production Cycle

Operations Management of Hotel Sarina Prepared for Mr. Mesbahuddin Chowdhury

The production cycle of Hotel Sarina includes all the department, so it is an integrated approach towards serving the customer needs. The cycle starts mainly with customer order or sales estimates and goes through expenditure cycle, HR/payroll cycle, management cycle, and Accounting system and comes back to revenue cycle. The flows are described below Production cycle actually beginning from the customer order, after taken order they gets the idea about how much raw materials is required and also they can estimate future sales based on current sales. On the basis of customer order they estimate the expenditure and think also 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 need for this process and how much can be the labor cost. If current labor force is inadequate they can hire some part time employees to manage the excess demand. However, Hotel Sarina has adequate level of staffs to serve its customers even if the hotel is running at full capacity. Management cycle has the overall control of the production cycle and employees report to the management, whether everything is working properly. 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 goods sold for the production cycle and estimates how much the net profit or loss is for a particular period. Finally the finished goods are served to the customer according to their order from the production cycle. Based on the current sales and demand, they can estimate future sales for the restaurants.

Operations Management of Hotel Sarina Prepared for Mr. Mesbahuddin Chowdhury

Start

Customer place an order

Waite r takes order

yes

Order delay

No

Yes
Lost Sale Specify desire Dish (es)

Yes

Possible lost sale

Selec t Anoth er

No

Avail able ?? Confirm order Serve according to Instruction Indicate method of payment End

Possible lost sale

Possible wrong instructio n

Figure 1.3 Blue Print of the service process of a restaurant 5.3.2Blue Print of the service process of a restaurant
Operations Management of Hotel Sarina Prepared for Mr. Mesbahuddin Chowdhury

Hotel Sarina provides both restaurant and overnight stay hotel service in their hotel. So, service blueprint is rather complicated and very difficult. We here first describe the 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 can be two types-Direct order and indirect order. In terms of indirect order waiter gets the order in various way. Suppose who are staying the hotel, they may give the order downstairs via phone call. Supervisor takes the order via phone and passes the order to the waiter. Sometimes who are the loyal customer, they give the order from home or outside and after certain time they comes to the hotel for get the food. 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 restaurant can loose to retain the customer. Customers may not have the idea about the food preparation and quality. So waiter needs to clarify to the customers everything in detail. If the item customer looking for in the menu is not available at that particular time waiter offers the customer to place order of some other item. The waiter then passes on the order to the executive chef in the kitchen and specifies the order requirement to the cook. After the preparation of the food waiter serve the order of customers according to their given menu. If waiter make mistake to serve the food, then customer might get angry or keep silent but never comeback to the restaurant again. While customer is having the food waiter comes to the customer to ask anything need to the customer They ask the customer how they wish to pay (credit card or cash). Serina has all types of facility for their customers. In house customers do not need to pay bills because that bill will be attached with his/her total bill. According the customer wish waiter brings the bill to the customer.

Operations Management of Hotel Sarina Prepared for Mr. Mesbahuddin Chowdhury

Operations Management of Hotel Sarina Prepared for Mr. Mesbahuddin Chowdhury

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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 physical evidence, customer action, and contact employees onstage or backstage and what are the supporting processes which are helping the overall process. The blue print is described below, The customer comes in to the hotel; the contact employee which may be the gate keeper opens the gate and door. Physical evidence that works here is hotels exterior 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, receptionists dress are the physical evidence here. If rooms are available as per customer needs, the customer give bags to the bellman, 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 tangible cues. The front desk employee completes the registration process. The customer only signs in to the registration document. Registration process is fully computerized and they use particular software to manage their registration process. Then the customer goes toward the room through elevator or stairs. These acts as tangible cues of the service. After reaching the room, the customer gets his bags back from the bellman; the floor supervisor then demonstrates all the room facilities to the customer. The interior decoration, room furniture, bed, couch, TV, freeze lighting everything acts as physical evidence of the service. If any kind of room service available customer calls to the room service, a waiter attends the customer or if the customer wants to order some food the order is taken. The order is mainly taken by the room service, who then passes the order to the restaurant supervisor, restaurant supervisor informs the chief chef about the order. The food is then cooked and prepared for the customer. A waiter takes the food 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 comes to the lobby for check out, the bill is given to the customer. Again, registration process 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 the delivery 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 term customers. So, they have a competitive advantage embedded within their process because when the customers feels they are valued and given importance by the service 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 customer expectation. For example, Sarina prides itself for having a pool of talented and efficient employees who can deliver the service rightly to the customer and can handle the situation effectively. Hotel Sarina is the personalized service. The hotel goes every length to make the service personalized. Service Recovery Strategy Service recovery strategy is considered within the process. Whenever Hotel Sarina fails to deliver any service accurately according to customer need, they quickly take steps to recover the service so that customer does not get fad up and spread bad word of mouth about the company outside. Role of process employees The role of each employees with each other and also with the customer is defined hence there is no chance of role conflict. Front line employees are in frequent touch with his/her immediate supervisor. In case of emergency or if necessity the supervisor contact with floor in charge and manager. Service Variety Sarina has much different kind of services to offer for its customer according to their needs. There are 201 rooms including 14 suits, four restaurants, one bar and lobby caf, swimming pool, health club, Sauna & Stream bath, four Multi functions rooms. Hotel is equipped with safety and security equipment device including fire and smoke detector, water sprinkler, electronic door locks & CC TV. Process Capacity As mentioned earlier, Sarina has 201 rooms including 14 suits and 4 different restaurants. There are banquette halls for big number of customers or corporate meeting. This type of service capacity is enough to accommodate a large number of people. However, when they operate at full capacity they does not through their customers out, they cordially manage customers rooms in some other equal quality hotel.

