OPEQUAL MODULE 1 AND 2

Operations Management (with TQM)

What is the course title of OPEQUAL?

FALSE - Mothers

TRUE OR FALSE

Our siblings are the classic examples of very good operations managers.

Operations

 function in an organization that is responsible for creating goods and/or services.

Goods

tangible items produced by the organization. 

Services

activities that an organization renders to the customers involving elements of time, location, form or psychological value that organizations perform.

Operations Management

management of processes that transform an organization's inputs into goods and services that add value for the customer.

maximize efficiency

The goal of operations management is to ____ _____ by producing products at a lower cost while being able to fulfill and satisfy their customer needs.

Operations Management

deals with the creation of goods and services which we come in contact with every day.  When the operations function is effectively managed, organizations are able to provide high quality products and services which would satisfy their customers. On a larger scale, without it, a country's economy will be affected since it serves as an engine that stimulates industrialization, growth and development. 

TRUE

TRUE OR FALSE

Organizations would choose to hire people who have a good grasp and understanding on how to make the best decisions for them.

FALSE - interact

TRUE OR FALSE

Learning about operations management and how it relates to other functions can make one comprehend how functional areas communication.

Decisions

_______ in organizations are cross-functional.  Thus, understanding operations is necessary even if you work in other functions.

cross-functional

A ______ perspective is deemed necessary in order to facilitate smooth organizational processes.

Manufacturing

______ produces a tangible output, in the form of a good.

Service

It deals with the performance of an act

customer contact

The degree of _____ _____ is higher for services, except for other services like internet and utilities, where there is less contact.

FALSE - high

TRUE OR FALSE

For example, dental services, obviously, would require low involvement and interaction between the dentist and the patient.

FALSE - opposite

TRUE OR FALSE

Labor content is also higher for manufacturing compared to service.

TRUE

TRUE OR FALSE

Unlike in manufacturing where inputs and outputs are standard, inputs and outputs vary in services.  The latter is subject to variability depending on the case or need of the client.

TRUE

TRUE OR FALSE

Thus, quality assurance is more difficult for service than in manufacturing, where mistakes could easily be corrected. 

TRUE

TRUE OR FALSE

Likewise, productivity is difficult to measure in service because of the aforementioned variation in inputs and outputs.

FALSE - cannot

Productivity can be judged on the basis of output alone.

Wage or pay

_____ is also more variable in service and would depend on the knowledge or skill of the provider.

FALSE - opposite

TRUE OR FALSE

Patents also apply more in services than manufacturing.

Inventory

_____ is the primary variable in manufacturing.

1. Customer Contact

2. Labor Content

KEY DIFFERENCES IN SERVICES (2)

1. Uniformity of Input

2. Uniformity of Output

3. Measurement of Productivity

4. Quality Assurance

KEY DIFFERENCES IN MANUFACTURING (4)

1. Operations

2. Finance

3. Marketing

3 BASIC FUNCTIONS IN AN ORGANIZATION

Operations

The function in an organization that is responsible for producing goods and/or delivering the services.

operations

The _____ function is the core of the organization for without its products and services, there would be no need for other functions. 

Finance

The function which is responsible for allocating the resources of the organization and securing their financial resources.

Finance

They are also involved in budgeting, preparing and analyzing investment proposals and ensuring that necessary funds are available for operations.

Marketing

The function which is responsible for assessing the needs and wants of the consumers and in selling and promoting the organization’s goods and services.

TRUE

TRUE OR FALSE

Usually, larger organizations have more complex functions other than the three. Organizations may have other supporting functions that include human resources, information systems,  research and development, etc.

operations

Organizations exist because of their products and services, which are created and delivered through the _____ function.

Support Functions

What do you call these functions? (marketing, finance, human resource, etc.)

Support Functions

It ensures that they are able to provide for the needs of the operations.

operations

In the same manner, _____ should also ensure smooth coordination with other departments.

Supply Chain

___ _____ is the sequence of how the organization produces and delivers these products and services

Supply Chain

It involves the facilities, functions and all activities related to sourcing the raw materials until the products and services reach the final customers.

