Lesson Title: Introduction to Operations Management

Activity 1: What I Know Chart, Part 1

What I Know Questions: What I Learned (Activity 4)

It is an organizational What is the process of
discipline where a company management?
takes a step back and looks
at all of these processes in
total and individually.
It is the naturally occurring What is process variation?
variation in the attributes of
transistors when integrated
circuits are fabricated.
He or she is responsible for What do you think is the role
managing all the activities of an operations manager?
that are part of the
production of goods and
services.

Activity 2: Content Notes

A process consists of one or more actions that transform inputs into outputs. Processes may
differ for manufacturing and service but the underlying idea is all the same, big and small.

Process management is a discipline in operations management in which people use various

methods to discover, model, analyze, measure, improve, optimize, and automate business
processes.

Three Categories of Business Processes:

1. Upper-management processes

2. Operational processes

3. Supporting processes

Two Major Aspects of Process Management:

1. Managing a Process to meet Demand

Ideally, the capacity of a process will be such that its output just matches demand.
Because having excess capacity would be wasteful and costly while having too little could mean
dissatisfied customers and lost revenue.

2. Process Variation

Variation occurs in all business processes. It can be due to variety or variability. For
example, random variability is inherent in every process; it is always present. In addition,
variation can occur as the result of deliberate management choices to offer customer variety.
The Operations Manager is the key figure in the system. He or she has the ultimate
responsibility for the creation of goods and provision of services. He or she is responsible for
managing all the activities that are part of the production of goods and services.

Activity 3: Skill-building Activities

Exercise 1

1. Assignable variation is variation in a production process that can be traced to specific

causes. Examples are defective input and incorrect work methods.
2. In their chief role of planner/decision maker, operation managers exert considerable
influence over the degree to which the goals and objectives of the organization are
realized.
3. Product design and process selection are examples of system design decisions.
4. The greater the variety of goods and services, the greater the variation in production or
service requirements.
5. A key aspect of operations management is process management.
6. A process consists of one or more actions that transform inputs into outputs.
7. The two major aspects of process management are managing a process to meet
demand and process variation.
8. The Operations Manager is the key figure in the system.
9. If supply is greater than demand, it would be wasteful and costly.
10. Operational Processes are core processes that make up the value stream.
11. If supply is less than demand, it would result to opportunity loss and customer
dissatisfaction.
12. In essence, the central role of all management is process management.
13. System design relates to strategic decisions.
14. Variation occurs in all business processes.
15. Ideally, the capacity of a process will be such that its output just matches demand.

Exercise 2

a. Customer Satisfaction The major key to the success of any operation; without it,
the company cannot survive.
b. Location This is vital since it relates to the location of the future or
potential customers and clients who are willing to buy
products or hire services
c. Layout of the Store Consumers value a good layout of the store because it will
make it easier for them to find what they’re looking for.
d. Inventory Inventory management allows to keep track of the stocks
Management and determine how many products have been sold and how
many are still available.
e. Scheduling It establishes the project’s timetable, resource requirements,
and its likelihood of completion.
Activity 4
What I Know Questions:
What is process management?
What is process variation?
What do you think is the role of an
operations manager?
What I Learned (Activity 4)
It is a discipline in which
individuals utilize a variety of
approaches to model, analyze,
measure, improve, optimize,
and automate business
processes.
It refers to different and varied
processes in operations.
The role of the operations
manager is to guide the system
by decision making.