Operations Management (TQM)

Rosemarie J. Pascua
Ilocos Sur Polytechnic State College
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1

Operations Management
(TQM)

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1

OVERVIEW ON THE MODULES FOR OPERATIONS MANAGEMENT (TQM)

I. Course Title: Operations Management (TQM)

II. Course Overview:

The course Operations Management with Total Quality Management

provides the student with an analytical approach to the economic problems of
planning and deploying human resources, materials, plus facilities and equipment
to generate goods and/or services for the marketplace. Course emphasis will be
on the application of the analytical tools and strategy to address critical issues
related to strengthening the competitive position of the enterprise. The course
also examines the concepts of both operations management and total quality
management. It discusses its importance to the overall strategy and
competitiveness of a firm. In addition, operations management focuses on
specific tools such as project management, forecasting, system design, and
inventory management. Total quality management would focus on quality control,
total quality paradigms, and quality teamwork and empowerment. Overall, the
course provides students necessary knowledge and concepts in managing the
operations of a firm through total quality management.The course have been
divided into the following modules:

Module 1: Introduction to Operations Management

Module 2: Competitiveness, Strategy, and Productivity

Module 3: Introduction to Project Management

Module 4: Forecasting

Module 5: System Design

Module 6: Inventory Management

Module 7: Managing Quality

Module 8: Quality Control

Module 9: Total Quality Paradigms

Module 10: Quality Teamwork and Empowerment

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1

III. Course Study Guide:

This module was created for students of the Bachelor of Science in Business
Administration. To be successful in working with this module, you are reminded of
the following guidelines:

1. Manage your time well. A course study schedule is prepared for you to help
you study the modules in this course. The productive use of your time and
energy will help you a lot in finishing the scheduled activities.
2. Focus your attention. The key element for better understanding is having
the focus on the things to be done.
3. Give your best. Always remember that success will be attained in everything
you do by giving extra effort in the things you are doing giving your best also
means observing honesty in doing the assigned tasks you are asked to do in
this module. Never let someone do the task for you or copy the work of your
classmates.
4. Submit on time. Work diligently. Do not procrastinate. Remember time is
gold. Work immediately on the task at hand in order for you to follow
scheduled time for submission.
5. Be patient, Motivate yourself. Patience equates success. Always think of
the bright future ahead. And to get there, start moving now.
6. Answer confidently. Study hard, surf the internet, read and read and read
more. The more you know, the more confident you become.
7. Work independently. You can do it! Your future lies in your own hands and
your own decisions. So, practice working independently, trust yourself, be
independent.
8. Contact me. If you have any questions, don’t hesitate to ask me through the
group chat created for this class.

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1

IV. Course Study Schedule:

To keep you on track, and to finish the module on time, the study schedule is
hereby presented for you to follow:

Week Topic Activities Instructions

Week 1- Module 1: Introduction Readings on: Read and have

2 to Operations Operations some research
Management Management at for more
- Introduction Burlington information or
- What is operations Industries, details
Management Philippines, regarding the
- Importance of Incorporated topic. Take
studying note of the
operations important
management points on the
- Responsibilities of readings. You
operations can make
management some highlight
- Scope of for your review
operations
management Answer the ff. Answer the
- Operations assessment tasks: assessment
management in a tasks provided.
service sector Activity 1: End of Write your
- Difference chapter review answers in a
between goods questions Yellow sheet
and services of paper.
- Operations Activity 2: Company
management in Profile Analysis .
manufacturing
- Important trends in
operations
management
- The challenge of
social
responsibility

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1

V. Course Evaluation

To pass the course, you must:

1. Submit all course requirements to include the following:

a. Intended Learning Activities
b. Assessment Tasks
c. Course requirement/research work
2. Pass midterm and final examinations

VI. How to use this module:

The module “Operations Management (TQM)”, is a course which comprises

the knowledge, skills, and attitude required for an operations personnel.
Kindly refer to the icons in this module to guide you as you study. Do not
write anything on the module. All answers to Intended Learning Activities
and Assessment Tasks should be written on a yellow sheet of paper.

This tells you to read the given reference for further understanding.

This tells you there is an Intended Learning Activity for you to

accomplish.

This tells you there is an Assessment Task to be done.

