Mendiola, Roz Rainiel M.

BSA 2-4
OPERATIONS MANAGEMENT & TQM QUIZ # 1

1.) What is the difference between Manufacturing and Service? Define each.
A service is a company made up of a professional or skilled team that works or helps its
clients to carry out a task. The product a service provider provides is not a product like a television,
clothing or food product that you are buying in the store. A service company offers a product that
consists mainly of personal labor and knowledge to perform the requested activity. For example,
you might buy your first house with an immobilizer, because you would like to draw on their know-
how, negotiation abilities and knowledge from the documents required.
Manufacturing refers to a mass production of commodities which, with manual labor and/or
equipment, convert raw materials, parts and components into completed commerce. The finished
goods might be directly sold to consumers, other producers to make more sophisticated products
or to wholesalers distributing the goods to shops.
While manufacturing concentrate on the manufacture of commodities and store them in a
warehouse prior to delivery to customers, service delivery facilitates simultaneous production and
consumption of services. A car firm, for example, manufactures a car and holds it at the
warehouse till a customer may buy it. In the presence of the customer. For subsequent use,
services cannot be saved. When there is a great demand for services, service operations should
employ additional staff and change operations to administer the supply-demand equation
accordingly. As manufacturer companies do not need to employ additional resources and adjust
operating activities when there is great demand for items due to their nature of production and
storage. In reality, they do not need further resources.

2.) Explain in your own words why productivity matters?

I think that productivity matters because it can help not just the firm but also yourself
increase the utilization of capacity of human resources it has. As I believed that most of the top
and productive companies have happy and healthy employees, which are the core strengths of a
successful and productive organization. There are many reasons why productivity matters but I
am going to focus the effects to your company and as an individual.
When it comes to company, Workplace productivity typically leads to good customer
service and interaction. This overall customer experience is the key to delighting customers and
customers and is used for customer loyalty by nearly all highly productive firms. If a client is loyal
to your company, he or she will share his or her experience with others which is a highly productive
marketing advantage. Another, is the staff is an investment and they should bring a healthy or
worthwhile return to the company just like any investment. So, the corporation fulfills its objectives
of investing in the companies when its employees are extremely productive. Productivity also
serves to motivate and encourage workplace culture, creating an even better business
environment. And lastly, more often than not, when a company is very productive, it will eventually
succeed, and the employees will thus be compelled to receive incentives. These include pay
increases, bonuses, health insurance, etc. This will also motivate and provide more chances for
employees as the company grows. Productivity in the workplace is a major part of each
organization and success is just around the corner if top management understands this concept.
However, you may want to start looking for a job if your employer does not give you the motivation
to raise productivity, because your organization's life blood is running out.
As an individual, it matters because when you are productive, it will give you the reason
to get up every morning and continue despite any challenges you may face. Another is, being in
control is very important, as it gives you the power to steer in the right direction and stay on the
right path. Every time you overcome an obstacle, every time you don’t let yourself get distracted
by other things, you’re one step closer towards reaching your goals. And lastly, productivity is
important and why you should care. Because setting out on those paths and accomplishing your
goals will ultimately lead to a meaningful and fulfilled life. A happy life.

3.) On your own words, Explain Project Management.

Project management is a processes, methods, skills, knowledge and experience
application in order to achieve specified project goals within agreed parameters, in accordance
with project acceptance criteria. The final outputs in project management are limited to a limited
timetable and budget.
One of the main characteristics of project management is its deliverable finishing period
and a fixed period of time, unlike ongoing management. This means that a professional in the
project needs a large number of competencies; typically, technical competencies and certainly
managerial expertise and solid commercial understanding. It mainly consists of four stages or
process and that are: Initiation, Planning, Execution and Closure. But what is the purpose of
project management in the word of a student?
I think that the purpose of it is that Project management is responsible for designing and
managing a project to achieve its objectives and achievements. It requires risk identification and
management, careful management of resources, intelligent budgeting and effective
communication across a variety of teams and stakeholders.
What is the importance of it and is it rewarding? I think that it is important because the
most common cause of the project failure in most of the years were a lack of clear objectives.
Project managers assist companies in achieving their priorities and defining their project goals.
The scope and objectives might easily be jumbled when the administration of the project is left to
the team. Unclear focus might lead to slowing, missing time limits and excessive expenditure.
Moreover, many teams may not detect possible risk factors as they occur without a project
manager who oversees the project plans and job breakdowns. The team could wind up prioritizing
the mistaken tasks if it doesn't address evolving project risks. And Risk management is reduced
and easy to repair because it is planned ahead for possible errors that happened within the
project. And lastly, yes, it is rewarding because when a goal or an objective is focused on and
plans are planned out the road to achieving is a breeze despite the risks and obstacles that need
to be conquered the reward of it is so worth it as they say.

4.) Explain the forecasting approaches.

