Chapter 1: Operations and Productivity

A. Summary of Chapter 1 This chapter deals with Operations Management (OM) that pertains
with the set of activities that creates value in the form of goods and
services by transforming inputs into oubtputs. It is the activities
creating goods and services take place in all organizations. Marketing,
prodution/operations and Finance/accounting are the three
necessary ingredients for operation management to function. The
management process consists of planning, organizing, staffing,
leading and controlling. Productivity of the service sector has proven
difficult to improve because service-sector work is typically labor
intensive. It is also frequently focused on unique individual attributes
or desires. It is often intellectual task performed by professionals. It is
difficult to mechanize and auto. It is also difficult to evaluate for
quality. Even though it is difficult for productivity to improve there
are still countries that are maximizing the skills and knowledge that is
imparted to its productivity.

`B. Interesting Topic or
Lesson within this Chapter 1
C. Summary of the Global
Company Profile in Chapter
1 150 existing restaurant in more than 53 countries. Hard Rock has
(page 40 of the 12th edition)
The Current Challenges of Operations Management is what caught
my attention. The operations manager of a company will have to look
at these challenges as a reflection on how they’ll take advantage of it
or to get around it. This is information is widely reliable for me as a
student who aspires to become a head of a company. There are
examples of the challenges that operations management are
currently facing. First is Globalization, it is the rapid decline in the cost
of communication and transportation has made markets global. In
other words, companies are now competing and contributing for
economic growth. It is challenge for an aspiring Entrepreneur to
contribute to the world that is already existing. This that keeps on
changing and innovating we will reach the peak of our technology
soon. The next example is Lean operations, it is the standard against
which operations managers must compete. Well, as a student I want
to become the top of my own class. But reconsidering the fact that
there are lots of people better than you. You must strive to become
great, same thing as operations management.
The Hard Rock Café first opened its restaurant in London in 1970,
making it over 45 years old. The restaurant is still going strong, with
70.000 items and millions of dollars invested in memorabilia. To keep
customers coming back time and again, the company creates value in

D. Local Manufacturing
Company practicing most of
the OM Decision as featured
in Local Newspaper.
E. OM in Action:
(page 52 of the 12th edition)
Chapter 2: Operations Strategy in a Global Environment
A. Summary of Chapter 2
the form of food and entertainment. The operations managers at
Hard Rock Café at Universal Studios in Orlando provide more than
3,500 custom products. These products are designed, tested and
analyzed raw materials, labor requirements and customer
satisfaction. It has its own production process of receiving, to cold
storage to grilling or baking or frying and dozens of other steps.
Managers who successfully design and deliver goods and services
throughout the world understand operations. I honestly thing Jollibee
has already made its operational process successfully because they
already have different branches worldwide which started from our
beloved country. They still have innovative products to present to
customers up until this day,
I read about Kirstin Reyes who worked 7 years in Singapore where
she began an affair with coffee. She returned here in the Philippines
and created her own coffee brand. In 2014, she opened Barako Boy,
Tuguerao’s first coffee shop that sold at a low price. She is now a part
of 700 participants of the 3rd Philippine Coffee Conference that is held
in Baguio City. They all engaged in OM decisions in term of
production, processing, trade, roasting and marketing. At that
conference, the huge participants that represents different regions in
the country illustrates the country’s engagement in bean. Kirstin
showed the importance of her venture through her adaptation and
experience. She carefully made sure that she will answer the needs of
her market. She became one of the most essential coffee maker in
the industry.
Starbucks has improved its input by maximizing the time efficiency in
creating goods. They saved a few seconds of their operation that
created a huge profit margin every year. It has 46% increase and
yearly volume of $250,000 - $1,000,000 that resulted a 27%
improvement in overall productivity.
I honestly think that construction companies should maximize their
productivity by properly using their time in doing their work. I
observed that there are construction workers who would rather work
slowly in terms of fixing a road or building a house. Their way of doing
things are very taxing and inconvenient to other people. They should
improve it.
This chapter deals with Supply Chain Strategy that pertains with an
increase in both challenge and opportunities for operations
managers. There are six reasons domestic business operations decide

