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OPERATIONS MANAGEMENT
AGENDA A. Learning Outcomes B. Rules of Engagement C. Discussion of the Lesson D. Deepening E. Synthesis F. Task Analysis
LEARNING OUTCOMES At the end of this lesson, the students should be able to: Learn how goods and services are processed before they actually buy them. Know the difference between production management and operations management. Familiarize oneself with the production environment.
RULES OF ENGAGEMENT Read the textbook and the assigned article Active participation in class
Respect each other Listen to the person who is sharing his/her ideas during the class discussion
TOPICS
1.
2. 3.
4.
UNDERSTANDING PRODUCTION AND OPERATIONS Definitions-production, operations, production & operations management Activities involved in operations and production management Component of the production system The production system and its environment
THINK ALOUD What is the difference between operations management and production management? How are they related to each other?
OPERATIONS MANAGEMENT
It refers to the management of systems or processes that create goods and/or provide services
Production of Goods versus Delivery of Services
Although goods and services often go hand in hand, there are some very basic differences between the two.
Production of Goods versus Delivery of Services Production of Goods Delivery of Services
Results in tangible output such as automobile, eyeglasses, TV, etc. that usually takes place in factory
Generally, implies an act such as auto repair, physician’s examination, lawn care, etc.
ACTIVITIES INVOLVED IN OPERATIONS AND PRODUCTION MANAGMENT 1.
Forecasting - such things as weather and landing conditions, seat demand for flights, and the growth in air travel
2.
Capacity Planning - essential for the airline to maintain cash flow and make reasonable profit.
ACTIVITIES INVOLVED IN OPERATIONS AND PRODUCTION MANAGMENT 3.
Scheduling - scheduling of planes for flights and for routine maintenance; scheduling of pilots and flight attendants; scheduling of ground crews, counter staffs, and baggage handlers
4.
Managing inventories - managing inventories of items such as food, beverage, in-flight magazines, pillows, blankets, etc.
ACTIVITIES INVOLVED IN OPERATIONS AND PRODUCTION MANAGMENT 5.
Assuring quality - essential in flying and maintaining operations, where emphasis is on safety, and important in dealing with customers at ticket counters, check-in, telephone and electronic reservations, where the emphasis is on efficiency and courtesy
6.
Motivating and training employees - in all phases of operations, it is important to encourage employees to offer quality service to their customers
ACTIVITIES INVOLVED IN OPERATIONS AND PRODUCTION MANAGMENT 7. Plant Location - locating the facilities according to managers’ decisions on which cities to provide service for, where to locate maintenance facilities, and where to locate major and minor hubs 8. Purchasing - receiving and inspecting the purchased goods - procurement of materials, supplies, and equipment
ACTIVITIES INVOLVED IN OPERATIONS AND PRODUCTION MANAGMENT 9.
Industrial engineering - often concerned with scheduling, performance standards, work methods, quality control, and material handling
10. Distribution
- involves the shipping of goods to warehouses, retail outlets, or final customers
ACTIVITIES INVOLVED IN OPERATIONS AND PRODUCTION MANAGMENT 11. Maintenance
- is responsible for general upkeep and repair of equipment, buildings and grounds, heating and air-conditioning; removing toxic wastes; parking; and security
ON THE SAME PAGE
What is the meaning of PRODUCTION?
ON THE SAME PAGE
Let us define first the word “production” and “system” separately for us to fully understand how production system goes.
PRODUCTION It is an act of either manufacturing or mining or growing of goods (commodities) generally in bulk for trade It is a method employed for making or providing essential goods and services for consumers It is a process that puts intangible inputs like ideas, creativity, research, knowledge, wisdom, etc. in use or action. It is a way that transforms (convert) tangible inputs like raw-materials, semi-finished goods and unassembled goods into finished goods or commodities.
SYSTEM It is an arrangement or assembly of interdependent processes (activities) that are based on some logic and function. It operates as a whole and is designed (build) with an intension to achieve (fulfill) some objective or do some work. Huge systems are often a collection (assembly) of smaller sub-systems.
PRODUCTION SYSTEM The methods, procedure or arrangement which includes all functions required to (gather) the inputs, process or reprocess the inputs, and deliver the marketable output (goods). It utilizes materials, funds, infrastructure, and labor to produce the required output in form of goods.