There are two approaches when it comes to Forecasting: Top-down Approach and
Bottom-up Approach. The first one is the Top-down Approach wherein this way, the corporate or
strategic level predictions are made. It begins with an overall economic prediction. The report
anticipates the gross domestic product, the consumer and wholesale pricing index, interest rates,
unemployment level, government spending, etc.
 It then determines the existing market share of its product and forecasts commercial
success. This projection is used to plan operations and budget future programs. Meaning that the
company starts with a complete market evaluation. You first identify your company's existing
market size and the factor in corresponding sales patterns. You may then estimate how much
your items or services will be purchased on the market. In the light of these trends, you study the
strengths and weaknesses of your business and preferably how your strengths are amplified and
your deficiencies remedied.
Another approach is the Bottom-up approach where it in the approaching years, middle
and low staff are planning business operations. For example, they poll customers to see what
people want to purchase. These predictions are made by various salesmen, who finally
summarize the sales estimate.
In order to make such estimates, a questionnaire is typically posted or completed by calling
forward-looking customers. For a limited period of one year these projections are usually reliable.
In other words, it is based on the product or service, which makes a forecast of what you
need to make your offer on the market (i.e., things like how many employees you have, how many
factories you can open or how many clients you have). Bottom-up projections, also known as an
operating expenditure plan, assess aspects such as production capacity, individual departmental
cost, and adjustable markets to provide a more realistic sales estimate.
5.) What are the advantages and disadvantages of Standardization? Explain.
Standardization is defined as a way of achieving a firm's techniques, mostly due to its
production process and uniformity throughout the company. Standardization helps decrease
costs by eliminating double effort, and allows the organization, when making purchases, to take
advantage of scale economies. It is crucial to understand the advantages and cons of
standardization.
The first key benefit of standardization is quality control; clients have a uniform brand-wide
experience, irrespective of their ownership. The second major benefit of standardization is that it
can contribute to cost reduction because only the products are included. The third advantage of
standardization is marketing: standardization enables companies to avoid reliance on a single
supplier source; this is because standardization helps to open markets. Companies have also
raised their supplier demand, which is mostly dependent on uniformity.
Although there are some advantages in standardization, there are also disadvantages to
it. These are: Standardization's first downside is that it will lose its distinct characteristics. This is
because if an organization grows on its client base that appreciates its distinctive offerings, the
standardization will mean that the company would lose reactivity. This is because standardization
could be turned against the enterprise when an organization extends to new markets, namely in
international countries. For example, if a restaurant deals with a certain type of food, adapting to
new markets where clients can prefer dishes such as chicken tenders may be difficult. It may
make it challenging for the company to answer these new consumer expectations with their
standardized rules. Standardization's other downsides are that it can work for select companies
only and that it cannot work for other companies. For instance, for those companies dealing with
customer service or advertising standardization is not appropriate, the other drawbacks of
standardizing are that they hamper or hamper creativity and response time in companies. It would
become the status quo if firms were to make the shift, which would be hard to break, and
eventually become the corporate culture which makes it difficult to change. To sum it all up,
standardization would depend on the company and employees a chance to make or break with
utilization of their skills when it comes to this.
6.) Explain the obstacles to implementing TQM
Most organizations are content with their present state, especially small ones with a
specialty. They are content with the amount of work done and the profit achieved, and with the
perceived satisfaction of their customers. TQM is not needed for organizations with this culture
until they start losing market shares. I think there are several obstacles that hinder when it comes
to TQM.
Management lack of engagement: First of all., to succeed in any organizational
undertaking, managerial time and organizational resources must be substantially managed. The
objective must be made known to all staff managers explicitly and continually under the TQM
concept. Another is that Unable to influence the culture of organization: It is difficult to change the
culture of an organization and it will take up to five years. Individuals resist change – they are
used to a specific method and the preferred way. Management needs to grasp and use the
fundamental ideas of change. They do; when people desire to achieve their own wants, people
alter Do not wait for anyone to engage in conduct that serves the ideals of the organization, save
for appropriate reasons. In order to embrace the change, people need to be pushed from fear to
confidence.
There are many obstacles that can be observed and hindered but to counter these
obstacles is that to plan ahead and pursue what is the goal in the first place. I know that it is
difficult to take initiation within a group but if one does not take one step then it is failure in the
beginning for not trying and taking a risk because of it.

7.) Define technology and its kinds. Elaborate.

