The University shall primarily provide advanced instruction and

professional training in the arts, philosophy, social sciences,

agriculture and fishery, forestry, science and technology, engineering,
education, law and other related fields. It shall also undertake
research and extension services, and provide progressive leadership
in its areas of specialization.

A transformative University committed to technology,

innovation, and service excellence.

MGT.1
Operations
Management
BY: DR. GIL O.MANAGEMENT)
(CONSTRUCTION AMOYAN

BACHELOR OF SCIENCE IN
INDUSTRIAL TECHNOLOGY
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2 | Operations Management

PREFACE

Operations management is preliminary for the course designed to

develop awareness on the importance of operations management not
only in manufacturing and services industries but also to our home
or in school as well. In home, we have series of tasks and activities
from waking up in the morning and going to school. Operations
management can be applied anywhere for as long as involves
activities, use of materials, resources and each activity is studied to
achieve efficiency and productivity. In this lesson, you will explore
integration of technology in operations management. It also
discusses the impact in the manufacturing and service industries in
terms of productions. The new technologies in production
management will also be introduced and discuss in this module.
Keep up and enjoy!

GIL O. AMOYAN, Ph.D.

Associate Professor
 3
2 | Operations Management

UNIT 3: Managing Technology in Operations Management

1.0 Intended Learning Outcomes

1. Identify the steps of Integrating Technology with Production System
2. Discuss what are the challenges and opportunities of Managing
Technology in Operations Management.
3. Appreciate the value outcomes of Integrating Technology in Productions
System.
4. List new technologies to improve operational process in Operations
Management

1.1. Introduction
Technology has changed the way organization conduct their business.
Advent of technology in operation management has increased
productivity of the organization. The use of technology is one of the
key drivers of growth in the volumes of business in the financial
markets today. The impact that technology has had, and is still having
in the operations function is truly substantial. Technology now reaches
into just about every aspect of the business. Electronic trading,
messaging systems, and information distribution have created a global
market that is, relatively speaking, instantly accessible and available.
For operations this manifests itself in two ways: the automation of
processes and the automation of information gathering and
distribution. For operations managers this period of change has
elevated the function from a pure support service into a dynamic
revenue protector/generator, with a heavy client service and risk
management focus.

1.2 Topics/Discussion (with Assessment/Activities)

Technology and Operations Management

The scope of Technology and operation management has evolved over
a period of time and has moved from development of products into
design, management and improvement of operating system and
processes.
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2 | Operations Management

Usage of technology in operation management has ensured that

organizations are able to reduce the cost, improve the delivery process,
standardize and improve quality and focus on customization, thereby
creating value for customers.

Integration of Technology with Production System

Technology drives efficiency in organization and increases’
productivity of the organization. However, bringing technology in the
production system is highly complex process, and it needs to following
steps:
Technology Acquisition: technology acquired should align with
overall objectives of the organization and should be approved after
elaborate cost-benefit analysis.
Technology Integration: technology affects all aspects of production
i.e. capital, labor and customer. Therefore, a solid technology
integration plan is required.
Technology Verification: once technology integrated, it is important
to check whether technology is delivering operational effectiveness
and is been used to its fullest.

Activity 1.

From the steps above, draw a

Process Flow showing the
needed steps of bringing
Technology in Production
System
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2 | Operations Management

Technology in Manufacturing and Design

Technology is getting extensively used in customization of design products
and services. The usage of computers and supporting electronic systems is
integral part of modern industrial and services industry. Current techniques
can be broadly classified into following categories:

Computer-Aided Design (CAD): CAD facilitates linking of two more

complex components of design at very high level of accuracy thus delivering
higher productivity.

Computer-Aided Manufacturing System (CAM): Precision is very essential

in operating any machines and therefore, Computerized Numerically
Controlled machines are used, thus ensuring highest level of accuracy.

Standard for the Exchange of Product Data: As the name suggests product design is
transmitted among CAM and CAM in three dimensions. Standard for The Exchange
of Product Data process sharing of product across all phases of product life cycle and
serves as neutral file exchange.