COMPONENTS OF PRODUCTION SYSTEM 1.
Inputs - include raw-materials, machines, manhours, components or parts, drawing, instructions and other paper works
COMPONENTS OF PRODUCTION SYSTEM 2.
Conversion Process - includes operations (actual production process). Operations may be either manual or mechanical or chemical. Operations convert inputs into output. - also includes supporting activities, which help the process of conversion. The supporting activities include; production planning and control, purchase of rawmaterials, receipt, storage and issue of materials, inspection of parts and work-inprogress, testing of products, quality control, warehousing of finished products, etc.
COMPONENTS OF PRODUCTION SYSTEM 3.
Output - includes finished products, finished goods (parts), and services.
COMPONENTS OF PRODUCTION SYSTEM
Examples of Production System 1.
Tangible goods Consider an example of a manufacturing industry like a Sugar Industry. Here, sugarcane is first used as an input, then the juice of sugarcane is processed through a conversion process, finally to get an output known as a refined sugar
Examples of Production System 2.
Intangible goods Consider an example from a service industry that of a software-development firm or company. Here, initially, written program codes are used as an inputs. These codes are then integrated in some database and are provided with a user-friendly interface through a conversion process. Finally, an output is made available in form of an executable application program.
PRODUCTION SYSTEM AND ITS ENVIRONMENT Production environment - It is a term used mostly by developers to describe the setting where software and other products are actually put into operation for their intended uses by end users. - It can be thought of as a real-time setting where programs are run and hardware setups are installed and relied on for organization or commercial daily operations
DEEPENING Group yourselves consist of 5 members Create a flowchart for a particular office operation (e.g. issuance of driver’s license, dining at a resto) that you find systematic and idealistic. Present your output in PowerPoint presentation
SYNTHESIS Differentiate operations management from production management. How important is this to the business firm?
TASK ANALYSIS 1. 2.
Recall of how you went through the process of enrollment in your school. Create a flowchart to illustrate it. You may have it typewritten or handwritten on a bond paper. To be submitted next meeting.
Thank you!
Book References
Camilar- Serrano, A.O. (2016). Facilities Planning and Management. Unlimited Books Library Services and Publishing Inc.
Cobb, A. T. (2012). Leading Project Teams: The Basic of Project Management and Team Leadership Second Edition. Los Angeles: SAGE
Collier, D. A. (2012). Operations Management. Andover: CENGAGE Learning.
Daft, R. (2014). Building Management Skills: An Action-First Approach. Austria: South-Western CENGAGE Learning
Davis, R.A.(2016). Demand-Driven Inventory Optimization and Replenishment: Creating a More Efficient Supply Chain New Jersey: John Wiley and Sons, Inc.
Book References
Deming, E. (2013). The Essential Deming: Leadership Principles from the Father of Quality. New York: McGraw-Hill.
Grebey, J.(2012). Operations Due Diligence: An M&A Guide for Investors and Businesses. New York: McGraw-Hill.
Griffin, R.W. Management Skills: Assessment and Development. Austria: CENGAGE Learning
Jacobs, R. and Richards, C. (2013) Operations and Supply Chain Management 14th Edition: International Edition: McGraw-Hill.
Book References
Kerzner, H. (2013). Project Management Metrics, KPIs, and Dashboards: A Guide to Measuring and Monitoring Project Performance International Institute for Learning
Peng, M. (2012).Global Business. Andover: CENGAGE Learning
Pinto, J.K. (2013). Project Management: Achieving Competitive Advantage Third Edition. Boston: Pearson
Rue, L. (2013). Management: Skills and Application Fourteenth Edition. New York: McGraw-Hill
Vaidyanathan, G. (2013). Project Management: Process, Technology and Practice. Boston: Pearson
Journal Articles Elsevier Journal of Operations Management https://www.journals.elsevier.com/journalof-operations-management International Journal of Supply and Operations Management http://www.ijsom.com/ Springer Link Operations Management Research https://link.springer.com/journal/12063
Internet References https://www.edx.org/course/operationsmanagement https://www.cleverism.com/operationsmanagement-definition-principlesactivities-tre https://managementhelp.org/operationsma nagement/index.htm https://www.smartsheet.com/operationsmanagement
AGENDA A. Learning Outcomes B. Rules of Engagement C. Discussion of the Lesson D. Deepening E. Synthesis F. Task Analysis
LEARNING OUTCOMES At the end of this lesson, the students should be able to: Learn how goods and services are processed before they actually buy them. Know the difference between production management and operations management. Familiarize oneself with the production environment.
