Republic of the Philippines

Ramon Magsaysay Technological University

Masinloc, Zambales

Masinloc Campus

Production ad Operation Management

BA108

Submitted by:
Angelica C. Atrero
Racquel A. Tobias

May 2018

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 Table of Contents

Title page ----------------------------------------------------------------------------------------1

Table of Contents-------------------------------------------------------------------------------2

I. Report

a. Chapter 8: Location Decision-------------------------------------------3

Angelica C. Atrero
b. Chapter 3: Managing Project------------------------------------------12
Racquel A. Tobias

II. Case Study

a. Hello, Wal-Mart---------------------------------------------------------22
Angelica C.Atrero
b. An American Tragedy: How A Good Company Died-------------31
Racquel A. Tobias

III. Partner Research--------------------------------------------------- 46

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Chapter 8: Location Decision
Location Decisions
 Location decisions are usually pretty important- to both large and small
businesses. The location decision has a direct effect on operation’s cost as well as
its ability to serve customers.
 Long-term decisions.

Factors That Affect Location Decisions

• Labor Productivity
• Exchange Rates and Currency Risks
• Costs
• Political Risk, Values, and Culture
• Proximity to Markets
• Proximity to Suppliers
• Proximity to Competitors (Clustering)

CLUSTERING OF COMPANIES:

INDUSTRY REASONS FOR CLUSTERING

Theme parks A hot spot for entertainment, warm weather,
tourists, and inexpensive labor

Fast food chains Stimulate food sales, high traffic flows

FACTOR RATING METHOD

• Popular because a wide variety of factors can be included in the analysis
Critical Scores
Success (out of 100) Weighted Scores
Factor Weight A B A B
Labor .25 70 60 (.25)(70) = 17.5 (.25)(60) = 15.0

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availability
and attitude
People-to- .05 50 60 (.05)(50) = 2.5 (.05)(60) = 3.0
car ratio
Per capital .10 85 80 (.10)(85) = 8.5 (.10)(80) = 8.0
income
Tax structure .39 75 70 (.39)(75) = 29.3 (.39)(70) = 27.3
Education .21 60 70 (.21)(60) = 12.6 (.21)(70) = 14.7
and health
Totals 1.00 70.4 68.0

LOCATIONAL BREAK-EVEN ANALYSIS

• Method of cost-volume analysis used for industrial locations

CENTER-OF-GRAVITY MRTHOD

• Finds location of distribution center that minimizes distribution costs.

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 Chapter III: MANAGING PROJECTS

Project management
 is the practice of initiating, planning, executing, controlling, and closing
the work of a team to achieve specific goals and meet specific success criteria
at the specified time.

A Gantt chart
 is a type of bar chart that illustrates a project schedule, named after their
inventor, Henry Gantt (1861–1919), who designed such a chart around the
years 1910–1915. Modern Gantt charts also show
the dependency relationships between activities and current schedule status.
A Gantt chart is a type of bar chart[3][4] that illustrates a project schedule.
[citation needed] This chart lists the tasks to be performed on the vertical axis,
and time intervals on the horizontal axis.[3][5] The width of the horizontal
bars in the graph show the duration of each activity.[5][6] Gantt charts
illustrate the start and finish dates of the terminal elements and summary
elements of a project. Terminal elements and summary elements constitute the
work breakdown structure of the project. Modern Gantt charts also show the
dependency (i.e., precedence network) relationships between activities. Gantt
charts can be used to show current schedule status using percent-complete
shadings and a vertical "TODAY" line as shown here.
Gantt charts are sometimes equated with bar charts.[6][7]
Gantt charts are usually created initially using an early start time approach,
where each task is scheduled to start immediately when its prerequisites are
complete. This method maximizes the float time available for all tasks.

One of the biggest advantages of Gantt charts is the ability to easily visualize
the state of your project. Even for a large project with thousands of tasks, a
Gantt chart can be used to visualize the overall status of that project.

It can also be used to :

To produce an accurate timescale for the project
Breaking down the structure of the project
Showing team members how their work relates to others
Schedule of work on a day to day basis throughout the entire duration
Able to be used in the critical path method
Activity-on-node
 is a project management term that refers to a precedence diagramming method
which uses boxes to denote schedule activities. These various boxes or

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 “nodes” are connected from beginning to end with arrows to depict a logical
progression of the dependencies between the schedule activities.
An AoA network diagram, or Activity on Arrow network diagram
 uses circles and arrows. Arrows represent activities, and the circles are nodes
representing the start and finish points of these activities. These diagrams are
used for CPM (Critical Path Method) and PERT (Program Evaluation and
Review Technique), which help to optimize the performance of tasks in a
project. By signing up for a free Lucidchart account, you can create an AoA
network diagram to help increase the efficiency of any project.

Crashing
 is a schedule compression technique used to reduce or shorten the project
schedule.

Critical Path Analysis -used to determine project duration.

Critical Path-the longest path through the network.
The term forward pass refers specifically to the essential and critical project
management component in which the project team leader (along with the project team in
consultation) attempts to determine the early start and early finish dates for all of the
uncompleted segments of work for all network activities.
The phrase backward pass was originally used in the field, or more literally on the field,
of sport. In one commonly used context, that of American Football, a backward pass is
defined as an occurrence in which the quarterback throws the ball to a player that is
currently positioned behind the point on the playing surface at which he currently stands,
technically a violation of the rules of the sport.

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 Hello, Wal-Mart

By: Angelica Celpo Atrero

BA108: Operations Production Management

Instructor: Mrs. Emelita Madrid

May, 2018

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Hello, Wal-Mart?

Wal-Mart is one of the largest corporations in the world, and it has obviously

enjoyed tremendous success. But while many welcome its location in their communities,

others do not. Some complain that its presence has too many negative effects on a

community, ranging from traffic congestion to anti-union sentiment to unfair competition.

Suppose Wal-Mart has announced plans to see approval from the planning

commission of a small town to build new store. Develop a list of the main arguments, pro

and con, that could be presented at a public hearing on the matter by members of each of

these groups:

1 Owners of small businesses located nearby.

2 Town residents and residents of nearby towns.

How might a Wal-Mart representative respond to the negative criticisms that might be

brought up, and what other benefits could the representative offer the planning board to

bolster Wal-Mart’s case for gaining the board’s approval.