6 Technologies Transforming the Manufacturing Industry

Once perceived as strictly a blue-collar industry, the manufacturing industry
today is now a hub for exciting new technology and innovation and never has
there been more exciting technology transforming the manufacturing
industry.
The implementation of advanced technologies in manufacturing has brought
about change that would have been unimaginable just a decade ago resulting
in increased speed, customization, precision, and efficiency.
Here is a look at six revolutionary technologies that are changing the look of
manufacturing as we now know it.
1. 3D Printing
After revolutionizing the world of product design, 3D printing is now making
waves in the manufacturing industry. The ability to design and create
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2 | Operations Management

virtually anything using metal, plastic, even human tissue will obviously
change the way we build... everything.
Also known as additive manufacturing, 3D printing brings a mixed bag of
benefits that make it worth the investment:
● Drastically reduce design-to-production times
● Drastically reduce manufacturing lead times
● Easier to produce individual and small lot products from
machine parts to prototypes
● Greater flexibility in production
● Less waste/more cost effective
And the best part is 3D printing is still new. It’s only going to get better in the
upcoming months and years which makes now the perfect time to start
incorporating it.
2. The Internet of Things (IoT)
Since the early days of the Industrial Revolution, one of the main goals of
manufacturing plants has been interconnectivity. The Internet of Things takes
this goal to a whole new level though with machines, sensors, and humans
working closer together than ever before. More connectivity means better
communication, faster response times, and greater efficiency across the board.
For example, suppose a manufacturing company owns a piece of equipment
that should never drop below 100 gallons of fluid in the system. A meter is
attached to the equipment, and the IoT enables the meter to transmit data
wirelessly. The data is transmitted into a Computerized Maintenance
Management Systems (CMMS) which is turn generates a work order when the
fluid level drops below a certain level. This enhanced interconnectivity helps
the manufacturing facility reduce maintenance cost, increase efficiency, and
prevent costly downtime.
This is just one of many examples, however, of how the IoT will enhance and
improve manufacturing operations in the years to come
3. Nanotechnology
Admittedly still a few years off from mainstream integration, nanotechnology
is still relevant enough today to make the list.
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2 | Operations Management

Nanotechnology refers to the manipulation of matter on atomic, molecular, or

supramolecular level. For traditional manufacturing fields, this means
enhancing materials to make them last longer or give them new properties
like clothes that can feel warmer or cooler. For the computer industry,
nanotechnology offers faster processing and better memory.
At the moment, nanotechnology is mostly used in space engineering and
biotech. However, it is now headed in the direction of manufacturing. The
next step is Atomically Precise Manufacturing (APM), which could very well
change everything about manufacturing. Just imagine building a product
from the molecular level up.
4. Cloud Computing
Already a staple in other industries, the cloud is now starting to have a huge
impact on manufacturing. Manufacturing has been late-to-the-game mainly
due to connectivity and security issues, but as cloud computing advances,
these concerns fade away.
While the IoT improves connectivity within a single plant, cloud computing
improves connectivity across multiple plants. Companies can share data
across the globe in a blink of an eye, reducing both costs and production
times. The shared data also goes a long way in improving product quality and
consistency between plants.
5. Next-Level Robotics
Just last year, China’s trailblazing efforts in the world of robotics paid off with
its Dongguan factory replacing 650 humans with 60 robotic arms. Everwin
Precision Technology, the owner of the plant, hopes to replace 80% of its
manufacturing with 1,000 robotic arms by next year.
Robotics raises too many philosophical concerns for it to be blindly adopted.
Full automation may benefit general productivity, but theorists claim it hurts
innovation.
The West is having a somewhat opposite response to robotics with more focus
on the accomplishments of the individual. Outside China, robots are still
thought to complement, not replace, human workers — what’s called
“cobotics.”
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2 | Operations Management

Whatever side of the fence you fall on, there’s no denying the greater role
robotics will play in manufacturing in the near future.
6. Augmented Reality
Despite the failure of Google Glass, the concept of augmented reality eyewear
is practical enough to survive. In manufacturing, the technology has
widespread potential including
● Real-time instructions/guidance
● Real-time notifications
● Real-time monitoring of worker tasks
● Improved safety warnings
● More effective training
● Data retrieval
● Reduce necessity for on-site maintenance/technical support
Like others on the list, augmented reality is still a young technology, and it
will be exciting to watch it grow and evolve in the next few years.

