Introduction to

Operations
Management

Dr. Domingo T. Balse, Jr.

UDM Mission - Vision

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 CBA Mission - Vision
• Mission. To be a catalyst of change in uplifting industry
disruption through innovative learning engagement
and modernized methodologies and by developing
students and businesses through research and
extension activities that lead towards career success
and the advancement of knowledge spearheaded by
competent faculty and revolutionary management in
fostering globally competitive business professionals.

• Vision. To be a premier free business college in the

country, transforming the Youth of Manila to be leaders
in the field of business through our programs anchored
on innovation, values, empathy, and extraordinary
experiences.
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 CBA Core Values
• S – Outstanding Business Solutions
• T – Tactical Thinking
• A – Adherence to Ethical Entrepreneurship
• R – Revenue Oriented
• T – Tranquility Under Pressure
• UP – UPrightness

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BACEM321 - OPERATIONS MANAGEMENT
• Course Description:
This course tackles the nature, scope, functions
and importance of production and operations
management in business. It includes discussions on
productivity, competitiveness and strategy,
forecasting, production system design, process
selection and capacity planning, facilities layout,
design of work systems, quality, scheduling and just-
in-time manufacturing systems.
Cases will also be used to illustrate and apply
the basic production and operations concepts and
tools commonly used in business firms.. -CHED CMO 39

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BACEM321 - OPERATIONS MANAGEMENT
COURSE OBJECTIVES: This course aims to improve students understanding of the concepts, principles,
problems, and practices of operations management. After completing this course, students should be
able to:
• Understand the importance of theories principles, concepts and tools relevant to production and
operation management.
• Formulate alternative solutions to production problems with the aid of theories, concepts, and tools as
applied in a firm’s production activity.
• Understand and appreciate the interrelations of the functional areas of an organization
• Describe and apply the key aspects of operations management decision making.
• Construct and explain forecast using different methods of forecasting applicable to an organization
and its activity.
• Evaluate the legal, ethical and environmental issues in product and service designs.
• Understand and apply the ways, considerations and approaches measuring and evaluating strategic
capacity of an organization
• Describe and apply the techniques, basic approaches, and purposes of job designs
• Perform mathematical calculations on different areas of operations management perspective
• Understand and perform the different approaches of inventory management.
• Compare and appreciate the philosophies, frameworks, principles, practices and techniques in Total
Quality Management
• Appreciate and apply the concepts of Quality awards and certification in developing productive
organizations
• Describe, analyze and outline the location decision an organization considers to make
• Differentiate the methods and techniques used in project management.
• Evaluate the practices in building and sustaining performance excellence in organizations through
case studies. 6
• Prepare and present a Company Improvement Plan/Operations Plan.
BACEM321 - OPERATIONS MANAGEMENT

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BACEM321 - OPERATIONS MANAGEMENT

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Introduction to Operations Management
Learning objective

After this lesson, students should be able to:

• Understand the importance of theories,
principles, concepts and tools relevant to
production and operation management.

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Typical Departments in a Business

This is our subject matter, OM!

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 Difference Between Production and
Operations Management

The primary objective of production and operations management

is to effectively manage and utilize those resources of the firm that
are essential for the production of goods and services.
Production management refers to the management of activities
related to the production of goods.
Operations management is a step ahead of production
management, or it can be said that the production management is
a part of the operations management. Operations Management, as
the name suggests is the administration of business operations, by
the managers of the organization.
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Difference Between Production and
Operations Management

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Scope of OM

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 Scope of OM
OM is critical to business growth concerned with the production of
goods and services and involves the management of resources,
processes, and people. Scopes in operations management can be
divided into three broad categories:

Strategic Scope: This type of scope deals with long-term goals and
objectives. It includes decisions about what products or services to
offer, what markets to operate in, and how to allocate resources.

Tactical Scope: This type of scope deals with short-term decisions

that are necessary to achieve the organisation’s strategic
objectives. It includes decisions about production plans, schedules,
and inventory levels.

