UNIVERSITY OF CAGAYAN VALLEY

Tuguegarao City, Cagayan 3500

Examination in Production and Operation Management System

Answer Sheet

Name: MIKE C. ABAYA

1. It is obvious that these four business strategies - cost efficiency, quality, dependability
and flexibility affect positioning decisions in crafting strategic decisions for business
operations. When we say cost efficiency, it is the act of saving money by making a
product or performing an activity in a better way but does not sacrifice the quality of the
services or products. In business operations, these strategic decisions must be carried out
in order to be more competitive to achieve the goals and objectives of a company because
if you do not consider these strategies, business may fall and employees might lose their
job.

2. Lack of control contributes to excessive inventory, this is detrimental in the operation of

business. Maybe re-engineering is one of the changes a company should adopt to lessen
the inventories without harming customer service. Redesign the order-to-delivery cycle to
find ways to do it faster, better, cheaper. You may also improve supply chain
management. By streamlining the entire supply chain, a company can reduce inventory,
improve time to market, compress cycle times, free up more cash, decrease costs and
improve profitability.

3. “If you don’t know where you are going, any road will take you there.” The vision speaks
to the organization’s purpose and why it’s important for the organization to exist. The
vision is not only for the top management but for everyone who are involve in the
business. Human resource or employees must be able to know the importance of vision to
give them a picture of where the company is heading at. This will help them appreciate
their role in the organization that is why the vision of an organization should be talked
about every now and then to remind everyone of the purpose of the organization.
4. Now a days, we know very well the impact of Information Technology on the Production
and Operation Management. For example, in the Supply Chain Management, a well-
managed supply chain links the suppliers, manufacturers, distributors and customers by a
suitable information system for controlling across boarder in order to achieve optimum
productivity, overall satisfaction and joyful relation at cheaper cost. Also, Productivity is
achieved because the growth of information technology has improved because of
inventions of new tools and software that makes productivity much easier and less time
consuming.

5. This is actually a phrase from a Greek philosopher Aristotle - “Excellence is never an

accident. It is always the result of high intention, sincere effort, and intelligent execution;
it represents the wise choice of many alternatives - choice, not chance, determines your
destiny.” In like manner, in an organization, decision making is crucial in the part of a
manager because the success of an organization depends on how a manager handles it. It
is a wise choice that matters towards excellence.

Case 1
Answer: Lack of control contributes to excessive inventory, this is detrimental in the
operation of business. Maybe re-engineering is one of the changes a company should
adopt to lessen the inventories without harming customer service. Redesign the order-to-
delivery cycle to find ways to do it faster, better, cheaper. You may also improve supply
chain management. By streamlining the entire supply chain, a company can reduce
inventory, improve time to market, compress cycle times, free up more cash, decrease
costs and improve profitability.

Case 2
Answer: On the case number 2 of the Mabuhay Warehouse Company, Acme had never
handled pipe as part of their warehousing operation. The forklift truck
operator assigned to this job used the truck's forks as
a ram to load, handle, and unload the pipe which is not supposed to be. Let the human
resources or employees do it manually to avoid bending and damages of pipes.

Case 3
Situation: The White Manufacturing Company produces a springloaded replacement
spike for power rakes. Because of
the small size of this item, they are packaged in separate
small containers that are in turn packed into a larger
carton (24 count) for shipping. The packing operation
for this unit is on the third floor of a multi-story
building.
Upon completion of the packing operation the shipping
 cartons are placed on semi-live skids and taken to the
Answer: The packing operation for spring-loaded replacement spike for power rakes
must be done at the lobby of the building to lessen the packaging time.

Case 4
Situation: The Colorful Paint Company stores all its metal
compressed gas containers in a warehouse. These long
cylindrical metal tanks contain various gases used in
manufacturing cans of spray paint. The gas tanks are
delivered to the warehouse by truck. Two receiving dock
workers unload the containers from the delivery trucks
and place them on four- w h e e l trucks. Two materials
handlers are responsible for pushing the loaded trucks
into the warehouse, unloading the tanks and setting
them up on end. The two materials handlers spend a
major portion of their day moving loads of the gas tanks
into the warehouse and placing them into the proper
storage locations. In total, there are five different types
of gases that in equal proportion make up 98% of all
gas handled.
Question: Management would like to identify a better way to handle these gas
tanks.
How can the handling operation be improved?
Answer:

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