Evangelista, Justine Rey E. Ms.

Amarila

3.2BSBAFM-CY2-PM BAFCBMEC2 – Operations Management

TASK1: Prepare a short paper on the topic Quality: When is enough? Who is responsible? After
reading the materials provided to you, you should also discuss the goal of an Operations
Manager.

According to Investopedia, Operations management is the administration of business

practices to create the highest level of efficiency possible within an organization. It is concerned
with converting materials and labor into goods and services as efficiently as possible to
maximize the profit of an organization. Operations management teams attempt to balance costs
with revenue to achieve the highest net operating profit possible.

Operations management involves utilizing resources from staff, materials, equipment,

and technology. Operations managers acquire, develop, and deliver goods to clients based on
client needs and the abilities of the company. Operations management handles various strategic
issues, including determining the size of manufacturing plants and project management methods
and implementing the structure of information technology networks. Other operational issues
include the management of inventory levels, including work-in-process levels and raw materials
acquisition, quality control, materials handling, and maintenance policies.

In operation management, quality is determined if the customer meets or exceeds their

expectation to the product or a service. So how can we achieve it? When can we say that our
product or service satisfies our customer? How are operation manager responsible on it?

Let us start with the Service, example is given in the module where a dentist sets
standard 40 patients/day, but she treated 30 patients only. We can say that her standards are not
enough because she has only 75% efficiency on her own standards and this might make bad
impression to her clinic. However, her responsibility to this is so important because she needs to
have better strategy or be productive to meet or exceeds the expectation to the standards of her
clinic. Moving to the quality of the Product, for example is the standards set on a smartphone,
again, we can say that the quality of the product is enough if the customers meet their
expectation on it or it exceeds their expectation. On the other hand, if something gets wrong on
their product or in the product review, operation manager must be ready for it in handling in a
good and better way.

To sum up, a product or service must be worth it to the customers and the operation
manager must be ready to handle the negative side on it.
 Operation is that part of as organization, which is concerned with the transformation of a
range of inputs into the required output (services) having the requisite quality level. It is the
process, which combines and transforms various resources used in the operations subsystem of
the organization into value added services in a controlled manner as per the policies.

When is enough? Providing a good or high-quality is not enough since now a day, people
change their taste quickly for them to improve their lifestyle that’s why innovation is affiliated
into businesses. Like for example, Starbucks Coffee offered high quality products that is
expensive compare to those coffee in 7- eleven that offered coffee that less expensive. But even
though, Starbucks Coffee are more expensive, their operation management make sure that the
quality of their products they’re using are high for them to satisfy their customers taste and smell
of their products. But for some other reason, providing good quality or enough quality is enough
specially, for those people that are comfortable for the product they bought as long as it can give
them the satisfaction that accustomed to their lifestyle and that’s what loyalty happen.

Who is responsible? The quality assurance is responsible for the quality of a product since they
were tasked to check the work of the operation management. By providing a standard quality
product, the quality assurance management must check the finished product of the operation
management for them to avoid some problems about their products.

TASK 2: Production and Operations Standard: Why necessary to maintain?

Production and Operations is defined as the process which transforms the inputs,
resources of an organization into final goods (or services) through a set of defined, controlled
and repeatable policies. But Production is different from Operations in the sense that production
deals with the combinations of the necessary resources to make outputs available to the
customers, and it involves all the departments to have their take in decision making because
every department has it goals to achieve and it should be manifested before, during and after, for
example research and development department must be able to come out with unique ideas that
will be attracted to the customers based on their needs and wants, and that will be given the firm
the competitive edge over its competitors to be the market leader, but the operations management
deals with breaking down the goals of every department into tactics, that should be achievable.

Successful organizations have well defined and efficient line function and support
function. Production comes under the category of line function which directly affects customer
experience and there by future of organization itself. Aim of production function is to add value
to product or service which will create a strong and long-lasting customer relationship or
association.

An effective planning and control on production parameters to achieve or create value for
customers is called production management.

Production and Operations Standard: Why necessary to maintain?