Operational Scope: This type of scope deals with the day-to-day

decisions that are necessary to keep the organisation’s operations
running smoothly. It includes decisions about resources, processes,
and people.
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 Scope of OM
The scope of operations management includes:
 Understanding the business process and how it works
 Identifying inefficiencies and areas of improvement
 Planning and designing new strategies or
improvements to current processes
 Implementation of new or improved processes
 Monitoring of process performance
 Process optimisation
 Resource management

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 How Can You Become A Good
Operations Manager?
Operations managers are in high demand due to the
business’s ever-changing and complex nature. In order to
become a good operations manager, you need to have a
clear understanding of the scope of operations
management as they are the strengthening pillars of
business.

Operations managers need to have a broad skill set to be

successful. They must be not only able to understand the
business process but also be able to identify inefficiencies
and areas of improvement. In addition, they must be able to
plan and design new or improve current processes. Finally,
they must be able to monitor process performance and
optimise resources.
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 Areas for Decision making in OM
Increasing Revenue
Operations management is the business area
concerned with producing goods and services. It
includes ensuring efficient business operations with the
required resources meeting the customer requirements.
It is all about managing the process that transforms
inputs (labour, capital, land, and raw materials) into
outputs (goods and services).
Revenue is the lifeblood of any business. There is no
doubt in asserting that one of the primary goals of
operations management is to increase revenue. This
can be done by increasing the efficiency of production
processes and by increasing the effectiveness of
marketing and sales efforts.
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 Areas for Decision making in OM
Reducing Need For Investment
Another goal of operations management is to reduce
the need for investment.

This can be done by improving the efficiency

of production processes and/or by reducing the
amount of inventory that is kept on hand. When
operations management is placed in the right place, it
will reduce the need for investment, which can free up
funds to be used in other business areas.

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 Areas for Decision making in OM
Improving Customer Service
OM ensures that an organisation’s products or services are
delivered efficiently and effectively. This includes managing
the resources needed to produce and provide the products
or services and planning and controlling the operations
process.
Operations management plays a vital role in improving
customer service. By streamlining processes and improving
efficiency, operations managers can help to ensure that
customers are satisfied with the products or services they
receive. In addition, by constantly monitoring the operations
process, operations managers can identify potential
problems and take steps to prevent them.
As you can see, the scope of operations management is quite
broad. By taking responsibility for the efficient and effective delivery of an
organisation’s products or services, operations managers can have a
significant impact on the overall success of the organisation. 19
 Areas for Decision making in OM
Increase Innovation
Organisations must innovate regularly to steer
clear of the competition. This means that operations
managers must be proactive in identifying new ways to
improve the efficiency of their operations. Additionally,
they must effectively communicate these ideas to other
members of the organisation.

One of the most critical aspects of operations

management is the ability to utilise resources
effectively. This includes both human and financial
resources. Operations managers must be able to
identify ways to save the organisation money while
maintaining high quality and productivity levels.
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 Areas for Decision making in OM
Augment Productivity
This scope mainly concerns efficiently using
resources to produce goods and services. The objective
is to find ways to make the best use of people,
machines, materials, information, and energy to bring
more value to the customer. The focus is on achieving
economies of scale and scope through process
improvement, technology innovation, and better
management of people and resources.
Operations managers are responsible for running
an organisation and ensuring that all activities are
carried out efficiently and effectively. They work in
various industries, including manufacturing, healthcare,
retail, and logistics.
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Coordination of OM with other
functional areas

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 Challenges and Trends in OM
Common operation management challenges include:

Business dynamics: Operations managers juggle multiple business

functions and make decisions that touch other departments in areas
such as product development, customer support and finance.
Global ops: Global supply chains challenge operations management
to stay current with global market trends and find operational
efficiencies across international operating environments.
Advanced technology: Advances in technology continue to increase
the technical complexity of this discipline. Today, ops managers
require significant technical proficiency and information
management expertise.
Time management: Operations management problems arise from
many places, but the most frequent challenge is inefficient time
allocation caused by factors such as labor shortages.
Sustainability: Evolving regulations and resource shortages challenge
operations managers to find sustainable business practice efficiencies
that account for future operating environments.
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 Class Performance Tasks

 Group activity
 Quiz

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 Sources
• David Collier and James Evans. OM,
2nd Edition. Upper Saddle River, NJ:
South-Western Cengage Learning,
2010/2011. ISBN-13: 978-0538745567
• Render & Heizer, Operations
Management 10e, Pearson Southeast
Asia 2011.

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