Title: Operations and Productivity

Outline

 Overview tungkol sa operations management (nasa IM, Overview part sa unahan ng lesson)
tapos next scene is yung may time travel ng magaganap
Effective operations management helps with employee engagement and
defines the roles and responsibilities within an organization.
 Definition ng operations
The part of a business organization that is responsible for producing goods or
services .
 Bakit may management ng operation at ano ang definition ng operations management
According to Exeed College, Operations management plays an essential role in a commercial
organization since it aids in the proper management, control, and supervision of goods, services, and
people. It is a management of systmes or processes that create goods and/or provide services.
 Scope of operations
The scope of operations management ranges across the organization.
The operations function includes many interrelated activities such as:
➢ Forecasting
➢ Capacity planning
➢ Scheduling
➢ Managing inventories
➢ Assuring quality
➢ Motivating employees
➢ Deciding where to locate facilities
➢ And more

 Tapos parang transition na sasabihin na “why do we need to learn management of operations?”

Sasagutin ng “Because an organization has 3 basic functions or branches including operations,
and they need to be managed accordingly or soundly for it to be operational and to run
smoothly”
 Lalagay tong picture

 Maliit na definition ng marketing, operations, tas finance

Marketing refers to activities a company undertakes to promote the buying or
selling of a productor service.
According to Investopedia, Operations or the operation management is the
administration of business practices to create the highest level of efficiency possible
within an organization.
Financial Management means planning, organizing, directing and controlling
the financial activities such as procurement and utilization of funds of the enterprise.
 Tapos biglang transition sabay sabing “Now that we know some basic information about
operations let’s see through time how people from back then operated their business and the
systems, techniques or methods they made and applied to their businesses”
 Industrial Revolution
 Pre- Industrial Revolution, craft production definition
Craft production - System in which highly skilled workers use simple,
flexible tools to produce small quantities of customized goods.
  Elements of Industrial Revolution (Division of labor- definition; Application of the rotative
steam engine”; Cotton Gin and Interchangeable parts- definition)
• Some key elements of the industrial revolution (During this period,
more productivity and producing more was more evident on their system)
➢ Began in England in the 1770s
➢ Division of labor - Adam Smith, 1776
According to Adam Smith, division of labor entails
evaluating the manufacturing process and assigning jobs to
employees in order to increase output. He uses the example of
a pin going through the manufacturing process to demonstrate
how division of labor leads to productivity.
➢ Application of the “rotative” steam engine, 1780s
➢ Cotton Gin and Interchangeable parts - Eli Whitney, 1792
Interchangeable parts are standardized components of
manufactured goods that can be simply replaced with fresh
parts. Because of the principle of interchangeable parts,
manufactured things can be mass-produced rather than
individually crafted. To make standardized, identical parts that
made for faster assembly and easier repair of various devices.
Whitney's machine expedited the extraction of seeds
from upland cotton, making the crop profitable and contributing
to its expansion across the South.
 Management theor and practice did not advance appreciably during this period (kahit di na
ilagay to, sabihin na lang)

 Scientific Management definition

• Movement was led by efficiency engineer, Frederick Winslow Taylor
-based on observation, measurement, analysis and improvement of
work methods, and economic incentives
-Management is responsible for planning, carefully selecting and
training workers, finding the best way to perform each job, achieving
cooperate between management and workers, and separating management
activities from work activities.
-maximizing output

 Scientific Management contributors (ilista lahat tapos may konting definition)

➢ Frank Gilbreth - father of motion studies
➢ Henry Gantt - developed the Gantt chart scheduling system and
recognized the value of non-monetary rewards for motivating employees
➢ Harrington Emerson - applied Taylor’s ideas to organization structure
➢ Henry Ford - employed scientific management techniques to his factories
- Moving assembly line
- Mass production

 Human Relations Movement (pwede itong I-compare sa Scientific Management) definition tapos
contributors din
The human relations movement emphasized the importance of the human
element in job design. When a business decides to examine the behavioral features
of individuals, particularly in groups in their workplace, and focuses on what inspires
each person to be more productive in the office setting, this is referred to as the
human relations movement.

➢ Lillian Gilbreth
 Gilbreth introduced the human aspect into scientific management, laying the
framework for the creation of modern managerial concepts and practices such as
ergonomics, work/life balance, job enrichment, and job placement.
➢ Elton Mayo – Hawthorne studies on worker motivation, 1930
Mayo and his colleagues conducted trials on job redesign, workday and
workweek duration, break hours, and incentive systems from 1927 through 1932.
According to the findings of the studies, increases in performance were linked to a
complex set of employee attitudes.
➢ Abraham Maslow – motivation theory, 1940s; hierarchy of needs, 1954
Maslow's hierarchy of requirements is a pyramid of the motivational needs
that people have. At the bottom of the pyramid, individuals' most fundamental
requirements are physiological. After these requirements are met, people go on to
their safety needs, social well-being, self-esteem, and, finally, their need for self-
actualization.
➢ Frederick Hertzberg – Two Factor Theory, 1959
Herzberg's two-factor theory is a motivation theory that proposes that two
sets of elements influence job satisfaction and dissatisfaction: hygiene factors and
motivators. Working environment and compensation are examples of hygiene
elements that, if not addressed, can lead to unhappiness.
➢ Douglas McGregor – Theory X and Theory Y, 1960s
Theory X emphasizes the value of increased monitoring, external rewards,
and penalties, whereas Theory Y emphasizes the motivating role of job satisfaction
and encourages employees to tackle jobs without direct supervision.
➢ William Ouchi – Theory Z, 1981
Long-term employment, consensual decision making, individual accountability, unhurried
evaluation and advancement, informal control with defined measures, somewhat specialized career
path, and holistic concern are the major characteristics of Theory Z. It is a synthesis of Eastern and
Western management theories.
 Decision Models and Management Science (ilagay na lang itong chart tapos I-explain isa isa kung
ano yung contribution na iyon or kahit yung kay F.W Harris, Dodge, romig, shewart, tippett,
dantztig)

 Transition na ulit tapos Influence of Japanese Manufacturers na

 Influence of Japanese Manufacturers - definition (yung nakalagay lang din sa IM)
Refined and developed management practices that increased productivity
➢ Credited with fueling the “quality revolution
The present quality revolution began in the 1970s, when Japanese goods
outperformed those of the United States and Europe.
➢ Just-in-Time production
Just-in-time production reduces the amount of time, labor, and materials used
in a manufacturing process. It accomplishes this by only generating items as they are
required.

 Babalik na sa present “Speaking of Just in-time, we are really just in time for the discussion of
other topics in connection with organizations and productivity”
 Good-Service Continuum
Products are typically neither purely service- or purely goods-based.

 Manufacturing V.s. Service

Manufacturing is characterized by tangible outputs (products).Consumption
of outputs at overtime. Jobs useless labor and more equipment, little customer
contact, no customer participation in the conversion process (in production).
Sophisticated methods for measuring production activities and resource consumption
as product are made.

Service is characterized by intangible outputs. In addition, it possesses a

potential for high variability in quality of output. Production and consumption occur
simultaneously. Jobs use more labor and less equipment, direct consumer contact,
frequent customer participation in the conversion process. Elementary methods for
measuring conversion activities and resource consumption are used.

 The following characteristics can be considered for distinguishing Manufacturing

Operations with Service Operations:
1. Tangible/Intangible nature of output
2. Production and consumption
3. Nature of work (job)
4. Degree of customer contact
5. Customer participation in conversion
6. Measurement of performance
7. Quality of output
8. Inventory accumulated.