Republic of the Philippines

CAPIZ STATE UNIVERSITY

BURIAS CAMPUS
Burias, Mambusao, Capiz
www.capsu.edu.ph email address: burias@capsu.edu.ph

College of Management
Anna Mae I. Isoy Prof. Salve M. Ferrer, MPA
BSBA III-FM Course Facilitator

Production and Operation Management

CBMEC 110

MODULE 1 INTRODUCTION OF PRODUCTION AND OPERATIONS MANAGEMENT

Exercise I: True or False
1. True
2. True
3. True
4. True
5. True
6. True
7. True
8. True
9. True
10. True
11. True
12. True
13. True
14. True
15. True

Exercise II: Discussion

1. what is operations management?

 Operations management is the administration of business practices to create the highest
level of efficiency possible within an organization. Operations management is concerned with
converting materials and labor into goods and services as efficiently as possible. Operations
management entails studying the use of raw materials and ensuring minimal waste
occurs. Operations management is responsible for finding vendors that supply the appropriate
goods at reasonable prices and have the ability to deliver the product when needed.

2. Why is operation management important in all types of organizations?

Operations management is important in all organization because it concerned with
controlling the production process and business operations in the most efficient manner
possible, and comprises the set practices companies use to increase efficiency in production. It
helps effectively manage, control and supervise goods, services and people. Operations
management cuts across every sector and industry as it may concern.

3. What is the input-transformation-output process?

All operations in an organization produce products and services by changing inputs into
outputs using input-transformation-output processes.  Inputs are raw materials, it is relatively
easy to identify the transformation involved, A transformation process is any activity or group of
activities that takes one or more inputs, transforms and adds value to them, and provides
outputs for customers or clients. In other words, Operations are processes that take a set of
input resources which are used to transform themselves, into outputs of products and services.

4. What is the process hierarchy?

Process hierarchy is a hierarchical decomposition from core business processes to the
task level. The number of levels in a hierarchy is determined by the breadth and size of the
organization, large enterprise process hierarchy may include: Core Business Processes,
Processes, Sub-Processes, Process Segments, Activities and Tasks.  A process hierarchy shows
what is really going on in your business, Giving knowledge and understanding on how tasks flow
in your company, Pinpointing who is responsible for what and who is making key decisions.

5. How does operations process have different characteristics?

Operations processes differ in four distinctive ways, the volume of their output , the
variety of their output, the variation in the demand for their output and the degree of visibility
which customers have of the production of the product or service. These four aspects should be
carefully dealt with in ensuring process excellence. It includes higher efficiency, faster cycle time
and higher overall productivity. In essence, adding value to organization. As the competitive
nature of the business world increasingly demands, value creation is the key path to survival. It
is well recognized that the four Vs of operation, once aligned and appropriately tuned, should
ensure value creation.

6. What are the activities of operations management?

 The activities that performed by operation management, are deriving from its planning
or designing, organizing, and supervising functions.

Chapter II: COMPETITIVE, STRATEGY AND PRODUCTIVITY

Exercises
1. Explain competitive. Who are your main competitors that can have a large influence on
your business? You need to defined your main competitors base on the influence that they
have or will have in the future on your company. Make a list with 5 most important
companies that you have identified as competitors for you.
Competitive ca be describe as situations or activities in which people or firms compete
with each other. Knowing who your competitors are, and what they are offering, can help you
to make your products, services and marketing stand out. It will enable you to set your prices
competitively and help you to respond to rival marketing campaigns with your own initiatives.
In other hand, competition is good in field of business, it can drive innovations, inspires
perseverance and build team spirit. But of course, competition isn’t good all times, because
competitors can steal your costumers.
All businesses face competition. Even if you're the only restaurant in town you must compete
with cinemas, bars and other businesses where your customers will spend their money instead
of with you. With increased use of the Internet to buy goods and services and to find places to
go, you are no longer just competing with your immediate neighbors. Indeed, you could find
yourself competing with businesses from other countries. Your competitor could be a new
business offering a substitute or similar product that makes your own redundant. Competition is
not just another business that might take money away from you. It can be another product or
service that's being developed and which you ought to be selling or looking to license before
somebody else takes it up. And don't just research what's already out there. You also need to be
constantly on the lookout for possible new competition.

