Operations Management Quiz

NU LiPa Week 1: Fundamental of Quality, Operations, and Total Quality Management

• The course covers fundamental concepts of quality, operations, and total quality management.
• Course objectives include defining quality, its history, and importance; distinguishing Deming, Juran, and Crosby philosophies on quality management; extracting different operation management concepts; and summarizing competitiveness, strategy, and productivity.

Operations Management

• Operations management involves managing processes that transform inputs into goods and services that add value to the customer.
• Operations management includes the study of how goods and services are produced.
• A transformation process takes inputs, transforms them, and provides outputs for customers.
• Transformation can involve raw materials, information, or even people (e.g., a hospital transforming patients).
• Often, all three types of input (materials, information, and customers) must be transformed by a single organization.

Types of Operations

• Manufacturing: creating physical products (cars).
• Service: treating customers and storing products (hospitals, warehouses).
• Supply: changing ownership of goods (retail).
• Transport: moving materials or customers (taxi services).

Micro and Macro Operations

• Macro operation is the overall transformation process.
• The macro operation can be broken down into micro operations (e.g., beer production involves milling, mixing, cooling, and fermenting).

The Operations Function

• Operations management encompasses activities to create and deliver goods/services to customers.
• Effectiveness focuses on making the right actions to improve business and add value for the customer.
• Efficiency means doing things well at the lowest possible cost.

Development of Operations Management

• Different periods of operations management include Craft Manufacturing (prior to late 1800s), Mass Production (late 1800s-1970s), and the Modern Period (1970s-present).
• Each period is associated with different production volume, variety, workers, facility, and competition characteristics.

Competitiveness

• Companies must be competitive to sell goods and services in the marketplace.
• Competitiveness involves: identifying consumer needs and wants; understanding the trade-off between price and quality, and using advertising and promotion.
• Key purchasing criteria include price, quality, variety, and timeliness.

Core Competencies

• Core competencies are the resources and capabilities that comprise strategic advantages for a business.
• Core competencies include a company's people, physical assets, patents, brand equity, and capital.
• Examples include McDonald's standardization of French fries or Apple's stylish devices.

Strategy

• Strategic management is the highest level encompassing corporate values, culture, goals, and missions for the longest time horizon.
• Tactics are methods and actions used to accomplish strategies, involving corporate, business, and functional strategies.

Productivity

• Productivity is a measure of effective resource use, typically expressed as the ratio of output to input.
• The higher the productivity, the lower the cost of the output.
• Output reflects production quantity, while input measurement typically uses peso spent.
• Productivity growth is calculated by comparing current and previous productivity values.
• Partial productivity measures output against a single input (e.g., labor, machines).
• Multi-factor productivity measures output against multiple inputs (e.g., labor, materials, energy).

Productivity Measures

• Various productivity measures exist, such as units of output per labor hour, value-added per labor hour, units of output per machine hour, and peso value of output per machine hour.

Examples of Productivity Problems

• Problems involving labor, machine, material, and energy productivity are presented. Relevant problems and calculations are included.