0 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Department of Human Resource Management College of Business Administration Sta. Mesa, Manila BUMA 011 OPERATIONS MANAGEMENT (TQM) Course Title Course Title Assoc. Prof. Reynaldo T. Barrera 1 OPERATIONS MANAGEMENT (TQM) BUMA 011 Assoc. Prof. Reynaldo T. Barrera ALL RIGHTS RESERVED. No part of this learning module may be reproduced, used in any form, or by any means graphic, electronic, or mechanical, including photocopying, recording, or information storage and retrieval system without written permission from the authors and the University Published and distributed by: Polytechnic University of the Philippines PUP A. Mabini Campus, Anonas Street, Sta. Mesa, Manila 1016 Direct Line: 335 - 1730 | Trunk Line: 335 - 1787 or 335 - 1777 local 000 Website: www.pup.edu.ph | Email: inquire@pup.edu.ph 2 The VMP GO VISION A Leading Comprehensive Polytechnic University in Asia MISSION Advance an inclusive, equitable, and globally relevant polytechnic education towards national development. PHILOSOPHY As a state university, the Polytechnic University of the Philippines believes that: • Education is an instrument for the development of the citizenry and for the enhancement of nation - building ; and, • That meaningful growth and transformation of the country are best achieved in an atmosphere of brotherhood, peace, freedom, justice and nationalist - oriented education imbued with the spirit of humanist internationalism. SHARED VALUES AND PRINCIPLES 1. Integrity and Accountability 2. Nationalism 3. Sense of Service 4. Passion for Learning and Innovation 5. Inclusivity 6. Respect for Human Rights and t he Environment 7. Excellence 8. Democracy STRATEGIC GOALS Pillar 1: Teaching and Learning SG 1: Innovative Curricula and Instruction SG 2: Empowered, Expert, and Productive Faculty Members SG 3: Holistic Student Development 3 Pillar 2: Research and Extension SG 4: Intensified Research Innovation, Dissemination and Utilization SG 5: Strengthened Sustainable and Impactful Extension Program SG 6: Expanded Research and Extension Networks with Local, National, and International Partners Pillar 3: Internal Governance SG 7: Transformational University Leadership SG 8: Judicious and Ethical Stewardship of Physical and Financial Resources SG 9: Effective and Efficient Human Resource Management SG 10: Excellent Citizen/Client Satisfaction SG 11: Smart Campuses PROGRAM DESCRIPTION The Bachelor of Science in Business Administration Major in Human Resource Management (BSBA - HRM) is a four - year program designed to prepare the graduates in a career in People Management, with a strong foundation of a holistic approach in business administ ration, and the application of Human Resource (HR) strategies which includes Talent Management, Compensation Management, Training and Development, Labor and Employee Relations, Performance Management, HR Analytics, and Organization Development. This progra m engages the students in diverse national and global business situations leading to proficiency in Risk Management and Good Governance of emerging Human Resource Management technologies producing HR professionals imbued with values - based competencies cont ributory to the effective and efficient management of human resources across all functions of business regardless of industry. 4 COURSE DESCRIPTION This course pertains to the application of managerial functions to business operations incorporating the tools and techniques of Total Quality Management to innovate production of goods and services. This course involves the importance of operations ma nagement to an effective supply chain, project management techniques, forecasting, product/process design, quality management and international standards, location and layout decisions, managing inventory, aggregate scheduling, Material Requirements Planni ng (MRP), Enterprise Resource Planning (ERP), and global operations strategies. At the end of the semester, students are expected to create an operations strategy which is applicable to a particular business situation. The course is delivered through a co mbination of strategically designed face - to - face and online (synchronous and asynchronous) sessions. INSTITUTIONAL LEARNING OUTCOMES (ILOS) As a polytechnic state university, PUP shall develop its students to possess: 1. Critical and Creative Thinking. Graduates use their rational and reflective thinking as well as innovative abilities to life situations in order to push boundaries, realize possibilities, and deepen their interdisciplinary, multidisciplinary, and/or transdisciplinary understanding of th e world. 