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 1 Owners of small businesses located nearby.

The pros of having a Wal-Mart located nearby are that the Wal-Mart store brings

in customer traffic and those businesses that are located nearby also get more customers.

The footfall increases leading to improved business in the area. The owners of small

businesses located nearby also gain because Wal-Mart attracts a number of suppliers who

also service local businesses. In other words, the overall business of the local area

increases. Further, residential houses and apartments spring up in the areas where Wal-

Mart is located leading to greater business for local retailers.

The cons are that local businesses that sell the products sold by Wal-Mart are

driven out of business. These businesses have lower revenues. For every gain in customer

by Wal-Mart, local businesses lose out. Wal-Mart captures substantial portion of retail

trade leading to bankruptcy of other retail businesses in the area. Building material,

furniture, and food product retailers are forced to close down because Wal-Mart takes

away their business. Wal-Mart is known to charge low prices on some product to drive

local businesses into liquidation.

2 Town residents and residents of nearby towns.

The pros of having a Wal-Mart are that residents have an option of shopping in

one place. The residents also have a higher level of employment. Further, Wal-Mart

beautifies the streets surrounding the store. They even help the laying down of utility

lines which sometimes help citizens.

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 The cons are that Wal-Mart converts a large agricultural area into a large

impervious surface. The landscape changes lead to environmental consequences such as

altering water runoff, habitat destruction, and heat island problems. In addition, the trucks

that supply to Wal-Mart cause sound and air pollution. The local people that are

employed at Wal-Mart are paid very low salaries, they are subject to sexual

discrimination, and are often not paid their due benefits. Erosion is not the only

environmental problem with Wal-Mart stores. The Connecticut Department of

Environmental Protection sued Wal-Mart over pesticide and fertilizer pollution in its

rivers and streams in May 2000. Connecticut claims that 11 Wal-Mart stores left

pesticides and fertilizers in the parking lot, when hard rains fell on the lot, the chemicals

were carried into rivers and streams, affecting the health of plants, animals, and people

(Robinson, n.d.)

How might a Wal-Mart representative respond to the negative criticisms that

might be brought up, and what other benefits could the representative offer the planning

board to bolster Wal-Mart's case for gaining the board's approval?

A Wal-Mart representative can respond to negative criticisms along the following lines.

First, a Wal-Mart will bring increased employment to the area. Second, Wal-Mart will

provide shopping access to many residents that they never had before. Third, Wal-Mart

will bring international products at affordable prices to the area. Fourth, Wal-Mart will

enable the development of utilities in the area. Fifth, Wal-Mart will undertake

development of the local roads surrounding the store. Sixth, Wal-Mart suppliers are

trained not to disturb residents. Seventh, Wal-Mart undertakes tree growing programs in
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the area to improve the environment. Eight, if trees are required to be removed more than

double the number of trees removed will be planted. Nine, Wal-Mart supports local

businesses by increasing the traffic to them.

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 References

Helium. (2011). Retrieved on May 2018 from

website: http://www.helium.com/items/1622965-advantages-and-disadvantages-of-the-5-

movie-bin-at-walmart

PBS. (2011). Is Wal-Mart good for America. Retrieved on May 2018 from

website: http://www.pbs.org/wgbh/pages/frontline/shows/walmart/

Robinson, L. (n.d.). Walmart and the environment. Retrieved on January 17, 2011 from

website: http://publici.ucimc.org/aug2001/082001_5.htm

Walmart Watch. (2009). Retrieved on May 2018 from

website: http://walmartwatch.com/issues/

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CONCLUSIONS

In conclusion, Wal-Mart is the number one retailer in the United States and is at the top of

the Fortune 500 listing. Wal-Mart operates in many countries world-wide and is moving

into new countries every year. Wal-Mart is also expanding as a retailer. They have

expanded into many other sectors of the marketplace, including groceries, gas stations,

electronics, and auto maintenance. Each year, Wal-Mart finds new ways to grow and offer

more services to their customers. Each year, the number of people who have a stake in

Wal-Mart also grows. Each year, more claims are made against Wal-Mart by the unions

and other businesses that have been forced out of business. Wal-Mart is often able to

uncut many other local industries and more and more local businesses are shutting down

when Wal-Mart moves into town. The unions are filing more court claims against Wal-

Mart because they encourage their workers not to join unions. As a result of Wal-Mart's

ever growing size and variety of services they offer, their public affairs department is

going to become more and more important. As Wal-Mart a sectors of the marketplace,

there is going to be more regulation against them and their public affairs department is

going to have to work harder to make it possible for Wal-Mart to continue to grow. And

as the animosity against Wal-Mart becomes more widespread, here and in foreign

countries, Wal-Mart is going to have to work harder to maintain their good reputation.

Wal-Mart's foundation will become increasingly more important for giving things back to

the community. In order for Wal-Mart to stay at the top of their game and follow the

company strategy and achieve their key policy goals, they are going to have deal better

with their stakeholders and make sure they guard their reputation well.

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RECOMMENDATIONS

Wal-Mart has several competitive strengths that must be turned into sustainable

competitive advantages and weaknesses and threats that must be addressed to maintain its

strong foothold in the retail industry. A major threat is the discrimination lawsuit the

company is facing. Wal-Mart should conduct its own internal investigation of the claim

and immediately rectify any wrongdoings it will find. Pressures from labor unions should

also be addressed by properly compensating its employees. Although Wal-Mart has been

persistent in its pursuit of driving cost down, it should not sacrifice its human resources.

Offering competitive salary down to its lowest skilled workers would create more

employee loyalty and increase employee productivity and morale, thereby reducing

turnover rates.

Since Wal-Mart has been successful in executing its low-cost strategy, careful

guarding must be implemented as other retailers attempt to imitate Wal-Mart’s supply

chain streamlining. In conjunction with this, Wal-Mart’s first mover technology

advantages should be applied in other areas of its value chain. One avenue is using

technology in the continuous training, performance evaluation, and tying rewards and

incentives to above average performance of associates. Doing so would make this

Herculean task more doable as information systems can be automated and are more

objective in labor monitoring.