Technology means the utilization of scientific information, in the industry or in our everyday
life, for practical objectives or applications. Therefore, basically, we employ technology whenever
we employ our scientific knowledge to reach a particular aim. Well, it's a bit more than that.
Technology usually involves a particular piece of equipment, yet it can be unbelievably basic or
brilliantly complicated. From wheel discovery through computers to MP3 devices, everything is
possible.
There are many kinds of technologies that wander around us especially in the world we
live in A crucial and most important range of technology is medical technology. This includes the
technology-driven machinery and services in the medical sciences. Different sorts of medical
techniques, such as disease analysis tools, pain reduction tools and illness treatment tools, are
available. All are beneficial in protecting humans against hazardous bacteria and viruses, which
improve their lifetime.
Another kind of technology: Assistive technology is also a well-known sort of technology
that assists disabled persons to perform specific tasks. As we already know, persons with leg
problems have a hard time walking, those with hearing problems listening and blindness watching
what we are seeing. The helpful technology devices will help to ensure that every person is able
to integrate within his or her body or as external equipment. An example of assistive technology
is the automated self-operated wheelchair. Some additional examples of aid technology are
presented below.
The most extensive group of members is likely to be found in the entertainment
technology. It ranges from your desk computer speakers to music class guitar. These technology
gadgets offer the folks with their large assortment a pleasant relaxation. This area of technology
is utilized for video games, theatrical creation, film production and many more entertainment. In
our everyday lives it is really hard to resist this type of technology. Some of the entertainment
technology items have been supplied here.
There are many kinds of technology that are useful especially in these times and it can
help reduce workload and improve efficiency and that’s the good thing of it because the future is
coming into us and we have no choice but to embrace and adapt to it starting from these kinds of
technologies.
8.) On your own words, explain location decisions.
While localization choices are rarely taken for most companies, they can permanently
affect the revenue and performance of the company. Existing enterprises are normally required
to decide where they are to expand, including the enlargement of the current facility, the addition
of new sites, or the relocation of existing sites.
Contrary to other company procedures, which can be adapted fast and easily over time,
changing locations can be a time-consuming and time-consuming undertaking. One of the biggest
challenges in finding a suitable location is that one location that is probably "better" than the other
options may not be found. This is because a number of factors can greatly influence the decision
of an organization as to where its various operations should be located.
Location Decision means choosing a business location for business. It is not so very
important decision for the business. Its main aim is to find out the best alternatives from different
choices. Location Decision is important for both small and large organization. There are many
objectives when it comes to location decision making: Accessibility Location is important for every
business to sell its products directly to customers a fixed place. For example, the clothing shop
which is located in the busy area attracts more customers than the clothing shop which is located
in a town area. Location can influence the customers to a great extent. Competition: The location
of the business also affects the competition to a great extent as all the business sells similar goods
and services. So, the business should choose a location for selling its goods and services where
few competitors are available. Operating Expenses: The total cost of production also influences
by business location decisions. If the location of the business is in a crowded area, then its rent
is more than the business whose location is located in the less expensive area. And lastly, Tax
and Regulations The location of the business determines the state and local tax that the owner
have to pay. The rates of sales tax and income tax are different from each other so it has a great
impact on the earning of the owner.
9.) Define PERT-CPM and its advantages
Project management can be viewed as a systematic technique of project planning,
planning, execution, monitoring and monitoring, in order to achieve the objectives that were
achieved during drafting. The two network-based project management methodologies, PERT and
CPM, demonstrate the flow and sequence of activities and events. Program (Project)
Management and Review Technique) is suitable for projects that are not aware of the time to
complete various operations.
The Critical Path Method or CPM, on the other hand, is suitable for projects that are
recurrent. Both techniques of scheduling use a same strategy to develop and determine the
crucial path of the network. They are utilized when a project is successful and are therefore utilized
together. The truth is, however, that CPM is different from PERT so that the latter focuses on time
and the former emphasizes time-cost trade. Similarly, in this essay we will explore a lot of
contrasts between PERT and CPM.
 The advantages of PERT-CPM is that Planning for large PERT projects - The project
manager will simply schedule the project activities using the PERT system. This strategy is more
active in advanced work in huge projects. Critical Path Visibility in PERT — The PERT approach
shows a clearly defined critical path. The main route is a journey that can under no circumstances
be delayed. The project manager can take rapid and quality judgments that will support project
performance with proper knowledge of the stack values with a limited dependency condition when
it comes to PERT
The advantages of PERT-CPM in the CPM side is that CPM identifies activities which can
operate side-by-side. It helps the project director discover the project's most important parts. CPM
provides a rigorous and practical basis for establishing how the goals can be reached. In new
project management, CPM is effective. If utilized correctly, it can enhance a team's perception.
CPM shows dependencies that assist in the planning of individual activities. The work and its
results are shown as a network diagram. CPM delivers the project documentation fair and
straightforward procedure. It helps to determine the time slowness.
10.) Explain the driving forces for product and service design.
In the searching and researching of the driving forces this the result: The driving forces for
product and service design or redesign are market opportunities or threats are: Economic. Social
and Demographic, Political, Liability, or Legal Competitive. Cost or Availability and Technological.
But when it comes to my words, I think that Analysis of market opportunities helps discover the
customer wants and build and provide solutions to satisfy them. The examination of market
opportunities can improve the company's business image. An examination of market opportunities
can enable the company, by introducing customized products, to acquire a competitive advantage
over the market. Market Chance Analysis enables companies to make the best use of resources
available. The examination of market opportunities helps a corporation achieve its organizational
targets, such as market share rise, profit rise, etc. An examination of market opportunity may
allow a company to expand its business on existing and new markets. This is what makes the
driving force on the roll and another is that Chances occur in many various shapes and sizes,
therefore identifying them as such is crucial and first step towards success. This often challenges
both organizations and companies with a basic difficulty. An innovative, adaptable and methodical
approach is required in order to understand and make the most of opportunities in a continuously
changing environment and the market. Not many companies – whether start-ups or multinationals
– have time, money or knowledge to perform a comprehensive evaluation of the market chance.