PRODUCTION AND OPERATIONS

MANAGEMENT OF SELECTED
MANUFACTURING BUSINESSES IN DISTRICT I,
BATANGAS: A BASIS FOR POLICY
ENHANCEMENT

By:
Catherine Bolido

Jayden Nymph Capangpangan

Maurine Joy Rapiz

 CHAPTER 1

The Problem and its Background

This chapter discusses the introduction, background of the study,

conceptual framework, research paradigm, statement of the problem, hypothesis,

significance of the study, scope and limitation of the study and the definition of

terms.

Introduction

Business affects every part of our lives. It provides almost all the goods

and services we use daily. It also supplies most of the jobs and salaries that

enable us to buy those goods and services. The goal of all business firms is to

earn a maximum profit. With this objective, the need for management has

increased as modern business becomes more complex.

In earlier days, an individual might operate a small business or farm

without planning the exact way to do it. But today, some businesses employ

thousands of workers, use millions of money worth of equipment, and sell

products throughout the world. They also come up with an idea of transforming

their natural resources into another form of material with the help of mechanical

processes involving the use of mechanical equipments.

The traditional view of manufacturing management began in eighteenth

century, when economic benefits are recognized as a specialization of labor. In

the early twentieth century, the traditional view is associated into a developed

scientific management. From until 1930, many techniques were developed

prevailing the traditional view. Production management becomes the acceptable

term from 1930’s to 1950’s as managers continue to develop techniques that

focused on economic efficiency in manufacturing. But in 1970’s, distinct changes

emerged. The most obvious of these is the newly introduced name of operations

management in which the service and manufacturing sectors are viewed to be

more useful as it worked together ( Kumar et Al., 2008).

Production and Operations managers have the responsibility for every

activity that helps produce a firm’s goods and services. They have to make every

action or decision help achieve a carefully chosen goal. To achieve these goals,

production and operations manager have identified the activities to be

implemented such as product design, production planning and control, quality

control, materials management, and maintenance management. These are

learned to be necessary to improve business efficiency.

According to Heizer and Render (2011), operations management is the

set of activities that creates solve in the form of goods and services by

transforming inputs into outputs. It is a discipline that applies to restaurants,

factories and many other organizations that is concern in production. The

techniques of operations management apply throughout the world to virtually all

productive enterprises. Operations management is responsible for producing

goods and providing services. As such, it is the core function of ever business
organization. Operations management plans and coordinates the use of the

organizations resources to convert input to output.

Production management deals with decision making related to production

processes so that the resulting goods or services are produced according to

specifications, in the amount and by the schedule demanded and out of minimum

cost (E.S. Buffa, 2008).

For businesses to be having this kind of problems is also a problem that

will be faced by everyone. None of them cannot spend a day without considering

necessities produce by businesses. Everything must come up with a plan, to

ensure an efficient output and to ensure the satisfaction of every individual.

Background of the Study

The study is about analysis of the production and operations management

of manufacturing businesses in First District of Batangas. The proponents

conducted the study for the following reason.

Since the researchers used the production and operations management,

they chose manufacturing businesses as their variable for they believed that it is

the most accurate business that employs a set of operational activities such as

product design, production planning and control, quality control, materials

management, and maintenance management but more importantly it is

responsible for producing its own products.

The researchers conducted the study because they are interested to know

how managers of manufacturing businesses are operating the business using the
activities. They are also interested to conduct a survey and identify the practices

used by the managers for they are interested to know if what enhancement they

can offer in order to improve the production and operations management of the

businesses.

Theoretical Framework

The theoretical framework of the study is the basis of the researchers, and

source of information for further improvement of their study.

According to Kumar and Suresh (2009), operations management

concerned with conversion of input to output using physical resources so as to

provide the desired utilities of the customer while meeting the organizational

objectives of effectiveness, efficiency and adaptability. It distinguish itself from

other functions such as personnel, marketing, finance, etc. by its primarily

concern for conversion by using physical resources. In the diagram are activities

listed under Production and Operations Management functions;

1. Location of Facilities

2. Plant Layout and Material Handling

3. Process Design

4. Product Design

5. Production Planning and Control

6. Quality Control

7. Material Management

8. Maintenance Management
 An operation is defined in terms of the mission it serves for the

organization, technology it employs and the human and managerial process. It

involves operations is an organization can be categorized into manufacturing

operations and service operations. Manufacturing operation is a conversion

process that includes manufacturing that yields a tangible output; a product,

where as, a conversion process that includes service yield an intangible output; a

deed, a performance an effort ( Kumar, 2008).

According to Heizer and Render, management is a factor of production

and an economic resource. Management is responsible for ensuring that labours

and capital are effectively used to increase productivity. Management accounts

for over half of the annual increase in productivity. This increase includes

improvements made through the use of knowledge and the application of

technology.

In order for operation strategy to be truly effective, it is important to link it

to organization strategy; that is the two should not be formulated independently.

Rather, formulation of organization strategy takes into account the realities of

operations, strengths and weaknesses, capitalizing on strength and dealing with

weakness. Similarly, operation strategy must be consistent with the overall

strategy of the organization, and with the other functional units of the

organization (Stevenson, 2009).

Additionally, Stevenson also stated that the ideal situation for a business

organization is to achieve a match of supply and demand. Having excess supply

or excess capacity is wasteful and costly; having too little means lost opportunity

and possible customer dissatisfaction. The key functions on the supply side are

operations and supply chains, and sales and marketing on the demand side. The

operation manager is the key figure in the system: he or she has the ultimate

responsibility for the creation of goods or provision of services involved. Thus,

managing a banking operation obviously requires a different kind of expertise

than managing a steelmaking operation. However, in a very important respect,

the jobs are the same: They are both essentially managerial. The same thing can

be said for the job of any operations manager regardless of the kinds of goods or

services being created.

Conceptual Framework

The study aims to determine the production and operations management

practices of selected manufacturing businesses in District I, Batangas. For a

better understanding of the operational management practices, the researchers

made use of the input, process and output model also known as I-P-O model

which is essential to the study.

Profile of business

 Number of years in
operation
 Type of business
Inputof
 Number Process Output
employees
 Sources of capital

Operation management
practices

 Product Design
 Production Planning
and Control
 Quality Control
 Materials
Management
 Maintenance Instrument Proposed Policy
Management (Questionnaire)