MODULE WEEK NO.

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INITAO College
University Jampason, Initao, Misamis Oriental
Logo

College of Hospitality Management

CBMEC – 1: Operations Management
2nd Semester of A.Y. 2024-2025

Introduction

Course will be based on the concepts, principles and techniques for managing
supply chains and operations in the manufacturing and service sectors. An overview
of the terminology, fundamental concepts and functional scope of responsibility
encountered in the field of supply chain and process management will be covered.
COURSE MODULE

Rationale
 Operations encompass the bulk of most organizations with the largest portions
of
assets, working capital and human resources.
 Adopt a broad managerial perspective emphasizing the strategic impact of
operations decisions on the competitiveness of firms and their supply chains.
Intended Learning Outcomes
At the end of this module, students are expected to:
A. Demonstrate an understanding of the basic elements of supply chain and
operations
B. Demonstrate an understanding of quality concepts and business processes
C. Demonstrate an understanding of product and service designs, location analysis
D. Demonstrate an understanding of supply chain linkages – forecasting, sourcing,
logistics
E. Demonstrate an understanding of planning and controlling operations and
supply chains –
F. capacity planning, aggregate planning, inventory management and JIT / lean
production
Activity

For purpose of providing the students the ease of learning, following are the series
of activity.

1. Blended learning using multi media

2. Online discussion using Google met
3. SMS
4. Gmail and feedback mechanism using the above access.

Discussion
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Crafted by: Prof. Loida A. Cabaraban, MM-HRM, ARF, CTP
 MODULE WEEK NO.2

Supply Chains
A supply chain is a sequence of activities and organizations having some role
in providing a product to a customer. Supply chains typically link many different
facilities and activities as raw materials are secured, work-in-process is finished, and
final output is distributed. Supply chain management integrates the activities of
these differing operations, addressing issues such as forecasting, purchasing and
logistics.
A simple product supply chain consists of: suppliers, direct suppliers,
producers, distributors, and final customers. Supply chain management also can include
partners outside the firm when goods and services are outsourced. Outsourcing has
many risks and benefits that must be explored before a company decides to outsource
part of its operations. Valued-added is the difference between the cost of inputs and the
value or price of outputs. Therefore, a higher value-added is beneficial for a company.

What are the elements of supply chain?

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The elements of a supply chain include all the functions that start with
receiving an order to meeting the customer's request. These functions include product
development, marketing, operations, distribution networks, finance, and customer
service.

The Eight Components of Supply Chain Management

Simple bread and butter with which we eat each day, actually gets to us through
several processes. In this instance, bread begins its journey with the farmer who sows
the seeds and sells the wheat to the businessman, who in turn sells it to the baker who
bakes the bread. This is a description of supply chain management in a nutshell. In
other words, supply chain management is a network of those businesses that are
interconnected with each other in either the manufacturing of products, or delivering
services, that are required by consumers.

1. Planning
This is one of the most important stages. Before the beginning of the entire
supply chain, it is essential to finalize the strategies and put them into place.
2. Information
The world today is dominated by a continuous flow of information. In order to be
successful, it is essential that a business stays abreast with all the latest information
about the various aspects of its production.
3. Source
Suppliers play a very crucial role in supply chain management systems. Products
and services sold to the end user are created with the help of different sets of raw
materials.
4. Inventory
For a highly effective supply chain management system it is essential that an
inventory is kept and thoroughly maintained. An inventory means the ready list of
items, raw materials and other essentials required for the product or service.

5. Production
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 MODULE WEEK NO.2
Production is one among the most important aspects of this system. It is only
possible when all the other components of the supply chain are in tandem with each
other.
6. Location
Any business, that wants to survive as well as flourish, needs a location which is
profitable for the business.

