Operations Management, 12e (Heizer/Render/Munson)
Company Videos - Hard Rock Cafe
Company Videos
HARD ROCK CAFE: OPERATIONS MANAGEMENT IN SERVICES
There is a short video (7 minutes) available from Pearson and
filmed specifically for this text that supplements this case.
1. Hard Rock’s 10 decisions: This is early in the course to discuss
these in depth, but still a good time to get the students engaged in
the 10 OM decisions around which the text is structured.
Product design: Hard Rock’s tangible product is food and
like any tangible product it must be designed, tested, and
“costed out.” The intangible product includes the music,
memorabilia, and service.
Quality: The case mentions the quality survey as an overt
quality measure, but quality can be discussed from a variety
of perspectives—hiring the right people, food ingredients,
good suppliers, speed of service, friendliness, etc.
Process: The process can be discussed from many
perspectives: (a) the process of processing a guest, to
their seat, taking the order, order processing, delivery of
the meal, payment, etc., (b) the process of how a meal is
prepared (see, for instance, how one would make a Hard
Rock Hickory BBQ Bacon Cheeseburger (Figure 5.9) or
a Buffalo Chicken Mac & Cheese (Figure 14.9) or use
the Method Analysis tool discussed in Chapter 10, or (c)
some subset of any of these.
Location: Hard Rock Cafes have traditionally been located
in tourist locations, but that is beginning to change.
Layout: Little discussion in the case, but students may be
very aware that a kitchen layout is critical to efficient
food preparation and that a bar is critical in many food
establishments for profitability. The retail shop in relation
to the restaurant and its layout is a critical ingredient for
profitability at Hard Rock.
Human resources: Jim Knight, VP for Human Resources
at Hard Rock, seeks people who are passionate about
music, love to serve, can tell a story. This OM decision is a
critical ingredient for success of a Hard Rock Cafe and an
integral part of the Hard Rock dining experience.
Supply-chain management: Although not discussed in the
case, students should appreciate the importance of the
supply chain in any food service operation. Some items like
leather jackets have a 9-month lead time. Contracts for meat
and poultry are signed 8 months in advance.
Inventory: Hard Rock, like any restaurant, has a critical
inventory issue that requires that food be turned over
rapidly and that food in inventory be maintained at the
appropriate and often critical temperatures. But the
interesting thing about Hard Rock’s inventory is that they
maintain $40 million of memorabilia with all sorts of
special care, tracking, and storage issues.
Scheduling: Because most Hard Rock Cafe’s sales are
driven by tourists, the fluctuations in seasonal, daily, and
hourly demands for food are huge. This creates a very
interesting and challenging task for the operations
managers at Hard Rock. (Not mentioned in the case,
linear programming is actually used in some cafes to
schedule the waitstaff.)
Maintenance/reliability: The Hard Rock Cafe doors must
open every day for business. Whatever it takes to provide
a reliable kitchen with hot food served hot and cold food
served cold must be done. Bar equipment and point-of
sale equipment must also work.
LO 1.1: Define operations management
AACSB: Reflective thinking
2. Productivity of kitchen staff is simply the output (number of
meals) over the input (hours worked). The calculation is how many
meals prepared over how many hours spent preparing them. The
same kind of calculation can be done for the waitstaff. In fact, Hard
Rock managers begin with productivity standards and staff to
achieve those levels. (You may want to revisit this issue when you
get to Chapter 10 and Supplement 10 on labor standards and discuss
how labor can be allocated on a per-item basis with more precision.)
LO 1.4: Compute single-factor productivity
AACSB: Analytical thinking
3. Each of the 10 decisions discussed in Question 1 can be
addressed with a tangible product like an automobile.
Product design: The car must be designed, tested, and costed
out. The talents may be those of an engineer or operations
manager rather than a chef, but the task is the same.
Quality: At an auto plant, quality may take the form of
measuring tolerances or wear of bearings, but there is still
a quality issue.
Process: With an auto, the process is more likely to be an
assembly-line process.
Location: Hard Rock Cafe may want to locate at tourist
destinations, but an auto manufacturer may want to go to a
location that will yield low fixed or variable cost.
Layout: An automobile assembly plant is going to be
organized on an assembly line criterion.
Human resources: An auto assembly plant will be more
focused on hiring factory skills rather than a passion for
music or personality.
Supply-chain management: The ability of suppliers to
contribute to design and low cost may be a critical factor
in the modern auto plant.
Inventory: The inventory issues are entirely different—
tracking memorabilia at Hard Rock, but an auto plant
requires tracking a lot of expensive inventory that must
move fast.
Scheduling: The auto plant is going to be most concerned
with scheduling material, not people.
Maintenance: Maintenance may be even more critical in
an auto plant as there is often little alternate routing, and
downtime is very expensive because of high fixed and
variable cost.
LO 1.2: Explain the distinction between goods and services.
AACSB: Reflective thinking
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Operations Management: Sustainability and Supply Chain Management, 12th Edition (Free Ebooks Download)
Jay Heizer, Texas Lutheran University
Barry Render, Graduate School of Business, Rollins College
Chuck Munson, Carson College of Business, Washington State University
Free Online Course Materials
1. Operations Management Ebooks - Free Downloads
2. Slides - 11th Edition - Free Downloads
3. Slides - 12nd Edition - Free Downloads
4. Full List of Videos Case Studies - Link
5. All articles about Operations Management
http://topten.edu.vn/mba-cases/94-mba-operation-management
6. Need any help with case study guides, email: ecomftu2012@gmail.com
Good Luck and Success!
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