Learning task 1

1. When you hear the word operations management what comes to your mind? What are the
symbols or forms it represent?
When I hear about operation management, it’s basically about managing the operation
of a business. This may concern the efficient production of goods and services to achieve
organization goals. The symbols and forms will be answered in number 2

2. Submit the symbol or forms with brief explanations why it represent operation management?

Here I have 8 symbols that

represent Operational
Management.

1. Resources – Resources are scarce. This is process of efficiently allocating the resources.
2. Strategy – This is part of operation management where group of personnel are studying their
workplace and determining the best way of managing the affairs inside and outside of the
enterprise. A path through action to achieve goals and it can be for the whole operation or in
specific activities.
3. Input-output – These are resources needed during the production and the final outcome. In
short the “Input-Transformation-Output process”.
4. Requirements – These are basically putting standards first. Workers and managers must come
up with the requirement based the training standards. If they don’t have the skills or the ability
to be trained then they don’t deserve to be part of the operation.
5. Planning – This is different from strategy. Planning it’s about thinking and making propositions
as road map in achieving goals.
6. Overseeing – One of a manager’s role is to keep an eye on the entirely of the business
operation. To supervise, inspect, and monitor the processes and the behaviour of the workers.
7. Control – An obligation or task that aims to check errors to be rectified. This is to make sure that
there is no deviation from the standards. To see to it that an operation is performing well
according to the plan and the goals of the company.
 8. Costs – Are expenses incurred in an operation. These may include fixed costs, variable costs,
overhead costs, equipment and machineries, labor, etc. All costs needed for the operation to
maintain its performance. If the cost of the operation is low, a firm in a market can have a
competitive advantage than the others.

Learning task 2

1. Interview someone from your home or immediate community who is working or is an

entrepreneur on the definition and important functions of operations management based on
their experiences or observation in their workplace.

Manufacturing – Apparel business

“For me, the meaning of Operation Management is how you manage your operations including the
making or creation of your products or services but in my case it’s a product. It is inclined with the
overseeing of business processes to achieve or get the highest level of efficiency. In manufacturing
apparel you must first study your target customers. So there is planning and product design. Then
we purchase from our suppliers the resources needed for the production and of course we hire
workers and train them for more specific tasks. Once the products were produced we immediately
put it up in an inventory and then distribute the others for selling. My experiences with managing
since I am also the one is managing my business. I often ensure that our execution and performance
must coincide with our plans and goals. A small business only but still I need to manage the different
function inside the business so that we can reduce the cost and make more profit. Ara pa kami sa
survival mode but I am optimistic that through good management we are able to compete to a
larger market” – Mr. Mabida
Learning task 3

Part I
1. What are your significant learnings in Chapter 1? How can these learnings be used by a businessperson or
future entrepreneur?

In chapter I’ve learned that management have a lot complications and needs careful studies.
From the designing of goods or services, to the processing, labor mobilization, to inventory and
maintenance; these strategic components of the operation are important. Whenever in the future I might
as well make my own business either in Manufacturing, services or Merchandising. It is necessary to know
the structure of business’ operation and its functions. Given the trends in operations management today,
I may able to have an idea in determining what set of strategic decisions and planning wise I have to take
that would create the best outcome for my venture. Other companies enter the global stage. More
markets, more partners in supply chains, more profits and of course risks. In a world of globalization and
consumerism, businesses are producing rapidly to meet the demands. Industries like fast fashion, fast
foods, and retail are on the rise. Businesses today are competing not only for the market share but the
effectiveness of their workplace. Trends greatly influences the operation of most businesses and that I
should be aware of. Issues like racism, environmental degradation, child labor conducts awareness as the
world is continuously adapting and embracing responsible business ethics. These will help me as a future
entrepreneur as trends and practices are continually evolving. For example, in the future people will be
more concerned with the environment and health. Business will need to follow these behaviors and meet
what satisfy the customers. Apart from this, productivity is important; business is profit. In order to
maximize profit, one must be productive. You can’t give solutions if your profit is low. One can’t reduce its
carbon emission if there is low profit to innovate and adapt technologies that needs huge investment.
Most successful businesses today with huge profits have become more responsible. Why? Because
reaching these goals needs great innovation and it costs a lot. Almost all small businesses can’t do for the
reason that they don’t have enough profit to invest, acquire technologies, and hire quality workers.There
is a general solution for measuring the productivity of our labor force. So having the knowledge about the
measurement can help evaluate if we are operating efficiently and effectively and foresee the success of
your business.

