MMC-PPT-001-C

OPERATIONS MANAGEMENT
(Week 2)

Dr. LORNA C. CONDES

 PCC Prayer
Heavenly Father, today we want to praise you and thank you, for another opportunity to be the kind
of person you want us to be, and become shepherds of your peace, love, and kindness in words, deeds and
thoughts.
We pray that You grant us the serenity to accept the things we cannot change, courage to change the
things we can, and wisdom to know the difference. Provide us the undefeated weapon and shield of Your
protection to bear and win all our battles in life. Help us to be more kind, loving, appreciative and
understanding.
We pray that you bless PCC with your holy spirit of unity, for everyone to work as one mind, one
body, one heart, one soul, and one community, performing the different tasks for one purpose. Give us the
chance to bless and serve others and be able to make a difference.
We pray that You would continue to guide and lead us all in the direction that You have planned in
advance for us to do. That we may all act in accordance with Your will.
Thank you, Lord for we know that our best days are ahead of us and not behind us. That You will
make us the head and not the tail. Bringing us from glory to glory and from faith to faith. May Your Name be
glorified and lifted up in this place.
All this we ask in the Mighty Name of our Lord and Savior Jesus Christ. Amen.
Objectives
❑ To understand the concepts and nature of OM
❑ To illustrate the functions of OM
❑ To identify the different strategies of OM
• Craft an operations strategy plan
• List different types of outsourcing
• Make a procurement plan
• Introduction Operations Management
❑ Principles, Scope, and definition of OM
❑ Importance of Operations Management (OM)
❑ Functional View of the Organization
❑ Principles of OM
❑ Operations Strategies
• TYPES OF BUSINESS
➢Industry
➢Commerce
➢Service

• TYPES OF BUSINESS ORGANIZATION

➢Sole Proprietorship
➢Partnership
➢Corporation

• FUNCTIONAL OPERATIONS WITHIN THE

ORGANIZATION
• Finance
• Marketing
• Operations
LESSON
 Understanding Operations Management
Definition of OM

• Operations Management is the administration of

business practices to create the highest level of efficiency
possible within an organization.

• It is concerned with converting material and labor in to

goods and services as efficiently as possible to maximize
the profit of the organization.
• It involves utilizing resources from the 4Ms:
• Man
❑ The personnel, manpower;
• Materials
❑ The availability of materials for conversion to goods;
• Machines
❑ The availability of equipment to convert goods/services);
• Methods
❑ The technology to be used and the standardized
processes, maintenance, and management of converting
materials into the goods/services
 ❑ Components/Scope of OM
1. Forecasting
2. Capacity Planning
3. Locating Facilities
4. Layout and Facilities
5. Maintenance, Purchasing, and Scheduling
6. Quality Assurance and Control
7. Just-in-Time
8. Materials Requirement Planning
9. Inventory Management
10. Motivating and Training Employees (Human Resource Management)
11. Process and System Performance
12. Supply Chain Management
 ❑ Importance of Operations Management (OM)
❑ To manage the daily activities seamlessly, so that the organization
is able to make good use of its resources like the labor, materials,
money and other resources.
❑ It handles issues in the operations like design, operations,
maintenance of the system used for the production of goods.
❑ To improve the overall productivity of the organization.
❑ It gives a measure of the efficiency of the management and the
employees.
❑ It improves the utilization of resources leading to enormous profits
of the organization.
❑ With its quality management and product quality, it helps increase
customer satisfaction.
 ❑ Benefits of OM

➢ Product ad Service Quality Enhancement

➢ Customer Satisfaction
➢ Revenue Increase
➢ Waste Reduction
❑ Principles of OM
✓ Reality
✓ Organization
✓ Humility
✓ Success
✓ Accountability
✓ Causality
✓ Change
✓ Collaborating with Customers
✓ Knowing the Competition
✓ Quality Control
✓ The Software
❑ Operations Strategies
• An operations strategy refers to the system an organization implements
to achieve its long-term goals and mission.
• It involves decisions based on multiple factors, including:
• product management,
• supply chain,
• inventory,
• forecasting,
• scheduling,
• Quality management, and
• facilities planning and management.
• For service providers, operations strategy concerns financing, marketing,
human resources, and service that matches the company’s goal and
mission.
 ❑ Elements of OM (OM Strategies)

1. Product Management 7. Materials Requirement

2. Production Management Planning
3. Inventory Management 8. Project Management
4. Total Quality 9. Layout Strategies
10. Supply Chain Management
Management
11. Human Resource
5. Facilities and Location
Management
6. Capacity Planning 12. JIT and Lean Management
ASSIGNMENT
• Research on the following aspects of Product and
Production Management
➢ Product Design
➢ Product Selection
➢ Product Development
➢ Methods of Product Development
➢ Product Development Life Cycle
➢ Production and Operations Management