Daniel B.

Peña Memorial College Foundation, Inc

Ziga Avenue, Tabaco City

Output in Operation management & TOM (CBME 1)

( MWF / 7-8am )

Jhonrey D. Bragais
BS Accountancy-II

Paulo C. Mojos
Professor
Material 1: Course Supplementary No. 1

Questions

1. In your own words, briefly describe the term operations management. (answer not less
than 3 sentences)

2. Describe the operations function and the nature of the operations manager’s job. (answer
not less than 5 sentences)

3. Briefly discuss each of these terms related to the historical evolution of operations
management: (answer for each not less than 5 sentences)

a. Industrial revolution

b. Scientific management

c. Interchangeable parts

d. Division of labor

4. List the trade-offs you would consider for each of these decisions: (answer for each not
less than 5 sentences)

a. Driving your own car versus public transportation.

b. Buying a computer now versus waiting for an improved model.

c. Buying a new car versus buying a used car.

d. Speaking up in class versus waiting to get called on by the instructor.

5. Describe each of these systems: craft production, mass production, and lean production.
(answer for each not less than 5 sentences)

6. Why might some workers prefer not to work in a lean production environment? (answer
not less than 5 sentences)

7. Why might some managers resist a change from a more traditional mode of production to
lean production? (answer not less than 5 sentences)

8. How has technological change affected you? Are there any downsides to technological
change? Explain. (answer not less than 5 sentences)

9. Identify some of the current trends in operations management and relate them to recent
news items (cite the specific news items/s) or personal experience. (answer not less than 5
sentences)

10. Why do people do things that are unethical?

Answers

1. Operation Management is an activity associate with managing a particular business to

make it more productive. It is responsible in controlling the process or operation of the
business to maintain a good quality services. It provides strategy and planning in order to
have an efficient result of the entrance and exit of resources. To provides best input and
output cycle.

2. The functions and the nature of the operation managers were to provide a sufficient and
efficient production of resources. They are responsible for the good production. They
maintain the good resource exchange for the stability of the business and its transaction.
They are of control of the resources operation for the design. They are responsible also in
the location or the facilities in production. They provided the plans of production and handle
the materials.

3. Historical evolution of operation management

a) Industrial revolution is the changes in the process of production. In ancient

times, the industrial production was made manually or through hands. The
finish products are also limited and never been in good quality at all. Until
machines was invented and uses for production. It made an easiest work
process of resources and best quality product. Unlike the manual, production
through machines created and huge quantity of finish products. That why
until this present times it uses and improved the technological machineries in
industrial production.

b) Scientific management is monitoring the production, how it is manage and

how it is done. It applies the easiest and efficient ways of managing the
business. It monitors the movement of the flow of business and its every
transaction. The time is relevant and the method for essential outcomes. The
managers and the workers should be tied for the cooperation of every
individual. Also the workers should be properly train and made develop
especially in the actual work.

c) Interchangeable parts are somehow related to the alternative use parts for
replacement. In products, when it is defected it will be rejected so it needs to
remake it or change the parts with another. There should be similar parts
that might use for change. In other ways, interchangeable parts are parts of
the product that are assigned to be replacing to the broken one even without
custom fitting.

d) Divisor of labor is dividing all the jobs into each worker to make it easy to do.
It is the best way in maintaining the equality of the workers in the business.
All the workers should participate in every jobs needed to be done. To have
a progress in business every individual in the company must create strategy
in jobs. One must not work with his own but with the other by putting it into
pieces of work to everybody.

4. List of trade-offs I would consider..

a) If you are a business man or have a business, it is better to have own driving
car. It is preferable to use in going to work instead of commuting. So much
for that, as a business man there are some cases that you having a meet up
 with clients. If you have your own car, it is easy to go and hassle free. Unlike
public transportation, you have to wait several minutes to go in your
destination and you might lose your client.

b) For me I would consider buying a computer now rather than waiting for a
new model because it not what we see the style of the computer but its
capability to work properly. Buying it now make several works be done. if I
wait for the new model, it may takes time while you have so many works
undone. As long as you have a computer and it properly works then be it.
Also if you can maintain it in a good condition and careful enough of using it
then prefer to buy now.

c) Well actually it depends on the person whether they buy new car or used
car. If I may buy, I prefer the new one because since I plan for it then be it
with a good one. Buying a new one is durable you have the guarantee that it
works properly and in good quality. But if you have to consider budget, the
used on is good. You can less to the amount and as long as you the car that
can use to and it is in good condition.

d) Speaking up in class is better that waiting to be called by the instructor

because it is a sign that you are an active student. If you have an answer be
confident to share it to the class. It is not bad to make mistakes because we
become good in every mistake we committed. If you wait for the instructor to
call you even if you have the answer, it will never bring good. You will bring it
in your life until you find job. If you no self-confidence and decision making,
you will never success smoothly.

