Name: Villanueva, Angelo Dariel F.

Yr/Section: BSHM 2D

EXERCISE 1: OPERATIONS MANAGEMENT

Oct 15, 2022- 1:00pm

1. Define the term operations management.

Operations management entails the planning, organization, and supervision of

business activities that maximize efficiency and ensure that firm operations provide
value. It entails planning and monitoring the processes that transform resources like
labor, equipment, and raw materials into commodities and services.

Operations, along with marketing, human resources, and accounting, is a basic

functional area of a corporation. Operations management is critical to improving product
quality and the efficiency of the manufacturing environment. According to the Corporate
Finance Institute, operations management is the process of managing company
activities in order to increase operational efficiency and improve output quality.

Management teams seek to guarantee that a company's operating profit is

maximized by carefully balancing cost and revenue. They collaborate with other teams
to boost productivity, provide high-quality goods and services, and assure customer
satisfaction.

Large corporations often have a chief operations officer (COO), although smaller
enterprises may delegate the responsibilities to another high-level position. In any case,
it's a very strategic role that requires excellent planning, organizational, and
communication abilities.
 Operations management is closely related to supply chain management; it entails
overseeing the process of procuring raw materials, transforming them into products, and
delivering them to customers.

2. Distinguish between manufacturing and service operation with examples.

● MANUFACTURING OPERATIONS

Manufacturing processes are a framework through which man, machine, and

material work together to create a physical output. It handles all supply chain tasks,
such as gathering client needs, sourcing raw materials, assigning resources, scheduling
manufacturing, monitoring inventories, and delivering finished goods to customers.

Manufacturing activities are divided into two categories: process manufacturing

and discrete manufacturing. Process manufacturing is a process of producing items by
following a set sequence of stages or formula. The emphasis of discrete manufacturing
is on generating separate completed things that are distinct from one another. The
pharmaceutical, food, and beverage sectors use process manufacturing, whereas
automotive and smartphone manufacturers use discrete production.

● SERVICE OPERATIONS

Services are non-physical, intangible things provided by one party to another in

exchange for money. According to the Harvard Business Review, service-providing
businesses strive to provide a positive client experience. To offer services, service
operations use a variety of teams, including professional service teams, customer
support teams, and customer experience teams. Service-providing organizations
include those involved in hospitality, travel, journalism, sports, health care, and
entertainment. To facilitate service provision, service-providing operations dispatch staff
to their clients' locations or meet the customers at the company's facilities.
 Labor, service model, and service environment are critical components of
service-providing activities. Labor might be a skilled or semi-skilled workforce that
interacts directly with clients to offer services. The service model is the method that the
firm takes to provide clients with intangible value. Software-as-a-service (SAAS) is an
excellent example of a service operations model used by software companies. Another
service operations concept that allows clients to dine while remaining in their parked
automobiles is a restaurant drive-in. "Service environment" refers to the atmosphere of
the location where the service is provided.

❖ Similarities of Goods Production and Service Operations

To some extent, manufacturing and service activities resemble each other.

Human and physical resources are used to achieve the necessary result in both good
production and service operations. To supply completed items, an automobile
company's goods production environment, for example, employs human resources such
as mechanical engineers, production workforce, and physical resources such as
fabrication, welding, and drilling gear. Similarly, to provide the needed services, service
operations at a beauty salon use both human resources, such as hair cutting specialists
and beauticians, and physical resources, such as conditioners, straighteners, clippers,
wands, and combs.

❖ Differences Between Goods Production and Service Operations

Whilst manufacturing operations produce things and store them in a warehouse

before delivering them to clients, service-providing activities allow for simultaneous
creation and consumption of services. For example, a car manufacturer may construct a
vehicle and store it in a warehouse until a consumer comes forward to purchase it. A
beauty shop must offer haircutting services in the customer's presence.

Services cannot be saved to be used later. When there is a strong demand for
services, service operations should hire more people and adjust operational activities to
manage the supply-demand balance. Manufacturing operations do not need to employ
more resources or adjust operational activities when there is a significant demand for
items since their nature is to produce and store finished goods.

3. Briefly explain the strategic role of operations.

Operations strategy's job is to establish a plan for the operations department to

make the most use of its resources. The operations strategy defines the rules and
strategies for how the organization's resources will be used to support its long-term
competitive strategy.

Keep in mind that the operations department is in charge of managing the

resources required to generate the company's goods and services. An operations
strategy is a plan that defines how resources will be designed and used to support the
company strategy. This comprises facility location, size, and kind; worker skills and
abilities necessary; use of technology; particular processes required; special equipment;
and quality control systems.

A furniture merchant changing its manufacturing strategy by outsourcing

production to an automated facility is an example of an operational strategy. This
fictional furniture firm may strengthen its competitive position by better managing its
supply chain and producing items faster by utilizing new technology tools.

➢ 5 Essential Components of an Operations Strategy

A company's operations strategy consists of a few critical components.

1. Production system: An organization's production system dictates how resources

are converted into marketable products and services in the short and long term.
Clear processes, quality control benchmarks, and supply chain management
techniques are all part of a comprehensive production system.
 2. The size and quantity of manufacturing facilities impact a company's operating
capability. Specific facilities require attainable production targets, defined safety
protocols, and inventory management systems to work efficiently.

3. Quality management of a product or service is one of the most crucial aspects of

any operations plan. Businesses examine the lifetime of their goods and services
in order to forecast market trends, make changes to their product or service, and
devote resources to future service and product development.

4. Technology: New technical breakthroughs like machine learning, manufacturing

line automation, real-time measurements, and market forecasting tools are
increasingly important in operations planning.

5. Resources: A complete overall operations plan considers an organization's total

operations resources, including locational, mechanical, and human resources.

➢ 5 Different Types of Operations Strategies

Businesses use many sorts of operations strategies based on the demands of their
unique market.

1. Core competence operations strategies center upon the primary strengths of a

company's business model. Core competence operations strategies focus on using
existing capabilities to optimize profitability by finding the greatest core business
processes inside a company.

2. Corporate strategies are operational plans that correspond to a company's mission

statement and align with a bigger corporate strategy. Companies that use this sort of
operations strategy create production initiatives, key performance indicators (KPIs), and
decision-making procedures that are based on an overarching strategic plan set by
corporate executives and stakeholders.
3. Competitive strategies: Companies that use this strategy develop their operations
processes to differentiate their product or service from competitors. Businesses can
change their operations strategy to move toward a competitive advantage, whether
that's a higher-quality product or a faster lead time during production, by identifying
competitive priorities within a specific economy.

4. Product or service strategies center around the quality control of existing products or
services as well as the creation of new products and services. Businesses that use this
strategy frequently build their operations plans on product managers' research and
recommendations.

5. Customer-driven strategies: Customer-driven organizations base operational choices

on the customer experience.