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1

Learning Outcomes:

At the end of the module, the students should be able to:

1. To understand the definition of operations management.

2. To identify the importance of studying operations management.
3. To differentiate the nature of operations management between manufacturing
firm and service sector.
4. To comprehend the exciting new trends in operations management.

MODULE I: INTRODUCTION TO OPERATIONS MANAGEMENT

The production of goods and the delivery of services are one of many issues that
businesses should consider because of the dynamic economic status of the country.
This attention plays a vital role to the profitability of the business and to the
realization of the customers' demand. An example of this is the sugar industry. The
production of sugar should be closely monitored by the company because of the
large consumer health concern. This typical instance can create a huge impact to the
operations of the sugar company.

At this point, the company should critically carry out the effective process of
planning, scheduling, controlling, and producing a quality output from the raw
materials. Operations management as part of the business organization should be
responsible enough for producing quality goods or providing services to make it
available in the market and ensuring that these goods and services will satisfy the
needs and wants of the consumers.

What is Operations Management?

The main objective of doing business is to gain profit, whether the organization is
producing goods or providing services. Thus, the organization needs to have a
competitive edge in terms of a quality output by ensuring that the process of
producing goods and delivering services are properly executed. This time, the
company must be engaged in operations management, which is the set of activities
that relates to the creation of goods and services through the transformation of raw
materials to finished products.

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1
The process of creating goods and providing services is called production. Some
people get confused between production and operations management. To eliminate
misperception, refer to the following comparison chart:

Basis for Comparison Production Management Operations Management

Meaning Production management Operations management
connotes the admiration of refers to the part of
the range of activities management concerned
belonging to the creation with the production and
of products. delivery of goods and
services.
Decision Making Related to the aspect of Related to the regular
production business activities.
Found in Enterprises where Banks, hospitals,
production is undertaken. companies including
production companies,
agencies, etc.
Objectives To produce right quality To utilize resources, to the
goods in right quantity at extent possible so as to
the right time and at least satisfy customer wants.
cost.

The Historical Evolution of Operations Management

System for production is not actually a new principle since it has existed even
during the earliest stages. The following is the relevant timeline of the historical
evolution of operations management adopted from the book written by William J.
Stevenson in 2010.

Approximate Date Contribution/Concept Originator

1977 Division of labor Adam Smith
1790 Interchangeable parts Eli Whitney
1911 Principles of Scientific Frederick W. Taylor
Management
1911 Motion Study, use of Frank and Lillian Gilbreth
industrial psychology
1912 Chart for scheduling Henry Grantt
activities
1913 Moving assembly line Henry Ford
1915 Mathematical model for F.W. Harris
inventory management
1930 Hawthorne studies on Elton Mayo
worker motivation
1935 Statistical procedures for H.F. Dodge, H.G. Romig,
sampling and quality W. Shewhart, L.H.C.
control Tippet
1940 Operations research Operations research

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1
applications in warfare groups
1947 Linear programming George Dantzig
1951 Commercial digital Sperry Univac, IBM
computers
1950s Automation Numerous
1960s Industrial dynamics Numerous
1975 Emphasis on w. Skinner
manufacturing strategy
1980s Emphasis on flexibility, T. Ohno, S. Shingo,
time based competition, Toyota
lean production
1980s Emphasis on quality W. Edwards Deming, J.
Juran, K. Ikashawa
1990s Internet, supply chain Numerous
management
2000s Applications service Numerous
providers and outsourcing

Importance of Studying Operations Management

The following are the identified importance of studying operations management:

1. In studying operations management, different business tools and information

will be learned that are helpful to become the best manager possible.

2. Operations management will become the avenue for a well-organized and

productive enterprise.

3. Operations management will introduce an individual to business ideas and

implementations.

4. Studying operations management helps the individual to become

knowledgeable about different activities associated to the process of
converting input to output.

5. Studying operations management delivers understanding about how

operations managers work based on the key roles and responsibilities;

6. Operations management prepares an individual to become efficient because

this is considered as costly part of the organization.

7. Generally, studying operations management provides vital concepts and

knowledge that are important to the success of the business organization.

