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
UNDERSTANDING PRODUCTION
AND OPERATIONS
1. Definitions-production, operations,
production & operations management
2. Activities involved in operations and
production management
3. Component of the production system
4. 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 Generally, implies an act

output such as such as auto repair,
automobile, eyeglasses, physician’s examination,
TV, etc. that usually lawn care, etc.
takes place in factory
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 inter-
dependent 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, man-
hours, 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 raw-
materials, receipt, storage and issue of
materials, inspection of parts and work-in-
progress, 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. Recall of how you went through the

process of enrollment in your school.
2. 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/journal-
of-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/operations-
management
 https://www.cleverism.com/operations-
management-definition-principles-
activities-tre
 https://managementhelp.org/operationsma
nagement/index.htm
 https://www.smartsheet.com/operations-
management
