OM TQM

MANAOIS, HANNAH EUGENIE F. 21-BSA-01

DISCUSSION AND REVIEW QUESTIONS

1. Operations management is the management of systems or processes that

create goods and/or provide service. Designing and controlling the
production process, as well as rethinking company operations in the
creation of goods or services, are all aspects of operations management.
Supply chain is the sequence of organizations that are involved in producing
and delivering. A supply chain is a focus on the main processes necessary to
turn raw materials or component parts into finished products or services
within our organization. We look upstream to our suppliers and the raw
materials and components they provide to our own supply chain.
2. The three major functional areas of business organizations and how they
interrelate are:
 Finance: budgeting, reviewing investment ideas, and providing funds
for operations, as well as securing financial resources at attractive
pricing and allocating those resources within the firm.
 Marketing: responsible for determining customer wants and needs,
as well as marketing and promoting the company's products and
services.
 Operations: System or process management for the production of
commodities and/or the provision of services.
3. The operation manager's major responsibility is to direct the system
through decision-making. He or she is the central character in the system,
with ultimate responsibility for the creation of goods or the supply of
services.
4. Five important Differences:
 Customer Contact Levels
 Input consistency
  Job duties and responsibilities
 Productivity evaluation
 Quantity of inventory

Five Important Similarities:

 Process Management
 Managing Variations
 Supply chain management
 Monitoring and controlling cost and productivity
 Forecasting and capacity planning to match supply and demand
5. Craftsmen and their apprentices manufactured things in small shops during
the (a) industrial revolution. Several inventions in the 18th century
replaced human power with machine power (steam engine). The invention
of the gauging system accelerated the industrial revolution by eliminating
the demand for custom-made goods. Fredrick Taylor's methods were
brought to light during the (b) scientific management era. He researched
labor procedures to determine the most efficient way to complete each
task. His approach focused on maximizing output. The automotive industry,
as well as others, benefited from mass production, (c) interchangeable
parts, and division of labor in the early 10th century. The importance of the
human aspect in work design ((d) division labor) was underlined by the
human relations movement. Managers become aware of the importance of
employee motivation in increasing production.
6. Service operation is the business function in charge of overseeing the
manufacturing and distribution of goods and services. All of the resources
required to generate a company's goods and services must be planned,
organized, coordinated, and controlled. More Manufacturing, innovation,
productivity, exports, and middle-class jobs result from a thriving
manufacturing base. Manufacturing contributes more to the improvement
of living standards than any other industry. Manufacturing is the industry
that creates the most economic activity. No other industry even comes
close to these figures. Non-manufactured goods are items that aren't made
 in a factory Define the terms "craft" and "mass" manufacturing, as well as
"lean" production. -craft: a method in which highly skilled individuals
manufacture small amounts of customized things using basic, flexible
instruments.
7. An operating model is a diagram that depicts how a company provides
value to both internal and external consumers. Operating models are
helpful tools for managers to understand how changes in one element of
the organization may affect the value delivered by other parts.
8. Because of the complexity, there needs to be greater care in the process
planning when there is a significant degree of customization. If a high
degree of abilities and goods are required to finish the planning process, a
clear timeframe and more well-thought-out designs are required in the
planning process.
9.  a. Driving your own car vs. public transportation
• Driving is simple and flexible, allowing you to go wherever you want on
the road.
• Driving is a time-saving activity.
• If there are a lot of people on the bus, it will get overcrowded, and the
cost will be lower.
• In the event of a traffic jam, stress levels may be reduced.
b. Buying a new computer now vs. waiting for an improved model
• The price varies.
• The user will have to wait a long time for an upgraded model; additional
features will be added to the improved model.
c. Buying a new car vs. Buying a used car
• New cars are more expensive since they are more up-to-date and have
more new features 
 second-hand cars are not suitable for long-term use.

d. Speaking up in class vs. waiting to get called on by the teacher

• Is the student certain that the teacher will not call him or her out of class?
 • While waiting for the call, the student may get increasingly stressed,
angry, and frustrated.

• If you ask questions and participate in conversations, you will gain a

greater understanding.

e. A small business owner having a website versus newspaper advertising.