B. Interesting Topic or
Lesson within this Chapter 2
C. Summary of the Global
Company Profile in Chapter
2 developed real time to ground-based computer systems in another
(page 68 of the 12th edition)
to change to some form of international form. First is, to improve the
supply chain – it can be improved by locating facilities in countries
where unique resources are available. These resources may be
human resource expertise, low-cost labor, or raw material. The
second one is, to reduce costs and exchange rate risk. They usually
reduce risk associated with changing currency values and taking
advantage of the tangible opportunities to reduce their direct costs.
The third one is, Improve Operations – It gives a better understanding
of management innovations in different countries. The Fourth one is,
Understand Markets – it is the opportunity to expand the life cycle of
a business. The Fifth one is, Improve Products – Learning does not
take place in isolation it is okay to venture and look for partners that
could potentially beneficial to your business. Last and not the least,
Attract and Retain Global Talent – Companies should give more
employment opportunities for they can provide both greater
opportunities.
The cultural and ethical issues caught my attention because these are
great forces driving firms toward globalization. One’s country’s
culture deems acceptable may be considered unacceptable or illegal
in another. In the last decade, there are changes in international laws,
agreements, and codes of conduct have been applied to define
ethical behavior among managers around the world. Despite the
differences, we live in a period of extraordinary mobility of capital,
information, goods, and even people. I see this interesting because
even I observed difference within my own country. There are people
who has a different set of beliefs and perspective in their own
culture. Here in the Philippines, every places that you can visit could
have their own set of language and interpretation and beliefs. As long
as you can get along according to what they believed in and knows
how to value respect, you can be a great businessman worldwide. We
must embrace these difference and develop solutions and strategies
that is beneficial to our economy and future.
The Boeing strategy for its 787 Dreamliner is unique for its
technologically advanced design and vast global supply chain. They
product innovation. In collaboration with General Electric and Rolls-
Royce has resulted in the development of more efficient engines and
emissions reduction of 20%. They are developing a state-of-the-art
plane, it has advanced design, new manufacturing processes and a
committed international supply chain that helped Boeing and its
partners achieve unprecedented levels of performance in design and
manufacture. They strategized by accepting a challenge of teaming
with more than 300 suppliers in over a dozen countries. Twenty of
these suppliers developed technologies, design concepts, and major
systems for the 787. That made Dreamliner to more likely to from
Boeing that its competitor Airbus. In terms of restaurant I believe Mc
Donalds already had this strategy by creating menus based on the
 culture of the chain. For example, in the Philippines they have rice
meals and in japan they offer a different menu. They can’t do it
without the proper supply chain strategy that they needed for the
suppliers that will provide it for them.

D. Operations Strategy of
the School
In my current school, which is San Beda University I observed the
operations management within the cafeteria. I always took my time
to observe how they handle their food. They cook their food inside
the cafeteria itself and places their food according to their categories
may it be in breakfast or lunch. They also prepared snacks for the
students. I observed that they are implementing the CLAY GO system
that students will clean up their table as they leave. I honestly think
that there are still improvements needed inside the cafeteria because
it’s their primary goal to make sure that we students would always
choose their food than the others. San Beda University is surrounded
by food chains as you leave the campus. They should prepare a better
meal than could entice the students to choose theirs over and over
again. They already have a good operational system, in terms of
serving food. But there are still rooms for improvement.

E. OM in Action: The strategy that is used in this company which is Dyson is that they
(page 85) branched out their manufacturing process to nearby countries that
has a low-cost production. By using this kind of strategy they could
offer either a cheaper product or same price ranges but higher
profits. Asia is known as a continent that has a low-cost production
and most developed countries are seeking these to maximize the
possibilities of the company.
I suggest that the ongoing LRT extension should look for raw
materials that is potentially cheaper to other countries. I believed if
we look for materials that are cheaper but with the same quality we
could lessen the fare after it is finished since we are already
encountering huge change in terms of price changes because of
inflation.

Chapter 3: Project Management

A. Summary of Chapter 3 This chapter deals with Project Management that pertains with series
of related tasks directed toward a major output. It is consists of
Project planning, project scheduling, project controlling, determining
project schedule and project management techniques. It involves
three phases; the first one is, planning – it includes goal setting,
defining the project and team organization. The second one is,
scheduling – it relates people, money and supplies to specific

B. Interesting Topic or
Lesson within this Chapter 3
C. Summary of the Global
Company Profile in Chapter
3 projects, they are famous for its construction feats on the Hoover
(page 98)
D. An Example of an
Ongoing Government
Project
activities. The third one is, controlling – the firm monitors resources,
costs, quality and budgets. Project organization is helpful when tasks
can be defined with a specific goal and deadline. The job is unique or
somewhat unfamiliar to the existing organization and the work
contains complex interrelated tasks requiring specialized skills.The
models described in this chapter require good management practices,
breakdown of structure and responsibilities assigned and
straightforward and timely reporting systems.
Using Microsoft project to manage projects caught my attention
because it approached discussed so far are effective for managing
small projects. It is extremely useful in drawing project networks,
identifying the project schedule and managing project costs and other
resources. As an aspiring accountant learning Microsoft project is
really a big thing since it involves the specific weeks allotted we could
easily determine the price ranges and costs that is needed for us to
journalize. Before, I dreamed of becoming an IT related works but
things changed. The more I involve myself to computer related works
I am much more interested since I always believed that I have the
advantage in terms of computer skills. I want to prove to myself that
even the basics of Microsoft is my advantage in almost every work
that I am fed with.
Bechtel is known for premier manage of massive construction and
engineering projects. Their company is known for billion-dollar
Dam, Boston Central Artery/Tunnel Project, Riyadh, Saudi Arabia
Metro and over 25,000 other projects. Bechtel was tasked to
reconstruct war-torn Iraq in the last decade. The company founded
out that the nation had been crumbling for years. None of the sewage
plants worked, power flickered on and off and towns and cities had
been left to decay. They travelled under armed escort and slept in
trailers surrounded by razor wire. But all of their efforts has paid off
they managed to tap network of suppliers and buyers world-wide to
help rebuild Iraq’s infrastructure. In relation to the situation, small
scale businesses has experienced the same struggle as them. The
weight of workloads reflects the possible output of businesses. Just
like small franchised business.
This government project which is the fixing the road. This is located in
Angono Rizal, the problem with this road is that most trucks usually
drive through this road because of a near plant of rocks that is for
delivery. It ended up that the road is rough. They tried to fixed it over
and over again but it always end up being destroyed because of the
trucks. But now, as I observed the road being fixed the way it’s
supposed to be. And It made feel happy about it because I always
drive through this road that made me feel convenient. Even though
they work slow that made me feel irritated most of the time but as
time passes by as results starts to sink in. I can’t wait for it to be done.