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1
Responsibilities of Operations Managers

All good managers perform the basic management process. The management
process consists of planning, organizing, staffing, directing, controlling and doing an
evaluation. All operations managers plan, organize, direct and control the business
operations. Specifically, the following are the important responsibilities of the
operations managers:

1. Management of Resources. The operations manager is responsible for

allocating resources for the production of goods. They are not only concerned
with the monitoring of raw materials; they are also concerned with the
management of people. Human resource tasks of operations managers
include determining needs, hiring employees, overseeing assignment and
planning staff development.

2. Financial Management. Operations managers play a key role in budgeting,

controlling costs, and keeping the organization on track financially. They study
business forecasts, sales reports and financial statements to find better ways
in maximizing results. They apply different methods such as cost benefit
analysis for the improvement of business operations efficiency.

3. Goal Setting. Operations managers establish mission, vision objectives, and

set policies for various departments. They are responsible for making the
organization goal oriented and well-disciplined in achieving the predetermined
aims.

4. Communications. Operations managers are responsible for keeping the

proper communication between employees and different departments. They
facilitate to resolve disputes and disagreement. This is why the operations
managers need good communication and interpersonal skills.

Other important roles of Operations Managers:

 Providing inspired leadership for the

 Promoting company culture that encourages morale and performances
 Working with senior stakeholders
 Ensuring all legal and regulatory are filed and monitoring compliance with law
and regulations
 Identifying problems and opportunities for the company
 Building alliance and partnership with other organizations
 Ensuring all operations are carried on in an appropriate, cost effective way
 Improving operational management systems, processes and best practices
 Purchasing materials, planning inventory and overseeing warehouse
efficiency
 Performing quality controls and monitoring of production key performance
indicators (KPls)

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1
Scope of Operations Management

All organizations need the functions of operations management. Its scope ranges
across different sectors. The people who are engaged in operations management
are responsible in effective and efficient utilization of resources, proper selection of
facilities and other functions that are relevant for the success of organization.

The operations function include many interrelated activities such as forecasting,

capacity planning, scheduling, managing inventories, assuring quality, motivating
employees, deciding where to locate facilities and more (Stevenson, 2010) .

Let us use garment manufacturing as our example to illustrate how different

functions of operations management works:

Forecasting. The garment manufacturing requires the projection of the possible

things to happen such as demand, changes in technology, innovation, supply and
even customers' taste to products being offer by the company.

Capacity Planning. It is essential for the garment manufacturing to accommodate

demands and to produce finish goods until it reach the final customer. Determining
the capacity of the manufacturing should be considered at all times of operations.

Scheduling. Tools and equipment of the garment manufacturing including the

delivery vehicles should be in order to avoid delays and problems in production
activities.

Motivating and training of employee. It is very important in manufacturing to keep

the employees motivated at all times. Demotivated employees can affect the
operational goal of the organization.

Managing Inventories. The manufacturer should monitor and manage properly the
inventories including the raw materials, work in process inventories and finished
products.

Operations Management in a Service Sector

As what this module has emphasized during the earlier discussion, operations
management is not only about management of the production of goods but also
focus on management of the whole business operations. In the service sector where
intangible goods are being produced, the management is concerned on how the
organization can be able provide a quality service that may satisfy the customer's
demand. Some of the examples of services that the company could operate are:

 Repair and maintenance

 Government
 Food and lodging
 Transportation

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1
 Insurance
 Trade
 Financial
 Real state
 Education
 Medical
 Entertainment
 And other professional occupations

Services are those economic activities that typically produce an intangible product
(Heizer, 2005). The organization that provides these services needs to have a
profound understanding on how to manage or operate the organization so that it can
be able to provide the satisfaction of the customers.

In a nutshell, operations management is vital not only in the production of finished

goods from raw materials, but it is also important to the organization that provides
services for the customer. Whatever the nature of the business is, operations
management is one of the core part in achieving the goals and objectives of the
organization.

Difference between Goods and Services

To manage the operations of an organization, we need to understand the difference

between goods and services. Usually, goods are tangible in nature otherwise
services are intangible. The following are the attributes that will give us a clear idea
about the difference of goods and services.

Attributes of Goods (Tangible Products)

 Products can be resold.