2. Explain strategy. What business systems are required to achieve success?

Strategy defined as a pattern or plan that integrates an organization’s major goal
policies, and action sequences into a cohesive goal. It is nothing but a master plan that the
management of a company implements to secure a competitive position in the market, carry
on its operations, please customers and achieve the desired ends of the business. Strategy
provides a roadmap to achieve a vision of what the organization should and could be three, five
or more years in the future. Strategy is Significant because it is not possible to foresee the
future. Without a perfect foresight, the firms must be ready to deal with the uncertain events
which constitute the business environment. Strategy deals with long term developments rather
than routine operations, it deals with probability of innovations or new products, new methods
of productions, or new markets to be developed in future. Strategy is created to take into
account the probable behaviour of customers and competitors. Strategies dealing with
employees will predict the employee behavior. Strategy, in short, bridges the gap between
“where we are” and “where we want to be”.
 In order for any business to succeed, it must first become a system so that the business
functions exactly the same way every time down to the last detail. Here are some business
system that required to achieve success, Personnel Business System, Personnel system describes
varied aspects of an organization’s work force. The outputs generated by personnel systems are
frequently used in compiling central & state labor power reports. Retail organizations are major
users of accounts receivable systems, since these systems detail monies that are owed to an
organization. Quality control is critical whether you're a service or product-based business. If
you want your business to grow, the best way to do that is to ensure that your customers stay
happy by ensuring the continued quality of their purchases. Account receivable systems, it
monitors the flow of money. An accounts receivable system monitors the people who owe
money to a business. It provides the means to process all data for credit cards and other kinds
of charge accounts. And Inventory System, Inventory system monitors the status of items held in
an inventory. These systems report on the quantities of goods on hand, as well as when items
should be purchased to replenish stock and what critical items are needed. Inventory systems
are crucial to organizations that maintain large and costly inventories. At its core, a fully
functioning business is basically a set of systems and processes.

3. Explain productivity. To be more productive, what is the biggest project that is on your
mind in this time of pandemic.
Productivity defined as a measure of efficiency of a person completing a task. The state
of being able to create, particularly at a high quality and quick speed. To be more productive in
every day you must manage your energy, be prepared, avoid thing that can distract you like
phone and don’t open your email until noon so that you can be more productive. Work in a cool
place and develop a pre-game routine to start your day. Within an organization, there are four
main types of productivity. Each has an impact on a different part of the supply chain when
you’re delivering customers a product or service.  Labor Productivity A type of productivity
measure that most employers are interested in knowing is labor productivity. It tells you if you
are efficiently transforming labor into a product or service. Capital productivity tells you the
ratio of products or services to physical capital. Physical capital could be equipment, real estate,
or anything else you need to produce your offerings. You improve physical capital through
capital deepening, which usually leads to a higher output of goods or services. Another ratio is
material productivity. This looks at the ratio of products or services to materials (also called
natural resources). Material productivity is more useful in some industries than others. For
instance, it has little value in an area like software development where few natural resources
are necessary, but it plays a major role in the production of goods. Lastly, we have total factor
productivity (TFP). This covers everything that capital, material, and labor productivity don’t
take into account. This can include changes in knowledge and skills, use of organizational
structures, returns to scale, and management tactics. These factors can have a great impact on
productivity in some service industries.
To be more productive in this time of pandemic, I need to think what strategy or plan
should I do in order to gain income. So, I decided to sell fishballs, Halo Halo, siomai etc. I've
come to realize that selling is not embarrassing work instead it helps me to more productive
every day. On the hand, it gives me a chance to do things i've never done before, to learn things
I never knew before.
CHAPTER 3 FORECASTING

