Chapter 1

DATAMEX COLLEGE OF SAINT ADELINE
Gotaco Bldg. 2, 32 Mac Arthur Highway, Valenzuela, 1440 Metro Manila

Tel No. 82927536
OPERATION MANAGEMENT CONCEPTS
NAME: LAKANDULA, DIOMACA E.
TOPIC: CLASSIFICATION OF PRODUCTION SYSTEM
 Operation System
 Operation System for Department Store
 A Framework of Managing Operations
 Resources & System
NAME: ALCANTARA, JOHN CEDRICK
TOPIC: OPERATION MANAGEMENT OBJECTIVE
 The Strategic Role of Operations
 Operations Objectives
 Operations Alternatives and Tradeoffs
 A Strategic Planning Operations Model
NAME: SANTOS, ROSEMARIE
TOPIC: PRODUCTIVITY
 Modern Dynamic Concept of Productivity
 Factor Productivity and Total Productivity

Tel No. 82927536
 Productivity Analysis
 Factors Affecting of Productivity
 International Dimensions of Productivity
 The Environment of Operations
NAME: ORILLA, MARIE FRANZ
TOPIC: SCOPE OF OPERATION MANAGEMENT
 Location of Facilities
 Plant Layout and Material Handling
 Product Design & Process Design
 Production and Planning Control
 Planning & Routing
NAME: BAYLA, MARIFE
TOPIC: SCOPE OF OPERATION MANAGEMENT
 Scheduling
 Dispatching
 Quality Control
 Maintenance Management
DATE : SEPTEMBER 29. 2022
AY : 1ST SEMESTER (2022-2023)

Tel No. 82927536
Subject: Operation Management
Course: Bachelor of Science in Office Administration
Professor: Sir. Ian Emmanuel Arsolon
Semester/Year: 1st Semester / 2nd Year College
Schedule: Tuesday/Thursday/Saturday
Topics: Operation Management Concepts

Tel No. 82927536
Introduction
We have learned several things throughout this topic in Operation
Management Concepts, things that will help us in the future, involves operating
system, operation system, planning, organizing, and supervising processes, and
make necessary improvements for higher profitability. The adjustments in the
everyday operations have to support the company’s strategic goals, so they are
preceded by deep analysis and measurement of the current processes.
We have learned that operation management is basically the
operation of resource management with respect to the manufacture and delivery of
services or products. Further, we have learnt that Operations Management is
essential for all commercial outlets for customer satisfaction. Before undergoing
the course, we did not have a clear idea how to be a successful operations manager.
From the course, we learn that, to be a successful operations manager, one needs to
enjoy his duties, have deep understanding of customer demands, good
communication skills and good analysis skills.

Tel No. 82927536
PRESENTOR 1
4 CLASSIFICATION OF PRODUCTION SYSTEM
Job-Shop Production – Characterised by manufacturing one or few quantity of products design
and produced as per the specification of customers within prefixed time and cost.
Batch Production – It is characterized by the manufacture of limited number of products
produced at regular intervals and stocked awaiting sales.
Mass Production – This production system is justified by very large volume of production. The
machines are arranged in a line of product layout.
Continuous Production – Production facilities are arranged as per the sequence of production
operations from the first operations to the finished product.
OPERATIONS SYSTEM
Converts inputs in order to provide outputs, which are required by a customer. It converts
physical resources into outputs, the function of which is to satisfy customer wants.
Tel No. 82927536
EVERETT E. ADAM & RONALD J. EBERT
- defines as ‘An operating system is the part of an organisation that produces the organistion’s
physical goods and services’.
Ray Wild
- defines operations system as ‘a configuration of resources combined for the provision of goods
or services’.
A Framework of Managing Operations
1. Behavior
Operations managers are concerned with the activities, which affect human behaviour through
models. They want to know the behaviour of subordinates, which affects managerial activities.
Their main interest lies in the decision-making behaviour.
2. Models
Models represents schematic representation of the situation, which will be used as a tool for
decision-making. Following are some of the models used.
Resources
Resources are the human, material and capital inputs to the production process. Human resources
are the key assets of an organization. As the technology advances, a large proportion of human
input is in planning and controlling activities.

Tel No. 82927536
System
Systems are the arrangement of components designed to achieve objectives according to the
plan. The business systems are subsystem of large social systems. In turn, it contains subsystem
such as personnel, engineering, finance and operations, which will function for the good of the
organisation.
PRESENTOR 2
OPERATIONS MANAGEMENT OBJECTIVES
• CUSTOMER SERVICE
• RESOURCE UTILISATION
THE STRATEGIC ROLE OF OPERATIONS
• A STRATEGIC PERSPECTIVE
After assessing the potential within an industry, an overall organizational strategy must be
developed, including some basic choices of the primary basis for competing. In doing so,
priorities are established among the following four characteristics:
• Quality (product performance).
• Cost efficiency (low product price).