 Products can be inventoried.
 Some aspects of quality are measurable.
 Selling is distinct from production.
 Product is transportable.
 Site of facility is important for cost.
 Often easy to automate.
 Revenue is generated primarily from the tangible products

Attributes of Services (Intangible Products)

 Reselling a service is unusual.

 Many services cannot be inventoried.
 Many aspects of quality are difficult to measure.
 Selling is often a part of the service.
 Provider, not product, is often transportable.
 Service is often difficult to automate.

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1
 Revenue is generated primarily from the intangible services.

Operations Management in Manufacturing

One of the tasks of an operations manager is to ensure the efficient operations of the
business whether it is in line with service or manufacturing industry. In
manufacturing, the organization must be competitive through the output or the
finished products it can be delivered i for the final customer or consumer. The
organization can be successful if the manufacturer performs effectively the following
key responsibilities:

Production Planning

During the production planning, the managers determine how goods will be
produced, where production will take place, and how manufacturing facilities will be
laid out. It seeks to answer the two major questions:

 What work should be done?

 How much time will be taken to perform the work?

Production planning requires the manager to establish the production goals and to
estimate the resources needed to achieve the predetermined goals. It involves
preparation of detailed plans for production goals economically, efficiently and
effectively. It forecasts procedures, possible problems that might happen in the
production process, and also estimates the possible solutions. According to Ray
Wild, production planning is concerned with the determination, acquisition and
engagement of all facilities necessary for future operations.

Labor Efficiency and Control. Each production activity has the identified time when
to finish. This is for the achievement of finished products or output in given period of
time. To avoid backlogs, the responsible people should monitor work force during the
production period.

Advantages of Production Control

An effective production control system means more outputs for the organization in
accordance with the required investment without unduly speeding up workers. The
following are the advantages of production control:

1. Better service to customers

2. Less overtime work
3. Need of smaller inventories of work-in-process and of finished goods
4. More effective purchasing
5. More use of equipment

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1
6. Less loss of time
7. Minimizing the cost
8. Less work-backlogs

Quality Control

Quality Control is a system of routine technical activities, to measure and control

the quality of the inventory as it is being developed (Intergovernmental Panel on
Climate Change Guidelines). Quality Control is designed to:

1. Provide routine and consistent checks to ensure the output integrity,

correctness and completeness;
2. Identify and address errors and omissions;
3. Document and archive inventory material and record all quality control
activities.

Important Trends in Operations Management

Changes are always part of business operations. It is also the reason why some
organizations are having failure in achieving their pre-determined goals. While the
pace of modern innovation is rapid, it provides more way enhance the business
operations and competitive opportunities of company through its desired profitability
and sustainability in the marketplace. More content marketing managers provide
their opinion about the new trends that may deliver positive results to meet the
operations management. Some of these developments are the following:

1. Investment in Digital Internal Communication. The gap between traditional

and modern way of workforce setting is continually increasing. The millennial
generation seems to have a greater portion in today's workforce. The
company should consider this trend to continue prioritizing different strategies
for employee engagement and retention. Promoting transparent, accessible
internal communication is one of many methods of retaining millennial
employees. Having a peer to peer facilitation for instance will become
beneficial to the company. Some of the benefits of that are (1) enhancement
of workplace morale, (2) improvement o process and outcomes, (3) it
encourage and increase employee collaboration.

2. Implementation of Mobile Communication Tools. If the company' operation

is not yet mobile, it's really missing out. Nowadays, businesses are utilizing
mobile communication platform for more convenient and accessible
operations management more specifically in terms of reaching customers in a

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1
large market. Implementing mobile communication tools play a vital role in
business operations because everyone in this modern world is engaged with
using this model as a modern way of collaboration. For example, for the
efficient transfer of relevant information, the organization is utilizing mobile
communication tool. This way helps the organization a lot in disseminating
information through readily available channel. Moreover, Facebook provides
"Facebook workplace" to bring the team together and helps the organization
to build ideas within the organization.

3. Automation of Operational Processes. Using of modern technologies and

machineries and allowing the processes of business with minimal human
input or work is what we called automation. One of the changes in business
operations today concern with the function or role of technology. Putting the
online booking of your flight in the context, the business should not require
having additional employee for the booking area since the customer can do it
online. In this case, the business can save money and increase efficiency.