2. Effective Communication. Graduates apply the four macro skills in communication (reading, writing, listening, and speaking), through conventional and digital means, and are able to use these skills in solving problems, making decisions, and articulating thoughts when engaging wit h people in various circumstances. 3. Strong Service Orientation. Graduates exemplify strong commitment to service excellence for the people, the clientele, industry, and other sectors. 4. Adept and Responsible Use or Development of Technology. Graduates demonstrate optimized and responsible use of state - of - the - art technologies of their profession. They possess digital learning abilities, including technical, numerical, and/or technopreneurial skills. 5. Passion for Lifelong Learning. Graduates perform and function in society by taking responsibility in their quest for further improvement through lifelong learning. 6. Leadership and Organizational Skills. Graduates assume leadership roles and become leading professionals in their respective disciplines by equipping them with appropriate organizational skills. 7. Personal and Professional Ethics. Graduates manifest integrity and adherence to moral and ethical principles in their personal and professional circumstances. 8. Resilience and Agility. Graduates demonstrate flexibility and the growth mindset to adapt and thrive in the volatile, uncertain, complex and ambiguous (VUCA) environment. 9. National and Global Responsiveness. Graduates exhibit a deep sense of nationalism as it complements the need to live as part of the global community 5 where diversity is respected. They promote and fulfill various advocacies for human and social development. PROGRAM LEARNING OUTCOMES (PLOS) Based on CMO No. 17, Series of 2017 1. Apply the basic concepts that underlie each of the functional areas of business (marketing, finance, human resources management, production and operations management, information technology, and strategic management) and employ these concepts in various bu siness situations. 2. Select the proper decision - making tools to critically. analytically and creatively solve problems and drive results. 3. Analyze the business environment. 4. Express oneself clearly and communicate effectively with stakeholders both in oral and written forms. 5. Demonstrate corporate citizenship and social responsibility. 6. Manage a strategic business unit for economic sustainability. 7. Apply information and communication technology (ICT) skills as required by the business environment. 8. Innovate business ideas based on emerging industry. 9. Conduct Business Research. 10. Generate new knowledge using research and development projects. 11. Perform the basic functions of management such as planning, organizing, staffing, directing and controlling. 12. Plan and implement business related activities. 13. Prepare operational plans. COURSE LEARNING OUTCOMES (CLOS). 1. At the end of this course, the students are expected to: 2. Understand the application of managerial functions to effective and efficient operations management 3. Analyze operational problems and apply appropriate techniques to address them 4. Evaluate an operations strategy 5. Create an operations strategy which is applicable to a particular business situation 6 Preface Operations Management and Total Quality Management (TQM) are essential disciplines that play a critical role in the success of any organization. In today’s competitive landscape, businesses must not only focus on efficiency and productivity but also priori tize quality and customer satisfaction. This instructional material aims to provide a clear understanding of key concepts in operations management, including supply chain dynamics, process optimization, and resource allocation. Additionally, it delves into the principles of TQM, emphasizing the importance of continuous improvement and employee engagement in achieving organizational excellence. This course pertains to the application of managerial functions to business operations incorporating the tools and techniques of Total Quality Management to innovate production of goods and services. This course involves the importance of operations man agement to an effective supply chain, project management techniques, forecasting, product/process design, quality management and international standards, location and layout decisions, managing inventory, aggregate scheduling, Material Requirements Planni ng (MRP), Enterprise Resource Planning (ERP), and global operations strategies. At the end of the semester, students are expected to create an operations strategy which is applicable to a particular business situation. The course is delivered through a com bination of strategically designed face - to - face and online (synchronous and asynchronous) sessions. 