MODULE WEEK NO.

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INITAO College
University
Logo
Jampason, Initao, Misamis Oriental

College of Hospitality Management

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

Introduction

Operations Management is responsible for creating value in the form of goods and
services. The objective of operations management is to balance supply with
demand. Operations Management works in conjunction with both finance and
marketing. An operation is the act of converting inputs into outputs. It is concerned
with value-added, which is the difference between the cost of inputs and the value
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or the price of outputs

Rationale

 Covers three important aspects of any business: competitiveness, strategy and

productivity. All three aspects are vital to a company succeeding in the world of
business.
 Any firm, whether a manufacturer or a service provider, must employ all three
aspects as they all play in growing revenues.
 A successful organization must have a competitive advantage, a strategy to
meet the company's goals, and the ability to produce goods and services in a
cost-effective manner.
 Most organizations have a single company "motto" called a mission statement
that summarizes these described aspects of the company. The mission
statement should answer the question "What business are we in?" The mission
statement is the basis for organizational goals.

Intended Learning Outcomes

At the end of this module, students are expected to:

A. Demonstrate operational skills, talent and potentials by applying the theoretical
aspect and applications of operations management.
B. Absorbed the general principles of operations management and its impact to the
environment and the society.
C. Landscape the operational world by applying, evaluating and assessing different
roles used in the operation process.

Activity

For purpose of providing the students the ease of learning, following are the series
of activity. 1
Crafted by: Prof. Loida A. Cabaraban, MM-HRM, ARF, CTP
1. Blended learning using multi media
2. Online discussion using Google met
3. SMS
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Discussion

Quality management ensures that an organization, product or service is

consistent. It has four main components: quality planning, quality assurance,
quality control and quality improvement. ... Thus, quality can be defined as
fitness for intended use or, in other words, how well the product performs its
intended function.
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What is the purpose of quality management?

“A quality management system (QMS) is a collection of business processes
focused on consistently meeting customer requirements and enhancing their
satisfaction. It is aligned with an organization's purpose and strategic direction”.

What is the role of quality management?

Importance of Quality Management. “Quality management” ensures superior
quality products and services. Quality of a product can be measured in terms of
performance, reliability and durability. ... Quality management is essential to
create superior quality products which not only meet but also exceed customer
satisfaction.

What are the concepts of quality management?

Quality management is the act of overseeing all activities and tasks needed to
maintain a desired level of excellence. Quality management includes the
determination of a quality policy, creating and implementing quality planning and
assurance, and quality control and quality improvement

What are the four stages of quality management?

Quality through the Project Lifecycle. The four main components of a quality
management process are Quality Planning, Quality Assurance, Quality Control
and Continuous Improvement

Quality planning

A quality plan is a document, or several documents, that together specify quality

standards, practices, resources, specifications, and the sequence of activities
relevant to a particular product, service, project, or contract. Quality plans should
define: ... A method for measuring the achievement of the quality objectives.

Quality assurance
is a way of preventing mistakes and defects in manufactured products and avoiding
problems when delivering products or services to customers, which ISO 9000 defines
as "part of quality management focused on providing confidence that quality
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Crafted by: Prof. Loida A. Cabaraban, MM-HRM, ARF, CTP
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requirements will be fulfilled"

Quality control
Quality control is a process by which entities review the quality of all factors involved
in production. ISO 9000 defines quality control as "A part of quality management
focused on fulfilling quality requirements"

Continuous Improvement
A continual improvement process, also often called a continuous improvement
process (abbreviated as CIP or CI), is an ongoing effort to improve products,
services, or processes. These efforts can seek "incremental" improvement over
time or "breakthrough" improvement all at once.

Continuous quality improvement, or CQI, is a management philosophy that

organizations use to reduce waste, increase efficiency, and increase internal
(meaning, employees) and external (meaning, customer) satisfaction. It is an ongoing
process that evaluates how an organization works and ways to improve its processes.
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“Quality is meeting customer’s expectation – consistently” – Dean, Pax Lapid

1. Why competitiveness is very important strategy in business?

A competitive advantage distinguishes a company from its competitors. It
contributes to higher prices, more customers, and brand loyalty. Establishing such an
advantage is one of the most important goals of any company. In today's world, it is
essential to business success.
Not only is this good for consumers - when more people can afford to buy
products, it encourages businesses to produce and boosts the economy in general.
Better quality: Competition also encourages businesses to improve the quality of
goods and services they sell – to attract more customers and expand market share.