4. Data-backed Performance Measurement and Employee Analytics. When

it comes to making sound decisions in every area of the business, data
gathered from detailed analytics gives companies a baseline for implementing
changes in areas from development and production to customer service.
However, 79% of executives acknowledge lacking the right tools to analyze
and act on this data (Zamolo, 2019). Nowadays, decision making requires the
organization and its people to become accurate and be supported by detailed
data and information. Modern business operations use different systems to
perform this modern task concerning decision making process.

5. Emphasis on Improving Company Culture and Workforce Experience.

Having increasing sales is not the only focus of companies nowadays
because establishing reputable and transparent company culture hit the
trends that the company should also be considered. Employee and customer
feedback is very important in emphasizing development on company culture
and workforce experience. It will serves as the foundation of improvement.
Being transparent to every employee and giving them high value is an
excellent way of building good rapport between employer and employees that
can lead the company through improvement and achievement of its goals.

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1

The Challenge of Social Responsibility

The ultimate challenge for any operations manager is the development of operations
of the whole organization. Every decision that this people will make for the
organization will also significantly be affected its operations. So, they should be
mindful and strategic. Today, operations management should be focus as well with
the emerging business commitment- corporate social responsibility.

The Operations Management and Corporate Social Responsibility

Operations managers make many decisions alongside with the goals of the
organization. However, they also face great challenges such as economic
challenges, technological challenges and other challenges as social responsibility is
concerned. Corporate Social Responsibility as an emerging topic in management is
one of the concerns that the operations management should consider because it can
contribute a lot to either profit or loss of the business. Corporate Social
Responsibility consists of important dimensions, such as environmental dimension,
social dimension, economic dimension, stakeholder dimension and voluntary
dimension. How does the wider view of CSR influence operations management?
Let's have a deeper discussion about this.

Operations and the Environmental Dimension of CSR

Operations managers cannot isolate themselves with the truth that the organization
has a great responsibility over environmental protection in general. Sometimes, the
organization's decision relative to the operations of the business greatly affects the
environment. It becomes one of the challenges of operations manager, more
specifically if the issues in environment directly hit their production process. Let us
put the plastic manufacturing in this case. Our government is so much serious to the
elimination of plastics because it damages the large portion of our ecosystem. For
this instance, the operations of the manufacturing should pay attention to the policies
being implemented by the national government.

The operations should think remedies for this case so the existence of the business
will become stronger and longer. This is the beginning of their responsibility over
environment. Again, it is important to understand that broad issues as environmental
responsibility are very well connected to day-to-day decisions of operations
managers.

Another example of environmental issues that the operations mangers should

consider is concerned with waste. Operations management decisions in product and
service design significantly affect the utilization of materials both in the short term
and in long term as well as material wastage.

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1

In addition to those mentioned above, the following are some environmental

considerations of operations management decisions:

Decision Area Some Environmental Issues

Product/Service Design Recyclability of materials
Energy consumption
Waste material generation
Network Design Environmental impact of location
Development of suppliers in
environmental practice
Reducing transport-related energy
Layout of facilities Energy efficiency
Process Technology Waste and product disposal
Noise pollution
Fume and emission pollution
Energy efficiency
Job design Transportation of staff to/from work
Development in environmental education
Planning and control Material utilization and wastage
Environmental impact of project
management
Capacity planning and control Over-production waste of poor planning
Local impact of extended operating hours
Inventory planning and control Energy management of replenishment
transportation
Obsolescence and wastage
Supply chain planning and control Minimizing energy consumption in
distribution
Recyclability of transportation
consumables
Quality planning and control Scrap and wastage of materials
Waste in energy consumption

Operations and the Social Dimension of CSR

The business organization where it operates has significant impact to its customers,
to its suppliers, to the people who work in it and even to the community where it is
located. All the decisions to be made by organization should be socially responsible
as it has an identified responsibility to the society. So, in order for the organization to
become responsible to the society, here are some social considerations operations
management decisions:

Decision Area Some Social Issues

Product/Service Design Customer safety
Social Impact of product
Network Design Employment implications of location