7 TABLE OF CONTENTS Page No. LESSON 1 – OPERATIONS AND PRODUCTIVITY a. Introduction 19 b. Learning Objectives/Out comes 19 c. Presentation/Discussion of the Lesson 19 d Activity 31 e Rubrics of Activity 32 LESSON 2 – THE GLOBAL ENVIRONMENT AND OPERATIONS STRATEGY a. Introduction 33 b. Learning Objectives/Outcomes 33 c. Presentation/Discussion of the Lesson 33 d. Activity 39 e Rubrics of Activity 39 LESSON 3 – MANAGING PROJECTS a. Introduction 41 b. Learning Objectives/Outcomes 41 c. Presentation/Discussion of the Lesson 41 d. Activity 44 e Rubrics of Activity 45 LESSON 4 – FORECASTING DEMAND a. Introduction 46 b. Learning Objectives/Outcomes 46 c. Presentation/Discussion of the Lesson 46 d. Activity 54 e Rubrics of Activity 55 LESSON 5 - PRODUCT DESIGN a. Introduction 56 b. Learning Objectives/Outcomes 56 c. Presentation/Discussion of the Lesson 56 d. Activity 66 e Rubrics of Activity 66 LESSON 6 – QUALITY MANAGEMENT a. Introduction 67 b. Learning Objectives/Outcomes 67 c. Presentation/Discussion of the Lesson 67 d. Activity 79 e Rubrics of Activity 80 LESSON 7 - PROCESS DESIGN a. Introduction 81 b. Learning Objectives/Outcomes 81 c. Presentation/Discussion of the Lesson 81 d. Activity 86 8 e Rubrics of Activity 86 LESSON 8 – LOCATION DECISIONS a. Introduction 87 b. Learning Objectives/Outcomes 87 c. Presentation/Discussion of the Lesson 87 d. Activity 94 e Rubrics of Activity 94 LESSON 9 – LAYOUT DECISIONS a. Introduction 95 b. Learning Objectives/Outcomes 95 c. Presentation/Discussion of the Lesson 95 d. Activity 102 e Rubrics of Activity 102 LESSON 10 – JOB DESIGN AND WORK MEASUREMENT a. Introduction 103 b. Learning Objectives/Outcomes 103 c. Presentation/Discussion of the Lesson 103 d. Activity 112 e Rubrics of Activity 112 LESSON 11 – SUPPLY CHAIN MANAGEMENT a. Introduction 113 b. Learning Objectives/Outcomes 113 c. Presentation/Discussion of the Lesson 113 d. Activity 123 e Rubrics of Activity 124 LESSON 12 – MANAGING INVENTORY a. Introduction 125 b. Learning Objectives/Outcomes 125 c. Presentation/Discussion of the Lesson 125 d. Activity 135 e Rubrics of Activity 135 LESSON 13 – AGGREGATE PLANNING a. Introduction 137 b. Learning Objectives/Outcomes 137 c. Presentation/Discussion of the Lesson 137 d. Activity 146 e Rubrics of Activity 146 LESSON 14 – MATERIAL REQUIREMENTS PLANNING (MRP) AND ENTERPRISE RESOURCE PLANNING (ERP) a. Introduction 148 b. Learning Objectives/Outcomes 148 9 c. Presentation/Discussion of the Lesson 148 d. Activity 158 e Rubrics of Activity 159 LESSON 15 – SCHEDULING a. Introduction 160 b. Learning Objectives/Outcomes 160 c. Presentation/Discussion of the Lesson 160 d. Activity 163 e Rubrics of Activity 164 LESSON 16 – LEAN OPERATIONS a. Introduction 165 b. Learning Objectives/Outcomes 165 c. Presentation/Discussion of the Lesson 165 d. Activity 174 e Rubrics of Activity 175 REFERENCES 176 10 COURSE SYLLABUS 11 12 13 14 15 16 17 18 19 Lesson 1 OPERATIONS AND PRODUCTIVITY INTRODUCTION Effective operations management helps with employee engagement and defines the roles and responsibilities within an organization. No matter what challenges that an organization faces, a strategic operations management plan in place will ensure that employe es’ workflow and company production remain unaffected. LEARNING OBJECTIVES 1. Appreciate and learn the concept of operations management and the functions associated with it. 2. Describe the operations management for goods and services. 3. Determine the challenges in achieving sustainable production while ensuring the company’s ethical and social responsibilities LECTURE DISCUSSION Introduction to Operations Management • What is operations? The part of a business organization that is responsible for producing goods or services • How can we define operations management? The management of systems or processes that create goods and/or provide services. • Scope of Operations Management The scope of operations management ranges across the organization. The operations function includes many interrelated activities such as: ➢ Forecasting ➢ Capacity planning ➢ Scheduling ➢ Managing inventories ➢ Assuring quality ➢ Motivating employees