Wal-Mart should project a more community friendly, environmentally concerned,

and outstanding employer image. A portion of profits should be returned to the

community by sponsoring charity events, scholarships, community clean-up, and the like

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to remedy the fierce resistance of local residents and replace it with a welcoming attitude.

This should allow Wal-Mart to gain easy entry in other smaller towns and even in major

metropolitan areas.

On a global scale, Wal-Mart should use strategic alliances, joint ventures, and/or

acquisitions of foreign companies as the primary vehicle for entering foreign markets.

Under Wal-Mart’s multi-country strategy, it should transfer its competencies and

capabilities country to country and then gradually build profit sanctuaries in several

countries as it continues its global expansion.

Sam Walton is an exceptional entrepreneur and his business principles have

proven their potency and effectiveness in Wal-Mart’s decades of operations. Thus,

management should consistently and conscientiously stick with his guiding principles in

strategy execution.

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Case Study: An American Tragedy How a Good Company Died

Zachary Schiller

By:Racquel A. Tobias

BA108: Operations Production Management

Instructor: Mrs. Emelita Madrid

May, 2018

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 AN AMERICAN TRAGEDY: HOW A GOOD COMPANY DIED

ZACHARY SCHILLER

The Rust Belt is back. So say bullish observers as U.S. exports surge, long-moribund

industries glow with newfound profits, and unemployment dips to lows not seen in a

decade. But in the smokestack citadels, there’s disquiet. Too many machine-tool and

auto parts factories are silent; too many U.S. industries still can’t hold their own.

What went wrong since the heyday of the 1960s? That’s the issue Max Holland, a

contributing editor of The Nation, takes up in his nutsy-boltsy but fascinating study,

When the Machine Stopped.*

The focus of the story is Burgmaster Corp., a Los Angeles–area machine-tool maker

founded in 1944 by Czechoslovakian immigrant Fred Burg. Holland’s father worked there

for 29 years, and the author interviewed 22 former employees. His shop-floor view of

this small company is a refreshing change from academic treatises on why America can’t

compete.

The discussions of spindles and numerical control can be tough going. But Holland

compensates by conveying the excitement and innovation of the company’s early days

and the disgust and cynicism accompanying its decline. Moreover, the fate of

Burgmaster and its brethren is crucial to the U.S. industrial economy: Any manufactured

item is either made by a machine tool or by a machine made by a machine tool.

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Producing innovative turret drills used in a wide variety of metal working tasks,

Burgmaster was a thriving enterprise by 1965, when annual sales amounted to about $8

million. The company needed backing to expand, however, so it sold out to Buffalo-

based conglomerate Houdaille Industries Inc. Houdaille was in turn purchased in a 1979

leveraged buyout (LBO) led by Kohlberg Kravis Roberts & Co. By 1982, when debt,

competition, and a sickly machine-tool market had battered Burgmaster badly, Houdaille

went to Washington with a petition to withhold the investment tax credit for certain

Japanese-made machine tools.

Thanks to deft lobbying, the Senate passed a resolution supporting Houdaille’s position,

but President Reagan refused to go along. Houdaille’s subsequent attempt to link

Burgmaster up with a Japanese rival also failed, and Burgmaster was closed.

Holland uses Burgmaster’s demise to explore some key issues of economic and trade

policy. Houdaille’s charge that a cartel led by the Japanese government had injured U.S.

toolmakers, for example, became a rallying point for those who would blame a fearsome

Japan Inc. for the problems of U.S. industry.

Holland describes the Washington wrangling over Houdaille in painful detail. But he does

show that such government decisions are often made without much knowledge of

what’s going on in industry. He shows, too, that Japanese producers succeeded less

because of government help than because they made better, cheaper machines.

For those who see LBOs as a symptom of what ails the U.S. economy, Holland offers

plenty of ammunition. He argues persuasively that the LBO crippled Burgmaster by

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creating enormous pressure to generate cash. As Burgmaster pushed its products out as

fast as possible, he writes, it routinely shipped defective machines. It promised

customers features that engineers hadn’t yet designed. And although KKR disputes the

claim, Holland concludes that the LBO choked off Burgmaster’s investment funds just

when foreign competition made them most necessary. As for Houdaille, it was

recapitalized and sold to Britain’s Tube Investments Group.

But Burgmaster’s problems had started even before the LBO. Holland’s history of the

company under Houdaille is a veritable catalog of modern management techniques that

flopped. One of the most disastrous was a system for computerizing production

scheduling that was too crude for complex machine-tool manufacturing. Holland gives a

dramatic depiction of supply snafus that resulted in delays and cost increases.

As an independent company, “Burgmaster thrived because the Burgs knew their

business,” Holland writes. Their departure under Houdaille was followed by an “endless

and ultimately futile search for a better formula.” But, he concludes: “No formula was a

substitute for management involvement on the shop floor.”

In the end, however, Holland puts most of the blame for the industry’s decline on

government policy. He targets tax laws and macroeconomic policies that encourage LBOs

and speculation instead of productive investment. He also criticizes Pentagon

procurement policies for favoring exotic, custom machines over standard, low-cost

models. This adds up to an industrial policy, Holland writes—a bad one.

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The point is well taken, but Holland gives it excessive weight. Like their brethren in

Detroit and Pittsburgh, domestic tool-makers in the 1970s were too complacent when

imports seized the lower end of the product line. The conservatism that had for years

served them in their cyclical industry left them ill-prepared for change. Even now some

of the largest U.S. tool-makers are struggling to restructure. Blame the government, yes.

But blame the industry, too.

1. Write a brief report that outlines the reasons (both internal and external) for

Burgmaster’s demise, and whether operations management played a significant role in

the demise.

2. Do you think that inadequate strategic planning was a factor that resulted in the

company’s asking for trade protection?

3. Can you think of a strategy that could have increased Burgmaster’s chance of survival?

Explain why you think that strategy would have been effective.

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Answers:

1. Write a brief report that outlines the reasons (both internal and external) for

Burgmaster’s demise, and whether operations management played a significant role in

the demise.

A brief analysis of the case shows the following to be the probable reasons for

Burgmaster’s demise. Internal factors:

● Burgmaster had undergone through immense pressure after the LBO (leveraged

buyout) to generate cash. This is why they had to push their inventory as much as

possible to allow cash inflow, thereby resulting in defective items being sold to

customers.