TRUE

TRUE OR FALSE

As the name implies, supply chain illustrates the sequential nature and the interconnection of the different processes producing the products and services.

Stevenson

As stated by _____ (2018), each link is a customer of the previous link and a supplier to the following link.

TRUE OR FALSE

TRUE OR FALSE

Understanding the supply chain is necessary in determining how one problem in one link could disrupt or affect the flow of the next one in the chain. For example, if one raw material necessary to produce a product has a problem on quality, the final product may then be affected leading to satisfaction of the customers.

1. Raw Materials

2. Supplier

3. Manufacturer

4. Distributer

5. Retailer

6. Consumer

Steps in the supply chain (6)

FALSE - transformation

TRUE OR FALSE

The distribution process is generally the basis of all organizations, whether manufacturing or service, in their operations.

1. Capital

2. Labor

3. Information

What are the examples of inputs in the transformation process?

1. Goods

2. Services

What are the examples of outputs in the transformation process?

Feedback

measurements taken at various points in the transformation process

Value-added for Profit

the difference between the cost of inputs and the value or price of outputs

Value-added for Non-profit

benefit that the community gets when it gets processed

Control

the comparison of feedback against previously established standards to determine if corrective action is needed

1. Learning Management System (Canvas)

2. Technology Infrastructure

3. Faculty

Give the inputs in the operations model for De La Salle Lipa's Borderfree education

1. Accessing Canvas for modules and lessons

2. Accomplishing discussion questions

3. Formative and Summative Assessments

4. Consultations

5. Self-paced learning

Give the transformation processes in the operations model for De La Salle Lipa's Borderfree education

Provide high quality digital learning

Give the output in the operations model for De La Salle Lipa's Borderfree education

1. Economic Conditions

2. Intense Competition

3. Technology/Innovation

4. Environmental Concerns

5. Ethical Issues

6. Cyber-security

Trends and challenges facing operations management (6)

Economic Conditions

With the recent lockdown and only a handful of customers around, businesses have laid off their workers and some have even entirely closed their operations.  Among those that are directly hit is the tourism industry with government implementing border restrictions and the like. Airline operations have likewise grounded their flights, stranding passengers and reducing their workforce. Hotels, resorts and other tourist destinations have to contend with months of not having any income at all.  These scenarios have put pressure for operations managers to strategically plan for the survival of their business and their future as well.

Intense competition

Stiff competition has made organizations strive to successfully operate in the market. Organizations have to focus on their core business, eliminating waste and differentiating themselves from the competition.

FALSE - there is competition

TRUE OR FALSE

Because of no competition, operations managers aim to provide the best products and services in order to satisfy their customers.

TRUE

TRUE OR FALSE

In order to offer products at a competitive price, operations managers plan to reduce their costs in a number of ways.

1. Outsourcing their products/inputs from a third party

2. Locating to an area w/ low labor costs

3. Improve product and services designs

4. Increasing productivity

Ways on how operations manager plan to reduce their costs (4)

competitive edge

Much lies on the operations manager to deliver a strategy that would give their organization a ___ ____

Technology / Innovation

Related to intense competition, businesses are faced with the need to continuously provide breakthrough innovations, lest they be overrun by the others.

FALSE - value

TRUE OR FALSE

Companies have been trying to find new ways of improving their products and services in order to create more profit from their customers.

Technology / Innovation

WHAT EXAMPLE OF CHALLENGE IN OPERATIONS MANAGEMENT IS THIS

1. For instance, customers have been excitedly looking forward to the launching of the Iphone 12 and Iphone 12 Pro because of the major updates on its features and design.

2. This poses a problem for other companies such as Huawei, Samsung and others because they too have to provide amazing updates that would be comparable or could even surpass that of Apple.

Environmental Concerns

Nowadays, the increasing awareness on the impact of pollution and environmental degradation has been taking a toll on how businesses operate.

FALSE - environmental

TRUE OR FALSE

Because the government is imposing stricter sociocivic compliance, businesses are obliged to become more responsible in their processes.