Automation in Production and Operations

Automation reduces manual intervention in the manufacturing process. It

increases productivity and reduces margin of error thereby facilitating
economies of scale. There is this-advantages of automation also, such as
unemployment, high breakdown cost and initial capital investment. Therefore,
automation may not be suitable in all situations and in the end alignment with
an overall organization objective is important.

Challenges

Technology can be facilitating factor in bringing about change in operations

and production management. But it may not be feasible to use technology in
 9
2 | Operations Management

all aspects with challenge coming through high initial cost of investment, high
cost of maintenance and mismanagement.
To remain competitive in a global economy, businesses need to adapt to an
ever-changing environment to meet their customer’s needs. Staying
competitive means continuing to evolve as an organization and making
changes to both process and technology to gain a competitive edge over their
competition.
Organization must become adept in bringing in new technology and
managing the challenges that go
along with implementing the change. Changes of this nature can provide
significant benefits to an organization but can also present many challenges
that need to be managed to yield a positive outcome.
Problems arise when organizations attempt to bring in a technology without
proper management and training for their employees.
 10 10
2 | Operations Management

Name of Student: ___________________________________ Yr.& Sec.__________

Activity 2. From the table below list down the different technologies and its
contributions in transforming operational processes in manufacturing industry.

Technologies It’s Contributions

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2 | Operations Management

Name of Student: ___________________________________ Yr.& Sec.__________

Activity 3.

Can you predict the next big

manufacturing technology?
Write your thoughts and
opinions below.

Comments:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
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2 | Operations Management

1.3 References
Kumar, S., Suresh, S., (2009) Operations Management, New Age International
Publisher, ISBN (13) : 978-81-224-2883-4
Rowbotham, F., Galloway, L. Azhhashemi, M. (2007) Operations Mangement
Context. Elseview, SBN–13: 978-0-7506-8198-8
https://commons.wikimedia.org/w/index.php?search=adam+smith&title=S
pecial%3ASearch&go=Go&ns0=1&ns6=1&ns12=1&ns14=1&ns100=1&ns106=
1#/media/File:AdamSmith.jpg
https://www.pinterest.ph/pin/116319602845913221/
https://commons.wikimedia.org/wiki/File:F._Taylor_with_signature.jpg
https://en.wikipedia.org/wiki/Harold_F._Dodge

1.4 Acknowledgment

The images, tables, figures and information contained in this module were
taken from the references cited above.
 2 | PRODUCT AND SERVICE DESIGN 13

UNIT 4: PRODUCT AND SERVICE DESIGN

1.0 Intended Learning Outcomes
a. Define the purpose of product and service design
b. Identify some important considerations prior to the design of the product.
d. Evaluate the different tools and approaches in product and service design..
e. Illustrate each stages the life cycle of products or services.

1.1. Introduction
Here in this lesson, we are to learn how to design a product and services based
on standard practices of the manufacturing and service industries. It is very
important to understand how products and services are design to achieve the
level of productivity and become competitive. It should be understood that the
design of the product before it will go to the market must be studied first as to
how to it is manufactured in order to minimize the manufacturing costs and to
look into what kind of quality should be achieved.

1.2 Topics/Discussion (with Assessment/Activities)

Purpose of Product and Service Design

Increase
business growth
and profits

Prevent
downsizing with
development of
Compe��veness new products

Purpose of
Product and
Service Design

Achieve cost
reduc�on in
Improve
labor or
product quality
materials

Trends in Product and Service Design

There are certain considerations or emphasis before the product should be made
or put into the market such as
a. Customer satisfaction – it is a question of how the customer meets his/her
 14
2 | PRODUCT AND SERVICE DESIGN

requirements in terms of quality.