5. Systems

a) Craft production is a system which the workers use a simple tool and
equipment to create products. It is also refer for making craft by hands.
Examples of this are the furniture like tables, chairs and others. Craft
production produces simple product with small quantity. It is very common in
pot production with they use simple materials and easy to provide. The
workers are not overloaded because they made it effortlessly. They never
use expensive materials and equipment in production.
b) Mass production is massive production in which the workers use
machineries. The workers are not specialized to be skilful because the
machines are responsible in production. They never uses hands in order to
create customized products. They produce a large quantity of products and
are in high quality. But unlike the craft production, mass production I an
expensive one because of the large machines and the materials they used.
c) Lean production is a system that refers for cutting out waste while increasing
efficiency and quality. In other words, the quality of the product and the
efficiency of production must increase while the cost decreases. In order to
make it happen, they reduces the waste. These wastes are the defects,
overproduction, waiting, transportation, extra processing etc. Lean
production develops process of continuous movement and improvement of
production without increasing the number of waste.
6. Some workers prefer not to work in a lean production because it requires highly skilled
workers. In order to commit the recommended standards of production the workers should
have the capability to do so. It is very difficult to make it they have to decrease the waste in
every production. The efficiency and the quality are based on the workers and its working
ability. If the workers are not highly skilled, they cannot develop process of continuous
movement and improvement of production.

7. Managers resist a change from more traditional production to lean production because
they cannot provide the standard of production. They might not produce the good quality
products without higher cost. And they cannot control that wastes increases. They prefer to
produce a large quantity of products even if it waits. They made extra processing to make
sure that the costumers will not wait. Also they provided the transportation of the products
from their factory to the markets.

8. Technological change affect people because of different products evolve. Because the
invention of the technological machineries many products which similar came. So as a
customer, we have now difficulties in picking up best products. The evolution of
advertisements has change the mood of the people. But on the other hands, it’s very helpful
to every production company that they can provide large quantity of products. The people
can no longer suffer from shortage and waits for the lone run of productions.

9. Some of the trends in operation management are the technology and the quality and
process improvements. Technology gives impact to the society. It make easy for the
transportation and also when it comes to products it gives quality. Quality and process
improvements provides to people satisfaction. In every purchase of products customers
need satisfaction and assurance that they would never regret at the end. And that’s what I
experience at these present times.

10. People do thing that are unethical because they want gain attention, self- interest and
ambition. People who have so much ambition intend to do unethical doings. Personal gain
is one reason that might lose from others. They expect too much beyond their capability.
They did it because they assure of loyalty to their bosses.
Material 2: Reading Material 1.0 Annex to Chapter 1

Question #1

1. What is an agile manufacturer? (answer not less than 3 sentences)

2. What is the value of being an agile manufacturer? (answer not less than 5 sentences)

3. How could the managers at the plant keep track of the five million parts each day?
(answer not less than 5 sentences)

4. Enumerate in outline form the keys to being an agile manufacturer.

Answer

1. Agile manufacturers refer to the response to the customer or client needs in a timely
manner. It is the flexibility and speed of the operations in order to gain competitions. They
provide a quick resourceful adaptability in various factors in the market.

2. The value of being an agile manufacturer are having the flexibility, innovation,
adaptability in the process changing condition in the market. An agile manufacturer is able
to switch quickly and economically from one design to another with little disruption. They
can shift away from more traditional mass production methods that have heavy emphasis
on volume and cost reduction into production methods that emphasize speed and flexibility.
They provide information on the status of each product for Ford managers at the plant in
Landsdale. They trace the defect back to the exact spot in the process where it occurred,
enabling management to focus efforts on correcting the cause of the problem.

3. They produce plant about 124,000 engine controllers, antilock brake sensors, and speed
control units a day. According to the plant manager, when an order to change a product is
received, the changed unit can usually be shipped within 24 hours. The plant is able to
respond to change orders quickly because it has highly flexible automated equipment.
Computer software has been designed to accommodate changes, and lean inventories that
don’t have to be worked off before changed units can be shipped. Each product has
between 400 and 500 parts; this means that there are more than 5 million individual parts to
keep track of daily.

4. Agile Manufacturer

a. having flexibility
b. bottom-up
c. rapid interation
d. welcome changes
Question #2

1. In what ways are Hazel’s customers most likely to judge the quality of her lawn care
services? (answer not less than 5 sentences)

2. Hazel is the operations manager of her business. Among her responsibilities are
forecasting, inventory management, scheduling, quality assurance, and maintenance.

a. What kind of things would likely require forecasts? (answer not less
than 3 sentences)
b. What inventory items does Hazel probably have? Name one
inventory decision she has to make periodically. (answer not less
than 3 sentences)
c. What scheduling must she do? What things might occur to disrupt
schedules and cause Hazel to reschedule? (answer not less than 5
sentences)
d. How important is quality assurance to Hazel’s business? Explain.
(answer not less than 3 sentences)

3. The town is considering an ordinance that would prohibit putting grass clippings at the
curb for pickup because local landfills cannot handle the volume. What options might Hazel
consider if the ordinance is passed? Name two advantages and two drawbacks of each
option. (answer not less than 10 sentences)

4. Hazel decided to offer the students who worked for her a bonus of P1,250 for ideas on
how to improve the business, and they provided several good ideas. One idea that she
initially rejected now appears to hold great promise. The student who proposed the idea
has left, and is currently working for a competitor. Should Hazel send that student a check
for the idea? (answer not less than 10 sentences)

Answer

1. Hazel’s customers most likely to judge the quality of her lawn care services the
availability of her business. Some people were simply glad to turn the work over to her.
Other people switched from professional lawn care services. She also performed other
services such as fertilizing lawns and weeding gardens. She has the determination to do
such business which provides her living. Her good services made the neighbours to make
her to work on their lawns.

