By: Gerline Mae Ocampo Pableo

TOPIC: INTRODUCTION OF OPERATIONS MANAGEMENT

Part 1: Introduction

The operations function is that part of every business organization that produces

products and/or delivers services. Operations consist of processes that convert

inputs into outputs. Failure to manage those processes effectively will have a

negative impact on the organization. Therefore the operations management role is

divided into three parts, first is on managing input resources so operations managers

must ensure that the right resources, such as people, equipment and materials, are

available in the right quantity at the right time for the operation’s needs. The

resources are: facilities, equipment, staff, customers, suppliers, transport, materials,

energy and information. Second is on managing processes; this means that

operations managers are responsible for processes. Processes are defined as a

series of interlinked activities or steps that consume resources to meet a goal or

output. Processes include the process flow, work-in-progress, process design,

planning and scheduling, progressing and control and system improvement. Third is

on the management of outputs; The operations function is responsible for meeting

customers’ needs by delivering required products or services. Outputs are the

products and services, customer satisfaction, unit costs and environmental impact.

The effectiveness and efficiency of the operation dictates how much resource is

needed. A key goal of business organizations is to achieve an economic matching of

supply and demand. The operations function is responsible for providing the supply

or service capacity for expected demand.Operations management also extended the

three processes stated to three distinct task areas; design tasks, planning and

control, and improvement. There are three identified three types of transformation

processes: material processing, information processing and customer processing.

By: Gerline Mae Ocampo Pableo

There are also listed six types of transformational change that occur within

processes: informational transformation, possession transformation, location

transformation, storage transformation and physiological or psychological

transformation. There are performance objectives that the operation needs to

consider. The general philosophy is that this type of performance cannot simply be

managed in. Instead, it has to be designed through a series of long term structural

decisions. These decisions collectively are referred to as the operations strategy.

The operations strategy includes decisions such as facility size and location, the

level of use of technology, and the design of the supply network that feeds the

process with the input resources. Once the infrastructure is in place, operations

managers can then focus attention on managing the process. Three main elements

of process management can be identified. First, operations managers need to design

their processes consistent with the performance requirements. Second, they need to

plan and control their process to decide what work to do when, monitoring the

system, and taking corrective action if things start to go wrong. Finally, and a key

role in a modern operations management context, is process improvement.

Operations managers drive much of an organisation's performance improvement

over time. This can feed through to changes in how the organisation competes in a

market.

Part 2: Summary of the topics/Topics Digest

The chapter discussed the scope of operations management across the different

organizations such as on product and service design, process selection, selection

and management of technology, design of work systems, location planning, facilities

planning, and quality improvement of the organization’s products or services. The

operations manager is involved in the day to day operating decisions. Decisions

By: Gerline Mae Ocampo Pableo

involving system design essentially determines many of the parameters of system

operation and these decisions fall more on the strategic and tactical decisions. The

costs, space, capacities, and quality of the system operations are directly affected by

design decisions. Even though the operations manager is not responsible for making

all design decisions, he or she provides inputs to decision makers. There are also

areas that support the operations function, such as the purchasing department, for

purchasing quality materials and inputs to production process, the industrial

engineering, on scheduling, performance standards, methods and quality control, the

distribution, for the delivery and shipping of the goods to customers, and

maintenance on the upkeep and repair of the equipment and machines of

production. Operations distinguishes itself from other functions such as personnel,

marketing, finance, etc. because its primary concern is the conversion of inputs

using physical resources. The operations manager makes a number of key decisions

that affect the entire organization. Among the decisions made by the operations

managers are as to what resources will be needed and the quantity of resources,

when will the resources be needed and when will work be scheduled, when should

the company reorder, where will the work be done, how will the product or service be

designed based on the company methods and equipment, how will resources be

allocated and who will do the work. The operations management is being a planner,

or decision maker in the routine areas of operations everyday. Learning operations

management made me understand the interdependencies of the departments to

each other wherein they all serve as input to one system that is the organization

together will produce output which is the revenue in general. The evolution of

operations management started in the 1700’s with the emergence of businesses.