b. Reduction of time to introduce new product or service – marketing strategy
is required on how the product will be introduce to the market without
having difficulty of time.
c. Reducing time to produce product: it should be noted that the manufacturing
cost should be minimal therefore the time to manufacture the product should
be reduced. Each part of the process should be studied on how to increase
the efficiency of the production.
d. Organization’s capabilities to produce or deliver the item – this entails the
capacity of the manufacturing industries and service industries how to
produce the required demand of the products and deliver the products at a
certain period of time.
e. Environmental concerns – in the design of the product or services it should
be studied through research and development the consequences of the
product when it goes to the customer and the impacts to the environment.
The more it is environmentally friendlier the more it is marketable.
f. Designing products and services that are “user” friendly – user friendly
means the product is understood by the customer on how to use, knows how
to assemble where instruction is given and that they are satisfied with the
product.
g. Designing product that uses less material – the main purpose in the product
design is to identify the material requirements as to what type of materials
for the product. Likewise, it studied how to minimize the errors in the
manufacturing.
Objects of Product and Services Design
The overall objective is to achieve customer satisfaction while making
reasonable profits is:
• Design for Manufacturing (DFM) –this refers to the designer’s
consideration of the organization’s manufacturing capabilities while
design a product. It is known as the design for operations which
encompasses services as well manufacturing.
• Design process – Before the product and services is produce it should
undergoes a process and the things that should be look into. Started with
the motivation on how to design the product and service with emphasis
to trends and standards. The satisfactory requirements of the customer on
how to meet their needs. The marketing strategy and approaches on how
the product is introduced in the market and identify who are your
competitors and what are your competitive edge of their product and
services. Forecasts is also very important to identify the demands of the
products.
• Reverse Engineering – it is a process of looking into what is inside the
 2 | PRODUCT AND SERVICE DESIGN 15

product and studied on how to improve it.

• Manufacturability – refers on how to simply the fabrications or assembly
with emphasis to cost, productivity and quality.

Regulations and Legal Considerations

In the design of the product and services, it should consider the legal aspects of
the products to make safer to the customer.
• Product Liability – if the product is faulty and caused damages to the
customer therefore it becomes manufacturers’ liability.
• Uniform Commercial Code – this refers to the products carry an
implication of merchantability and fitness.
Research and Development
Produce design is directly involved in research and development because it
involves product innovations. There different types of R&D such as;
• Basic Research – an example of which are product survey where you
send questionnaires to customers and get their comments and
suggestions how to improve the product.
• Applied research – uses scientific studies such as experimentations of the
product. Such as COVID-19 vaccine where it undergoes a series of
experimental tests to determine the efficacy of it.
• Development Research – converts the results of the applied research into
commercial applications.

TOOLS AND APPROACHES IN PRODUCT OR SERVICE DESIGN

This involves the different tools, strategies and approaches on how to design the
product such as:
• Product Life Cycle – this refers to the life of the product from incubation to
its decline market.

• Robust Design – the most common is the Taguchi Approach robust design
where it is insensitive to environmental factors either manufacturing or in
use. The central feature is parameter design it determines the factors that
are controllable and those non-controllable and their optimal levels relative
 16
2 | PRODUCT AND SERVICE DESIGN

to major product advances.

• Concurrent Engineering – it is the process of bringing together of
engineering design and manufacturing personnel early in the design phase.
• Over-the-wall Approach – where the
new product is directly send to the
engineering without regard in the
manufacturing.

• Computer-Aided Design (CAD) it is

software used for making design of the product. It increases the
productivity of designers from 3 to 10 times. It creates database for
manufacturing information on product specifications and provide
possibility of engineering and cost analysis on proposed designs.

• Modular Design – is a form of standardization in which component parts

are subdivided into modules that are easily replace or interchanged. It
allows easier diagnosis and remedy of failures, easier repair and
replacement and simplification of manufacturing and assembly.

GOODS-SERVICES SPECTRUM

As shown in the graph for example, the steel production and automobile fabrication
has high goods content and low-service because products were being produced.
It has low-service content since there is a low interaction with the customers.
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2 | PRODUCT AND SERVICE DESIGN

Service Variability & Customer Influence Service Design

The Service Variability and Customer influence design explains the degree of
contacts with the customer and changes in services requirements for example
Customize Clothing where it has high in variability because of the different
designs where the customers will be choosing and high degree of contact
because the designers are keep in touch with customer as what designs the will
be making.

