NOTRE DAME OF MIDSAYAP COLLEGE

A PAPER SUBMITTED TO THE GRADUATE STUDIES,

NOTRE DAME MIDSAYAP COLLEGE, IN FULFILLMENT OF THE REQUIREMETS IN

(BA 622) PRODUCTION AND OPERATIONS MANAGEMENT

CRISTINE T. GOMOBAR
 PRODUCTION AND OPERATIONS MANAGEMENT (BA622)

ACCT. BOB AGUSTIN M. GELACIO, MBA

MAY 13, 2017

PRODUCTION/OPERATIONS MANAGEMENT

The Dilemma of Professor Dela Cruz

It is true that Manufacturing management is a collection of technologies and methods

used to define how products are to be manufactured. That is why the majority of business

students involved in the case see the course as irrelevant to the line of work that they want to

hold in the future. It is because they think that P/OM course is all about plant management and

engineering work.

However, it is just a misapprehension of the course. First of all, non-manufacturing

corporations such as IT management, Finance, Human Resource, Sales and services mainly deal

with customers, suppliers and clients on a routine basis. These routine basis requires the

company to classify various items and then eliminates the ones, which are not related to the

process and red tags them. This clears space for a much-required process that needs to be

implemented on a daily basis. Secondly, it defines a work path for all individuals, decreasing the

wastage of labor and focusing on specified details of the job. Polishing the work skills and

workers knowledge is also focused on to keep the work force updated with the latest

developments of the world in fields of science, technology, economics, finance and others.

In contrast, as a business student whose goal is not to get in an industrial company,

studying intensely Manufacturing Management as an independent course is irrelevant. First,

thorough teaching of manufacturing management consumes time which students could have use

as an additional time for studying their major subjects. Second, it adds up as an additional

baggage for the students to study and for the students tuition fee. So, I suggest that it should be a

sub-topic in an Operations Management course instead of having Manufacturing Management as

an independent course. In this way, students could have a grasp of what manufacturing

management is.
 OPERATION STRATEGY

Toyota as a Fast-Product-Cycle Company

Toyotas competitive success is directly attributable to the fast-cycle capability it has built

into its product development, ordering, scheduling, and production processes. Moreover,

Toyotas operations strategy focuses on fast response time used in product development and

production control, maximum reliability in teams focused in a particular model, real-time sales

information into production scheduling, and production systems that includes product design,

processes, and supply chain management focused on their goal.

These operations strategies can be effectively employed by Philippine-based

manufacturing companies. First, investors of Philippine-based manufacturing company of Toyota

which produces Mirage series should meet with the leaders of the Home-based/foreign-based

Toyota to learn about the operating and manufacturing system of their company. Second, a

seminar should be conducted to the heads of the manufacturing and operations management so

they could adapt the management style of the main office. Third, operations and manufacturing

workers should be trained on how to manipulate the machines in the fastest ways possible.
Manufacturing Strategy Among Philippine Companies

MANUFACTURING STRATEGY AMONG PHILIPPINE COMPANIES

Elvira A. Zamora

This study is centered into the question that a management should ask since there are

different competitive choices impose different demands in the manufacturing system. The

question is: What must we be good at in manufacturing in order to enhance our competitive

position? The answer to this question defines the key manufacturing task of the business: the

critical objective that manufacturing must achieve in order to support the strategy. Further, the

primary objective of the study is to assess the extent to which local manufacturing companies use

manufacturing strategy as a competitive weapon.

The author has an outstanding credential. She is the Vice-President for Development

(OVPD) of the University of the Philippines. Prior to her appointment to the Office, she was the

first lady Dean of the now Cesar E.A. Virata School of Business, UP Diliman (1998-2001). She

was also the first Director of the UP Technology Management Center (1997-1999) and served as

Chair of VSBs Business Administration Department for seven years (1989-1996). She earned

her BSBA, MBA and DBA degrees from UP in 1976, 1981, and 1989, respectively.

The methodology applied in the thesis is centered in 62 manufacturing companies with

factories in and out around the Metro Manila which was undertaken between 1998 and 1999. The
study used a theoretical framework that is based on the work of Miltenburg. The background

variables include years I operation, number of employees in manufacturing, types of products,

basis of production, and production system.

Thus the authors interpretation of this evidence lead the reader to the same conclusion

and built a logical evidence.

 PRODUCT DESIGN STRATEGY

Defining Next Generation Product: An Inside Look

DEFINING NEXT GENERATION PRODUCT: AN INSIDE LOOK

Benham Tabrizi and Rick Walleigh Harvard Business Review, November-December 1997, pp.

