Nasirin, Sherilyn D.

BSAC 1A

1. Briefly describe the terms operations management and supply chain

Operations management – manages the processes and systems in producing

goods and/or providing services.
Supply chain – is a sequence of organization, includes the facilities, activities
and functions involved in the production and deliverability of product or services. It
begins with raw materials and ends to final customers.

2. Identify the three major functional areas of business organization and briefly
describe how they interrelate

The three major functional areas of business organizations are: Operations is

responsible for producing products and providing services, Marketing is responsible
for the promotions and sell of the goods and/or services. It is also responsible for
assessing the customers’ wants and needs and Finance is responsible for providing
funds needed for operation.

3. Describe the operations function and the nature of the operations manager’s job.

Operations function is the core of business organizations since it is consisting

of all activities directly related to the creation of goods or services and the nature of
the operations manager’s job is to guide the system by decision-making.

4. List five important differences between goods production and service operations
management:

a. Industrial Revolution

During 1770s in England, goods were produced by craftsmen and their

apprentice in small shops. Simple tools were only available and machine had not
been invented. Then, a number of innovations in 18 th century substituted human
power to machine power which makes things easier. Steam machine was the
significant machine. This change gave the Industrial Revolution a boost: the
development of standard of gauging systems. It also reduced the need for custom
goods.

b. Scientific Management

Scientific management brought changes to management of factories.

Frederick Taylor, the father of scientific management studied work methods in great
detail on identifying the best methods for doing each job. He believed that the
science of management was based on analysis, measurements, observation, and
improvement of work methods and also believed that the management should be
responsible for planning, carefully selecting and training workers, finding the best
way to perform each job, achieving cooperation between management and workers
and separating management activities from work activities.

c. Interchangeable parts

The concept of interchangeable part was applied by Eli Whitney. Its basis was
to standardize the parts. Each part would fit for any automobile coming down the
assembly line.

d. Division of Labor

Where operation is divided up in to a series of many small tasks, individual

workers are assigned to one of those tasks, which enabled workers to avoid delayed
from shifting one activity to another, and also enabled them to learn jobs.

Important differences between goods and services:

i. Goods are tangible while services are intangible.

ii. Producing of goods is done before the consumption while services’

production and consumption happen at same time.

iii. Inventory must be provided “on demand” for goods production while
services tend to involve less use of inventory.

iv. Quality assurance for goods is objective and measurable while for services
is subjective.

v. Ability to patent, goods are often easier to patent, while some services
cannot be patented then it makes easier for competitors to copy.

5. Why are services important? Why is manufacturing important? What are non-
manufactured goods?

Services generally implies an act, it is important because it can make

differences to people’s lives. For example, health care services, it is regarded as an
important determinant in promoting the general physical and mental health and well-
being of people around the world.

Manufacturing is important because it drives productivity growth and

innovation. Manufacturing industries have helped in eradication and poverty.
Manufactured goods can be found all around us, so without manufacturing, we might
not have these products such as gadgets, foods products, etc. that could satisfy our
needs and make things easy.

Non-manufactured goods are goods that naturally grown without human

intervention, for example farm products.

6. What are model and why are they important?

Models are a simple representation of something. It is a decision-making aids

and simplifies those complex real-life phenomena. It focuses on the important
aspects of a situation, easy to use and less expensive.

7. Discuss between goods versus services (purely service and purely goods)

Services (purely services) provide services that remain totally intangible such
as medical advice, teaching, financial advising, etc. , while goods (purely goods)
offer goods that act mostly as basic commodities such as food products.

8. Why is the degree of customization important in process planning?

The degree of customization is important in process planning because it tends

to be more labor intensive than providing standardized products. It consumes time,
requires more highly skilled people and involved more flexible equipment.

9. Why is the degree of customization an important consideration in process

planning?

The degree of customization is an important consideration in process learning

because its impact goes beyond operations and supply chains and it also affects
marketing, sales, accounting, finance, and information systems.

10. List the trade-offs you would consider for each of these decisions:

a. Driving your own car versus public transportation

driving your own car – repairs
public transportation - fare

b. Buying a computer now versus waiting for an improved model

buying a computer now – applicability of software
waiting for an improved model - time

c. Buying a new car versus buying a used car.

Cost, technology

d. Speaking up in class versus waiting to get called on by the instructor

speaking up in a class – confidence
waiting to get called by instructors - preparedness
e. Small business owner having a website versus newspaper advertising

time, convenience