MARY GRACE ARZAGA-MASDO

DBM Student
Midterm Examination
DBAMJR6: International Operations Management
Professor: Candido M. Perez, PhD-Mgnt.,CPA

1. Operations Management is the administration of business practices to create the highest

level of efficiency possible within an organization. It is concerned with converting
materials and labor into goods and services as efficiently as possible to maximize the
profit of an organization by doing that obtaining a competitive advantage among
everyone that is in that market. It is the central core function of every company. Simply
stated operations management is the process of eliminating activities in the organization
that do not add value. The operations functions can be connected to other functional
operations within organizations such as marketing, finance, and human resource. The
organization may be considered as one system with common goals and objectives with its
core functions as its subsystems whereas cooperation and coordination from among
subsystem is vital in order for the system to achieve its goals and objectives. Every
department is led by its manager and the operations manager is the one that oversees the
manufacturing plant or the entire production. The operation managers need to consider all
level of costs from operations, sales, administrative, and distribution. Strategies must
match the overall mission and vision. The operation management involves planning,
organizing, coordinating and controlling all the resources needed to produce company’s
goods and services. In order to function it needs right people that would man equipment,
technology, information and all other resources needed in the production of goods and
services. The Human Resource will be the one who will find right people for the job and
it is also their tasks to maintain and develop people for company’s efficiency. The
Operation management will not be effective without information coming from marketing,
the marketing is essentially the window to customers, and they are responsible for sales,
generating customer demand and understanding customer wants and needs. The
marketing brings feedback to the organization in order for the operations management to
efficiently produce goods and services with utmost value to its target customers. Lastly
the Finance, it makes sure that they have the needed capital for different processes
including Research and Development. The bottom line is that companies need to
 coordinate and link their management functions so that the entire chain operates in a
seamless and efficient manner.

2. We say that operations management performs a transformation role in the process of

converting inputs into finished goods and services. In our case in the academe these
inputs include human resources, buildings and equipment, technology and information.
Therefore, without operations, there would be no products or services to be catered to
customers or clientele. Aside from that, operations management helps improve the
quality of goods and services. They increase efficiency to keep prices down and bolster
the success of the organization. In the academe, improving quality of goods and services
means improving working conditions and safety for employees to provide quality
education opportunities. Higher Educational Institutions where I am working cover a
diverse set of departments, from facilities, to human resources and academic services. All
of these areas and more combine to form an institution of higher learning, and a weakness
in one can affect the others. As you can see any kind of organization requires at least
some degree of operations management.

3. Similarly we say that operations processes are all similar, that is transforming inputs to
outputs, they do differ in (1) the volume of their output, (2) the variety of their output, (3)
the variation in the demand of their output and (4) the degree of visibility which
customers have of the production of their output. It just means that both an organizations
may produce similar products but they do differ on the number of productions, other may
produce tons while other is not which lead to impose higher price than the former not
taking advantage of “economies of scale” concept. Producing products in tons will have a
high degree of repeatability and as the tasks repeated frequently it makes sense for
employees to specialize in the tasks they perform. Their products may be similar but one
may offer higher variety of products and services and other one may offer standardized
products that may offer products at a lower price since standardization minimizes cost.
The demand for goods and services can change depending on the external environment
and more variation of demands for the goods and services makes it hard for the company
to control costs that lead to a much higher price. The fourth one refers to a customer’s
ability to see, track their experience or order through the operations process. A high
degree of visibility includes process excellence with higher efficiency, faster cycle time
and higher overall productivity.
(1)VOLUME. In an academic institutions, processes are at a high volume of output such
as providing instructions, providing credentials (TOR, Copy of grades, Good moral
certificate and others), providing assessments and other services expected from a higher
educational institutions. That means same thing is happening over and over again which
lead to employees to specialize in the tasks they perform. Our university submitted itself
for ISO certification that leads to a more efficient processes. The activities are required to
be streamlined that involves formulating standard procedures and set down in a manual
with instructions on how processes takes place. Also because tasks are systemized and
repeated, the use of specialized technology such as accounting system and enrolment
system gives higher procession efficiencies. In terms of providing instructions, as we
teach within our field of specialization repeatedly, this usually happens when there are
many students enrolled in the program where you can be given one to two preparations
only, we became so much familiar and became innovative in teaching and cost will be
definitely lower. This will not happen when only few students enrolled and there’s only
one block of student in the program, probably you will be given five to six preparations
of teaching load and less repetition cannot lead to specialization, in addition cost is
relatively high.
(2)VARIETY. In university, we have diverse services, we offer different programs and
offering programs is accompanied by different services to ensure that mandates of the
university are being carried out. As we offer many programs this also require higher
funds to provide instructions, buildings and equipment, facilities supporting faculty and
students, fund research and extension activities and other resources needed to ensure the
quality of education we are providing.
(3)VARIATION. This is the most challenging aspect of a process most specially to
private academic institutions however in a State University where I belong, there’s
resources provided by the National Government which makes the operation generally
easier to manage since we only have to cope with predictable constant demand.
Resources are available and can be geared to a level that is just capable of meeting
demand. All activities can be planned in advance. Department heads are required to
conduct strategic planning to plan all the activities and purchases and allocate budget
respectively.
 (4)VISIBILITY. This indicates how services are experienced directly by the customers
and I can say that this is easier to grasp in an academic institutions since services are
directy experienced by the students as our customers. Most of the services provided by
the university are visible to its customers, such as instruction, medical and dental service,
library service, support to students, and administrative related services. But, there are also
services that are less visible which include preparation and revision of curriculum which
is very vital in the higher educational institutions to better prepare students in their field
of specialization.