HOUSE OF QUALITY

The house of quality describes how quality will be achieved. Products were
evaluated according to customer specifications rated according to importance.
The relationship matrix contains engineering specifications relative to customer
specification. The competitive assessment result of the evaluation of the product.
At the top is the correlation matrix determines the positive and negative
relationship between customer requirements and engineering characteristics.
While specification or target values contains values of each specifications in
order to describe relationship and technical evaluation of the product. For
example “easy to close is rated strong positive and strong relationship “energy
 2 | PRODUCT AND SERVICE DESIGN 18

needed to close the door” and rated 7 as the most important by the customer.

ADVANTAGES OF STANDARDIZATION
This refers if the products design and services are standardized.
• There will be fewer parts to deal in inventory and manufacturing. It would
be easy to control the quality if there will be similar parts to be
manufactured.
• Reduce Training costs and time
• More routine purchasing, handling and inspection procedure
• Orders fillable from inventory
• Opportunities for long production run and automation
• Need few parts justifies increase expenditures on perfecting designs and
improving quality procedures
•
DISADVANTAGES OF STANDARDIZATION
• Designs may be frozen with too many imperfections remaining.
• High cost of design changes increases resistance to improvements.
• Decrease variety results in less customer appeal.

HOW TO IMPROVE RELIABILITY

• Component Design – The design of the product or services must be simple
and less complex because sometimes the more complicated the design it
become more expensive and not user friendly.
• Production/Assembly Techniques – Production and assembly will be
easy if the parts of the product are easily understood therefore minimal
production time will be achieved.
• Testing – each product or services must undergo testing in terms of
quality specifically on efficiency and effectiveness. Testing the product for
safety is also very important for the customer to be protected.
• Redundancy – This refers to the repeatability of the product or
maintaining the quality of product even at the certain level of quantity.
• Preventive Maintenance – each machineries in the production must have
preventive maintenance to continue the production of the product. Poor
maintenance will cause stoppage and halt of the production which
eventually increases the production cost.
• User Education – the product must equip with procedures how to use the
product for safety.
• System Design – the system design refers on the different process in place
for the production of products and services. It should adhere to efficiency
which aims to minimize the production time.
 2 | PRODUCT AND SERVICE DESIGN 19

Activity 4

EVALUATION EXCERCISES
Name of Students: ___________________________________ Course/Yr./Sec. ______

Essay: Please answer the questions as comprehensively as possible.

1. What are the purpose of product design and services and define each?
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
____________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
____________________________________________________________________
2. What are importance consideration prior to the design of the product or
services?
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
______________________________________

3. In product design, can you illustrate each stages the life cycle chart for
product and services?
 20
2 | PRODUCT AND SERVICE DESIGN

_________________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
________________________________________

4. Of all the tools and approaches in the design of the product and service which
do you think is the reliable and why? Cite an instances or example?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
_____________________________________
1.3 References
Kumar, S., Suresh, S., (2009) Operations Management, New Age International
Publisher, ISBN (13) : 978-81-224-2883-4
Rowbotham, F., Galloway, L. Azhhashemi, M. (2007) Operations Mangement
Context. Elseview, SBN–13: 978-0-7506-8198-8
https://www.freepik.com/free-vector/four-square-automated-assembly-icon-
set-with-descriptions-cnc-system-assembly-line-automatic-loaders-robotics-
vector-illustration_9376802.htm#page=1&query=cnc&position=0
https://depositphotos.com/stock-photos/handwheel.html
 2 | PRODUCT AND SERVICE DESIGN 21

https://www.orientalmotor.com/motor-sizing/ballLeadScrew-sizing.html#
https://hwacheonasia.com/cnc-lathes/
http://www.helmancnc.com/coordination-system-introduction-on-
sinumerik-808d-video-tutorial-turning-part-6/

1.4 Acknowledgment

The images, tables, figures and information contained in this module were
taken from the references cited above.