It is essential to maintain the standard procedure in the production and the operation to
ensure that the quality of the service or product that was rendered is in uniformity. Standard can
reduce the lack of direction since by following it can improve the performance properly inside
the production. Standardization focuses on the product creation process, operation of businesses,
technology in used and how it was performed. Therefore, it is important to maintain the proper
standard procedure so that we can have a smooth transaction toward our customers and provide
the quality of product or services that they deserved. Every business here in the Philippines is too
strict when it comes to the standard procedure or step that must be performed for them to avoid
some complaints coming from the customer that is harmful for the reputation of the company. To
understand well the importance of following the proper standard in the production and in the
operation is, I compare this into the flow of our road here in our country. First, the road represent
as a company that was providing job for all the employees inside it, second, the car that represent
as the employee that performing the work inside the operation, third, the traffic light that
represent as the standard step or procedures that we must follow for us to do our task properly
and efficiently, fourth, the traffic enforcer that represent as the operation manager that is guiding
the employee (car) to do their task in aligned to the standard that was implemented. Therefore, as
a car (employee) you have to follow the proper flow of the traffic rules (standard steps) for them
to avoid accidents that could end up into losing their life and as operation manager you have to
guide and check them if there doing it right for them to avoid some mistakes that could lead into
a messy production.

TASK 3: Write an expository essay regarding the importance of inventory control in making
sound production and operations decisions, cite examples.

What Is Inventory Control?

Inventory control, also called stock control, is the process of ensuring the right amount of
supply is available in an organization. With the appropriate internal and production controls, the
practice ensures the company can meet customer demand and delivers financial elasticity.
Inventory control is essentially about reducing costs and improving service. It is also how you
manage your working capital to maintain consistent and adequate cash flow.

Achieving effective inventory control is accomplished by having the right product, in the
right place, at the right time. Maintaining the stock necessary to meet customer’s needs, deliver
on quality expectations and to minimize the numerous costs associated with holding inventory.

Inventory control have a different method to manage levels, safeguard the inventory and
to report it correctly on financial statements. This involves knowing your stock inside and out
how much is available, where it is and what condition it is in. It’s also about ensuring that you
are storing stock efficiently, keeping inventory costs down and minimizing the time spent
counting and controlling inventory.

There are four methods that inventory control used and these are; (1) Economic
Orders Quantity refers to the optimal amount of inventory a company should purchase in
order to meet its demand while minimizing its holding and storage costs. (2) Organizational
Control refers to processes by which agents are able to establish and maintain control over
an organization. It comprises the strategic planning process as well as methods and devices
that make other agents' behaviors consistent with objectives. (3) Quality Control helps you
stay on top of suppliers, monitor each batch of inventory, make better decisions around
future sales orders, keep customers happy, and meet any regulatory requirements. Lastly,
(4) Control the future is about forecasting the possible demand to avoid obsolescence and
spoilage that could affect the company.

There are four reasons why inventory control is important; (1) it is important since
it keep counts accurate through digital inventory system that electronically scans the
barcode of both new and retrieval items. (2) Inventory control can help the inventory
management to have a right decision since it can track the inventory that is sold and
replaced item in a specific time (3) Proper inventory control prevents inventory write-offs
for inventory that has no longer ha value by reducing waste, making it easy to calculate
inventory value, and helping your bottom line by only carrying inventory that you need.
Lastly, (4) Proper inventory stock control aims to let you hold the least amount of
inventory in your warehouse(s), yet enough to keep up with demand. These are the reasons
why inventory control is important in the company so that they can be updated for the item
that is needed to be reordered and at the same time management can determine the
product that is on trend.

In conclusion, Inventory control is no easy task. Too much inventory and you lack funds to
invest in other areas of the business or risk dead stock. Too little inventory and you may lose
potential sales, cause of massive delays, and customer satisfaction levels plummet. Inventory
control requires input and output from operations that lines up with demand, promotions, and
finances. Inventory management is an essential part of every business. with an effective
inventory management system in place, the business can significantly reduce its various cost like
warehousing cost, inventory carrying cost, ordering cost, etc. It improves the supply chain of the
business.