What are the different aspects covers vital to a company succeeding in the world
of business? Among the best strategies for business success” a business owner can
follow is surrounding oneself with the right people to get the job done.
The following areas are identified that are equally critical to the success of a an
enterprise:
1. Planning, Planning, Planning
2. Funding a Successful Business
3. Branding, Marketing & Image
4. Sales to Drive Revenue
5. Managing People, Process & Benefits
6. Operations & Accounting
7. Retaining Customers, Maintaining Communication
8. Technology that Matters
9. Personal Decisions, Actions & Energy
10. Mentoring & Community Involvement

2. A correct goal, mission, tactics, and strategies are the necessary things for an
organization’s success. These four terms are deeply related to each other. First, an
organization needs to know its mission, which is the reason for its existence. Such as
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Crafted by: Prof. Loida A. Cabaraban, MM-HRM, ARF, CTP
 MODULE WEEK NO.1
what kind of business are they going to pursue. Second, the mission statement gives
the organization's purpose. Tactics are micro-strategies that take advantage of
business situations as they develop. They are quick, actionable plans that support an
organization's overall strategy. Business tactics are quick, actionable plans that take
advantage of business opportunities as they arise. Strategy and tactics are two
different things. When you formulate business strategy you choose tactics that will
help to achieve your strategic goals. Strategy refers to a direction toward a goal.
How can these things measured? Most businesses deal with five types of
strategy and the tactics used to achieve strategic goals: product, pricing,
marketing, operational and financial strategies.

Product and Service Strategy

Industry competition requires your company to constantly present new and
better products and services to keep up with changes in consumer demand. Microsoft
and Apple, both creators of computer operating systems, have been waging a tactical
battle for consumer preferences ever since both companies came into existence.
Microsoft's tactic was to be a software manufacturer and make its operating
system available to computer manufacturers for use in their personal computer
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products, then sell the owners of PCs software to run on that operating system. Apple's
tactic was to keep its operating system proprietary and manufacture its own brand of
computers. Both companies have achieved their strategic goals of growing to become
leaders in the Internet and computing industry but there are significant differences in
their product strategies and tactics.

High and Low Pricing Strategies

Pricing strategy does not always mean employing low price tactics to gain
industry dominance, but that is the obvious route. Some companies maintain high
prices as a tactic, playing on our psychological tendencies to equate high quality with
high prices. Other companies use low-price tactics presenting rebates, special sales
and deep discounting. Other tactics that lower the price of purchase include
inexpensive financing and delayed payment due dates from 30 days to as long as one
year.
Marketing Strategies to Target Customers
Marketing strategy seeks to target specific consumers with messages that
are most likely to draw their attention. It involves seasonal advertising and special
promotions as tactics to achieve market dominance. Other tactics that affect market
position for a company are acquiring competing companies, becoming the exclusive
distributor for popular brands and using pricing tactics to attract customers. Microsoft
and Apple are, again, examples of marketing strategy and tactics.
Microsoft dominated the market for word processing, spreadsheet, database
and email software, making it the most useful to business needs. Apple dominated the
graphic design market, which also gave Apple products an excellent reputation among
the people who designed and produced graphic media, providing Apple products with
an excellent word-of-mouth reputation. They also donated Apple computers and
software to schools so children learned on Apple products and hopefully would buy
them as adults.
Operational Efficiency Strategy
The operational strategy of lowering costs to produce greater profit includes
lowering your operational costs by installing the latest computer equipment and
enterprise resource planning software, hiring contract employees to avoid paying
benefits, establishing several facilities close to your target customers, investing in
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Crafted by: Prof. Loida A. Cabaraban, MM-HRM, ARF, CTP
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improved plant and equipment, moving to less expensive quarters and altering the
hours of operation to manufacture more or lower the costs of keeping the company
open.
Finance and Investment Strategy
In running your business you may develop a strategy that requires
investment of money you don't have. This is when financial strategy comes into play.
Tactics to achieve the strategy of enough money to finance growth may involve
factoring or borrowing against your accounts receivable, obtaining payroll financing to
be able to pay your employees during times when you have large outflows of money,
finding investors or taking your company public.
Exercise

1. Is it always true that customers will buy if you offer quality products? (Explain) and
how do you define quality? (in your own perspective)

Assessment
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Reflection

1. Read topics on basic elements of demand and supply and do the following using
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
 QuickMBA: Hierarchical Levels of Strategy
 Entrepreneur: Business strategy types and innovative practices,
by Tim Blumentritt & Wade M. Danis, Summer 2006

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