Operations Management

• Operations Management


  The administration of business practices to create the highest degree of efficiency possible within an enterprise.
• Operations Managment


  Involves utilizing resources from people, materials, equipment, and technology.
• Operations Management


  Aims to keep critical quality standards while ensuring that day-to-day operations are efficient, cost-effective, and timely.
• Operations Management


  Aims to strategize how to effectively build structures for its operations, manipulate and utilize information technology networks to hasten work processes, and use proper inventory systems
• Role of Operations Management in a Business

  • Capacity planning
  • Product design and service design
  • Quality control
  • Process improvement and optimization
  • Supply chain management
• Capacity planning


  It involves evaluating the number of products or services a business can sell or distribute in a given time frame.
• Product design and service design


  To ensure that customer requirements and expectations are met, new concepts are generated, and a service or product is developed.
• Quality control


  Involves checking for potential problems or errors in services or products at every stage of the production process or during service operations.
• Process improvement and optimization


  It involves evaluating the steps in a process, either completely rewriting it or rearranging the steps to work best.
• Supply chain management


  It involves controlling the sourcing of supplies, the production process, inventory management, sales, and distribution at reasonable rates while managing the supply chain process. As a result, overhead costs are reduced, production is efficient, and products are delivered on time.
• Facilities Management


  Is under the umbrella of operations management.
• Facilities Management


  It integrates people, places, and processes, as well as the handling and care of structures, buildings, equipment, and other physical necessities of a business so that the productivity of the operations will be above par.
• Facilities management is segregated into two (2) categories:

  • Hard services
  • Soft services
• Hard services


  Relate to any physical alterations and adjustments in the building or its structure. A common example of hard service is fire safety, which includes the installation of watersprinklers, fire alarm systems, fire extinguishers, closed-circuit television cameras, theft alarms, electrical and air-conditioning systems, and other mechanical services.
• Soft services


  Are responsible for making the workplace bearable and comfortable. These include landscaping, event support, cleaning services, canteens and pantry, pest control, and others that uplift employee morale.
• Facility Location


  Involves learning a geographic site for an enterprise’s operations.
• Characteristics of tangible and intangible factors under facility location:

  • Tangible factors
  • Non-tangible factors
• Tangible factors


  Include delivery or freight rates, production costs, local government tax cuts, andproduction costs.
• Non-tangible factors 


  Include the location’s security, quality of work, and culture.
• Things to consider when deciding where to set up the business: (Controllable factors)

  1. Proximity to the market
  2. Supply of materials
  3. Transportation facilities
  4. Infrastructure available
  5. Labor wages and the laws that govern it
• Proximity to the market


  Every business is expected to deliver its goods and services to its customers promptly. It can lead a business to situate itself close to its market.
• Supply of materials 


  The enterprise must acquire raw materials in the right qualities, quantities, and time to produce uninterrupted.
• Transportation facilities 


  Quick transport facilities ensure a timely supply of raw materials to the business and finished goods to the customers.
• Transport Facility


  A prerequisite for the location of the plant.
• Five (5) modes of transporting raw materials:

  • air
  • rail
  • water (seas and rivers)
  • roads
  • pipelines (water supply, gas supply, and fuel supply).
• Infrastructure available


  Businesses dependent on energy, like steel mills, should be close to power stations for an uninterrupted power supply. Businesses that rely heavily on technology and internet support should be near communication companies.
• Labor wages and the laws that govern it 


  An enterprise should always be aware of its workers' rights and the tax laws where the business is located. Here in the Philippines, wages are often smaller in the provinces than in the cities due to the high cost of living. It is also true for taxes.
• Things to consider when deciding where to set up the business: (Uncontrollable Factors)

  1. Government policies
  2. Climate and environmental conditions
  3. Supporting industries
• Government policies 


  These include the policies of the government and local bodies concerning labor laws, building codes, safety, taxes, social security, data privacy, and other factors that demand attention.
• Climate and environmental conditions


  The business must know its location's geology, climate, and environmental conditions.
• Supporting industries 


  Businesses must have a good relationship with their suppliers. These suppliers can make or break an enterprise. Also, the proximity of the supplier is essential to ensure that the delivery of quality raw materials is done in a timely fashion, thus avoiding hassle on the part of the customer.
• Supply of materials


  This factor becomes very important if the materials are perishable and the cost of transportation is very high.
• Climate and environmental conditions


  These factors can significantly affect the delivery of services and products to customers.
• Government policies


  Every enterprise should know these laws to avoid administrative and criminal liability.
• Office layout plans 


  Define the architecture of collaboration, cross-functional operations, and elements that focus on maximizing productivity, learning, and employee satisfaction.
• 4 Workplace Layouts:

  1. Open Office Design
  2. Cellular Office Design
  3. Co-Working Office Design
  4. Combination Office Design
• Open Office Design

  • Workstations are arranged in various ways, some touching each other and others clustered in work zones of varying sizes.
  • Managers and everyone in the office sit together
  • It may result in operational efficiencies.
• Open Office Design

  
• Cellular Office Design

  • The entire office space is divided into individual spaces or cubicles, so employees can each have private areas in this popular layout.
  • It facilitates the systematization of office operations and provides a focused work environment.
  • Individual spaces are made by using partitions, windows, doors, or studs in the ceiling.
• Cellular Office Design