Tel No. 82927536
• Dependability (reliable, timely delivery of orders to customers).
• Flexibility (responding rapidly with new products or changes in volume)
OPERATIONS OBJECTIVES
1. Product/service characteristics.
2. Process characteristics.
3. Product/service quality.
4. Efficiency
- Effective employee relations and cost control of labour.
- Cost control of material.
- Cost control in facility utilization.
5. Customer service (schedule)
- Producing quantities to meet expected demand.
- Meeting the required delivery date for goods or services.
6. Adaptability for future survival.

Tel No. 82927536
OPERATIONS ALTERNATIVES AND TRADEOFFS
The operations sub-goals can be attained through the decisions that are made in the
various operations areas. Each decision involves important tradeoffs between choices
about product and process versus choices about quality, efficiency, schedule and
adaptability.
STRATEGIC PLANNING
• Strategic Planning for Production and Operations
• Strategic Planning Approaches for Production/Operations
• Strategic Planning—Forced Choice Model

Tel No. 82927536
PRESENTOR 3
PRODUCTIVITY
Productivity is defined in terms of utilization of resources, like material and labour. In simple
terms, productivity is the ratio of output to input.
Modern Dynamic Concept of Productivity
Productivity can be treated as a multidimensional phenomenon. The modern dynamic concept of
Productivity looks at productivity as what may be called “productivity flywheel”. The
productivity is energized by competition.
Factor Productivity and Total Productivity
When productivity is measured separately for each input resource to the production process it is
called factor productivity or partial productivity. When productivity is measured for all the
factors of production together, it is called total factor productivity.
Productivity Analysis
For the purposes of studies of productivity for improvement purposes, following types of
analysis can be carried out:
1. Trend analysis
Tel No. 82927536
2. Horizontal analysis
3. Vertical analysis
4. Budgetary analysis
FACTORS AFFECTING PRODUCTIVITY
1. Capital/labour ratio
2. Scarcity of some resources
3. Work-force changes
4. Innovations and technology
5. Regulatory effects
6. Bargaining power
7. Managerial factors
8. Quality of work life:
INTERNATIONAL DIMENSIONS OF PRODUCTIVITY
Industrialized nations are developing two strategies to remain competitive in the business.
1. Moving to a new and more advanced products, and
2. Employing better and more flexible system.

Tel No. 82927536
NEW PRODUCTS
- High volume products like steel, textiles, etc. With constitute an industrial base are not
secure.
TREND TOWARDS MORE FLEXIBLE SYSTEMS
- The production runs of these higher valued specialty items and custom designed products
are often much shorter than for traditional mass produced goods.
The following are some of the characteristics of the Japanese firm as compared with the
American firms.
1. Corporate objectives: Employees and customers are given priority over shareholders.
Honesty in business is important.
2. Time horizon: Long-term viability is more important than short-term profits.
3. Production systems: Automated systems with extensive use of microprocessors and
robotics. Quality is paramount, and things happen on schedule.
4. Employment relations: Long-term employment of loyal workers. Unions cooperate to
benefit total firm. Politeness and harmony are emphasized.
5. Materials: Resources are limited. Space is used efficiently and inventories are kept to a
bare minimum.
Tel No. 82927536
6. Financing: More use is made of debt capital and less of equity capital.
7. Training: Employees are thoroughly trained and rotated to learn a variety of skills.
8. Worker participation: Employees are thoroughly trained and rotated to learn a variety of
productivity improvements via suggestions, quality circles and consultation with supervisors.
THE ENVIRONMENT OF OPERATIONS
One of the most encompassing influences on productivity is the environment in which
organization operates. The social impact of an organization is a reflection of the values held by
top management.
PRESENTOR 4
SCOPE OF OPERATIONS MANAGEMENT
1. Location of facilities.
2. Plant layouts and Material Handling.
3. Product Design.
Tel No. 82927536
4. Process Design.
5. Production and Planning Control.
6. Quality Control.
7. Materials Management.
8. Maintenance Management.
LOCATION OF FACILITIES
- Location of facilities for operations is a long-term capacity decision, which involves a
long-term commitment about the geographically static factors that affect a business
organisation. It is an important strategic level decision-making for an organisation.
PLANT LAYOUT AND MATERIAL HANDLING
- Plant layout refers to the physical arrangement of facilities. It is the configuration of
departments, work centres and equipment in the conversion process. The overall
objective of the plant layout is to design a physical arrangement that meets the required
output quality and quantity most economically.
PRODUCT DESIGN
- Product design deals with conversion of ideas into reality. Every business organisation
have to design, develop and introduce new products as a survival and growth strategy.
Tel No. 82927536
Developing the new products and launching them in the market is the biggest challenge
faced by the organizations.
PROCESS DESIGN
- Process design is a macroscopic decision-making of an overall process route for
converting the raw material into finished goods. These decisions encompass the selection
of a process, choice of technology, process flow analysis and layout of the facilities.
PRODUCTION PLANNING AND CONTROL
- Production planning and control can be defined as the process of planning the production
in advance, setting the exact route of each item, fixing the starting and finishing dates for
each item, to give production orders to shops and to follow-up the progress of products
according to orders.
PLANNING
- Is deciding in advance what to do, how to do it, when to do it and who is to do it.
Planning bridges the gap from where we are, to where we want to go. It makes it
possible for thing. To occur which would not otherwise happen.
ROUTING
- Maybe defined as the selection of path, which each part of the product will follow,
which being transformed from raw material to finished products. Routing determines
Tel No. 82927536
the most advantageous path to be followed for department to department and machine to
machine till raw material gets its final shape.
PRESENTOR 5
SCHEDULING
- Determines the programme for the operations. Scheduling may be defined as 'the fixation
of time and date for each operation' as well as it determines the sequence of operations to
be followed.
DISPATCHING
- Is concerned with the starting the processes. It gives necessary authority so as tos tart a
particular work, which has been already been planned under ‘Routing’ and ‘Scheduling’.
QUALITY CONTROL (QC)
- Quality Control may be defined as ‘a system that is used to maintain a desired level of
quality in a product or service’. It is a systematic control of various factors that affect the
quality of the product. Quality Control aims at prevention of defects at the source, relies
on effective feedback system and corrective action procedure.
MAINTENANCE MANAGEMENT
Tel No. 82927536
- In modern industry, equipment and machinery are a very important part of the total
productive effort. Therefore their idleness or downtime becomes are very expensive.
Hence, it is very important that the plant machinery should be properly maintained.
THE MAIN OBJECTIVES OF MATERIAL MANAGEMENT ARE
1. To achieve minimum breakdown and to keep the plant in good working condition at
the lowest possible cost.
2. To keep the machines and other facilities in such a condition that permits them to be
used at their optimal capacity without interruption.
3. To ensure the availability of the machines, buildings and services required by other
sections of the factory for the performance of their functions at optimal return on
investment.