● The LBO further refrained Burgmaster from reinvesting their profits which was crucial

at the time in order to cope with the competition.

● In their attempt to bring in cash and cope with the competition, they also promised

their customers features which were not yet designed by the engineers.

● Burgmaster, however, had operational problems way before the LBO. They lacked a

computerised system of management which is very essential for complex machine-tool

manufacturing.

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● Their supply management was in total disarray which further resulted in delays and

cost increases.

● When the Burgmaster sold out to Houdaille in the hopes for expansion and in search

for a better formula, it turned out that nothing could actually replace the management

involvement on the shop floor. Burgmaster had only been profitable because they knew

the ins and outs of their business well. External Factors:

● Burgmaster’s failure can be equally attributed to the government’s tax laws and

macroeconomic policies which were more inclined towards LBOs and speculation rather

than productive investments at the time.

● Other policies such as “the Pentagon procurement” policy put precedence on exotic

machines over standard, low-cost models, which also was to be blamed for the

company’s downfall.

● The industry itself was another player equally guilty for the downfall. When the

industry felt growing competition from imports, instead of reacting to it, they remained

firm with their conservatism. Therefore, when the situation demanded Burgmaster to

restructure their organization, they failed.

From the internal factors that led to Burgmaster’s demise, it is quite evident that the

company had several operational shortcomings which played a significant role in the

demise. Moreover, as discussed earlier, Burgmaster knew their business well, and

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therefore, their adeptness and involvement in the operations worked for the company.

Hence, the first grave mistake they made was to completely sell out in the hopes of

expanding with a new formula. When the existing operations strategies provided inflows

for Burgmaster, Houdaille was indeed wrong to adopt a new formula instead of sticking

to the one which worked best with their limited understanding of the business.

Moreover, after the LBO, the company failed to incorporate effective inventory

management and production management strategies, resulting in defective items. They

also failed to comply with and meet customer needs and wants, and therefore failed in

the face of competition. Their supply management was already poor to begin with,

which only made things worse after the LBO.

2. Do you think that inadequate strategic planning was a factor that resulted in the

company’s asking for trade protection?

Yes, inadequate strategic planning can be said to be one of the factors which resulted in

the company’s asking for trade protection and soon after demise. The company's initial

corporate strategy was to produce machines which were innovative and offer flexibility

to the customer. So the strategy was to differentiate their product based on

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uniqueness and offering them the opportunity for customization to the machines. but

due to the lack of environmental scanning, poor responsiveness to threats and other

external economic and political factors, the company failed to last in the market. The

company, it seems, lacked or ignored the effective use of SWOT analysis, which is often

regarded as the link between organizational strategy and operations strategy.

Furthermore, Burgmaster failed to formulate the appropriate operation strategies that

were required to fulfill their corporate strategies of differentiation, innovation and

flexibility to the customers. When they were in need of investment in research and

development for new and improved products and services, along with new operations

and supply processes to suit the new products or services, they focused elsewhere. They

adopted modern management techniques, such as systems for computerizing

production scheduling which were ill-executed and therefore ineffective for the

company’s needs at the time. There were no operations strategies in place based on the

core competencies of the company to achieve the corporate strategy while competitors

operated with a low cost strategy and offered cheaper products to meet the demand of

the customers better than Burgmaster. While it is important for every business to adopt

an effective operations strategy, manufacturing is specifically more in need of such. For

Burgmaster, like any other manufacturing company, these should have included

inventory management and development of methods for measuring and achieving

productivity improvements.

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The merger decision to form a conglomerate was strategic move on Burgmaster’s part,

but when they should have merged with a company that added value to their existing

company and supported current business operations, they chose to merge with a

company based on its financial merit and a supposedly better formula.

In the 1970s and early 1980s, operations strategy in the US was often neglected in favor

of marketing and financial strategies. That may have occurred because many chief

executive officers did not come from operations backgrounds and perhaps did not fully

appreciate the importance of the operations function (Stevenson: 12th edition).

Management involvement was also paramount for a business to be successful which

Burgmaster was acutely missing on the production floor. Moreover, the company

overlooked non-financial indicators of performance such as customers, internal business

processes, and strategy performance management tools like the Balanced Scorecard.

For Burgmaster to have been successful, a balance between financial resources,

operational capabilities, supplies and consumer needs needed to be struck early on.

However, Burgmaster failed to incorporate operations management principles which

eventually led to the company asking for trade protection and then its eventual demise.

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3. Can you think of a strategy that could have increased Burgmaster’s chance of survival?

Explain why you think that strategy would have been effective.

The recommended strategy for the survival of Burgmaster could have been to adapt

itself according to the changing market trends in the economy. If the up-to-date trends

were to get automation in the business processes then Burgmaster had to adopt this

methodology for it to sustain in the market. The automation in business processes would

have reduced long term costs, improve business efficiency and thereby help achieve

economies of scale. The business productivity and efficiency would have improved as

machines have proved to be more effective and efficient than human beings; unlike

humans, machines require no breaks during work resulting in less delays. Even though,

machines can malfunction mid performance, those can be fixed and then worked for a

good amount of time. Moreover, automated systems require less supervision, thereby

reducing costs.

Another strategic decision could have been to merge the company with another that

was more successful and adept in business operations. Through this, the business could

have focused on their sales - the most measurable goal for evaluating business

performance, and thereby reclaim their success in the market once again.

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Conclusion:

This case study tells us the story of Burgmaster Corp which is a machine tool maker

company. Burgmaster was a thriving enterprise by 1965, when annual sales amounted to

about $8 million. Although it needed backing to expand, it sold out to Buffalo-based

conglomerate Houdaille Industries Inc. The case study also, inform us too many

machine- tool and auto parts factories are silent, too many U.S. industries still can’t hold

their own. Holland uses Burgmaster’s demise to explore some key issues of economic

and trade policy.

The LBO chocked off Burgmaster’s investment funds when foreign competition made

them most necessary. Houdaille’s charge that a cartel led by the Japanese government

had injured U.S. tool makers. Holland offers plenty of ammunition by creating enormous

pressure to generate cash. Burgmaster pushed its products out as fast as possible. It

shipped defective machines . It promised customers features that engineers hadn’t yet

designed.