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 Planning and managing projects As we already know Sarina is very well-organized Hotel. Their managing sector is very 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 will analyze the projects feasibility and give feedback to company whether this new project is fruitful or not for the company. The organization has to pay a big amount for this analysis to the outside company Inventory Management Hotel Sarina restaurants manages their inventory of raw materials (grocery items and other stuffs) based on the approximate demand of their foods. They usually keeps a bit extra amount of inventory so that in case of any mishap like hartal, oborodh when suppliers 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 the human interaction. So, how the employees are dressed, their appearance, behaves with customers, their manner of speaking, intention to help, promptness of the service, quality of the food, room, interior decoration everything is noted by the customers. So, a customer of a 5-star hotel searches for quality in almost every aspect of 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 upper level employee, they believe that customer is always right and so try to provide the customers 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 maintain such a database for restaurant customers. So, when forecasting about how much guests are going to come and visit in the next day, month or year they use intuition or judgmental method. For example, they said, they have pick hour between October to March. 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 the weekend. So, they prepare special dishes for these days.

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7.0 Problems identification

Inappropriate service cape: The services cape for Hotel Sarina is not at all appropriate. In a narrow street packed with universities, fast-food shops, beauty parlors and small shopping malls, the traffic flow in the road 17 of Banani is unbearable sometimes and foreigners also find such a crowded atmosphere of the commercial area with heavy traffic flow most of the time quite disrupting. It lacks proper car parking facility and the place always has a heavy traffic flow. By observing the hotel we also found that it is not that spacious compared to other five star hotels. Besides, as Sarina claims itself a five star hotel it does not have the swimming pool of international standard. Inadequate customer research: Sarina does not practice any formal customer research. They only does customer research for those corporate and long term customers but do not focus their marketing research on those short term customers. Though Sarina prides itself for building relationship with its customers but if they practice this marketing research for the short term customers then they would have increased their growth of customer share more. Inability to retain employees: Hotel Sarina has qualified, expert employees because they have the most rigorous recruitment policy. However, Hotel Sarina has contractual term of two years after that if the employees found any good opportunities 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 but they do not have such a spacious hotel or big swimming pool compared to other five star hotels. When it is running at full capacity the hotel may look like a lousy place instead of a 5-star hotel, which indirectly tells us that Hotel Sarina is over promising and increasing customers expectation. Customers expects 5-star hotel to be something very special. Forecasting the demand: To forecast demand, Hotel Sarina basically depends on their 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 they can 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-term customers, which may be the potential client in the future. As they have a reputation of a five star hotel they should enlarge the size of the swimming pool. Also Sarina they should increase the capacity of their existing hotel. Since the positioning of the Hotel Sarina is a disadvantage because of the crowded atmosphere, Sarina can engage few employees to clear the traffic as many of their customers 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 done lot 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 was difficult for us to match with their service industry of operation process. But to do this project-we are acquainted with one new environment where we introduced some upper class of people and also talked with some foreigner. We also observed their operation work and how service interaction takes place with the customer. The most interesting thing what happened here; for the purpose of this project we went there several times. But the final time Sarinas human resource manager was highly satisfied to see our activities and he said their probably need to do some project and they took our cell number. The overall of the project given us more enjoyment and taught new lesson. Finally we can say that it is completely different item we learned.

10.0 Conclusion
Hotel 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 they are also providing as much better quality service as they can. They always try to take care of 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 their part.

11.0 Bibliography
1. Krajewski, L., Ritzman, L., 2005, Operations Management-Processes and 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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