Productions and
Operations Management
JAYSON B. MORALES
MBA
OPERATIONS MANAGEMENT AND
DECISION MAKING GENERAL
APPROACHES
Definition of Model
Three types of model
1. Physical models
2. Schematic models
3. Mathematical models
PROS AND CONS OF MODEL AS
DECISION MAKING IN OPERATIONS
MANAGEMENT
PROS
 It is easy to use and less expensive that dealing with actual
situation
 and Increase understanding of problem
 Enable managers to analyze “what if” questions
 Serve as a consistent tool for evaluation and provide
standardized format
 Bring the power of mathematics to bear the problem
CONS
 Quantitative information maybe emphasized than qualitative
 Models maybe incorrectly apply and results misinterpreted
 Models does not guarantee good decisions
Quantitative Approaches
Linear Programming
Queuing Techniques
Inventory Models
Project models (PERT and Critical Path Method)
Forecasting techniques
Statistical models
PERFORMANCE METRICS
THREE BASIC FUNCTIONS
1. CONTROL (CONTROL THE PERFORMANCE OF THE
RESOURCES FOR WHICH MANAGERS AND WORKERS
ARE RESPONSIBLE)
2. COMMUNICATION (COMMUNICATE NOT ONLY TO
INTERNAL WORKERS AND MANAGERS BUT ALSO
EXTERNAL STAKEHOLDERS)
3. IMPROVEMENT (IDENTIFY GAP BETWEEN REALITY AND
EXPECTATIONS IN PRODUCTIVE PROCESS
ANALYSIS OF TRADE-OFFS
TRADE-OFF IS DEFINE AS A SITUATION
INVOLVES LOSING ONE QUALITY OR
ASPECT OF SOMETHING IN RETURN
FOR GAINING ANOTHER QUALITY OR
ASPECT
DEGREE OF CUSTOMIZATION
PROVIDING
HIGHLY
CUSTOMIZED
PRODUCTS OR SERVICES. CUSTOMIZED
PROCESSES TEND TO HAVE MUCH MORE
LOWER VOLUME OF OUTPUT THAN
STANDARDIZED PROCESSES AND CARRIES A
HIGHER PRICE TAG.
A SYSTEMS APPROACH
A System Approach
STRONG EMPHASIS ON THE NATURE OF
MANAGEMENT RESPONSIBILITIES, RECOGNIZING
BOTH INTERDEPENDENCE AND HIERCHICAL
NATURE OF SUBSYSTEMS. AS A RESULT, BUSINESS
SYSTEMS ARE EMERGING WHICH ARE BASED
MORE UPON INFORMATION FLOWS AND
DECISION RESPONSIBILITIES AMONG FUNCTIONAL
AREAS.
ETHICS IN ASPECT OF OPERATIONS
MANAGEMENT
SOME ETHICAL ISSUES ARISE:
1. FINANCIAL
2. SAFETY
3. QUALITY
4. ENVIRONMENT
5. WORKER’S RIGHTS
6. CLOSING FACILITIES
THE HISTORICAL EVOLUTION OF
OPERATIONS MANAGEMENT
INDUSTRIAL REVOLUTIONS
Craft Production
SCIENTIFIC MANAGEMENT
Frederick Taylor-Father of Scientific
Management
Henry Ford-Mass Production and
Division of Labor concept
Key Trends and Issues on
Business
E-commerce/E-Business
Management of Technology
Globalization
Management of Supply Chain
Outsourcing
Agility
Ethical Behavior