1. carefully selecting resources that do not harm the environment

2. eco-friendly packaging and materials, limiting their use of plastic and other non-biodegradable inputs

3. they have also been encouraging their employees to practice the 3Rs (Reduce, Reuse, and Recycle)

How do organizations reduce their environmental waste and carbon footprint? (3)

Ethical Issues

• Managers’ decisions must not only sway towards gaining profits but also on how these would significantly affect their stakeholders.

• Organizations should be ethically responsible as this positively affects how the general public sees them.

FALSE - positive

TRUE OR FALSE

Customers prefer doing business with companies with a neutral public image and avoid those that are unethical

Proper Ethics

This become a marketing strategy for the organization, thereby increasing their bottom line since they do not have to spend generously on other advertisements and promotions.

positive word of mouth

The _______ from their customers would serve as a way to encourage repeat business and find new clients for the organization.

Cyber-security

Ensuring the organization’s cyber-security is another important concern for operations managers as this would significantly affect their business when threatened

confidentiality, privacy

When they are unable to assure the ____ and ____ of their customers, they would choose to conduct business elsewhere.

banks

This scenario is very critical, especially to the banking industry, where ____ have to constantly assure the protection and security of their clients’ accounts.

1. Industrial Revolution

2. Scientific Management

3. Human Relations Movement

4. Decision Models and Management Services

5. The influence of Japanese Manufacturers

Historical Development Operations Management (5)

Industrial Revolution

WHAT HISTORICAL DEVELOPMENT PHASE IS THIS

• Simple tools

• Limited production

• Craftsmen 

• 1770s

• Steam engines

• Iron machines

Standard Gauging System

• Produce standardized goods

• birth of many factories

• Still lacks progressive management

Frederick Winslow Taylor

FATHER OF SCIENTIFIC MANAGEMENT

Frank Gilbreth

FATHER OF MOTION STUDY

Scientific Management

• identifying the best way of doing the job

• Speed up the process of production

• huge role of management in all aspects of job performance

Motion Study

Dividing work into small tasks

Gantt charts

systematically schedule work

Henry Gantt

Who created the Gantt charts?

Henry Ford

Who created scientific management techniques in producing cars?

Mass Production

• large volumes of standardized goods are produced by low-skilled workers using specialized equipment

• Interchangeable parts

• Decreasing assembly time and cost

• Division of labor

Human Relations Movement

WHAT HISTORICAL DEVELOPMENT PHASE IS THIS

considered the importance of human in the process

Scientific Management

WHAT HISTORICAL DEVELOPMENT PHASE IS THIS

• Frederick Winslow Taylor

• Frank Gilbreth

• Henry Gantt

• Harrington Emerson

• Henry Ford

Harrington Emerson

Who discovered organizational efficiency?

Frank and Lillian Gilbreth

Who were the two individuals who analyzed fatigue experience by humans

Hawthorne studies

What study is this? - how workers are affected by certain conditions; In order to improve productivity, motivation among workers must be done

Elton Mayo

Who discovered the Hawthorne studies?

Douglas McGregor

Who discovered the theory X and the theory Y?

Theory X

What theory is this?

• workers have to be controlled because they do not like to work

Theory Y

What theory is this?

• workers are committed in their work

QUANTITATIVE TECHNIQUES

What techniques is being described? - Mathemetical models and statistics

Decision Models and Management Science

WHAT HISTORICAL DEVELOPMENT PHASE IS THIS

Existence of computer and softwares

World War II

resulted the need to use statistical sampling to improve military tactics and production output

1. W. Edwards Deming

2. Joseph Juran

2 Americans working in the National Census; STATISTICAL QUALITY CONTROL

FALSE - Japanese

TRUE OR FALSE

European manufacturers in terms of quality, worker participation and teamwork, and customer satisfaction

Deming Prize

What prize is given during the quality revolution?

The influence of Japanese Manufacturers

WHAT HISTORICAL DEVELOPMENT PHASE IS THIS

Japanese manufacturers in terms of quality, worker participation and teamwork, and customer satisfaction