Operations management refers to the methods used to produce goods and services as efficiently as possible. The three major functional areas of business are finance, marketing, and operations, which are interrelated. The operations manager is responsible for overseeing the transformation of inputs into outputs through coordination of departmental activities. While goods can be produced, stored as inventory, and have their quality objectively measured, services are intangible and produced and consumed simultaneously. Lean production emphasizes flexibility, quality, and teamwork to gain benefits of both mass production and craft production. Current trends in operations management include businesses adapting operations like expanding delivery capabilities to meet increased demand from e-commerce and online shopping during the pandemic.
Operations management refers to the methods used to produce goods and services as efficiently as possible. The three major functional areas of business are finance, marketing, and operations, which are interrelated. The operations manager is responsible for overseeing the transformation of inputs into outputs through coordination of departmental activities. While goods can be produced, stored as inventory, and have their quality objectively measured, services are intangible and produced and consumed simultaneously. Lean production emphasizes flexibility, quality, and teamwork to gain benefits of both mass production and craft production. Current trends in operations management include businesses adapting operations like expanding delivery capabilities to meet increased demand from e-commerce and online shopping during the pandemic.
Operations management refers to the methods used to produce goods and services as efficiently as possible. The three major functional areas of business are finance, marketing, and operations, which are interrelated. The operations manager is responsible for overseeing the transformation of inputs into outputs through coordination of departmental activities. While goods can be produced, stored as inventory, and have their quality objectively measured, services are intangible and produced and consumed simultaneously. Lean production emphasizes flexibility, quality, and teamwork to gain benefits of both mass production and craft production. Current trends in operations management include businesses adapting operations like expanding delivery capabilities to meet increased demand from e-commerce and online shopping during the pandemic.
Operations management refers to the methods used to produce goods and services as efficiently as possible. The three major functional areas of business are finance, marketing, and operations, which are interrelated. The operations manager is responsible for overseeing the transformation of inputs into outputs through coordination of departmental activities. While goods can be produced, stored as inventory, and have their quality objectively measured, services are intangible and produced and consumed simultaneously. Lean production emphasizes flexibility, quality, and teamwork to gain benefits of both mass production and craft production. Current trends in operations management include businesses adapting operations like expanding delivery capabilities to meet increased demand from e-commerce and online shopping during the pandemic.
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Central Luzon State University
College of Agriculture DEPARTMENT OF AGRI-MANAGEMENT
AGBUS 3250 – Production/Operations Management
Instructor: JAMES PAUL R. LABINDAO
NAME: Elaiza Erika A. Lachica
Course/Year/Section: BSAB 3-2
Activity 1 – Introduction to Operations Management
EXERCISE QUESTIONS:
1. Briefly describe the term operations management.
Operations management refers to the procedures or methods used in the production of commodities or the delivery of services. It is the administration of business practices to achieve the highest level of efficiency within an organization. It includes forecasting, capacity planning, scheduling, managing inventories, ensuring quality, inspiring employees, determining where to locate facilities, and more. In order to increase an organization's profit, it is concerned with transforming resources like labor and materials into products and services as effectively as possible.
2. Identify business organizations' three major functional areas and briefly
describe how they interrelate. Finance, marketing, and operations are the three fundamental roles of a typical business organization. All tasks that are directly related to manufacturing goods or rendering services fall within the operations function. It includes the processes for producing, stocking, distributing, and maintaining goods and services. All operations pertaining to an organization's financial management fall within the responsibility of the finance function. When managing an organization's cash flow, the finance function is responsible for the budgets, financial analysis, and accounts receivable and payable-related tasks. Selling and/or promoting an organization's products or services is the primary goal of marketing. Additionally, marketing is in charge of identifying client needs and wants and conveying them to both design and operations personnel. The marketing department facilitates brand recognition and sales-based revenue generating. The outputs generated in every area connect the three functions together. Operations develop the goods and services that are inputs to the marketing function, whereas a sale generates the revenues that are inputs to the financial management process monitored by the finance function. The roles are also connected during the organizational planning stage, where finance collaborates closely with operations and marketing to create budgets that will direct production of goods and services and act as an organizational planning tool.
