Dealing with Operations

Management Strategy
Group 8
Comiso, Jrcrisher
Evangelista, Christine Joy
Mejia, Cailin Alen
Salazar, Yoden
Tejado, Lady Jean
Production Strategy and
Policy
Reporter:
Evangelista, Christine Joy
 Production Strategy
• broad long-term action plans; made for achieving the main objectives of
organization

Three Types of Strategies

1. Corporate strategy (company-wide strategy)
2. Business strategy (competitive strategy)
3. Functional strategy (production, marketing, technology, etc.)
 Six Basic Decision Categories:

Capacity Process Facility Make or buy

decisions  decisions decisions decisions

Human
Infrastructure
resource
decisions 
decision
 Step 1 Set challenging long-term goals

Step 2 Identify an expert

Six steps to
create an Step 3 Identify where the potential is greatest
efficient
production
Step 4 Draw up a thorough situation analysis
strategy

Step 5 Develop the strategy

Step 6 Visualize and confirm the dev’t strategy

 What is Production Policy?
• broad guidelines related to the production and development of a
product.
• generally decided by the top management of a company i.e.,
board of directors
 Objectives of Production Policy

3. 4.
1. 2.
Flexibilit Scalabilit
Survival Growth
y y
 Logistics and
Distribution Strategy
Reporter:
Tejado, Lady Jean
 Logistics
• Logistics refers to the overall process of managing how resources are acquired, stored, and
transported to their final destination.

5 Elements of Logistics

STORAGE, PACKAGING AND INVENTORY TRANSPORT INFORMATION AND

WAREHOUSING AND UNITIZATION CONTROL
MATERIALS
HANDLING
 Distribution Strategy
• Is a method of disseminating goods or services to end-users.

Direct Distribution
Is a strategy where manufacturers directly sell and send products to
consumers.

Indirect Distribution
Involve intermediaries that assist in the logistics and placement of
products so that they reach customers swiftly and in an optimal
location based on consumer habits and preferences.
Different Types of Distribution Strategies
• Intensive Distribution
As many outlets as possible. The goal of intensive distribution is to penetrate
as much of the market as possible.

• Exclusive Distribution
Limited outlets. This can mean anything from luxury brands that are exclusive
to special collections available only in particular locations or stores.
Different Types of Distribution Strategies
• Selective Distribution
Selective distribution is a middle-ground option between intensive and
exclusive distribution. With this strategy, products are distributed in more
than one location, but not as many as with an intensive distribution strategy.
 Different Distribution Channels
• Wholesalers
A wholesaler fulfills orders of retailers, by reselling goods, often in large quantities for
manufacturers. Wholesalers purchase in bulk, typically, which lowers the price, from either
distributors or manufacturers.

• Retailers
Retailers are the outlets where consumers can purchase products. This is your local grocery
store or Walmart down the street. They can sell through storefront locations or through
online channels. Retailers purchase products from distributors or wholesalers.
 Different Distribution Channels
• Distributor
The role of a distributor is to obtain and transport items from manufacturers to retailers or
other endpoint locations. 

• Franchisor
Franchising is an entirely different way of distributing products. These individually owned
businesses can use company branding to gain sales and, in exchange, pay a flat fee and
ongoing royalties to enter an agreement.
 How Do I Select the Right Distribution
Strategy for my Business?
Item Type
3 Types of Purchase Decisions
 Routine
 Limited and
 Extensive
 How Do I Select the Right Distribution
Strategy for my Business?
• Customer Base
Targeted customer demographics can inform this distribution strategy. (i.e., e-
commerce and manufacturer-run storefronts).

• Warehouse Capabilities and Logistics

Whether your company uses a direct or indirect distribution strategy depends on
whether you are willing or able to invest in aspects such as a transportation fleet,
shipping personnel and a warehouse for storing goods. 
 Information Technology and
Research and Development Strategies
Reporter:
Mejia, Cailin Alen
Supply, Materials and
Inventory Strategies
Reporter:
Comiso, Jrcrisher
 Materials
• Defined as a substance or mixture of substances that constitute
an object.
• In accounting especially for manufacturing, materials a.k.a raw
materials are the inputs required to create an output which are
capitalized as product cost.
 The right material

At the right time
Five Rs of
Materials In the right amount
Management
At the right price

From the right sources
 Types of Materials Management

MATERIAL PURCHASING INVENTORY MATERIAL QUALITY

REQUIREMENTS CONTROL SUPPLY CONTROL
PLANNING MANAGEMENT
 How to manage your Materials right?

KNOW THE KEEP YOUR FIND A GOOD FIND WAYS TO PRACTICE

RIGHT PROCESS EYES ON YOUR QUALITY SAVE COST GOOD TIMING
FOR YOU MATERIALS SUPPLIER AND RHYTHM
 Supply Chain
• The network of all the individual factors that are involved in the
process of sourcing materials from a supplier by a manufacturer
up to the delivery of the finished good to the end users.
 Managing your supply chain…
• Structurize your supply chain based on your needs
• Selecting locations and facilities; know their capacity
• Strategize on what to source and what to make from where or whom
• Choose the best mode of transportation
 Inventory

Work In Process
Outputs created MRO
Work In Process from the These are non-
Raw Materials
Inputs placed into manufacturing value adding to
Inputs essential to process. the finished
the process and
the creation of an product and are
are still Most of the time
output not part of
unfinished these are the
ready to be sold saleable
products. inventories.

https://www.netsuite.com/portal/resource/articles/inventory-management/inventory.shtml
 Just-in-time inventory
management
Safety stock inventory

Inventory FIFO and LIFO

Management
Tools Drop shipping

Cross-docking

Bulk shipments
Why bother managing these areas?

Cost Control Quality Customer

Satisfaction
Capital Asset Strategy
Reporter:
Mejia, Cailin Alen
 Human Resource
Management Strategy
Reporter:
Salazar, Yoden
 What is HRM Strategy?
• A Human Resource strategy is a business’s overall plan for managing its
human capital to align it with its business activities.
• It sets the direction for all the key areas of HR, including hiring,
performance appraisal, development, and compensation.
 Four Key Areas
•  Talent - represents the human capital of an organization and is crucial to the
success of that business.
• Leadership - likened to what the head is to a body. It is through leadership
that a business succeeds or fails in its endeavors.
• Planning - plays an important role in helping the business to plan for the
future.
• Performance Culture - an organization with well-defined performance
metrics is an organization with high potential for success.
 How to create an HRM Strategy
• A very useful model here is the standard causal model of HRM, one of the
key HR models. This model shows where HR strategy originates from and
how it influences HR execution and business performance.

• The overall business strategy is formulated based on the past and the
present. It is a result of what the company has been doing in the past and its
current internal capabilities. An often used tool to arrive at this strategy is
the SWOT analysis.
SWOT
Analysis
 Deloitte HR Strategy Framework

Understand the Define HR Segment HR Prioritize HR Design HR

business strategy strategy customers investments services

Improve HR Measure the

Ensure the right
Establish the right operational Build an HR impact of HR
HR service
HR capabilities excellence brand products and
delivery model
continuously services
Thank you!
Strategic Management Accounting
BSMA 3-1P