The role of the operations management in that demise:

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Companies must be competitive to sell their goods and services in the marketplace. This

company didn’t follow the operations management principles or functions in its three

major departments : finance , operations and marketing. Burgmaster Corp didn’t identify

customer needs. It didn’t follow the policy of low price and high quality. It didn’t be able

to reflect joint efforts of product snd service design . No match between financial

resources , operations capabilities , supply chains and consumer needs. It didn’t follow

inventory strategy to be competitive .

It neglected operations strategy.

It didn’t develop productivity measures for all operations. It didn’t develop methods for

achieving productivity improvements such as : soliciting ideas from workers and

reexamining the way work is done.

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Recommendation:

Burgmaster is an American Corporation. It is a tool making company. It was flourished in

1965 when its sale reached 8 million dollars. The business was conglomerate with

Houllide Industries Inc. Later the business has to face some crisis due to relevant internal

and external factors. The recommended strategy for the survival of Burgmaster could

have been to adapt itself according to the changing market trends in the economy. If the

up-to-date trends were to get automation in the business processes then Burgmaster

had to adopt this methodology for it to sustain in the market. The automation in

business processes would have reduced long term costs, improve business efficiency and

thereby help achieve economies of scale. The business productivity and efficiency would

have improved as machines have proved to be more effective and efficient than human

beings; unlike humans, machines require no breaks during work resulting in less delays.

Even though, machines can malfunction mid performance, those can be fixed and then

worked for a good amount of time. Moreover, automated systems require less

supervision, thereby reducing costs.

Another strategic decision could have been to merge the company with another that

was more successful and adept in business operations. Through this, the business could

have focused on their sales - the most measurable goal for evaluating business

performance, and thereby reclaim their success in the market once again.

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1.Importance of Project Evaluation and Planning in Production and Operation
Management

INTRODUCTION

Production and operations management is an umbrella term which surrounds a spectrum

of ideas within the managerial circles. The core of any business is to provide the
requirements of the customer by providing apt services and goods and also create value
for customers and help in solving the problems of the customers.
Production and operations management is about implementing business organizational
and management concepts in the creation of goods and services.
Operations are that part of a business organization that is responsible for producing
goods and/ or services. Goods are physical items that include raw materials, parts,
subassemblies such as motherboards that go into computers, and final products such as
cell phones and automobiles. Services are activities that provide some combination of
time, location, form, or psychological value. Examples of goods and services are found
all around you. Every book you read, every video you watch, every e-mail you send,
every telephone conversation you have, and every medical treatment you receive involves
the operations function of one or more organizations. So does everything you wear, eat,
travel in, sit on, and access the Internet with. The operations function in business can also
be viewed from a more far-reaching perspective: The collective success or failure of
companies’ operations functions has an impact on the ability of a nation to compete with
other nations, and on the nation’s economy. The ideal situation for a business
organization is to achieve a match of supply and demand. Having excess supply or excess
capacity is wasteful and costly; having too little means lost opportunity and possible
customer dissatisfaction. The key functions on the supply side are operations and supply
chains, and sales and marketing on the demand side.
Production is termed as a scientific process that includes the complete change of raw
materials (input) into the coveted product or services (output) by adding the value. The
production process can be categorized into the following technique:
Production through separation process: The desired output is achieved through the
separation or the extraction process from the raw materials. The primary example of this
technique can be the separation of oil into its various fuel products.
Production using the modification process: This process involves the change in chemical
and mechanical parameters of the raw material without changing the physical
characteristics of the raw material.
Production through Congregation process: The process of getting the final output by
assembling or congregating things together is termed as production through congregation
process. The best example is of the car and computer assembly.

45
Project management is important for several reasons:

1. Organizing Chaos
Projects are naturally chaotic. The primary business function of project management is
organizing & planning projects to tame this chaos. It's hard to think of any complex
business endeavor that was ever achieved without organization & planning. Project
management is the organization, planning and control of projects.

2. Managing Risk
Any good project has plenty of risk. After all, the nature of business is taking risks. Risk
is a fundamental part of business strategy. However, risk needs to be managed. Risk is
that chance of a negative event or loss. Uncontrolled risk taking ends in asset destruction
and compliance issues. Project management identifies, manages and controls risk.
3. Managing Quality
Quality is the value of what you produce. There's not much sense producing something
that has no value. Leaving quality to chance is analogous to producing something of
random value. Project management identifies, manages and controls quality.

4. Managing Integration
Projects don't happen in a vacuum. They need to be integrated with business processes,
systems and organizations. You can't build a sales system that doesn't integrate with your
sales process and sales organization. It wouldn't add much value. Integration is often key
to project value.
Project management identifies and manages integration.

5. Managing Change
Projects always happen in an environment in which nothing is constant except change.
Projects are always a moving target. Managing change is a complex and daunting task.
It's not optional. Unless you can put your business universe on pause, change happens
whether you manage it or not. Project management manages change.

6. Clearing Issues
Business initiatives typically encounter regular issues that must be managed to achieve
objectives. Project management plays a critical role in identifying and clearing issues.

7. Retaining and Using Knowledge

Projects generate knowledge — or at least they should. Knowledge represents a
significant asset for most businesses. Left unmanaged, knowledge tends to quickly
fade. Project management ensures that project knowledge is captured and managed.

8. Learning from Failure

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Projects fail. When they do, it's important to learn from the process. Learning from
failure is key to business innovation and quality improvement. Project management
ensures that lessons are learned from project success and failure.

Importance of planning in management

Planning is the first and most important function of management. It is needed at every
level of management. In the absence of planning all the business activities of the
organization will become meaningless. The importance of planning has increased all the
more in view of the increasing size of organizations and their complexities.
Planning has again gained importance because of uncertain and constantly changing
business environment. In the absence of planning, it may not be impossible but certainly
difficult to guess the uncertain events of future.