EXERCISE
1. why forecasting is important in production and operation of the business? Explain your
answers.
Forecasting is a process of predicting or estimating the future based on past and present
data. Production Forecasting is an important input into the decision-making process and
investment scenario evaluation, which are crucial for an upstream organization.
The production forecast flows through the central nervous system of an organization and helps
to identify opportunities and decide on the best way forward. An accurate sales forecast is
an important tool for companies to have. It helps CEOs gauge the demand for their products. It
helps companies better manage inventory. Sales forecasting allows companies to see into the
future and strategically plan their moves to increase growth. Business Forecasting can be
broadly considered as a method or a technique for estimating many future aspects of a business
or other operation. Planning for the future is a critical aspect of managing any organization,
and small business enterprises are no exception. Forecasting provides information about the
potential future events and their consequences for the organization. It may not reduce the
complications and uncertainty of the future. However, it increases the confidence of the
management to make important decisions. The use of forecasts in business management is
indispensable for nearly every decision in every industry. The use of business forecasting
provides information that helps business managers identify and understand weaknesses in their
planning, adapt to changing circumstances, and achieve effective control of business
operations. Forecasting provides relevant and reliable information about the past and present
events and the likely future events. This is necessary for sound planning. It gives confidence to
the managers for making important decisions. It is the basis for making planning premises, and
It keeps managers active and alert to face the challenges of future events and the changes in
the environment.
Chapter IV PRODUCTION AND SERVICE DESIGN
ACTIVITY 1:
A. Make a product design of any products. In short bond paper.

B. Make a new product development in packaging of specific product.

EXERCISES 1:
Identify the food product, then make a service design for the specific food products.
My product is Burger and canned/bottled beverages.
Service Design
Purchasing Product. The purchaser is responsible for purchasing a product.

Receiving the Product. The receiver receives the products from the suppliers. He checks the
product for right quality and quantity. He deals with the delivery personnel from the supplier’s
end and signs on the related receipts.

Storing and Issuing the Product. The assigned storeman carry out the task of storing received
supply and issuing it to respective departments. 

Preparing and Presenting an BURGERS & BEVERAGES Product. This includes preparation of
various food items that included in our burgers and beverages.

Consuming the Product. This part is played by the guests. At the service end, the respective
staff takes inventory of the consumed and balanced stock of Burgers and beverages and keeps it
updated to latest figures.
MODULE 5 Capacity Planning

Activity: Using the 3 strategies of capacity planning. Give example in each strategies. Your
example should be on product and operation of the company.
Casey is CEO of a manufacturing firm that makes electronic components for computers,
smartphones, and other consumer electronic devices. Her company is doing quite well and is in
the process of developing a long-term strategic plan, which includes capacity planning. Casey
needs to figure out much raw materials, components, labor, and investment in equipment and
facilities her company needs to acquire over the next couple of years to meet future demand for
her company's products. Planning for capacity is important for many reasons. The level of
capacity Casey's company has affect its ability to be responsive to its customers and its ability to
compete with its competition. If there's a lack of capacity, customer needs are not served as
quickly, and these customers may be lost to competition. On the other hand, capacity is about
resources, and resources cost money.
Lag strategy is conservative in nature. If Casey's company employs a lag strategy, it will only
increase capacity when there is an actual increase in demand for her company's products and
services. A lag strategy helps to ensure that a company obtains the best return on its
investment as possible by not creating wasteful excess capacity.
Casey's company can employ a lead strategy for its capacity planning, which involves
increasing the company's capacity in anticipation of an increase in demand for its products and
services. This is an aggressive strategy that seeks to either create new customers or take
existing customers away from the competition by having the capacity to immediately respond
to customers' needs where the competition's present capacity is unable to do so.

EXERCISES:
There are 4 benefits of capacity planning. Using this benefits state your how capacity
planning effective in our situation COVID-19 PANDEMIC.
The rapidly evolving threat around the COVID-19 virus, is impacting the business
community across the world. 
MODULE 6: PROCESS SELECTION AND FACILITIES LAYOUT

ACTIVITY:

THERE ARE 7 LAYOUTS UNDER NON-REPETITIVE PROCESSING. SELECT 1 THEN MAKE A FLOW
OR LAYOUT ON HOW YOU UNDERSTAND THE PROCESS LAYOUTS.

