Technop Prefi

Operations Management

The administration of business practices to create the highest degree of efficiency within an enterprise.

Capacity Planning

Evaluating the number of products or services a business can sell or distribute in a given time frame.

Product Design

The process of generating new concepts and developing a service or product to meet customer requirements.

Service Design

Ensuring that a service meets customer requirements and expectations, involving cost-effectiveness.

Quality Control

Quality management that involves checking for potential problems or errors in services or products.

Process Improvement

Evaluating and rearranging the steps in a process to work more efficiently.

Supply Chain Management

Controlling sourcing, production, inventory management, sales, and distribution to reduce overhead costs.

Facilities Management

An aspect of operations management that integrates people, places, and processes for productivity.

Assets

Properties owned by an enterprise that have value and can support production of goods and services.

Hard Services

Physical alterations in buildings, such as fire safety and mechanical services.

Soft Services

Services that enhance workplace comfort, such as cleaning and landscaping.

Facility Location

Choosing a geographic site for operations based on various economic and logistical factors.

Tangible Factors

Concrete aspects such as costs, delivery rates, and government incentives in facility location.

Non-Tangible Factors

Qualities like security and culture impacting facility location decisions.

Controllable Factors

Factors that businesses can influence, such as proximity to market and supply of materials.

Government Policies

Regulations that affect businesses, including labor laws, taxes, and building codes.

Workplace Layout

The design of office space to enhance collaboration and productivity.

Open Office Design

An office layout that encourages collaboration by arranging workstations together.

Cellular Office Design

An office layout that provides private cubicles for focused work.

Co-Working Office Design

An office arrangement popular with workers who do not have designated workspaces.

Combination Office Design

Flexible office layout that incorporates both open and individual workspaces.

Product Layout

An arrangement wherein a single type of product is produced in a large quantity.

Process Layout

A production layout that organizes equipment based on the nature of operations.

Fixed Position Layout

A design where the main component remains stationary while resources come to it.

Combination Type Layout

A layout that uses a mix of different types to accommodate varied production needs.

Virtual Office

A flexible workspace setup that enhances collaboration and mobility in operations.

5S Method

A workplace organization method that aims for efficiency through sorting, setting order, and sustaining discipline.

Seiri

Sorting; organizing necessary tools and materials while discarding the unnecessary.

Seiton

Setting in order; arranging tools for easy access and minimal movement.

Seiso

Cleaning; maintaining a clean workplace as a daily routine.

Seiketsu

Standardizing; ensuring procedures are maintained and followed to uphold order.

Shitsuke

Discipline; instilling ongoing accountability for the 5S method.

Business Model Canvas

A strategic plan outlining a company's financial goals and approach to customer value.

Customer Segment

Groups of people or organizations targeted by a business to serve.

Customer Relationship

The type of interaction a company has with its customers, aimed at retention and engagement.

Channels

Methods through which a business reaches its customer segments.

Revenue Streams

The sources through which a business earns money, critical for profitability.

Key Activities

Essential actions a business must take to operate effectively.

Key Resources

Assets needed for a business to create and deliver value.

Key Partners

External entities a business collaborates with to optimize performance.

Cost Structure

The financial layout that defines the costs incurred by a business.

Value Proposition

The unique value offered by a business to meet customer needs.

Step 1: Set up a virtual office

Set up a phone system and office address

Step 2: Set up a virtual office

Acquire a domain name and e-mail address

Step 3: Set up a virtual office

Adopt the right tools and equipment, such as billing and invoicing solutions, file sharing and document management systems, and backup and recovery solutions

Step 4: Set up a virtual office

Set up collaboration and communication tools

Step 5: Set up a virtual office

Establish the organizational rules and regulations

Proximity to the market

A business should be located close to its target market to ensure it can deliver goods and services on time.

Supply of materials

Businesses need the right amount of raw materials, at the right time, to ensure production is not interrupted.

Transportation facilities

Businesses need quick and efficient transport facilities to ensure a timely supply of raw materials, and finished goods. The modes of transportation are air, rail, water (seas and rivers), roads, and pipelines (water, gas, and fuel supply).

Infrastructure available

Businesses dependent on energy, like steel mills, should be close to power stations for an uninterrupted power supply.

Labor wages and the laws that govern it

An enterprise should always be aware of its workers' rights and the tax laws where the business is located.

Government policies

Businesses must adhere to the policies of government and local bodies regarding labor laws, building codes, safety, taxes, social security, and data privacy to avoid legal issues.

Climate and environmental conditions

Businesses must consider the geology, climate, and environmental conditions of their location as these factors can significantly affect the delivery of services and products.

Supporting industries

Businesses must maintain a good relationship with their suppliers, prioritizing proximity to ensure timely

Organizational structure development

Evolves from the study of organizations, groups, and societies, focusing on their processing of principles and concepts. This field is termed organizational analysis.

An organization

is a group of individuals with a specific purpose, especially in business, society, and associations.

Organizational structure

defines each worker's job and how it fits inside the system.

German sociologist Max Weber

who began the scientific analysis of organizations. He coined that in organizations, authority arises in situations in which one accepts the direction of another.

Decentralized organizational structure

In this type of organizational structure, several people make decisions and run the operations of their groups/departments.