The advantages of planning and its importance for a business organization:

(1) Planning Provides Direction:
Under the process of planning the objectives of the organization are defined in simple
and clear words. The obvious outcome of this is that all the employees get a direction and
all their efforts are focused towards a particular end. In this way, planning has an
important role in the attainment of the objectives of the organization.
For example, suppose a company fixes a sales target under the process of planning. Now
all the departments, e.g., purchase, personnel, finance, etc., will decide their objectives in
view of the sales target.
In this way, the attention of all the managers will get focused on the attainment of their
objectives. This will make the achievement of sales target a certainty. Thus, in the
absence of objectives an organization gets disabled and the objectives are laid down
under planning.
(2) Planning Reduces Risks of Uncertainty:
Planning is always done for future and future is uncertain. With the help of planning
possible changes in future are anticipated and various activities are planned in the best
possible way. In this way, the risk of future uncertainties can be minimized.
For example, in order to fix a sales target a survey can be undertaken to find out the
number of new companies likely to enter the market. By keeping these facts in mind and
planning the future activities, the possible difficulties can be avoided.
(3) Planning Reduces Overlapping and Wasteful Activities:
Under planning, future activities are planned in order to achieve objectives.
Consequently, the problems of when, where, what and why are almost decided. This puts
47
an end to disorder and suspicion. In such a situation coordination is established among
different activities and departments. It puts an end to overlapping and wasteful activities.
Consequently, wastages moves towards nil, efficiency increases and costs get to the
lowest level. For example, if it is decided that a particular amount of money will be
required in a particular month, the finance manager will arrange for it in time.
In the absence of this information, the amount of money can be more or less than the
requirement in that particular month. Both these situations are undesirable. In case, the
money is less than the requirement, the work will not be completed and in case it is more
than the requirement, the amount will remain unused and thus cause a loss of interest.
(4) Planning Promotes Innovative Ideas:
It is clear that planning selects the best alternative out of the many available. All these
alternatives do not come to the manager on their own, but they have to be discovered.
While making such an effort of discovery, many new ideas emerge and they are studied
intensively in order to determine the best out of them.
In this way, planning imparts a real power of thinking in the managers. It leads to the
birth of innovative and creative ideas. For example, a company wants to expand its
business. This idea leads to the beginning of the planning activity in the mind of the
manager. He will think like this:
Should some other varieties of the existing products be manufactured?
Should retail sales be undertaken along with the wholesales?
Should some branch be opened somewhere else for the existing or old product?
Should some new product be launched?
In this way, many new ideas will emerge one after the other. By doing so, he will become
habituated to them. He will always be thinking about doing something new and creative.
Thus, it is a happy situation for a company which is born through the medium of
planning.
(5) Planning Facilitates Decision Making:
Decision making means the process of taking decisions. Under it, a variety of alternatives
are discovered and the best alternative is chosen. The planning sets the target for decision
making. It also lays down the criteria for evaluating courses of action. In this way,
planning facilitates decision making.
(6) Planning Establishes Standards for Controlling:
By determining the objectives of the organization through planning all the people
working in the organization and all the departments are informed about ‘when’, ‘what’
and ‘how’ to do things.

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Standards are laid down about their work, time and cost, etc. Under controlling, at the
time of completing the work, the actual work done is compared with the standard work
and deviations are found out and if the work has not been done as desired the person
concerned are held responsible.
For example, a laborer is to do 10 units of work in a day (it is a matter of planning), but
actually he completes 8 units. Thus there is a negative deviation of 2 units. For this, he is
held responsible. (Measurement of actual work, knowledge of deviation and holding the
laborer responsible falls under controlling.) Thus, in the absence of planning controlling
is not possible.

Evaluation deals with questions of cause and effect. It is assessing or estimating the
value, worth or impact of an intervention and is typically done on a periodic basis –
perhaps annually or at the end of a phase of a project or program.
This is the objective assessment of an ongoing or recently completed project, program or
policy, its design, implementation and results. It answers the question “What has
happened as a result?”
Evaluation Analyzes why intended results were or were not achieved, Assesses specific
casual contributions of activities to results, Examines implementation process, Explores
unintended results, Provides lessons, highlights significant accomplishments or program
potential and offers recommendations for improvement
Evaluation looks at the relevance, effectiveness, efficiency and sustainability of an
intervention. It will provide evidence of why targets and outcomes are or are not being
achieved and addresses issues of causality.
The importance of evaluation helps those involved with any type of projects to assess if
progress desired is being achieved.

2. Identify and discuss a specific project of any organization and answer the following
questions:

Project: “Light comes to Amanpulo’s unknown neighbor”

a. What were some of the key activities?

The school children of Diit stand to benefit from the solar power as they could now
study in the evening.

The project is expected to energize and develop the fishing community of 1,212
residents of the remote island, according to Kamrul H. Tarafder, president of ASA
Philippines Foundation, which has been operating in the country since 2004.

49
 Diit, considered one of the 50 poorest barangays in the country, can be reached
only after two days by boat from Manila (via Montenegro Lines). Alternatively,
one can take a plane from Manila to Puerto Princesa. Then from Puerto Princesa
City, one takes an overnight (or 16 hours) ferry boat ride to the island of Cuyo,
transfers to another boat for a three-hour ride to the fifth class municipality of
Agutaya and from there, takes another 30-minute pump boat ride to Diit.
Vice President Leni Robredo, who visited Diit in 2016, said she could hardly find
the island on the Philippine map.
On the other hand, the luxury resort island of Amanpulo, which is visited by the
world’s richest celebrities, is just around one of these groups of islands in the
Cuyo archipelago.

b. How was success defined? How was success evaluated?

This project was successful. After being “in the dark” most of their lives, 120
households in the island of Diit, a barangay of Agutaya town northeast of Palawan
province, began enjoying power from the sun last August, thanks to the free solar
power systems provided by microfinance foundation ASA Philippines. “We are
giving light to the people who do not have light,” said Tarafder, a Bangladesh
national, and one of the founders of ASA Philippines.

c. What are the features internal to the project or organization? Which contributed to
the success or failure of the project? What are the features of the external
environment?