4. The transformation model is the framework we use to help the top management
understand their organization and also guide in improving the quality of goods and
services provided to customers. It is important to know this model in order for the
organization to maximize the quality of their transformational processes to meet
customer’s demand and expectations. As an individual it is important for us to know this
for us to strive to improve the quality of our work that will contribute to the quality of
service provided by the institutions where we are belong. The figure below shows how
transformation model applied to my organization:

Environment
 Students Competitors
 Regulations Economy
 LGU and PTC Technology

Financial Resources
Human Resources Transformation
Buildings and equipment Teaching System
Learning
Facilities (for faculty and students) activities/strategies
Information and technology Internship
Laboratory activities Skilled and
Knowledge competent
CHED Memos Researches
graduates
Program Curriculum
Time Outputs

Inputs

Monitoring and control

 The figure above shows how the transformation process takes place in Palawan State
University Brookes Point Campus. One of the inputs is the curricula which can be
enhances in light with the CHED Memorandum Orders to emphasize sustainability. The
commitment of the faculty which belongs to the Human Resources is needed to foster
transformation in learning and education for sustainability. The transformation process
offers an opportunity for rethinking or innovative educational practices for effective
learning. And we, in PSU aimed to produce highly competent and skilled graduates with
a high Emotional Quotient (EQ).

5. Operations strategy is the structure upon which an organization determines how it

arranges and uses its resources in order to maintain a competitive advantage. It is the plan
that specifies the design and use of resources to support the business strategy. The
operations strategy should be aligned with the company’s business strategy and enable
the company to achieve its long term plan. Furthermore, operations strategy is the
collective concrete actions chosen, mandated by corporate strategy but of course
implemented within operations function. Simply stated, the operations strategy specifies
how the firm will employ its operations capabilities to support the business strategy.
 Environmental Scanning

Mission

Core competencies

Decisions on processes
and Infrastracture.

Operations strategy starts with looking at the external environment, in the case of an
academe, it always begin with assessing and knowing the needs of the community in terms of the
programs to be offered, assessment includes those offered by the competitors. Then clearly
identify and formulate vision as expressed in mission statement. This statement expresses the
organization’s values and aspirations, basically its purpose of existence. Based on its mission
statement objectives will be identified. It is also important to assess the institutions strengths,
weaknesses, cultures and resources. We may look at the operational capabilities of the institution
to offer the program here. Is there faculty fit to the program, are the buildings and facilities for
faculty and students available such as well-ventilated classrooms and offices, library, laboratory
equipment and others, are there qualified support staff , and many more as specified in the
CHED’s minimum requirements to issue certificate of program compliance. Then if the
institution is capable they may now decide on the processes and policies.