LOMA, ABIGAIL JOY C.

BSACC 2-YA-1
AUG. 30, 2023

OPERATIONS MANAGEMENT WITH TQM

1. Briefly describe the terms operations management and supply chain.

- Operation management is the activity of managing the resources that
provides services and creates product while making sure it is provided efficiently and
with high quality. However, supply chain is the process that the products take from
the beginning up until all the way to the end where they are consumed by the
customers. In other term, it is the sequence of organizations.
2. Identify the three major functional areas of business organizations and briefly
describe how they interrelate.
a. Finance - it is responsible for budgeting the company’s financial resources
to ensure its financial health and stability. It can be done by doing financial
planning, tracking profits and expenses, etc.
b. Marketing - it is responsible for creating strategies to hit their target
audience by understanding their needs and preferences to developed
according to customer’s demand.
c. Operations - it is responsible on the processes and resources needed to
produce goods and service efficiently.
3. Describe the operations function and the nature of the operation manager’s job.
- The operations function is what makes the organization run smoothly so the
company can create and deliver its product and services. It involves systems for
converting inputs into outputs in which the operation manager makes sure
everything works well and reaches its destination. They direct and develop the
overall strategy of the operation.
4. List five important differences between goods production and service
operations; then list five important similarities.
Differences
1. Labor content of jobs
2. Uniformity of inputs
3. Quality assurance
4. Inventory
5. Wages
Similarities
1. Managing variations
2. Location planning
3. Process management
4. Monitoring and controlling costs and scheduling
5. Forecasting
5. Briefly discuss each of these terms related to the historical evolution of
operations management:
a. Industrial Revolution - During the Industrial Revolution, the conventional
practice was to assign a single person to craft a product using basic tools.
However, in the 18th century, a wave of innovation swept in, leading to the
 invention of machines that replaced human labor with mechanical power.
The most notable breakthrough during this era was the development of the
steam engine, which served as a essential source of energy for operating
machines in factories. This innovation has had a profound and enduring
impact on our modern world.
b. Scientific Revolution - Taylor's perspective highlights that the foundation of
management science rests upon the systematic process of observing,
measuring, analyzing, and enhancing work methods, all while considering
economic incentives. He conducted extensive research on work methods to
discern the most effective approaches for each job. That is why, in the 20th
century, when Ford faced challenges in meeting increasing demands, the
application of scientific management principles led to the introduction of
mass production techniques into the automotive industry. In which some
companies also apply the same principles.
c. Interchangeable parts - This implies that there was no need to specially
make parts, since they were created in a standard way during production.
This led to a huge reduction in the time and money needed to put things
together. It implied that because the pieces were standardized, there would
be no need for individual customization.
d. Division of labor - This indicates that a job is broken down into many small
tasks, and each worker is given one of these tasks. This resulted in tasks
becoming so specific that hardly any special skills were needed. By
minimizing the delays caused by workers switching from one activity to
another, it allowed workers to learn their occupations faster and become
proficient at them.
6. Why are services important? Why is manufacturing important? What are
nonmanufactured goods?
- Manufacturing is crucial for businesses that create products from the very
beginning. Having a good understanding of the materials to be used helps them
control costs efficiently and ensure they have the right amount of materials for
production. Manufacturing is significant because it provides a sizable part of exports
and because it supports manufacturing, which in turn supports many service jobs.
While nonmanufactured goods are goods that are extracted from nature and used as
inputs in the production of other goods.
7. What are models and why are they important?
- Model is an abstraction of reality, a simplified representation of something.
It is important since it omits insignificant details so that we can focus or concentrate
more on the important aspect of a situation, that is why it is necessary in operations
management decision making. They are also associated with set of assumptions or
conditions under which model is valid.
8. Why is the degree of customization an important consideration in process
planning?
- Given that producing customized goods or providing customized services
typically takes more time, calls for more highly skilled workers, and requires more
adaptable equipment than what is required for standardized goods or services.
Compared to standardized processes, customized processes typically produce
substantially less, and the cost of customized output is higher.
9. List the trade-offs you would consider for each of these decisions:
a. Driving your own car versus public transportation - choosing to drive a car
makes travel easier, but it's much more expensive. You have to think about
ongoing costs like parking, gas, and repairs. On the other hand, using public
transportation is simpler and mainly involves paying a fare without these
extra expenses.
b. Buying a computer now versus waiting for an improved model - you might
get a more advanced computer with better features and performance if you
wait. However, this means you'll have to wait on the benefits of having a
computer right away and might miss out on the chance for completing your
tasks early.
c. Buying a new car versus buying a used car - you can save money on the
initial purchase price, and the depreciation rate might be slower than
buying a new car. However, there could be potential maintenance costs and
uncertainties about the car's condition.
d. Speaking up in class versus waiting to get called on by the instructor -
active participation can help you develop better communication skills and
build relationships with peers and instructors. You might also gain more
insights from discussions. However, speaking up might also lead to fear of
being wrong and disagreements.
e. A small business owner having a website versus newspaper advertising -
An online presence can provide a platform for global reach and interaction
with customers. It's also easier to track performance and gather data for
analysis. However, establishing and maintaining a website requires ongoing
effort and investment.
10. Describe each of these systems: craft production, mass production, and lean
production.
a. Craft production - entails using general-purpose equipment, creating a wide
range of customized products in small quantities, and employing trained
personnel.
b. Mass production - entails using low-skilled labor and sophisticated
equipment to produce a small number of standardized products at high
output levels. Low cost, effective production is the key benefit.
c. Lean production - entails creating a greater variety of commodities at a
moderate to high output volume. High-skilled labor, superior performance,
employee engagement, teamwork, and a flat organizational structure with
fewer levels of management are requirements.