Introduction to

Operations
Management

Tut 1:
Operations management and key concepts

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Name
NGUYEN PHUC LINH (Linus)
About me

Education
• 2009 – 2013: Bachelor in Finance and Banking at Hanoi University
• 2014 – 2015: MSc in Finance at University of Essex (UK)
• 2021 – Present: Holder of FIATA Diploma in Freight Forwarding

Working
• Supply Chain Dept. – World Vision Vietnam (an NGO)
Experience
• More than 7 years of experience in the field of Operations, Logistics and
SCM

Email
tgkhoafmt01@hanu.edu.vn
tgkhoafmt10@hanu.edu.vn

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1. Mind map (5%)
● Who would like to present their mind map in front of the class at the
tutorial should contact the teacher in advance (via MSTeam).

 Important Note:
- There will be ONLY 01 student or 01 group of at most 02 students
presenting mind map at every tutorial.
- Students may draw the mind map by hand, use various software or
websites. The more creative, the better.
- Those who has already got mark for Mind Map may choose NOT to
take 01 (and only 1) Quiz.

Copyright ©2021 McGraw-Hill Higher. All rights reserved. No reproduction

or distribution without the prior written consent of McGraw-Hill
2. Case study (20%)
A group of 4-5 students shall present their findings in front of the class at
the tutorial. The groups are expected to:
a) Summarize and Answer all the questions of the case in the book: (05
points)
- Name of subject in question
- Current situation
- The problems and solutions
b) Make presentation file and present it in front of class in a proper
manner. (01 point)
c) Answer all the debates and discussions of classmates and/or teacher.
(03 points)
d) Do something extra (01 point)

Copyright ©2021 McGraw-Hill Higher. All rights reserved. No reproduction

or distribution without the prior written consent of McGraw-Hill
Operations Management
in Manufacturing
29 Brands
Billion Dollar Brands
Q1: From your knowledge of production processes and from the case and the video,
identify how each of the 10 decisions of OM is applied at Frito-Lay.
1. Products - Goods and
services: This includes
looking for ways to
In the food industry, product development kitchens
implement consistency in
experiment with new products, submit them to costs, quality, and
focus groups, and perform test marketing. Once the resources across all
product specifications have been set, processes business divisions.
capable of meeting those specifications and the
necessary quality standards are created. At Frito-
Lay, quality begins at the farm, with onsite
2. Quality
inspection of the potatoes used in Ruffles and the Management: Be clear
corn used in Fritos. Quality continues throughout on the customer’s
the manufacturing process, with visual inspections demands and then meet
and with statistical process control of product those expectations. Use
market research to
variables such as oil, moisture, seasoning, salt, determine customer
thickness, and weight. Additional quality needs and batch quality
evaluations are conducted throughout shipment, assurance testing on
receipt, production, packaging, and delivery. products and services in
production.
Q1: From your knowledge of production processes and from the case and the video,
identify how each of the 10 decisions of OM is applied at Frito-Lay. 3. Process and Capacity
Design: Design strategies which
support all production goals
The production process at Frito-Lay is designed for including technology and
resources. A value stream map can
large volumes and small variety, using expensive help determine what processes are
necessary and how to keep them
special-purpose equipment, and with swift running efficiently.
movement of material through the facility. Product-
4. Location: In developing a
focused facilities, such as Frito-Lay’s, typically location strategy consider supply
have high capital costs, tight schedules, and rapid chain and how the location will
receive supplies, the movement of
processing. Frito- Lay’s facilities are located goods and services internally and
to customers, and the role of
regionally to aid in the rapid delivery of products marketing and public relations in
because freshness is a critical issue. Sanitary issues the location choice.

and necessarily fast processing of products put a 5. Layout Design and

premium on an efficient layout. Production lines are Strategy: Consider the placement of
desks, workstations, and how
designed for balanced throughput and high materials are delivered and used.

utilization. Cross-trained workers, who handle a

variety of production lines, have promotion paths 6. Human Resources and Job
Design: Implement continuous
identified for their particular skill set. The company improvement programs with regular
reviews, provide continuous training
rewards employees with medical, retirement, and for employees, and institute
education plans. Its turnover is very low. employee satisfaction programs to
achieve success in this area.
Q1: From your knowledge of production processes and from the case and the video,
identify how each of the 10 decisions of OM is applied at Frito-Lay.
The supply chain is integral to success in the food
7. Supply Chain
industry; vendors must be chosen with great care. Management: Determine the best
Moreover, the finished food product is highly dependent strategies to streamline, be cost
effective, and to develop trusted
on perishable raw materials. Consequently, the supply partners.
chain brings raw material (potatoes, corn, etc.) to the
plant securely and rapidly to meet tight production
schedules. For instance, from the time that potatoes are 8. Inventory: Different markets
mean different challenges when it
picked in St. Augustine, Florida, until they are unloaded comes to inventory but all need to
at the Orlando plant, processed, packaged, and shipped strategize and plan their inventory
control. Weather, supply shortages,
from the plant is under 12 hours. The requirement for and labor all influence how an
fresh product requires ontime, just-in-time deliveries organization maintains its
inventory.
combined with both low raw material and finished goods
inventories. The continuous-flow nature of the specialized
equipment in the production process permits little work- 9. Scheduling: Consider both
production and people. Ask
in-process inventory. The plants usually run 24/7. This questions such as how much
means that there are four shifts of employees each week. product is required to be produced
for the customer in the required
time? How many people and how
many machines are required to do
the job effectively and efficiently?
This differs among industries and
business departments. 
Q1: From your knowledge of production processes and from the case and the video,
identify how each of the 10 decisions of OM is applied at Frito-Lay.

Tight scheduling to ensure the proper mix of fresh 10. Maintenance: This

finished goods on automated equipment requires reliable includes maintaining
systems and effective maintenance. Frito-Lay’s workforce people and machines,
is trained to recognize problems early, and professional as well as, process.
maintenance personnel are available on every shift.
Downtime is very costly and can lead to late deliveries,
making maintenance a high priority.
6. Human Resources and
Job Design: Implement
continuous improvement
programs with regular
reviews, provide
continuous training for
employees, and institute
employee satisfaction
programs to achieve
success in this area.
Thank you