RULES OF ENGAGEMENT Read the textbook and the assigned article Active participation in class
Respect each other Listen to the person who is sharing his/her ideas during the class discussion
TOPICS
1.
2. 3.
4.
UNDERSTANDING PRODUCTION AND OPERATIONS Definitions-production, operations, production & operations management Activities involved in operations and production management Component of the production system The production system and its environment
THINK ALOUD What is the difference between operations management and production management? How are they related to each other?
OPERATIONS MANAGEMENT
It refers to the management of systems or processes that create goods and/or provide services
Production of Goods versus Delivery of Services
Although goods and services often go hand in hand, there are some very basic differences between the two.
Production of Goods versus Delivery of Services Production of Goods Delivery of Services
Results in tangible output such as automobile, eyeglasses, TV, etc. that usually takes place in factory
Generally, implies an act such as auto repair, physician’s examination, lawn care, etc.
ACTIVITIES INVOLVED IN OPERATIONS AND PRODUCTION MANAGMENT 1.
Forecasting - such things as weather and landing conditions, seat demand for flights, and the growth in air travel
2.
Capacity Planning - essential for the airline to maintain cash flow and make reasonable profit.
ACTIVITIES INVOLVED IN OPERATIONS AND PRODUCTION MANAGMENT 3.
Scheduling - scheduling of planes for flights and for routine maintenance; scheduling of pilots and flight attendants; scheduling of ground crews, counter staffs, and baggage handlers
4.
Managing inventories - managing inventories of items such as food, beverage, in-flight magazines, pillows, blankets, etc.
ACTIVITIES INVOLVED IN OPERATIONS AND PRODUCTION MANAGMENT 5.
Assuring quality - essential in flying and maintaining operations, where emphasis is on safety, and important in dealing with customers at ticket counters, check-in, telephone and electronic reservations, where the emphasis is on efficiency and courtesy
6.
Motivating and training employees - in all phases of operations, it is important to encourage employees to offer quality service to their customers
ACTIVITIES INVOLVED IN OPERATIONS AND PRODUCTION MANAGMENT 7. Plant Location - locating the facilities according to managers’ decisions on which cities to provide service for, where to locate maintenance facilities, and where to locate major and minor hubs 8. Purchasing - receiving and inspecting the purchased goods - procurement of materials, supplies, and equipment
ACTIVITIES INVOLVED IN OPERATIONS AND PRODUCTION MANAGMENT 9.
Industrial engineering - often concerned with scheduling, performance standards, work methods, quality control, and material handling
10. Distribution
- involves the shipping of goods to warehouses, retail outlets, or final customers
ACTIVITIES INVOLVED IN OPERATIONS AND PRODUCTION MANAGMENT 11. Maintenance
- is responsible for general upkeep and repair of equipment, buildings and grounds, heating and air-conditioning; removing toxic wastes; parking; and security
ON THE SAME PAGE
What is the meaning of PRODUCTION?
ON THE SAME PAGE
Let us define first the word “production” and “system” separately for us to fully understand how production system goes.
PRODUCTION It is an act of either manufacturing or mining or growing of goods (commodities) generally in bulk for trade It is a method employed for making or providing essential goods and services for consumers It is a process that puts intangible inputs like ideas, creativity, research, knowledge, wisdom, etc. in use or action. It is a way that transforms (convert) tangible inputs like raw-materials, semi-finished goods and unassembled goods into finished goods or commodities.
SYSTEM It is an arrangement or assembly of interdependent processes (activities) that are based on some logic and function. It operates as a whole and is designed (build) with an intension to achieve (fulfill) some objective or do some work. Huge systems are often a collection (assembly) of smaller sub-systems.
PRODUCTION SYSTEM The methods, procedure or arrangement which includes all functions required to (gather) the inputs, process or reprocess the inputs, and deliver the marketable output (goods). It utilizes materials, funds, infrastructure, and labor to produce the required output in form of goods.