7. Transportation
Transportation is vital in terms of carrying raw materials to the manufacturing
unit and delivering the final product to the market. At each stage, timely transportation
of goods is mandatory to sustain a smooth business process.
8. Return of goods
Among the various components that create a strong supply chain is the facility
for the return of faulty/malfunctioning goods, along with a highly responsive consumer
grievance redress unit.
No one is infallible. Even a machine may malfunction once in a million times if
not more.
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Process Management
Process management is essential to operations management, and is the
central role of all management roles. Process management transforms inputs into
outputs.
In addition, a business process is composed of three categories:
1. Upper-management processes
2. Operational processes
3. Supporting processes.

A major business process may consist of any sub-processes, and each one of
them has their own goals that contribute to the overall process. Business processes
form a sequence of suppliers and customers. Managers establish the amount of
capacity of a process needed to meet demand.

Process Management refers to aligning processes with an organization's

strategic goals, designing and implementing process architectures, establishing process
measurement systems that align with organizational goals, and educating and
organizing managers so that they will manage processes effectively.

Why is process management important?

Business process management is important because it can help you

improve your overall operations. It can minimize your expenditures, give you better
control of workflows, pinpoint operational deficiencies, and give you insights to make
better business decisions.

What are the 5 management process?

There are 5 phases to the project life cycle (also called the 5 process
groups)—initiating, planning, executing, monitoring/controlling, and closing.

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 MODULE WEEK NO.2
Business process management is a discipline in operations management in
which people use various methods to discover, model, analyze, measure, improve,
optimize, and automate business processes. Any combination of methods used to
manage a company's business processes is BPM.
COURSE MODULE

Exercise

Supply Chain Sourcing Game: A Negotiation Exercise

This introduces an exercise that simulates the negotiation process in a dynamic

supply chain.
The retailer and wholesaler roles are assigned to student groups who negotiate
supply contracts in a number of rounds during a class period.
Each group makes pricing, inventory, and ordering decision concurrently, and
competes with others to achieve the highest profit.

Assessment

The exercise is easy to implement using pen and paper, and lends itself to a wide
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 MODULE WEEK NO.2
variety of negotiation environments. The group will be graded using the below rubrics.

Criterion Outstanding Good Developing Beginning

PARTICIPATION Participates Participate in a group Sometimes Participates

actively participates in minimally
group
Helps direct the Shows concerns for Shows concern for Shows a little
group in setting goals some goals concern for goals
goals
Thoroughly Participates in goal Participates Watches but doesn’t
completes assigned setting marginally in goal participate in goal
tasks setting setting
Actively Participate in Participates in Complete assigned
participates in meeting goals meeting goals tasks or turns in
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helping the group work incomplete

work together
better

Complete assigned Complete some

tasks assigned tasks

Demonstrates effort
to help the group
work together

COMMUNICATION Shares many ideas Freely shares ideas Shares ideas when Does not share ideas
related to the goals encourage

Encourages all Listens to others Allows sharing by Watches but does

group members to all group not contribute to
share their ideas Consider other members discussions
people’s feelings and
ideas

Listens attentively Listen to others Does not show

to others consideration for
others

Empathetic to Consider other

other people’s people’s feelings
feelings and ideas and ideas

Reflection

1. Read topics on basic elements of demand and supply and do the following using
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 MODULE WEEK NO.2
the (CERAE) Content, experience, reflections, application and evaluation.

Resources and Additional Resources

 E-book
 Module
 PowerPoint
 Video presentation

Additional Resources:

• Internet research
• YouTube
• Publish paper
 Ballou, R.H., 2007. Business Logistics/supply Chain Management: Planning,
Organizing, and Controlling the Supply Chain. Pearson Education India.
COURSE MODULE

 Christopher, M., 2016. Logistics & Supply Chain Management. Pearson UK.

 Lambert, D.M. & Cooper, M.C., 2000. Issues in Supply Chain Management.
Industrial Marketing Management, 29(1), pp.65-83.

 Tan, K.C., 2001. A framework of supply chain management literature.

European Journal of Purchasing & Supply Management, 7(1), pp.39-48.

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Crafted by: Prof. Loida A. Cabaraban, MM-HRM, ARF, CTP