Chapter 1

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 1

Uploaded by

Copyright:

Available Formats

DATAMEX COLLEGE OF SAINT ADELINE

Gotaco Bldg. 2, 32 Mac Arthur Highway, Valenzuela, 1440 Metro Manila

OPERATION MANAGEMENT CONCEPTS

NAME: LAKANDULA, DIOMACA E.

TOPIC: CLASSIFICATION OF PRODUCTION SYSTEM

 Operation System for Department Store

 A Framework of Managing Operations

 Resources & System

NAME: ALCANTARA, JOHN CEDRICK

TOPIC: OPERATION MANAGEMENT OBJECTIVE

 The Strategic Role of Operations

 Operations Alternatives and Tradeoffs

 A Strategic Planning Operations Model

NAME: SANTOS, ROSEMARIE

 Modern Dynamic Concept of Productivity

 Factor Productivity and Total Productivity

 Factors Affecting of Productivity

 International Dimensions of Productivity

 The Environment of Operations

NAME: ORILLA, MARIE FRANZ

TOPIC: SCOPE OF OPERATION MANAGEMENT

 Plant Layout and Material Handling

 Product Design & Process Design

 Production and Planning Control

 Planning & Routing

NAME: BAYLA, MARIFE

TOPIC: SCOPE OF OPERATION MANAGEMENT

DATE : SEPTEMBER 29. 2022

AY : 1ST SEMESTER (2022-2023)

Subject: Operation Management

Course: Bachelor of Science in Office Administration

Professor: Sir. Ian Emmanuel Arsolon

Semester/Year: 1st Semester / 2nd Year College

Topics: Operation Management Concepts

We have learned several things throughout this topic in Operation

system, operation system, planning, organizing, and supervising processes, and

make necessary improvements for higher profitability. The adjustments in the

preceded by deep analysis and measurement of the current processes.

We have learned that operation management is basically the

operation of resource management with respect to the manufacture and delivery of

services or products. Further, we have learnt that Operations Management is

enjoy his duties, have deep understanding of customer demands, good

communication skills and good analysis skills.

4 CLASSIFICATION OF PRODUCTION SYSTEM

Job-Shop Production – Characterised by manufacturing one or few quantity of products design

Batch Production – It is characterized by the manufacture of limited number of products

produced at regular intervals and stocked awaiting sales.

machines are arranged in a line of product layout.

operations from the first operations to the finished product.

physical goods and services’.

A Framework of Managing Operations

Their main interest lies in the decision-making behaviour.

decision-making. Following are some of the models used.

input is in planning and controlling activities.

OPERATIONS MANAGEMENT OBJECTIVES

THE STRATEGIC ROLE OF OPERATIONS

priorities are established among the following four characteristics:

• Quality (product performance).

• Cost efficiency (low product price).

• Flexibility (responding rapidly with new products or changes in volume)

- Effective employee relations and cost control of labour.

- Cost control of material.