116-124

This study centers on how leading high-tech companies successfully develop new

products. It tackled next-generation products-also known as a platform product because they are

expected to inspire and support whole new line of derivative products-require a major

recruitment resources The continued success of technology-based companies depends on their

proficiency in creating next-generation products and their derivatives. So getting such products

out the door on schedule must be routine for such companies, right? Not quite. The authors

recently engaged in a detailed study--in which they had access to sensitive internal information

and to candid interviews with people at every level--of 28 next-generation product-development

projects in 14 leading high-tech companies. They found that most of the companies were unable

to complete such projects on schedule. And the companies also had difficulty developing the

derivative products needed to fill the gaps in the market that their next-generation products

would create. The problem in every case, the authors discovered, was rooted in the product
definition phase. And not coincidentally, the successful companies in the study had all learned

how to handle the technical and marketplace uncertainties in their product definition processes.

The authors have discerned from the actions of those companies a set of best practices that can

measurably improve the definition phase of any company's product-development process. They

have grouped the techniques into three categories and carefully lay out the steps that companies

need to take as they work through each stage. The best practices revealed here are not a magic

formula for rapid, successful new-product definition. But they can help companies capture new

markets without major delays. And that is good news for any manager facing the uncertainty that

goes with developing products for a global marketplace.

 PROCESS PLANNING

The JDV Company

In general, Mr.Verite should use the assembly line manufacturing process. First of all,

each items produced from a certain production is as close to identical as possible to other

production. Second, this allows quick and easy assembly throughout the process because

assembly line production requires each person involved to only perform a small number of

simple and specific operations, meaning training requirements are not very demanding, and

nearly anybody can fill a spot on the production line in many cases. Third, it allows companies to

keep expenses low and easily replace employees who leave. Fourth, it is also pretty easy to

move products through the process, meaning no heavy lifting or moving is generally required of

workers.

Using the assembly line, Mr. Verite should invest in machines and man power. These are

necessary so that he could sustain the demands of the customer as a big time supplier. It is also

necessary if who would like his company to grow.

MIDTERM PAPER
 SUPPLY CHAIN MANAGEMENT

Cruz Manufacturing Enterprise

The basic problems encountered by Henry Cruz is presented below using the Ishikawa

Diagram, often called cause and effect diagram or fishbone diagram.

Furthermore, forming single logistics function will help trace the trend of sales activity in

the field and make some predictions as to where the field may be headed which is based in the

events of the past as they occurred and what these events mean for the future.

Thus, to resolve the problem, I recommend that the manufacturing company should

develop and good inter-department communication system. Also, there should be someone aside

from Mr. Henry Cruz who should be responsible in overseeing the operations. To help the person

in charge with supervision of the production, Mr. Cruz should hire experts with satisfactory

experiences in dealing with sales forecast.

Fast, Global and Entrepreneurial Supply Chain Management: Hong Kong Style

FAST, GLOBAL AND ENTREPRENEURIAL: SUPPLY CHAIN MANAGEMENT, HONG

KONG STYLE AN INTERVIEW WITH VICTOR FUNG

Joan Magretta, Harvard Business Review, September-October 1998, pp. 103-114

Positioned itself as a Hong Kong-based multinational trading company, Li & Fung has

been successfully transformed from a regional sourcing agent to a worldwide supply chain

management enabler in its nearly 100 year-long histories. Founded in Guangzhou in 1906 and

headquartered in Hong Kong, Li & Fung co-ordinates the supply chain of its customers through a

network of 70 offices covering 40 economies across North America, Europe and Asia.

The strategic evolution of Li & Fung took place in three stages from the early 1970s. In

the first stage (1970-1978), Li & Fung acted as a regional sourcing agent. The company extended

its geographic reach by establishing offices in Singapore, Korea and Taiwan. It assisted its

customers in managing sourcing across East Asia with the professional knowledge and expertise

in textile industry. In the second stage (1979-1982), it was transformed from a sourcing agent to

a manager and deliverer of production program. For instance, Li & Fung created an entire

manufacturing program for its customers for a particular fashion season. The programme

involved all tasks from specifying the product mix to scheduling the manufacturing process and

delivers time. In the third stage (1983 1998), Li & Fung broke up its supply chain to disperse

different production processes to manufacturers in various countries, based on factors such as

labor costs, quality, trade barriers, and transportation costs and so on. Li & Fung coordinated all
processes in value chain, managing the logistics and arranging the shipment of the finished order

of the client. The strategy of Li & Fung has been successful because it possesses detailed

knowledge of producers capabilities and information on trade restrictions imposed by the

importing country on the various potentially producing countries. It enables the agent to dissect

the value chain for the purpose of minimizing the total costs of production and transaction.

(Cheng and Kierzkowski, 2001)

In conclusion, Li & Fung is the model of the transformation of a traditional trading

company into a global supply chain management enterprise. With solid educational background

of management, Li & Fung abandons the conventional organizational structure and creates

customer-centric divisions serving customers. The relationship with suppliers and customer,

strong customer base and expertise on international trading and manufacturing make the strategy

successful. Li & Fung is heading towards high margin business by involving in brand products.

China and India markets are pivotal to the company in sourcing and manufacturing. They are

also the potential consumer market in future thanks to large population and strong buying power

in these countries.
 TOTAL QUALITY MANAGEMENT

Global Strategy at Motorola

Motorola controlled the emerging U.S. market for cellular telephones and pagers.