2. a) Things that require forecasting are those who can provide you for living. You have to
idea that a simple work can make you a businessman. Providing good quality services can
encourage customers.

b. The rejection letters began to pile up, Hazel knew she had to make an important decision
in her life. She was relieved to give up the stress of job hunting, and she was excited about
the prospect of being her own boss. Hazel was determined to make a go of it. The inventory
items she has must be work in process. The tools she may be provided in making the
lawns.

c) She works for the lawns every time she have no schedule in finding job. She mowing
lawns of five neighbours a day and finding jobs the other day. She never focuses on cutting
lawns because she was eager to find a job with good income. But it was the thing that
disrupts her in her schedule. Instead of mowing the lawns, she needs to spare time to find
job.

d) Quality assurance is very important for her to avoid mistakes or problems in the services.
It helps to make easy and defines goals regarding the services you offered. It tracks and
resolves inadequacy before product or services release. It helps to increase customer,
confidence and reliability. It also enhance efficiency and overall work process.

3. The advantages of it is that it reduced the uncollected clipping in the curb. It lessen the
environmental effect and causes of littering. Those clipping can be used for organic
fertilizer. You can make it as another service you provide for those you needs fertilizer. It
can be used in plants and crops. The drawback is it can cause to destruction of your
business. Your business is about clipping lawns and it can be stop by that new ordinance.
In order to continue, you have to provide landfill for the clipping and it is very difficult if you
no own land. It may cause for the customer to lose.

4. Well I think she has to change her perspective towards the idea. Since the student gave
the idea to your competitor you have to move on the other idea that some students
suggested. Since you have a competitor, you have to compete with different product or
services. She doesn’t have to check for the students because she already rejected it. You
have to find an alternative ways to start a new business. There are lots of ways and you
have to become innovative. You have to start a rare business which is new to customers.
Your customers depend on the quality of your product. Good quality good gain.

Question #3

Discuss each of these factors and their actual or potential relevance to what happened:
(answer for each not less than 10 sentences)

1. Product design.

2. Quality control.

3. Ethics.

Answer

1. Product design is referred to the connection of the materials and the technology. It is the
transformation of the ideas you are thinking of into a good quality products. It combines
creativity into products and concepts that improve everyday life. It has to meets the
emerging needs of every customer. It has balance in technology and the art. It develops a
leading edge of prototypes and product. It solve problems you have encountered. It finds
sustainable solution in business. It is a local and global industry in a new and evolving
design field. Also it is a risk-taking job because you have find an potential customers. And
most importantly, you have to become innovative.

2. Quality control is keeping the desire quality in the goods produced by testing the samples
against the set criteria. It is the part of quality management focused on fulfilling quality
requirements. In quality control, you need to inspect the tangible products and controlling
over it. The data must be collected and reported to management personnel. Quality control
process must be on-going to ensure that remedial efforts to have a satisfactory results and
to immediate detect the recurrence or instances of trouble. It ensures that the techniques
and methods of the designed project are correct.

3. Ethics is having the moral and integrity in business. You have to be honor and giving
value to the products and toward customers. You have to know the wrong and right
especially in working place. It is in regard to the effects of products and services and the
relationships with the stakeholders. It sentizes the leaders and staff to how they should act.
It helps to ensure leaders and managers attention in times of conflict. Ethics is the
preventative medicine. It helps people to react with continuing attention to doing right things
that only asserts the obvious. It compromises all values and principles and helps people in
guiding their behaviour in the organizations. It ensures the gain especially in business
without affecting the individuals or the society as a whole.
Material 3: Memo Writing Exercise 1.0 Annex Chapter 1

Memo Writing Activity No. 1

To: Operation Manager, Tony Roman

From: Jhonrey Bragais

Date: September 10, 2020

Subject: Input on holding joint planning session

Holding a joint meeting is an outstanding basis on which the perceived appeal of

your organization to future members can be established. They are more likely to join
the company by offering better and more material and generating networking
opportunities for the guests.

When joining hands with others in parallel sectors, increasing attendance for the
conference becomes simpler. Attracting more of the participants at the same time
builds a wider network that raises awareness of the case which increases the
likelihood of success by distributing promotional materials.