Warehouse and Storage Layouts

EXERCISES:
There are 3 basic types of Layouts, explain further and give examples each layout.

 Product layout is an arrangement or a mechanism of various machines run to produce the final
product in a prescribed order. It explains about various missions which work before and which
work after to produce the whole product as an output. It is like the end product of the previous
machine will become the source product of the next machine. Example are majorly
manufacturing units and continuous processes. Certain industries like sugar, paper, and
cement. Also, automobile industries, electronic appliances, our daily needs like food,
manufactured which is the help of product layout.

Process layouts are found primarily in job shops, or firms that produce customized, low-volume
products that may
require different
processing
requirements and
sequences of
operations. Process
layouts are facility
configurations in which operations of a similar nature or function are grouped together. As
such, they occasionally are referred to as functional layouts. Their purpose is to process goods
or provide services that involve a variety of processing requirements.

fixed-position layout, the project remains in one place, and workers and equipment come to
that one work area. Examples of this type of project are buildings, bridge, and houses.

MODULE 7: MANAGEMENT OF QUALITY

EXERCISES:
1. How Quality Management System (QMS) important in the production and operation of the
business?
 Quality management system has big impact in production and operation of a business it
ensure superior quality products and services. A Quality Management System (QMS) is essential
for improving your business’s operations and enabling it to meet the requirements of
customers. Many types of quality management systems are built a framework requiring all
business processes to be documented and for people to follow these closely. A well
implemented quality management system will assist your company in lowering costs, improving
performance, reducing waste, and providing a structured training baseline for new and current
employees. QMS allows business to make customer satisfaction improvements. It establishes,
communicates, and aligns operational activities with organizational goals and priorities, so all
employees are aware of expectations. QMS are also important because it helps to establish
important operational goals while providing a means to measure and review how well your
organization reaches these goals.

2. Explain further the 4 key components of Quality Management.

The first step of quality management is Quality planning. You need to take the time to
identify your goals and what you want your baseline to be. You should determine what your
quality standards are, the requirements necessary to meet these standards, and what
procedures will be used to check that these criteria are being met.
Quality improvement states that it is part of quality management focused on increasing
the ability to fulfil quality requirements. Quality improvement is anything which causes a
beneficial change in quality performance. It is a systematic approach to the elimination or
reduction of rework, waste, and losses in the production process.
Quality control is a procedure or set of procedures intended to ensure that a
manufactured product or performed service adheres to a defined set of quality criteria or
meets the requirements of the client or customer.
Quality assurance is a process used to learn if your product or service is up to
standards, and whether you are giving customers the kind of product or service that will
keep them returning. Quality assurance helps a company meet its clients’ demands and
expectations. High quality builds trust with your customers, which, in turn, makes you
competitive in the market. It saves costs and fixes issues before problems become larger,
and it helps to set and maintain quality standards by preventing problems to begin with.

MODULE 8: INVENTORY CONTROL

EXERCISES:
1. Why Inventory Control important in production and operation of the business?
Most firms would lose business without goods on hand that’s why inventory
control is important in production and operation of a business. Inventory control can minimize
the blockage of financial resources of a firm. It reduces the unnecessary tying up of capital in
excess inventories and also improves the liquidity position of the firm. Inventory control also
helps the firm in tiding over the demand fluctuation. These are taken care of by keeping a
safety stock by the firm. Efficient inventory control will reduce inventory investment and
minimize handling cost without adversely impacting customer satisfaction levels.

2. In inventory solutions what is the most effective way to be used in your business.
Assume that I have my own business, I think that the four inventory solutions
are all effective but if I have a chance, I prefer Excel spreadsheets, so that it easy for me to store
all business information. Then I use Excel formulas to automatically calculate information for
total sales, total profit, and organize my inventory based on products that sell the most using a
few simple formulas.