ASA Philippines gives out loans ranging from P6,000 to P10,000, depending on
one’s capacity to pay, with a 15-percent service charge for six months. A borrower
pays P50 a week per thousand pesos borrowed.
ASA Philippines attributes its high repayment rate of 99 percent to the
foundation’s core values of respect for others, compassion for the less privileged,
simplicity and transparency. Over 7,000 staff members assist its underprivileged
clients.
“Everything we do comes from the generated income of microfinance,” Tarafder
explained. “So we call it the poor helping themselves. We don’t receive grants
from any sources. So we created a system where it’s the poor who give their trust
and confidence to us and they’re just helping themselves. We are just the fund
managers of the poor,” he said.

d. A personal evaluation of the project.

This project of ASA Phil is a big help for the community of Amanpulo. It gave light
to the people, the school children of Diit stand to benefit from the solar power as
they could now study in the evening. “Yung dating madilim, naging maliwanag

50
 (what used to be dark became bright),” said vendor Maria Cristina Amorin. She
said she could now charge her cell phone for free.

PROJECT NUTRITION

A. Project Title: Project Nutrition

B. Specific Use of Grant Money: Students will create food guides to be given to families

residing in Candelaria. These guides will illustrate how families could combine food

choices to meet dietary needs.

C. Project Timeline: September – November, 2018

PROJECT

A. Literature review on the need, region, and/or similar projects

As the population continues to increase, there is even more urgency to establish nutrition

assessment standards to evaluate the nutritional status of this vulnerable population, and

to provide appropriate nutrition education and intervention. There is a high prevalence of

under-nutrition among other children the cases of insufficient energy or micro and

macronutrients are alarming. Unfortunately, this nutritional state is often misdiagnosed

because of inappropriate assessment. The nutrition diagnosis needs to be accurate in order

to provide effective intervention.

Nutrition education is an essential component in improving dietary habits and food

choices, in order to reverse the under nutrition and improve the nutritional diagnosis.

Poor dietary habits and lack of physical activity can be the main reason for poor

51
nutritional status among children. The positive impact of nutrition education on the

nutritional status of children has been confirmed by many studies. A study conducted

indicated that after nutrition education was delivered, nutritional knowledge, nutritional

attitudes and dietary habits were increased significantly.

B. Goals and Objectives

Imparting knowledge to all students and residence of Candelaria the importance of

proper nutrition and to lessen the number of malnourished persons living there.

C. Project Narrative

Research has shown that poverty and food insecurity negatively influence the diet of

many low-income children. Limited household income and food insecurity are

associated with low intakes of fruits and vegetables, which lowers intake of vitamins,

minerals, trace elements and fiber (Federation of American Societies for Experimental

Biology, 1995). Children in low- income families usually consume insufficient calories,

and families often cope with limited food by purchasing less expensive but higher fat

foods (Kennedy and Goldberg, 1995). In addition, about 18% of low- income infants

and toddlers experience iron deficiency anemia (Centers for Disease Control and

Prevention, 1998), requiring medical treatment. Low- income children are more likely to

be deficient in major nutrients (including energy, protein, iron, calcium, folate, and zinc)

as this program increases household nutrient availability.

Through this project, students from Elementary to College will benefit from increased

awareness of nutrition. Those students will educate low-income individuals and families

on food selection and choices. By using the standard food items issued by Project
52
Nutrition, students will create guides illustrating how families could combine food

choices to meet dietary needs. The students will benefit by learning the following

concepts:

* Students will analyze how behavior can impact health maintenance and

disease prevention
* Students will explain the impact of personal health behaviors on the

functioning of body systems

* Students will analyze how environment influences the health of the

community

After covering the class units on nutrition and researching the correlation between

poverty and malnutrition, students will provide a service to our community by providing

‘Project Nutrition’ instructional brochures. A dietician will meet with the students to

educate them on nutritional food choices, proper use and benefit of food scales, and then

guide them in creating the brochures every weekend for 2 months. The students, in

groups of 3-4, will create then brochures that will contain nutritional guide pyramids,

daily caloric recommendations, recipes, and suggested food combinations. The students

will derive their food combinations from the list of cheap but healthy items available in

the market. Then taking our food list, our Home Economics classes will develop recipes

suitable for the food items. Students in the Health classes will then incorporate the recipe

into their brochures. Once the brochures are created, it will then translate them into

Tagalog. Both the Tagalog and English renditions will be sent to the print shop to print

300 copies in every barangay or a total of 4,800.

53
 D. Expected project outputs, results

After several months of applying this project, we are expecting a more knowledgeable

and a healthier community. The number of malnourished person, especially kids, in Candelaria

will drop. No more reason for them to be not healthy because we will impart enough knowledge

for them that even if they don’t have so much money, they can still make a food that is healthier.

E. Budget

ITEM DESCRIPTION AMOUNT

Copy costs of brochures Ᵽ 3,000.00 per 300 brochures Ᵽ48,000.00
x 16
Food Scales Ᵽ 300.00 per scale x 10(5 for Ᵽ 3000.00
Health classes and 5 for Home
Economics classes)
Nutritional Video Ᵽ 100.00 per Video x 2 (1 for Ᵽ 200.00
Health classes and 1 for Home
Economics classes)
Dietician Ᵽ 1500.00 per day x 16 days Ᵽ 24,000.00
(she is needed 2 days in a
week, which is week days and
a total of 16 days for 2
months. She will meet with
different students on each day)
Food Items Ᵽ 25, 000.00 Ᵽ 25,000.00
Kitchen Utensils Ᵽ 25,000.00 Ᵽ 25,000.00
Appliances Ᵽ 50,000.00 Ᵽ 50,000.00
Total Ᵽ 175, 200.00

F. Budget Narrative and Justification

Brochures will be needed as an instrument of the students to spread information about the

proper nutritional food choices. The brochures will cost Ᵽ 3,000.00 per 300 brochures

for 16 barangays and a total cost of Ᵽ 48,000.00.

Food Scales will be used for developing recipes. The scales will cost Ᵽ300.00 per scale

or a total of Ᵽ600.00 for 2 scales.

54
 Nutritional Video will be used for student learning, it will help the student understand

why they must need to spare time and study Health class and Home economics class. It

will cost Ᵽ100.00 per video or a total of Ᵽ200.00 for 2 scales.

Dietician will be the one to personally assist the student and educate them on

nutritional food choices, proper use and benefit of food scales, and then guide

them in creating the brochures. The fee for a Dietician will cost Ᵽ1500.00 per day

or a total of Ᵽ 24,000.00 for 16 days.

