LESSON III:
PRODUCTION AND OPERATIONS
MANAGEMENT
INTRODUCTION
Production and operation management talks
about applying business organization and
management concepts in creation of goods and
services of the right quality, right quantity, at the
right time at minimum cost. It also tries to improve
the efficiency.
Production
Management
According to Elwood Spencer Buffa (author of Modern
Production/Operations Management), “Production management
deals with decision making related to production processes so
that the resulting goods or service is produced according to
specification, in the amount and by the schedule demanded
and at minimum cost”.
Production
Management
It is the practice of strategically driving the
development, market launch, and continual support
and improvement of a company’s products.
Production
Management
Most product professionals spend the majority of their time
focused on the following:
• Conducting Research: Researching to gain expertise about
the company’s market, user personas, and competitors.
• Developing Strategy: Shaping the industry knowledge
they’ve learned into a high-level strategic plan for their
product—including goals and objectives, a broad-strokes
overview of the product itself, and maybe a rough timeline.
Production
Management
Communicating Plans: Developing a working strategic plan
using a product roadmap and presenting it to key stakeholders
across their organization: executives, investors, their
development team, etc.
Coordinating Development: Assuming they have received a
green light to move forward with their product’s strategic plan,
coordinating with the relevant teams—product marketing,
development, etc.—to begin executing the plan.
Production
Management
Acting on Feedback and Data Analysis: Finally,
after building, testing, and introducing the product to
the marketplace, learning via data analysis and
soliciting direct feedback from users, what works,
what doesn’t, and what to add. Working with the
relevant teams to incorporate this feedback into
future iterations of the product.
Production
- is the process of combining various materials inputs and
immaterial inputs (plans, know-how) in order to make
something for consumption (output).
- It is the act of creating an output, a good or service which
has value and contributes to the utility of individuals.
- is the administration of
business practices to create
the highest level of efficiency
possible within an
organization
- Corporate operations
management professionals try to
balance costs with revenue to
maximize net operating profit.
Operations management involves utilizing resources from staff,
materials, equipment, and technology. It includes handling
different strategic issues such as determining manufacturing plant
and project management methods sizes and the implementation
of IT network structures. Operations managers acquire, develop,
and deliver goods to clients based on client needs and the
abilities of the company.
Watch The Following
Videos
https://www.youtube.com/watch?v=nG5-52a5lRo&t=5s
https://www.youtube.com/watch?v=FbbGlVle3oU
4M’s of Operation
- in relations to business opportunity means that the four
critical domains, usually attributed to manufacturing,
those are: manpower, machine, material and method
work together.
Methods
- refers to the system and step by step process in the
business. Without a scalable process, it would be difficult
to expand the business. This means that the methods
used in the main branch must be documented and must
be replicated as well in other branches. If it is difficult to
implement at another site, find what needs to be
improved.
Manufacturing: process of translating raw materials into
finished goods that are acceptable to the customers’ standards.
Inputs: materials or ingredients used to make in creating
a product.
Process: the transformation phase where inputs are
processed by manpower and machines to come up with
the final product.
Outputs: the final product of the process stage which is
sold to the target market.
Distribution Methods
- Process of transporting the products to the customers.
Entrepreneurs should think of the location, the processes,
and the distribution of the products to the target market.
Distributors
- These are entrepreneurs that buys products straight from
the manufacturers and sell directly in mark-up prices to
other sellers.
Payment Process
- It could be cash-on-hand or flexible and more customer-
friendly/cashless method like credit cards, installment, or
online banking. The process must provide seamless and
easy to understand payment transaction.
Manpower
- This the workforce of the production which helps in processing
the product or do the services the company offers.
- When setting up a business, finding honest and capable
people is always a challenge. This is why business owners
must treasure their competent and honest employees since
they are an integral part of business growth.
Job Description
- Describes and enumerates the duties and responsibilities
of the potential employee including scope and limitation and
terms and condition of the employment.
Employee Qualifications
- Criteria or parameters the HR or the employer set in order
to filter the number of the employees and find the qualified
potential employee on a specific job position easier. These
includes educational background, work experiences, specific
skill/knowledge, and work attitude.
Machine
- An important part in the operation especially in the product
producing industry like factories. Without the proper
equipment, process will not be able to perform the needed
tasks efficiently. Manpower can be used to do it but it is
usually more efficient if machines are able to automate the
work.
Material
- Inputs in the process that is needed to produce the finished
goods.
- Sourcing raw materials is critical in any business endeavor as
the businessman would want to have the cheapest possible at
the highest quality.
Activity
Answer the following activities in the
module:
• Let’s Try (p. 17-19)
• Let’s Apply: Be an Entrepreneur (p.
21)
• Let’s Evaluate (p. 21-22)
1st Performance
Task
Create a 1 to 3-minute advertisement
about a product you originally created.
Apply as many concepts that we
discussed in the class as possible.
References
Jeryson Manding. (2020, November 11). Entrepreneurship 12 (Chapter 5) [Video].
YouTube. https://www.youtube.com/watch?v=6bHHdEbtqpM
Kenton, W. (2020b, September 6). How Operations Management Works. Investopedia.
https://www.investopedia.com/terms/o/operations-management.asp
Malsam, W. (2019, February 12). What Is Product Management? ProjectManager.Com.
https://www.projectmanager.com/blog/what-is-product-management
ProductPlan. (2020, December 21). The Ultimate Guide to Product Management |
Definition and Resources. https://www.productplan.com/learn/what-is-product-management/
Rehkopf, M. (n.d.). What is a product management? Atlassian. Retrieved January 4,
2021, from https://www.atlassian.com/agile/product-management