COMPONENTS OF PRODUCTION SYSTEM 1.
Inputs - include raw-materials, machines, manhours, components or parts, drawing, instructions and other paper works
COMPONENTS OF PRODUCTION SYSTEM 2.
Conversion Process - includes operations (actual production process). Operations may be either manual or mechanical or chemical. Operations convert inputs into output. - also includes supporting activities, which help the process of conversion. The supporting activities include; production planning and control, purchase of rawmaterials, receipt, storage and issue of materials, inspection of parts and work-inprogress, testing of products, quality control, warehousing of finished products, etc.
COMPONENTS OF PRODUCTION SYSTEM 3.
Output - includes finished products, finished goods (parts), and services.
COMPONENTS OF PRODUCTION SYSTEM
Examples of Production System 1.
Tangible goods Consider an example of a manufacturing industry like a Sugar Industry. Here, sugarcane is first used as an input, then the juice of sugarcane is processed through a conversion process, finally to get an output known as a refined sugar
Examples of Production System 2.
Intangible goods Consider an example from a service industry that of a software-development firm or company. Here, initially, written program codes are used as an inputs. These codes are then integrated in some database and are provided with a user-friendly interface through a conversion process. Finally, an output is made available in form of an executable application program.
PRODUCTION SYSTEM AND ITS ENVIRONMENT Production environment - It is a term used mostly by developers to describe the setting where software and other products are actually put into operation for their intended uses by end users. - It can be thought of as a real-time setting where programs are run and hardware setups are installed and relied on for organization or commercial daily operations
DEEPENING Group yourselves consist of 5 members Create a flowchart for a particular office operation (e.g. issuance of driver’s license, dining at a resto) that you find systematic and idealistic. Present your output in PowerPoint presentation
SYNTHESIS Differentiate operations management from production management. How important is this to the business firm?
TASK ANALYSIS 1. 2.
Recall of how you went through the process of enrollment in your school. Create a flowchart to illustrate it. You may have it typewritten or handwritten on a bond paper. To be submitted next meeting.
Thank you!
Book References
Camilar- Serrano, A.O. (2016). Facilities Planning and Management. Unlimited Books Library Services and Publishing Inc.
Cobb, A. T. (2012). Leading Project Teams: The Basic of Project Management and Team Leadership Second Edition. Los Angeles: SAGE
Collier, D. A. (2012). Operations Management. Andover: CENGAGE Learning.
Daft, R. (2014). Building Management Skills: An Action-First Approach. Austria: South-Western CENGAGE Learning
Davis, R.A.(2016). Demand-Driven Inventory Optimization and Replenishment: Creating a More Efficient Supply Chain New Jersey: John Wiley and Sons, Inc.
Book References
Deming, E. (2013). The Essential Deming: Leadership Principles from the Father of Quality. New York: McGraw-Hill.
Grebey, J.(2012). Operations Due Diligence: An M&A Guide for Investors and Businesses. New York: McGraw-Hill.
Griffin, R.W. Management Skills: Assessment and Development. Austria: CENGAGE Learning
Jacobs, R. and Richards, C. (2013) Operations and Supply Chain Management 14th Edition: International Edition: McGraw-Hill.
Book References
Kerzner, H. (2013). Project Management Metrics, KPIs, and Dashboards: A Guide to Measuring and Monitoring Project Performance International Institute for Learning
Peng, M. (2012).Global Business. Andover: CENGAGE Learning
Pinto, J.K. (2013). Project Management: Achieving Competitive Advantage Third Edition. Boston: Pearson
Rue, L. (2013). Management: Skills and Application Fourteenth Edition. New York: McGraw-Hill
Vaidyanathan, G. (2013). Project Management: Process, Technology and Practice. Boston: Pearson
Journal Articles Elsevier Journal of Operations Management https://www.journals.elsevier.com/journalof-operations-management International Journal of Supply and Operations Management http://www.ijsom.com/ Springer Link Operations Management Research https://link.springer.com/journal/12063
Internet References https://www.edx.org/course/operationsmanagement https://www.cleverism.com/operationsmanagement-definition-principlesactivities-tre https://managementhelp.org/operationsma nagement/index.htm https://www.smartsheet.com/operationsmanagement
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