To better finance the conference or event, pooling the funds and efforts of many
organizations leads to more budget stability, more revenue overall, and more
sponsorship connections. A joint conference with more than one organization offers
a venue for all participants to exchange ideas and develop a greater group.

Hope that my inputs will help you and the company in the future

Thank you so much for the support

Memo Writing Activity No. 2

To: CEO, Rachel Barker

From: Mid-level Manager, Jhonrey Bragais

Date: September 10, 2020

Subject: View on the new omputer network

The time has come to adjust. I read with great caution the latest regulations of the
department she is considering. From my viewpoint, the prospect is enticing.

But I agree you have to take into account the main considerations in making the
decision, such as the approval of workers.

You have a major duty as a boss and the adjustments can be made through
meditation and prior research.

In general, the action for the adjustment is right because, on all times, we are
talking about the trade-offs.

Thank you for your support.

Material 4: Course Supplementary 2
Questions

1. From time to time, various groups clamor for import restrictions or tariff on foreign
produced goods, particularly automobiles. How might these be helpful? Harmful? (answer
not less than 5 sentences)

2. Select two stores you shop at, and state how they compete. (answer not less than 8
sentences)

3. Contrast the terms strategies and tactics. (answer not less than 5 sentences, in your own
words, elaborate if necessary)

4. What is productivity and why is it important? Who is primarily responsible for productivity
in an organization? (answer not less than 5 sentences)

5. It has been said that a typical Japanese automobile manufacturer produces more cars
with fewer workers than its U.S. counterpart. What are some possible explanations for this,
assuming that U.S. workers are as hardworking as Japanese workers? (answer not less
than 8 sentences)

Answer

1. It might help to enhance their trade-offs and provides the lack to the country. It helps to
enhance the relationship to others developing countries to invest. It might be the way to
process exportation to other countries with their goods. The harmful effect is that other
country might get their resources for their processing. you might also don’t know the quality
of the import products and might lose your profit.

2. The stores I shop are the LCC and OB. Well I think they compete with the customer’s
amount that their store have. LCCs products are almost high price compare to OB.
Although the have different in quality of the product, the customers are always in budget
management. So they prefer the low price over the quality. It doesn’t matter of quality as
long as it useable. Also customers are prone to have whole sale in OB than LCC. When
you have whole sale, you can save money with its lower price and the discount given.

3. Tactics is used to achieve the good strategy. It process on how to accomplish the work.
You have to provide plans and decision making to in business. It measures your capability
to do your job in actual process of operations. Strategy is the way of achieving the overall
goal. You have to mere focus in making decision to make it more functional in the
organization.
4. Productivity is the quality and efficiency of production. It measures all the operation and
how to manage and control it. Having an effective and successful business begins with the
productivity. The responsible for the productivity of the company are the employees. Having
happy and healthy employees will have a productive company.

5. Japan had many influences which led to their strength in automobile manufacturing. They
are also strong in other discipline of manufacturing other than cars. They are seriously
organized culture, précised, proud and highly evolved from an intellectual standpoint.
Japanese allows manufacturers ability to build a domestic market in high volume, exporting
to other country while not having to deal with the outside competition from other countries
products. They also have an incredible well organized society. American had deals with the
design, quality and fuel efficiency will Japan focused on quality and fuel efficiency only.
Japan car industry sustained the weakness of most of their global competitors. Japanese
industry builds a pre-eminent car industry for relatively small country. They started to
capture substantial market share in the west.
Material 5: Case Material 2.0 Annex to Chapter 2
Questions

1. What competitive advantage does Hazel have over a professional lawn care service?
(answer not less than 5 sentences)

2. Hazel would like to increase her profits, but she doesn’t believe that it would be wise to
raise her prices considering the current state of the local economy. Instead, she has given
some thought to increasing productivity. a. Explain how increased productivity could be an
alternative to increased prices. (answer not less than 5 sentences) b. What are some ways
that Hazel could increase productivity (answer not less than 5 sentences)

3. Hazel is thinking about the purchase of new equipment. One would be power sidewalk
edgers. She believes edgers will lead to an increase in productivity. Another would be a
chain saw, which would be used for tree pruning. What trade-offs should she consider in
her analysis? (answer not less than 10 sentences)

4. Hazel has been fairly successful in her neighborhood, and now wants to expand to other
neighborhoods, including some that are five miles away. What would be the advantages
and disadvantages of doing this? (answer not less than 10 sentences)

5. Hazel does not have a mission statement or a set of objectives. Take one of the following
positions and defend it: (answer not less than 10 sentences)

a. Hazel doesn’t need a formal mission statement and objectives. Many

small businesses don’t have them.
b. She definitely needs a mission statement and a set of objectives.
They would be extremely beneficial.
c. There may be some benefit to Hazel’s business, and she should
consider developing one.

Answer

1. The advantages of Hazel over the professional lawn services was availability. Her
determination to make it even if she have to give time in her finding job. Her hardwork that
even if she has no idea that mowing lawn build to become business she still works for it. It
was a big help for since she is in financial needs. And that factor alone conquers all.

