OM in the News: Disney World’s Start and Project Management

When Disneyland in Los Angeles opened in 1955, it was, in many ways, a disaster, writes The Wall Street Journal (Jan,6-7, 2024). There were rides out of service, restaurants that ran out of food, soft asphalt that consumed the heels of women’s shoes—all of it broadcast on national TV. Little wonder, then, that there was trepidation as the Walt Disney company approached the 1971 opening of the far more ambitious Walt Disney World, here in Orlando, especially as the word spread that it might not open in time. So, when Dick Nunis, the head of park operations, took control of the project, he was given carte blanche to do whatever it took to open the gates on Oct. 1st.

“There wasn’t anybody on that property who thought we were going to open on time,” said Dick Evans, one of the park’s managers on opening day. “And opening on time was critical to the company. We were at that point in debt up to our eyeballs. We’d borrowed close to $400 million to build phase one of Walt Disney World. And within a week of the time that he came on the property, the entire perspective changed. The energy level changed. He came in there like a tornado.”

Nunis, who recently died at the age of 91, fired contractors who got in the way, held meetings at 5 a.m. and put signs up all over the property that said the park would open on Oct. 1st. He made sure construction workers knew that their families were invited to the park a week before opening. He flew palm trees in on helicopters the night before the gates opened.

Not only did he understand the logistics of what it would take to hire thousands of employees, motivate construction workers and oversee the myriad details of opening a resort, he had worked closely with Walt Disney for a decade and knew how the company’s founder would have wanted it done.

Chapter 3 in our text deals with project management and the critical role of the project manager, Nunis, in this case. What does Disney World look like 62 years later? With 77,000 employees (called “cast members”) and six parks (Animal Kingdom, Epcot, Magic Kingdom, Typhoon Lagoon, Hollywood Studios, and Blizzard Beach), we see that the stakes in project management are high.

Classroom discussion questions:

  1. What are the responsibilities of a project manager?
  2. What are the 3 phases of the management of projects? (Hint: see page 62 in your text).

Good OM Reading: Analytics at Disney World

Here in the tourist mecca of Orlando, Disney World reigns as king. With 60,000 employees (called “cast members”), Disney is a driving force not just in our economy, but in the use of operations management tools. Analytics (Sept.-Oct. 2012) has a great piece on the careful planning guests don’t see taking place “behind the scenes” to run the operation smoothly. The article examines the role analytics plays in ensuring the guest experience is maximized. It makes a nice supplement to our text coverage of Disney in both the forecasting (Ch.4) and waiting line (Module D) chapters.

The authors write: “Forecasting serves as the analytical foundation for operations planning at the Resort. It all starts with the park attendance forecast, which lays out the expected attendance at each park. These predictions are strongly considered when setting park hours and performing other strategic planning. More granular forecasts are required for each individual area, such as guest arrivals at the hotel front desks. The company recently launched a new labor demand planning system, which generates forecasts for every 15-minute period at many locations throughout the property, including park entry turnstiles, quick-service restaurants and merchandise locations. These forecasts help the resort plan labor effectively to ensure guest service standards are met”.

Another innovative way the resort uses forecasting is for attraction wait times. The most popular attractions use Disney’s FASTPASS system – a unique virtual queueing system that allows guests to receive a ticket with a designated 1-hour window of time when they can return and skip the regular line. From a central command center underneath the Magic Kingdom, forecasting models are executed every 5-10 minutes to project the return patterns of FASTPASS guests based on entertainment schedules and the number of FASTPASS tickets that have been distributed. The forecasts are posted at the front of the attractions to help guests choose whether to enter the line, take a FASTPASS ticket or return to the attraction later in the day. These wait times are also available on Disney’s Mobile Magic smart phone app, which shares real-time information about the parks throughout the day.

I think your students may also enjoy reading this down-to-earth article.

OM in the News: Service Quality vs. Maintenance Time at Disney World

You might not think that maintenance of  Walt Disney World’s monorail line in Orlando would be a controversial topic (see Ch.17). But the Orlando Sentinel (July 12, 2011) reports that plans to give maintenance crews more time to work on the aging system are certain to anger Disney’s premium-paying hotel guests. Disney had previously kept its trains running until at least 1 1/2 hours after theme parks closed.  Now service will shut down 1 hour after normal closing hours.

The beef is that guests who stay at these hotels on Disney property have “late night privileges”. This means the parks will stay open for them–and not for regular guests–  as late as 3 am and then reopen at 7 am. But Disney says that trains take 90 minutes to “cycle down” and another 90 to “cycle up” the next  morning, leaving only 1 hour of downtime for maintenance.

Reliability has suffered in recent years, perhaps because of the limited repair time. In 2009, the monorail system lost power at 1 am and it took Disney’s crews 3 hours to unload the weary passengers. “It’s been pretty obvious that transportation maintenance is one of the areas they cut back on during the recession”, says the popular website  Disney Blog. The blog also predicts Disney will suffer a backlash from guests staying at the most expensive hotels on the property, since they are the ones who “expect the most preferential treatment”.

Discussion questions:

1. Discuss the tradeoff between customer service and the need for more maintenance time.

2. What else can Disney do to deal with the problem?