Motorola has also won many battles around the world in order to doing its business abroad. But,

like many other firms at the time, was a bit complacent and not aggressively focused on

competing with the Japanese. It maintained old strategies in doing business, was conservative

and unambitious. Motorola was complacent in its leadership position in the U.S. market, and

failed to aggressively compete with the emerging Japanese firms. Motorola began to fall in its

competition with Japanese. For that reason, Motorola have to find new strategies to win its

battles, not only the competition with Japanese but also other countries that becomes Motorolas

target market.
 BENCHMARKING

Simon Inc.

BUSINESS PROCESS REENGINEERING

Using Process Reengineering to Revamp the Finance Function of a Multinational Pharmaceutical

Firm

FINAL

1. Discuss the concept of the value chain and how it can be source of competitive advantage

in the manufacturing and service sectors. Present examples in the value chain.

A value chain is the whole series of activities that create and build value at every

step. The total value delivered by the company is the sum total of the value built up all

throughout the company.

The value chain concept separates useful activities (which allow the company as a

whole to gain competitive advantage) from the wasteful activities (which hinder the

company from getting a lead in the market). Focusing on the value-creating activities

could give the company many advantages. For example, the ability to charge higher

prices; lower cost of manufacture; better brand image, faster response to threats or

opportunities.
2. Discuss the meaning, purpose and importance of product and service deign. Identify a

new product or service design concept or an improved version of an existing product or

service. Use the Quality Function Deployment (House of Quality) technique in design.

Service design is an activity of organizing and planning people, communication

and material components in order to improve service quality. It is the interaction between

the service provider and customers and the customers' experience. On the other hand,

Product Design combines ergonomics with product and business knowledge to generate

ideas and concepts and convert them into physical and usable objects or services. The

discipline covers the entire range of activities from concept, manufacturing, testing to

product launch.

Product and service design are very important factors to customer satisfaction and

helps businesses connect strongly with their customers. Since organizations need to

continually satisfy their customers to be successful in the marketplace design helps in

improving current products or by designing new ones. It also reduces costs by making

processes more efficient.

Below is a new product design concept using Quality Function Deployment.

 .

3. Would not the location of these facilities be considered irrelevant considering thee

increasing utilization of information technology in making logistics decisions?

4. What is Total Quality Management? Why do you think quality circles/productivity

improvement circles do not see to succeed in majority of the Philippines manufacturing

organizations? What does it say about the readiness of the employees and managers alike

on the employee empowerment aspect of Total Quality Management?

Total Quality Management (TQM) is the continuous process of reducing or eliminating

errors in manufacturing, streamlining supply chain management, improving the customer

experience, and ensuring that employees are up-to-speed with their training. Total quality

management aims to hold all parties involved in the production process accountable for

the overall quality of the final product or service.

5. Discuss the concept of Business Process Reengineering in terms of its scope and

coverage. Present details on how to implement Business Process Reengineering.

Business Process Reengineering involves changes in structures and in processes

within the business environment. The entire technological, human, and organizational

dimensions may be changed in BPR. Information Technology plays a major role in

Business Process Reengineering as it provides office automation, it allows the business to

be conducted in different locations, provides flexibility in manufacturing, permits quicker

delivery to customers and supports rapid and paperless transactions. In general it allows

an efficient and effective change in the manner in which work is performed.

The Business process reengineering comprises of following steps:

Define Objectives and Framework: First of all, the objective of re-engineering

must be defined in the quantitative and qualitative terms. The objectives are the end

results that the management desires after the reengineering. Once the objectives are

defined, the need for change should be well communicated to the employees because, the

success of BPR depends on the readiness of the employees to accept the change.

Identify Customer Needs: While, redesigning the business process the needs of

the customers must be taken into prior consideration. The process shall be redesigned in

such a way that it clearly provides the added value to the customer. One must take the

following parameters into the consideration:

1. Type of Customer and customer groups.

 2. Customers expected utilities in product and services

3. Customer requirements, buying habits and consuming tendencies.

4. Customer problems and expectations about the product or service.

Study the Existing Process: Before deciding on the changes to be made in the

existing business process, one must analyze it carefully. The existing process provides a

base for the new process and hence what and why of the new process can be well

designed by studying the right and wrongs of the existing business plan.

Formulate a Redesign Business Plan: Once the existing business process is

studied thoroughly, the required changes are written down on a piece of paper and is

converted into an ideal re-design process. Here, all the changes are chalked down, and the

best among all the alternatives is selected.

Implement the Redesign: Finally, the changes are implemented into the redesign

plan to achieve the dramatic improvements. It is the responsibility of both the

management and the designer to operationalize the new process and gain the support of

all.

Thus, the business process reengineering is collection of interrelated tasks or

activities designed to accomplish the specified outcome.

SOURCES:
-http://businessjargons.com/steps-involved-business-process-

reengineering.html#ixzz4gsbbzIXi