2. Increase in productivity is an alternative to increase price because prices depends on its

quality. A price follows along with the services you have. If you have a productive business,
you can gain interest to customers before you can increase the price rate. You have to set
plan on how you can enhance the quality and efficiency of your business. You have to know
what the needs of the customers so that you can provide it with satisfaction. She needs to
set financial statement for the expenses of the business. She needs to maintain the
decrease the cost for the business. The lesser the expense, the more profit you will get.
She also needs to expand her clients and add workers to have a large work process. She
can also provide other services other than mowing lawns so that the customers in need of
service will follow her.

3. I think her plan is good but she has to consider the expense. Before she decides in
purchasing that equipment, she needs to modify the potentials of her business. Planning
and decision making is a key for productivity. If you modify the potentials of your business
to grow, then you can state the expense. In small businesses, you have to limit your cost
since you have a limited income. In adding equipment in your business is costly. You have
to take the risk because sometimes it falls to bankruptcy. So I suggest that she has to
purchase the first equipment for her business. Once she expands her business and gain
clients, she can have the profit. The profit can use for the second equipment to widen the
capacity of the service. In that way, the productive business you have will gain to trend.

4. The advantages of that is she can expand the business she provided. All neighbours
near and far will follow you. Since you have the loyalty of your customers, it will help you to
gain trend in others. It will provide you productivity of your business. You can gain more
profit and you can provide several equipment. The disadvantage is that it requires so much
work. You have to provide more equipment. You have to get more workers. Your expense
will increase while the price remains constant.

5. B. She definitely needs a mission statement and set objectives. Every business needs to
have objectives before starting it. Knowing the objectives is the first step in making
business. You cannot build a business without any idea on your purpose why you start a
business. Your business will have to be well planned. You have to become a risk taker and
be ready for the possible outcomes. Mission is a compass that helps her to keep track of
her goals. It also serves as guidance for her and her employees. It helps them to be more
focus on the work or task provided. It will serve as an encouragement to find innovative
ways to achieve their goals.
Material 6: Course Supplementary No. 3

Questions

1. What are some of the factors that cause organizations to redesign their products or
services?

2. Contrast applied research and basic research.

3. Name two factors that could make service design much different from product design.

4. What are some competitive advantages of concurrent engineering?

Answer

1. The factors that cause of redesigning of products are requirements of targeted

customers. You have to know the products in demand to customers. Also the availability
and access to necessary productions facilities and the cost must determine. When a
product is very common to customers, it is very difficult to purchase. There is always a
competition in marketing and it very common to have similar products. In that case you
have to redesign you product differ from the other to avoid competition. You have to change
it to a rare product to gain customers.

2. Applied research is a type of research that is used to answer specific questions. It is a

research that solves problem. It has a direct application to the world. Basic research is a
type of research driven by curiosity and to expand knowledge. It tends not to be directly
applicable to the real world but to enhance our understanding to the world around us. So
the real difference between the two is what will they used for. Is it used for understanding
the real world problem and solve it or to further our general information?

3. The two factors that a service design differs from product design are intangible and
created and delivered at the same time it cannot be restored. Service design acts in
organizing and planning and communication to improve a quality services. There should be
an interaction between the one rendering the service the customers experiencing the
service. A service can be anything that is done for the client’s satisfaction while product
concerned with arranging parts and business knowledge into physical and usable products.
Service design spends more time in organizing people and communicating the goals for
rendering services.

4. The competitive advantages of concurrent engineering are encourages multi-disciplinary

collaboration. It reduces product cycle time and reduces cost. For example a washing
machine which is last for about ten years in normal use. It increases quality by supporting
the entire project cycle to enhanced quality and increase productivity by stopping mistakes
in their tracks. It gives a competitive edge over the competitors. Concurrent engineering is a
power workflow methodology that will gives a positively impact product quality and the
objectives of the company.
Material 7: Course Supplementary No. 4

Questions

1. List and briefly explain three factors that may inhibit capacity utilization. (answer not less
than 10 sentences)

2. Give an example of a good and a service that exhibit these seasonal demand patterns:
(answer not less than 5 per item, not copying what has been given as example) a. Annual
b. Monthly c. Weekly d. Daily

3. Why is it important to adopt a ‘big picture’ approach to capacity planning? (answer not
less than 5 sentences, in your own words, elaborate if necessary)

4. Discuss the importance of capacity planning in deciding on the number of police officers
or fire trucks to have on duty at a given time. (answer not less than 5 sentences on police
officers, not less than 5 sentences also for fire trucks, cite examples to elaborate your
answer)

Answer

1. Equipment. It is essential to build buildings, including scale and provision for extension.
Locational variables are also significant, such as transportation costs, business distance,
labor supply, energy supplies, and space for expansion.

Services or goods. As various objects will have various rates of production, the precise
combination of goods or services made must also be considered.

Considerations of humans. The roles that make up a role, the number of activities involved,
and the preparation, ability, and expertise needed to perform a job all have an effect on the
capacity and actual success.