From 1700’s to 1900’s, Adam Smith started with the study on specialization of labor
By: Gerline Mae Ocampo Pableo

in manufacturing; Eli Viihitney and others on cost accounting and study of

interchangeable parts; Charles Babbage on the study on basics of time study, of

division of labor by skill; Frederick Taylor on the scientific management time study,

work study, dividing and planning and doing work and Frank B. Gilbreth on the

motion of study jobs. From 1901’s, Henry Gantt spearhead on the scheduling

techniques for employees, machines jobs in manufacturing; F.W. Harris on the study

of economic lot sizes for inventory control; Elton Mayo on human relations, the

Hawthorne studies; W.A. Shewart on study on statistical inference applied to product

quality, quality control chart; H.F. Dodge and H.G. Roming on statistical sampling

applied to product control and inspection plans. After World War II, studies includes

operations research applications, digital computer, linear programming,

mathematical programming and commercial digital computers. In the 1960's, is the

emergence of studies such as on organizational and continued study of people at

work, integrating operations into overall strategy and policy, computer applications to

manufacturing, scheduling and control and MRP and lastly, quality and productivity

applications from Japan robotics, CAD and CAM. The trends in businesses

originated from its history and the globalization of nowadays. Today, advances in

information technology and globalization have major influence on operations

management. This changes the way companies compete in the marketplace.

Operations managers are affected because this will influence their decision making,

planning and strategies. In order for the company to compete in this complex

marketplace, the current trends must be considered, such as E-business and E-

commerce transactions, adoption of new technologies, methods, knowledge on the

improvement of goods and services. Facing these new trends and innovations and

adopting them will benefit the businesses as a whole.

By: Gerline Mae Ocampo Pableo

Part 3: Recommendations

My recommendation on this chapter is for the businesses to not just adopt

innovations, trends and technologies, businesses should not forget the greatest

asset of the company which is the employees, the manpower and to invest on

manpower also. Not so much attention is given to this area of the businesses. As

2020 has shown, committing to better health and safety practices can be not only a

smart idea, but also one which is vital to the running of a business. It is important

that operations managers keep a close track on health and safety incidents and find

ways to ensure that the numbers do not start to creep up. Employees must have

easy access to the health and safety information they need. This is especially

important if they are now working remotely. Covid-19 has created huge swathes of

change - and while many see this a negative, there are also positives and

opportunities. No market is unaffected; demand for products and services has

altered significantly, and this is undoubtedly important for the way that businesses

operate. Operations managers need to make sure that they are focused on

understanding how the market has altered over the past 12 months - and use this to

lead the direction of the changes in operations. The way to get as much as possible

out of employees is to ensure that they are happy. The employee experience matters

because it can have a huge effect on morale and motivation, which in turn influences

productivity and creativity. In 2021, operations management needs to be more

employee-centric than ever before, looking for ways to make sure that employees

are able to work to the best of their ability while remaining happy. Communication is

a hot topic for businesses. Once again, we can blame Covid-19 for some of the

communication challenges it has created - but it is necessary to overcome them in

order to be successful. Good communication can have a positive effect on all

By: Gerline Mae Ocampo Pableo

aspects of operations: from productivity and cost-efficiency to real-world problem-

solving. And this all shows up where it counts: better communication alone has the

potential to improve a company’s bottom line by 10% or more.

Part 4: Conclusions

In conclusion, operations management impacts the overall productivity and

profitability of any business enterprise. It measures the efficiency of managers and

workers, hence accelerating individual and company’s progress. Operations

management is the company’s engine room where prudent decisions and plans

emerge. Lack of proper operations management can cause problems in product

design and delivery failures. In any enterprise, a well-designed operations plan is the

pillar and strengthens the probability of fulfilling and shipping orders on time, keeping

customers happy and fuelling the company’s success.