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1
Employment implications of plant closure
Employment implications of vertical
integration
Layout of facilities Staff safety
Disabled access
Process Technology Staff safety
Noise damage
Repetitive/alienating work
Job design Staff safety
Workplace stress
Repetitive/alienating work
Unsocial working hours
Customer safety
Planning and control What priority to give customers waiting to
be served
Unsocial staff working hours
Restrictive organizational cultures
Capacity planning and control Hire and fire employment policies
Working hours fluctuations
Unsocial working hours
Service cover in emergencies
Relationships with subcontractors
Inventory planning and control Price manipulation in restricted markets
Warehouse safety
Supply chain planning and control Honesty in supplier relationships
Transparency of cost data
Non-exploitation of developing country
suppliers
Prompt payment to suppliers
Quality planning and control Customer safety
Staff safety
Workplace stress

Operations and the Economic Dimension of CSR

The economic dimension of CSR is one of the serious matters where the operation
of organization is concerned. It is important for the operations managers to
understand the economic situation in order for the business to have a social and
sustainable output. If this is the concern, the operations should consider the following
cost-related issues:

 Input costs
 Transformation Costs
 Output costs

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1

Operations and the Stakeholder Dimension of CSR

Stakeholders play a pivotal role to the growth of business organization. They are the
one who will be affected by any decision made by the operations managers. Some of
the considerations that operations management should consider are the following:

1. If the product is badly assembled or if the equipment used in service in not

maintained, customer can come to harm.
2. Organizations have their responsibility to prevent the exposure of their
workforce to any hazards.
3. The community has the right to expect its organization to adopt responsible
attitude.

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1

Operations Management at Burlington Industries, Philippines Incorporated

The Burlington Industries Philippines Incorporated is formerly known as Mil-Oro

Manufacturing Corporation. This was established in 1967 for the manufacture
and marketing of men's, ladies, and children's socks and accessories. The
company's first plant was situated in Quezon City and operating a very modest
number of manned machines with minimal output.

In the year 1994, the management started to operate the business more
effectively, along with the adoption of its present name Burlington Industries
Philippines Incorporated. Additional plant area and additional machineries were
acquired by the company. Each year, the company's production capacity grows.
In the year 2015, the company acquired additional machines, increasing the
production capacity to 7.5% per day as against to the 2014 production capacity.

Burlington Industries, Philippines Inc. is the trademark owner in the Philippines of

the following sock brands: Burlington, Bally, Camp, Puma and Biofresh. The
company manufactures a full range of sock designs: sports socks, dress socks,
casual socks for men, trouser socks, foot cover, stockings for ladies and school
socks for children. With over four decades of solid track in the hosier industry,
Burlington established the reputation as the socks authority.

Burlington expands their product line to meet customer demands, this covers
Biofresh foot care and Biofresh undergarments. To maintain the leadership in the
industry, Burlington looks for business opportunities in the international market
with their mission "to deliver satisfaction and well-being by offering products and
services truly preferred by the customers while providing the employees a tool
toward self-development."

With this mission, the company has endeavoured to establish more organized
business operations for quality, cost-effectiveness and efficiency. In cooperation
of all employees, Burlington Industries Philippines Incorporated accomplished its
goal to be certified to ISO 900z:2008 International Standard. By doing so, the
company is still maintaining and improving Quality Management System.

(Source: https://morethanjobs.com.ph/company-detail/Burlington-
industries-philippines-incorporated)

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1

ACTIVITY 1

Instructions: Answer the following questions comprehensively. Limit your answers

to five (5) sentences only.

1. Between production management and operations management, which has a

wider scope? Why?

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2. Give instances where reselling a service is possible?

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Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1

3. What makes service (intangible product) more difficult to manage compared

with good (tangible product)?

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Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua
ILOCOS SUR POLYTECHNIC STATE COLLEGE

Tagudin Campus

MODULE 1

Activity 2: Company Profile Analysis

Instruction: Look for a company, either in service or manufacturing industry, and

analyse its profile using the following template:

Name of the company:

Address:

Company profile:

Organizational structure:

Company products/services:

Company’s Operation’s Trends:

Practices on:

1. Operation and Environment Dimension of CSR

2. Operations and Stakeholder Dimension of CSR
3. Operation and Social Dimension of CSR
4. Operations and Economic Dimension of CSR

Conclusion:

Course Code:Strat 102

Descriptive Title: Operations Management (TQM) Instructor: Rosemarie Jimeno Pascua