2. a. Campgrounds, Christmas trees, Mother's Day cards, snow skis, lawn and garden
supplies, and snow tires are in demand annually.

b.Welfare and social security checks that are mailed out and deposited in accounts,
demand for examinations and registrations at motor vehicle offices, subscription renewals,
and late payment notifications are also generated by monthly seasonal cycles.

c. In motor vehicle traffic, hotel registrations, retail traffic, telephone calls, and demand for
auto repair, weekly seasonal trends can be registered.

d. In restaurants, phone calls, motor vehicle traffic, retail traffic, etc., everyday trends can
be observed.
3. It is necessary to understand how aspects of the scheme interrelate when designing
capability alternatives. Capability improvements ultimately impact the supply chain of an
enterprise. Suppliers may require time to adapt to their capability, so it is important to work
with supply chain stakeholders on capability development plans. This entails not just
manufacturers, but also dealers and airlines. The consequence of not implementing a
bigpicture policy is that the system would be imbalanced. The presence of a bottleneck
process is evidence of an unbalanced scheme. A bottleneck operation is an operation in a
set of operations whose capacity in the chain is smaller than that of other operations. As a
result, the capacity of the bottleneck operation limits the capacity of the system; the
capacity of the system is reduced to the bottleneck operation capacity.

4. It is therefore important to balance capability with demand. In comparison to

commodities, services may not be produced in one time and held for use in a later period.
Likewise, inventories of products allow consumers to meet needs quickly, while a buyer
who needs a service can have to wait. This will lead to a series of detrimental effects for a
company that performs the service. Thus, delivery speed, or customer waiting time, is a
major consideration in the planning of service capability. For example, settling on the
number of police officers and fire trucks to be in operation at any given time influences the
speed of response and causes difficulties with the cost of retaining that capacity. Capacity
planning is the method of assessing the output capacity that an organization requires to
satisfy changing demands for its products.[1] Design capacity is the overall amount of work
that an organization is capable of performing in a given timeframe in the sense of capacity
planning. Efficient ability is the overall amount of work that a company is expected to
perform in a given timeframe due to restrictions such as quality concerns, delays, handling
of supplies, etc.
Material 8: Memo Writing Exercise 3.1 Annex to Chapter 3

To: Supervisor, Tom Henry

From: Jhonrey Bragais

Date: October 10, 2020

Subject: Indicating circumstances on the proposal

Ideas for innovative and better goods or services may come from a wide variety of outlets,
both within and outside the company.

Employees may be a fertile source of ideas, for those that produce goods or sell services to
consumers, salespeople, and buying agents, whether they are encouraged to give
feedback. Besides these, two other key sources of ideas are: marketing and research. In
addition to evaluating existing consumer requirements, advertisers are usually aware of
issues with goods or services.

In addition to evaluating existing consumer requirements, advertisers are usually aware of

issues with goods or services. Marketers are also offered suggestions based on their
market analysis, purchasing habits, and familiarity.

While benefit is usually the ultimate indicator of design success, it is important to remember
that while the time period between the design process and the recognition of benefit is
always significant, more urgent steps come into play. This usually involve time and expense
of production, the expense of the product or service, and the resulting quality of the product
or service.
Material 9: Course Supplementary No. 5

Questions

1. List and briefly explain the dimensions of quality.

2. What are some possible consequences of poor quality?

3. Use the dimensions of quality to describe typical characteristics of these products and
services:

a. A television set

b. A restaurant meal (product)

c. A restaurant meal (service)

d. Painting a house

4. What is ISO 9000, and why is it important for global businesses to have ISO 9000
certification?

5. Briefly explain how a company can achieve lower production costs by improving the
quality of its products or services.

6. Explain how an organization and its suppliers and their mutual beneficial relationship
can enhance their ability to create value. What does it mean to “create value?”

Answers

1. Performance: It involves the various operating characteristics of the product. For a

television set, for example, these characteristics will be the quality of the picture, sound and
longevity of the picture tube.

Features: These are characteristics that are supplemental to the basic operating
characteristics. In an automobile, for example, a stereo CD player would be an additional
feature.

Reliability: Reliability of a product is the degree of dependability and trustworthiness of the

benefit of the product for a long period of time. It addresses the probability that the product
will work without interruption or breaking down.

Conformance: It is the degree to which the product conforms to pre- established

specifications. All quality products are expected to precisely meet the set standards.
Durability: It measures the length of time that a product performs before a replacement
becomes necessary. The durability of home appliances such as a washing machine can
range from 10 to 15 years.

Serviceability: Serviceability refers to the promptness, courtesy, proficiency and ease in

repair when the product breaks down and is sent for repairs.

Aesthetics: Aesthetic aspect of a product is comparatively subjective in nature and refers to

its impact on the human senses such as how it looks, feels, sounds, tastes and so on,
depending upon the type of product. Automobile companies make sure that in addition to
functional quality, the automobiles are also artistically attractive.