2. As a college student in this new normal, Can you apply your learnings in operation management in your
personal life? Why or why not?

Absolutely! Currently we are dealing with this pandemic that caused a lot of economic turmoil
and emotional problems. Without physical interaction and peers to remind you with your assignments
and outputs, it may be very odd especially to those students who have been dependent with others. For
my case, this is helpful for my time management and task allocation. I need to plan, to make “to do list”;
making sure I do not waste my time for distractions that may degrade my productivity and unable to pass
outputs on or before due dates. My time, ability to concentrate, knowledge are my inputs. Therefore, I
have to become efficient and know my priorities.

3. For chapter 2, identify and explain the top three reasons to Globalize.

One reason for a business to globalize is to reduce cost. Many countries offer lower corporate taxes for
businesses. Also in some periphery countries; their governments offer incentives for foreign firms to
operate thus lowering their cost. Low wage countries are also attractive for companies going global. This
 will give them more profit margin because of cheap labor, government incentives, low logistics expenses
and the like. Some countries which are more favoured by Mutinationals are China, Vietnam and India and
Indonesia.

Another reason is to provide better goods and services. Here companies may study the specific needs of its market
in a country or a region. It will lessen the time for the deliveries of their goods and services. Thus can make more
improved costumer service which in turn can create global reputation and following.

4. Choose a company mission statement and strategy. Why did you prefer that company? Its mission and
strategy, over other companies? What functional way is the company doing in achieving its mission?
Explain.

Part II.

Daniel Health Care Inc. can process 2,000 papers for government refund. The company has 6 staff working
for 8 hours a day. Payroll is P1,800/day. Overhead expenses is P1,200.00.

The company purchased a new high speed computer that would improve its processing system. The new
output is 4,000 papers and the new overhead expenses is P1,500.00. Work hours and pay are the same.

1. Compute for:
a. Labor productivity with the old system
Solution:
Labor Productivity = 2,000 papers / (6 staffs x 8 hours labor/ staff)
2,000 (48)
= 41.667 or 42 papers per labor hour

b. Labor productivity with the new system

Solution:
Labor Productivity = 4,000 papers / (6 staffs x 8 hours labor/ staff)
4,000 (48)
= 83.333 or 83 papers per labor hour

c. Percent increased on Labor Productivity

Solution:
Labor Productivity rate increase (decrease) = [(83.333 - 41. 667) / 41.667] x 100
= 100 % increase
So, it is a 100% increase from old system or double productivity by using the new system (high
speed computer)

a. MultiFactor Productivity with the Old System

Solution:
MutiFactor Productivity = 2000 papers / (P1,800 + P1,200)
 = 2/3 or 0.667 papers per dollar

b. MultiFactor Productivity with the New System

Solution:
MultiFactor Productivity = 4,000 paper / (P1,800 + P1,500.00)
= 40/33 or 1.212 papers per dollar

c. Percentage Increased in Multifactor Productivity

Solution:
MultiFactor Productivity rate increase (decrease) = [(1.2121 – 0.667) / 0.667] x 100
= 81. 7241 or 82% increase
So, there is 82 percent increase of productivity by using the new system than the old one.

d. If the overhead goes to P2,000.00, what is the Multi Factor Productivity under the new system.
Solution:
MultiFactor Productivity = 4,000 paper / (P1,800 + P2,000)
= 20/19 or 1.0526 papers per dollar
The productivity has decreased a bit due to a rise in the cost of overhead expenses.