Food Items will use to create test recipes. This will cost Ᵽ 25,000.00 as we estimated the

price of every item that we will use.

Kitchen utensils will cost Ᵽ25,000.00 and the appliances will cost Ᵽ50,000.00 for food

production.

The total budget that will be needed to this project is Ᵽ175,200.00.

G. Statement of grantee’s capacity as an organization

We as the grantees of the grant proposal title the Project Nutrition. Guarantee the
successful implementation of the project. That the participants surely benefits and
to be knowledgeable in the topic of the program. If there is problem arise we can
handle it smoothly as we prepared and planned for that situation.

H. Logical Framework or Logic Model

Diseases Prevention

Students will learn to analyze

how behavior can impact
health maintenance and
disease prevention.
Knowledgeable Students
Community
Lessen Benefit
the malnutrition
Students will learn how to
explain the impact of 55 The municipality
The numberwill benefit
of under-
Students will learn to analyze
personal health behaviors on for notnutrition
having aespecially
problem among
how environment influences the
the functioning of body PROJECT about children
malnutrition
will in the
lessen.
health of the community.
system. NUTRITION community.
 I. Evaluation Plan

To achieve the “Less under-nutrition residents of Candelaria” we will set standards to the
foods that students will make. The foods must contain ingredients that are available in the
local markets and must be cheap. The output must be tasty and easy to make. The
dietician will teach the students the proper combination of foods. The students will also
study units about nutrition and researching the correlation between poverty and
malnutrition and after covering those, they will provide brochures to the community
while discussing and teaching what they learned about proper nutrition. In this way, those
poor people and other residents that don’t have enough knowledge about the topic
eventually adopt and apply it to make them healthy. The project will not only benefit the
participants of the program, but also the municipality. The malnourished rate will lower
as also to diseases.

J. Detailed Evaluation Measures and Indicators

Prevention Education
 A minimum of 30 persons is estimated participants, 60% students and 40%
residents.
 80% of the participant will complete the program.
 75% demonstrate and share what they learned.
 50% will self- report.
 25% of the participants will involve again in other activities related to
health consciousness.

K. Data Collection Plan

Type of Data Specification Target

Lectures Professional lecturers
Food process In the training food
processing will practice
Distribution of brochures Brochures about the Project
Nutrition program
Participants of the program
Participants of the program
Residents

L. Analysis plan

The program: project nutrition focuses to the learning about proper nutrition.
Were students and volunteer go to free training that will run every weekend for
two consecutive month’s equivalent to 16 days. The target of the program is to
lower the malnutrition rate and diseases that the community always problem.

M. List of funders

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Save the Children Philippines
- Save the children Philippines believes that every child has the right to a
healthy, educated safe future. They want to improve the health of the children
get the nutrition they need to grow up healthy and strong, and have access to
healthcare.
VIRLANIE Foundation
- A private, non-profit organization reaching out children in the Philippines.
Children need a protection, those who are abandoned, abused, exploited,
neglected, orphaned, and among the poorest of the poor.
Philippines Children hunger Fund
- Non-profit organization established to help children in the Philippines.
The Children’s Joy Foundation
- Dedicated its effort to help the disadvantaged, neglected and poor children in
the Philippines.
Department of Social Welfare and Development
- Executive department of the Philippine Government responsible for the
protection of the social welfare of rights of Filipinos and to promote social
development.

57
May 2018

Municipality of Candelaria
LGU
Candelaria, Zambales

Dear Sir / Madam

Good day!
This project proposal is about the health nutrition. Title as” Project Nutrition”. That
focuses to low profile family whose health nutrition is poor. We are going to provide free
training to students and to who volunteered to participate with the professional lecturers
and nutritionist. Teaching them practically one by one as to them to pass and share to
others what they learn. This project specifically targeting the lower income family who
has the most number of malnutrition children.
In this project we can support the most reason why there is malnutrition.
1. Poverty- one of the major reasons behind malnutrition where income level of the
family cannot provide the suitable nutrition for their children.
2. Dirty environment- at home or in the school can also cause the malnutrition.
3. Lack of knowledge – sometimes is not about the money matters affect the
malnutrition being knowledgeable about lessen the malnutrition.
4. Negligence of the children- it is important that also the child has his own
discipline to become healthy.
5. Bodily diseases- causing the malnutrition of someone is his own diseases.
As the project implemented, we assured the good progress.
Thank you!

58
4. Using specific firms discuss a change in a corporate bond rating and the effect on
financing costs and risk in OPM.

Most of the risk that have encountered/encountering by ASA Philippines are the
following:

Collection of payment- Some of their clients are not paying on time. They usually solve
this by giving them a consideration to look for money that they can use for payment
within a day, even if it is not office hour anymore.

Straggling clients- Clients that do not have permanent residence. It is a risk for a financial
institution because some of their clients intentionally leaving their current address to
escape the payment for their loaned money. In this case if they really can’t find the liable
client they will look and talk to the surety partner or the co-maker. If the surety cannot
pay the debt and there is no other solution, the debt will consider as bad debt.

These risks have an effect on the financing cost of ASA, the possibility that they will
have lower than anticipated profits, or that it will experience a loss rather than profit.

5. Using specific firms, discuss a change in a common stock price due to not meeting
expected earnings and risk. Discuss earnings management.

ASA Philippines has provided assistance for the livelihood of close to 1.5 million Filipino
borrowers as of August 31, 2017, according to the foundation’s website asaphil.org. The
borrowers are in 24,701 barangays in 82 provinces. The foundation’s 2016 annual report
shows the impact of these borrowings: 96 percent of the borrowers increased their
incomes, while 95 percent have increased their savings and assets. At least 71 percent
have sent their children to school. Thirteen percent of the enterprises created 279,917
jobs.
ASA Philippines gives out loans ranging from P6,000 to P10,000, depending on one’s
capacity to pay, with a 15-percent service charge for six months. A borrower pays P50 a
week per thousand pesos borrowed.
ASA Philippines attributes its high repayment rate of 99 percent to the foundation’s core
values of respect for others, compassion for the less privileged, simplicity and
transparency. Over 7,000 staff members assist its underprivileged clients.

59