Perceived quality: An equally important dimension of quality is the perception of the quality
of the product in the mind of the consumer. Honda cars, Sony Walkman and Rolex watches
are perceived to be high quality items by the consumers.

2. For business entities, quality is critical and can support them in a number of ways. Few
reasons include an improved reputation for quality, the potential to monitor premium rates,
greater market share, higher consumer satisfaction, reduced cost of responsibility, less
issues with manufacturing or operation, and to name a few, higher profits. Bad quality's
implications include: lack of business, liability, efficiency, and costs.

3. A. A television set - Performance, Aesthetics, Special features, Conformance, Reliability,

Durability, Perceived quality, and Serviceability.

B. A restaurant mean (Product) - Performance, Aesthetics, Special features, Conformance,

Reliability, Durability, Perceived quality, and Serviceability

C. A restaurant meal (Service) - Convenience, Reliability, Responsiveness, Time,

Assurance, Courtesy, Tangibles, and Consistency.

D. Painting a house - Convenience, Reliability, Responsiveness, Time, Assurance,

Courtesy, Tangibles, and Consistency.

4. Quality is what any organisation looks for and is always very hard to attain. Efficiency
and consistency problems emerge every day in industry, if a significant record cannot be
identified or a customer discovers a product that is not up to their standards. The
significance of ISO 9000 is that consistency is significant. Many businesses provide goods
and services, but it is those businesses who effectively manufacture the best products and
services that excel. An company can define the origin of the issue with ISO 9000, and then
find a solution. Benefit can be maximized by improving performance. A supply chain of
credibility is produced when a wide variety of organizations adopt the ISO 9000 standards.
Any business involved in the development, distribution and marketing process of a product
knows that it is part of a globally recognized, reliable system.
5. Quality control stresses avoiding or correcting errors until they happen. A direct trade-off
occurs between investment in quality services and investment in the cost of failure. The
failure costs would be high if the output is low. Because of having to rework faulty pieces,
efficiency will be greatly harmed. Injuries may also arise due to neglected equipment and
poor performance (internal failure costs). Examples of external failure costs are increases in
warranty costs, service costs, repair costs, discount costs and payments to customers to
offset the inferior quality. The emphasis on quality can lead to a substantial reduction in the
cost of both internal and external failures, thus reducing the company's production costs.

6. A company and its vendors are interdependent and the potential of each to generate
profit is strengthened by a mutually beneficial partnership. Today firms, their vendors, and
their clients are very interdependent on each other. Decisions cannot be taken in isolation,
because they can have an effect on the marketplace on others and can have a negative
impact on the company.
Material 10: Memo Writing Exercises 5.1 Annex to Chapter 5

Questions

Memo Writing Activity 1

Write a one-page memo to your supervisor, Paulo Mojos, summarizing the benefits of
doing a task right the first time.

Memo Writing Activity 2

Suppose that your company is considering entering the competition for a Baldrige Award.
Prepare a one-page memo outlining both the pros and cons of doing so to the head of
operations, Ricardo Legario.

Answer

Memo Writing Activity 1

To: Supervisor, Paulo Mojos

From: Jhonrey D. bragais

Date: November 24, 2020

Subject: Benefits of doing a task right on time

Every minutes are quiet important in our life. Providing this memo is to know the
benefits of doing the task right away.

As an employee, there are so many company works that are needed to be done.
Every task has due time and it’s been difficult to for us to do it on a rush. It has an allotted
time given in order to prepare for it and we always value it.

Doing task earlier can save more time do to the other task not only for the company
but home task. You can do more thing than you could imagine if you know the value of
time. You can give time for your family and friends since you have no worries about the
deadline of your work.

Managing your time properly can give you promotion and step up to your ambition.
You can finished more task than those who skip and wasting time. You can always set
yours works on schedule. Time management is an asset. It helps to build productivity.
Memo Writing Activity 2

To: Head of Operations, Ricardo Legario

From: Jhonrey D. bragais

Date: November 24, 2020

Subject: Pros and cons of entering the competition of Baldrige Award

One of the best strategies an organization should incorporate to achieve performance in its
service is the Baldrige criteria. The fact that it helps to ensure customer loyalty means that
consumers are maintained and that customers have a larger base.

There was also progress in the strategic planning of the movement for quality and
efficiency. This is accomplished by a desired contribution to innovation in the industrial and
service sectors. In exchange, both the economy and the ability to succeed in the
international market have been strengthened.

The standard of manufactured products increases the expense. Production costs have
since been reduced by understanding of how to boost workers' productivity and the use of
data to manage costs. Quality is also increased as the organization implements steps that
will boost the strategic edge of the company by having high-quality products.

Senior leaders in the company who may have misgivings about the long-term dedication to
machine thinking may further exaggerate the issue. The fact that it can often take a long
time to meet the Baldrige norm means that there are risks that may not be recognized by
seniors in the organisation. Finally, a flaw of it is also the difficulty of the criteria. In order to
accomplish the specified achievement, certain organisations can find it difficult to work with
such complex steps.

