Operations

Study
 Operations Study
For the Business Enterprise Simulation course, most, if not all the aformentioned decision areas are
lodged with the owner-proprietor and the operations teams. It is important to identify some critical
areas that should be included in the operations study, as follows:

The decision areas in the operations study should include

•product or service description;

•supplier-partner description; and
•cost of product or service
PRODUCT OR
Producr or Service
SERVICE
DESCRIPTION
Description
Product or Covers only the service and merchandising
sectors

Service Product purchase for merchandising operations should be

inspected for trademarks, business name and registrations and/or
quality marks

Description A cursory check on the labels or review of the websites of the product
source is recommended. The DTI also have information on the quality
standards for most product sold in the Philippines, whether these are
from domestic and foreign supplier.
Service Enterprise should comply with established quality standards.

Flowchart may be required for enterprise

project to ensure compliance with quality
standards.
The product or service
description in the operations
study us different from the
Does the product have a shelf life or best-
before feature?

description in the marketing Is there a product liability?

study. The operations study

description focuses on providers
Does the product comply with established
quality standards?

of the inputs, while the How long would each service unit delivery
take?

marketing study description

involves users of the output.
What are the steps involve in the service
delivery?

Some questions that may be answered would include the following:

 SUPPLIER-PARTNER
DESCRIPTION

The supplier-partner description will include the process, supply

chain, and inventory management tasks for the owner-proprietor

and operations teams.

Some questions that would be critical for cost considerations of

both service and merchandising projects would be:

 4 6 8 10
1 Does the supplier replace Is there a minimum volume What is the setup time for the What is the area required for
Does the supplier-partner defective products that are for discounted purchase tools and equipment? the recommended layout?
offer affortable prices? returned? goods?

2
Does the supplier-partner
offer delivery services?

7 11
5 9 What facilities are required
3 What is the lead time for
Is there a setup cost for tools
and equipment? Is there a required layout for for the service delivery?
DOES THE SUPPLIER OFFER
delivery of the purchased the service delivery?
goods?
GOODS ON A CONSIGNMENT

BASIS?

For service enterprises, supplier sources may include skilled

Whenever possible of applicable, the learner-entrepreneurs laborers, such as watch or gadget repair technicians, beauticians,
may opt to get a supplier aggrement with the chosen or even cooks or chefs. It is recommended that qualifications of
supplier-partner. skilled employees are checked like training certificate or
government issued licenses or permits
 COST OF PRODUCT OR
SERVICE
The cost of product or service would include expenses for the
following:
 RENTAL OF
RENOVATION OR SALARIES UTILITIES
SHOP OR CONSTRUCTION OF
AND WAGES EXPENSES
OUTLET FACILITIES
Add a fun fact here
Add a fun fact here Add a fun fact here
Add a fun fact here
 PURCHASE
PURCHASE OF AND/OR RENTAL
TRANSPORTATION COMMUNICATION OF-
EXPENSE EXPENSE SUPPLIES
•Machinery, tools, and
Add a fun fact here Add a fun fact here
Add a fun fact here equipment
•Furniture and furnishings
It may be helpful to classify the direct and
indirect expenses incurred for the projects.
The information may be relevant for the
pricing decisions of the marketing team.
Thank you for
listening!