Centralized organizational structure

This structure relies on one individual to make the decisions and provide directions for the enterprise.

Simple structure

It has no functional or product categories and is appropriate for a small, entrepreneur-dominated company with one (1) or two (2) product lines that operate/s in a reasonably small, easily identifiable market niche.

Functional structure

It is appropriate for a medium-sized firm with several product lines in one industry.

Divisional structure

It is appropriate for a large corporation with many product lines in several related industries. Employees here are functional specialists organized according to product/market distinctions.

A people strategy

is the organization’s prioritized people plan that enables a business to be successful by attracting, developing, retaining, and inspiring the workforce.

backward-looking

focusing on evaluating the jobs people are doing at present.

Communicating with subordinates

Involves exchanging information through verbal or non-verbal messages for:

• Information: Acquiring data for decision-making.
• Motivation: Encouraging employees towards business goals.
• Control: Clarifying duties and responsibilities.
• Emotive: Providing an outlet for self-expression.

Providing counseling services

Offers therapy for employees' emotional and psychological issues to enhance their efficiency and create a positive workplace. Studies suggest it is effective in combating stress and bullying.

Motivating employees

Essential for success, achieved by:

• Improving work conditions with facilities and activities.
• Modifying organizational behaviors.
• Offering recognition.
• Providing

Maintaining discipline

Discipline is training individuals to comply with an organization's rules or some code of behavior.

Due process

is the innate right of any individual to receive fair treatment if allegations are pitted or errors are incurred against them.

Verbal warning

The initial disciplinary step involving a reprimand from the employee's immediate supervisor, cautioning against future errors.

Written warning

The second disciplinary measure, where the HR department issues a formal warning letter detailing the employee's misconduct and potential consequences for repeated offenses.

One-day suspension

Issued after a written reprimand if the employee repeats the error, involving a one-day suspension without pay, accompanied by a written explanation of the violation and potential repercussions for future occurrences.

Three-day suspension

Applied when the same employee commits a similar error after a written reprimand and a one-day suspension, resulting in a three-day suspension without pay.

Termination

The final action taken when an employee continues to err despite verbal and written warnings, leading to the end of their employment with the company.

Serious misconduct or willful disobedience

Employee's defiance of lawful orders from the employer or representative related to their job.

Gross and habitual neglect of duties

Employee's repeated and significant failure to perform their job responsibilities.

Commission of a crime or offense

The Employee against his employer or any immediate member of his family or his duly authorized representatives and other similar causes.

social responsibility

Is an ethical framework that asserts that an individual must work and cooperate with other individuals and organizations to benefit society and their environment.

Friedman’s traditional view of business responsibility

Argues that a business's primary social responsibility is to increase profit within the bounds of free competition, without deception or fraud. Spending shareholder money on social interests is not considered a responsible action.

Carroll’s responsibilities of business.

Proposes that businesses have four responsibilities:

• Economic: Producing valuable goods/services to repay creditors and increase shareholder wealth (e.g., Apple's iPhone).
• Legal: Obeying laws defined by governments (e.g., U.S. firms hiring based on credentials).
• Ethical: Following society's beliefs about behavior (e.g., working with employees/community during layoffs).
• Discretionary: Voluntary actions like philanthropy and training programs.

Drucker’s view of social responsibility

Companies should integrate social responsibilities with business opportunities. Considers workers' needs as important as profits, survival, and growth.

Carr’s view of social responsibility

Argues business is a game with different ethics than personal life. Practices like bluffing are acceptable, and ethics vary by situation.

Freeman’s view of social responsibility

Believes in “Stakeholder Theory,” where anyone with interest in the business should participate in its actions and decisions.

Income Statement

Prepared monthly, quarterly, or annually. Includes Revenue and Expenses account balances from the Adjusted Trial Balance.

Net Loss

If total revenue < total expenses:

Net Gain.

If total revenue > total expenses:

Retained Earnings (RE)

The accumulated portion of a company'

Balance Sheet

An essential accounting and financial modeling. The company’s total assets and financing methods — equity or debt — are shown on the balance sheet. It is also known as a statement of financial position or net worth.

Statement of Cash Flow

is to provide a comprehensive picture of a company's cash flow over a specific period or accounting period.

Operating Activities

Cash flow resulting from a company's primary business activities, such as providing goods or services.

Investing Activities

Cash flow related to the purchase or sale of assets, including physical properties and intangible assets, using available cash.

Financing Activities

Cash flow from debt and equity financing activities.

Return on Investments (ROI)

Calculated as Income after Income Tax divided by Average Stockholder's Equity. It reflects the return on the owner's equity and is often referred to as Return on Equity (ROE).

Return on Assets (ROA)

Calculated as Operating Income divided by Average Total Assets. It measures how effectively a company utilizes its assets.

Quick Ratio (Acid-Test Ratio)

Calculated as Quick Assets divided by Current Liabilities. It assesses a company's ability to meet short-term obligations with its most liquid assets.

Profit Margin/Return on Sales (ROS)

Calculated as Income divided by Net Sales. It indicates a company's profitability relative to its sales. A low margin may suggest issues with market share, industry conditions, cost management, or pricing strategy.

Current Ratio

Calculated as Current Assets divided by Current Liabilities. It reveals a firm's immediate solvency and liquidity, indicating its ability to meet short-term obligations.