The services vary from professional workers to monetary resources. Any small enterprises
which lack some of these properties, which is why some of them find it difficult to compete
against large and existing organisations. A great deal of determination is often required to
operate such a machine to attain the greatest degree of achievement that Baldrige speaks
of.
Material 11: Course Supplementary No. 6

Questions

1. List at least 5 ways a company can judge whether its quality program is working.

2. For each guideline, explain the rationale. (the rationale must be at least 3 sentences)

3. Explain the importance of measurements for quality programs. (answer not less than 5
sentences)

Answers

1. A. Customer Focus: Everything an organization does should have the needs of the
customer as its starting point. In your work, the "customer" is the target population or the
community that will benefit from what you are offering or doing.

B. Continual Improvement of Systems: The work of an organization must be viewed as a

process that is never finished. Any program can always be improved, and must be changed
as the needs of the community or the target population change.

C. Unity of Purpose: In order for quality to be achieved, everyone in an organization or

business has to work together toward common goals. That means mutual support
throughout the organization, not turf battles, not jealousy, not unnecessary competition. All
interactions among people in the organization should be mutually helpful and aimed at
achieving the best possible performance of the organization as a whole.

D. Teamwork: Working in teams, rather than individually, people make better connections
with their colleagues and the organization, and create better results. Teamwork removes
performance pressure from the individual and usually coaxes better performance from
everyone.

E. Employee Involvement: If everyone in an organization is to be committed to quality

performance, then all staff members should have the ability to contribute to its achievement.
That means that people must have enough control over their own jobs to do them
effectively, and that everyone's opinions and ideas must be respected and taken seriously.

3. Quality management is essential for customer satisfaction which eventually leads to

customer loyalty. Quality management tools help an organization to design and create a
product which the customer actually wants and desires. Quality Management ensures
increased revenues and higher productivity for the organization. Quality management helps
organizations to reduce waste and inventory. It enables employees to work closely with
suppliers and incorporate “Just in Time” Philosophy. Quality management ensures close
coordination between employees of an organization. It inculcates a strong feeling of team
work in the employees.

Material 12: Course Supplementary No. 7

Question 1

Go to a logistic website and find out what types of logistics services the company offers.
Write a brief memo to your instructor listing typical types of services. Attach a print out of
your source.

Answer

MEMORANDUM

To: My Instructor

From: Jhonrey D. Bragais

Date: November 24, 2020

Subject: List of typical types of services offered by a logistic company

Urbx logistics is a company providing logistics services. This memo is to list down the
typical services they offer.

Urbx provide grocery service. The system can be bundled on demand. This means that an
order can be processed and loaded for delivery in a matter of minutes. It has been
optimized to maximize order flow when it comes to packing orders. The robots move in a
continuous loop allowing for immediate item to be picked. Urbx has a throughput that is
much faster than any other system. This places the Urbx system in a new class of high-
performance logistics systems. The system also allows for order to go direct from
distribution center to the customer. Consolidation from one distribution point allows for
additional cost savings.

They also have a high performance in e-commerce services. The system has been
designed with modularity in mind. This allows for any configuration to be designed and
implemented. From tall systems where space is limited to wide systems where space is
plentiful. Every system has multiples shafts that are webbed together to create a patchwork
like layout. This stitching together of towers allows for each elevator to have immediate
access to totes. No digging for totes ever.
Question 2

Go to the Operations Management Center (OMC) web page. Find a recent article on supply
chain management and write a brief summary of it for your instructor. Attach a print out of
your source.

Answer

MEMORANDUM

To: My Instructor

From: Jhonrey D. Bragais

Date: November 24, 2020

Subject: Brief summary of recent article on supply chain management

This memo show the most significant way of the changed in supply chain. Its about the
disruption of this most controversial issue happened this year. This pandemic caused by
the COVID-19 affect in the supply chain.

Online commerce has exploded, and consumers won't change once the pandemic
subsides. That's putting huge pressure on last-mile delivery. For truck drivers, COVID also
has shined a bright and deserving spotlight on their role as essential to the economy for
keeping store shelves filled. Where companies purchase critical components for their
manufacturing and production facilities will change.

We've seen a shift toward low-volume, high-frequency, and manufacturing-on-demand

strategies as companies work to preserve cash flow during the pandemic. COVID-19
highlighted the critical importance of forging logistics partnerships that combine technology
and experienced people. Whether shippers are looking to build supply chain resilience,
nearshore supply chain elements, or navigate market volatility, technology-enabled
partnerships backed by expertise are more important than ever.

Supply chain executives have to think more differently than they ever have before. With an
urgent need to minimize the risks of human-to-human contact, supply chain leaders need to
change the way they're approaching automation. Distributors are looking for smaller, more
diversified suppliers rather than single-region, large suppliers.

The most significant impact is the seismic change in consumer behavior and the speed at
which it occurred. Existing trends have been accelerated or amplified while others are just
emerging.