 Small businesses generate lower earnings because customers prefer

not to provide information on a website because it is pricey.
10. Craft Production: Products are manufactured by skilled artisans (costlier
and time consuming)
Mass Production: Low-skilled or semi-skilled employees manufacture
goods in large quantities and use expensive specialist equipment.
lean production: flexibility, time reduction, quality, and teamwork are all
important aspects. As a result, there are fewer tiers of management.
Workers are well trained, and the equipment is adaptable. Because of its
great volume and low unit cost, it combines the benefits of both craft and
mass production.
11. Every employee is accountable not only for his or her own task, but also for
the entire system. There are no supervisors. Workers have the ability to
self-regulate. To ensure that the lean system is accepted, a lot of
motivation and training is required.
12. a. Every business organization's primary goal is to match supply and
demand. Customers may be displeased, business may be lost, and
opportunity costs may be incurred as a result of undersupply. Oversupply
can result in additional costs associated with storing the excess, the
necessity to sell the excess at a lower price, or the expense of disposing of
the excess.

b. Supply chain management is critical for a variety of reasons, including

matching supply and demand, lowering transportation costs, gaining a
competitive edge, managing inventories, and gaining supply chain insight.
13.The following are the four main sources of variation: (1) Product or service
variety: The larger the product or service variety, the greater the diversity
in production or service requirements. (2) Demand structural fluctuations,
such as trends and seasonal variations, are usually predictable. They're
especially significant when it comes to capacity planning. (3) Natural
variability: This natural variability is present to some level in all processes,
as well as in demand for services and products, and it cannot be altered by
managers in most cases. (4) Variables with assignable causes: Variation
due to faulty inputs, improper labor procedures, and out of adjustment.
14.Self-interest, personal gain, ambition, and plain greed are at the root of
much unethical business behavior. Another motivation for unethical
behavior on the job is misguided loyalty. People lie because they believe it
will demonstrate their loyalty to the organization or their bosses.
15.The word "value-added" refers to the extra cost a firm adds to its products
or services before selling them to customers. Value-added explains why
businesses can sell their products or services for more than they cost to
make.
16.Outsourcing lowers entry barriers and boosts competition. While open
markets stimulate increasing competition, which benefits consumers in
general, it can damage enterprises that can't keep up. Outsourcing enables
new entrants into industries where labor would otherwise be prohibitively
expensive.
17.Utilization of resources in such a way as to cause the least amount of harm
to the existing environment in which an organization functions.
Organizations strive to have minimal long-term environmental
repercussions. The "carbon footprint" of a company is one example of this.
Every decision has an impact on every aspect of a company, including
product design, supply chain management, and so on.
TAKING STOCK

1. When we make a decision, we normally consider the repercussions as well

as the benefits and drawbacks of that decision. To put it another way, we
must balance the benefits and drawbacks of a decision before making it.
Trade-offs entail assessing the benefits and drawbacks of a given decision.
If a decision-maker decides to increase inventory levels, for example, he or
she must weigh the trade-off between improved customer service and
increased inventory carrying costs.
2. Collaboration between the various functional areas is critical since it leads
to improved communication among the departments (functions), which
improves the firm's performance. Collaboration will lessen the risk of a
functional area under-optimizing because it is possible that one functional
area does not have enough information about the other functional areas'
restrictions or decisions.
3. Product and service technology allows a company to develop new products
faster. Process technology enables a company to improve methods,
procedures, and equipment used to produce goods and to provide services.
Information technology enables companies to process large quantities of
data quickly, to identify and track goods, to obtain point-of-sale data, and
to communicate documents electronically to suppliers and customers.

CRITICAL THINKING EXERCISES

1. The distinctions between service and manufacturing processes have

numerous repercussions. Because of the high level of client contact in a
service firm, we must ensure that personnel are better trained in customer
service than employees in the manufacturing industry. We will build a lot of
slack in scheduling in a pure-service sector firm because of the uncertainty
of input.
2. Whether the supply was too great or too small would determine this. If you
have excess capacity, attempt advertising and/or price reductions to
generate demand. Store excess output (goods) for future need if it can be
stored and future demand is predicted to be higher. Outsourcing, working
extra, or hiring temporary staff may be choices if supply is insufficient.
Increase pricing if there are few or no competition.
3. Product or service-related innovations, as well as process-related
innovations, are all possibilities. These often include increased training
costs and time, as well as the possibility of new equipment or equipment
upgrades, as well as prospective supply chain changes (e.g., new suppliers,
new delivery requirements, etc.). Due to lower labor or machine time
requirements, process improvements can be disruptive to the workforce,
resulting in job loss, retraining, and/or poor worker morale. New products
or services will almost certainly necessitate new marketing campaigns or
other promotions, as well as customer education.
4. a. Employees may opt to act unethically in order to achieve unrealistic
success goals. A salesperson, for example, may make misleading claims in
order to meet their quota. To meet quota at Wells Fargo, staff created
bogus accounts and credit cards in their clients' names.
b. Increased business risk, including the threat of bankruptcy, as well as a
severely harmed corporate brand and image Internally, there has been a
decrease in production as well as an increase in misconduct and conflict.