3. Describe the operations function and the nature of the operation manager's job. The transformation of one or more inputs into a marketable output is known as the operations function. This can apply for both goods and services. The operations manager is the central character in the system since he or she is ultimately in charge of producing things or providing services. The various products or services that are included in the duties that operations managers oversee vary greatly from organization to organization. Coordination of departmental activities within an organization is the responsibility of the operations manager to guarantee that the product or service is delivered effectively.
4. List five important differences between goods production and service
operations. Services are not tangible, cannot be owned, returned, or readily had their quality measured; while, goods are tangible, can be owned, returned, and have their quality easily evaluated. Though services are generated and used simultaneously, goods are produced before they are consumed. Services cannot be stored in Inventor, but goods can be. Assurance of quality for goods is objective and quantifiable, while for services it is subjective. The majority of manufactured goods can be patented, while services cannot be patented and are thus easy to copy.
5. Briefly discuss each of these terms related to the historical evolution of
operations management: a. Industrial Revolution - The Industrial Revolution started in England in the 1770s and quickly extended to the rest of Europe and the world. Prior to this, trained craftsmen and their apprentices performed manufacturing in tiny shops. Since there were no machines, everything had to be done by hand and there were no standards; everything was done according to individual needs. The procedure was pricey and slow. b. Scientific management - Taylor created the scientific management theory. It was based on work practices that have been observed, analyzed, and measured. Furthermore, they believed that managers should train staff to do jobs in this manner in order to increase productivity and efficiency and believed in management and employee collaboration. Maximizing output was the goal of the methods. c. Interchangeable parts – It was proposed in 1790 by Eli Whitney. Up until Henry Ford used it in the creation of automobiles, it had no practical use. Additionally, it made it possible to sell replacement parts and run quick assembly lines. d. Division of labor – Adam Smith suggested in 1776 that any significant manufacturing operation may be divided into smaller projects, with different people being allocated to each task to gain expertise. lasted until the invention of the assembly line by Henry Ford.
6. Why are services important? Why is manufacturing important?
Services are essential because they give the organization's activities added psychological value and a unique identity. When they add value, it increases consumer satisfaction, which boosts the company's profitability. However, manufacturing is essential since it contributes significantly to exports and because it supports manufacturing, many service employments depend on it. Because there is no production and the items grow naturally without human intervention, farm products are an example of non-manufacturing goods.
7. Describe each of these systems: craft production, mass production, and lean production. Craft production involves hiring expert employees, which is more expensive and time-consuming. In mass production, commodities are manufactured in greater quantities by unskilled or semi-skilled workers who utilize expensive specialized equipment. However, lean production places an emphasis on flexibility, time management, quality, and teamwork, which results in fewer management levels. Both workers and equipment are highly competent and adaptable. It has benefits of both mass production and craft due of its great volume and low cost per unit.
8. Why might some workers prefer not to work in a lean production
environment? Why might some managers resist a change from a more traditional mode of production to lean production? The majority of employees dislike working in a lean production environment since there are fewer chances for them to gain experience in the organization, it is because of lack of management. Resistance to lean may occur when an organization fails to give the skills or tools needed for success in the new business model, it can cause employees to feel incompetent or fear for their job security, which can lead to resistance to lean change efforts. 9. Identify some of the current trends in operations management and relate them to recent news or personal experience. E-commerce Market: As a result of the COVID-19 epidemic, which permanently changed online buying behaviors and increased in popularity, businesses are adapting their operations to match these needs. So in order to meet customer expectations for quick and convenient deliveries, retailers including Shope, Lazada, Shein Zalora, and Food Panda are broadening their distribution channels and enhancing last-mile delivery capabilities. Although there are various ways to sell to customers online, the major benefit of online selling is that you may do so whenever and anywhere you choose. Customers can finish a purchase online whether they are at home on the couch, at work over lunch, or even using your app in a real store. Through the ease of remote purchasing, online shopping allowed us to get the products we wanted and needed without putting ourselves in danger of health risks. It served as a lifeline, seeing to our necessities while abiding by advice to stay indoors and avoid physical contact. Online shopping effectively became a safety net for our wellbeing, enabling us to access goods while prioritizing our safety.
10. Why do people do unethical things?
When there is a lot of pressure to meet goals from upper management, people are more likely to use unfair strategies and behave unethically. Employees begin acting unethically and taking advantage of the circumstance when there is an unethical work environment and unethical behavior is widespread.