E. OM in Action:
(page 104 or page 123)
Chapter 4: Forecasting
A. Summary of Chapter 4
B. Interesting Topic or
Lesson within this Chapter 4
Sometime, I think that the government are taking advantages of
these projects for corruption. But it’s none of my business even
though it takes more than a year just to destroy and rebuild roads
which is very long.
Based on the OM in Action that I read which is the Tour de France is
that they are maximizing the potential of a rider through their snack
bars to give before, during and after the race. The competition is
consists of riders across the globe. They made sure that through
managing it properly they can be a high competitor against the world.
By maximizing the potential through customized bikes, uniform and
food preferences.
I honestly believed that there are high class restaurants that are using
these kind of strategy. By making sure that they are working with
people that can keep up with their phasing. They are choosing chefs
that could potentially affect the restaurant positively. They are
maximizing the potential of a restaurant to satisfy their hungry
customers.
This chapter deals with Forecasting that pertains with the art and
science of predicting future events. It is consists of the importance of
forecasting, forecasting system, forecasting approaches and Time-
series forecast. It plays a critical part on the operation’s manager to
determine future events. The forecast is the only estimate of demand
until actual demand becomes known. In relation to the Supply-Chain
Management, a good relationship with a supplier and relations and
ensuring the advantages in product innovation, cost and speed to
market depend on accurate forecast. In terms of Human Resources,
hiring and laying off workers all depend on anticipated demand. If the
human resources department must hire additional workers without
warning. Capacity, if this is inadequate this court result to shortages
that can lead to loss of customers and market share. Forecasting is
filled with different variety of qualitative and quantitative forecasting
techniques. It drive a firm’s production capacity, and scheduling
systems that could affect the financial, marketing and different
planning functions.
I really find the forecasting approaches interesting because it has two
general approaches. First is a quantitative analysis that uses a variety
of mathematical models that only rely on historical data and
associative variables to forecast demand. The second one is the
 qualitative forecast because it incorporate such factors as the
decision maker’s intuition, emotions, personal experiences, and value
system in reaching a forecast. I really think that we must know how to
use this approaches because it could actually reflect the capability of
a company to provide results. For example, Market survey this is a
method solicits input from customers or potential customers
regarding future purchasing plans. It can help not only in preparing a
forecast but also in improving a product design and planning for new
products. We must not disregard this logical approaches for future
references.

C. Summary of the Global I know that we are all aware of the most respected global brand
Company Profile in Chapter Disney, It’s CEO Robert Iger who daily manages the entertainment
4 giant. The forecasting team of Disney provides daily, weekly, monthy,
(page 144) annual and 5-year forecasts to the labor management, maintenance,
operations, finance and park scheduling departments. They use
judgmental models, econometric models, moving-average models
and regression analysis. Igor takes this forecasting seriously as he is
the man that made sure that all of this are accurate. They also
surveyed, administered to guests at the parks and its 20 hotels, to
employees, and to travel industry professional, examine future travel
plans and experiences at parks. This helps the forecast not only in
attendance but also on the behavior of each ride. These forecasts
helps them improve the service that they offered. Here in the
Philippines, I believed Enchanted Kingdom also apply these kind of
strategies to monitor the maintenances and the possible behaviors of
the people who are visiting the theme park.

D. Forecasting in a chosen My favorite fast food restaurant is McDonalds because I spent almost
Quick Service Restaurant my whole lifetime by keeping my loyalty to this restaurant. Well,
they’ve made a huge impact in my life up until this day because most
of the most important events in my life has been spent in this
restaurant. When I was a kid, I was a kiddie crew in this restaurant
that made me fully aware of the operational of McDonalds. I first
started to greet the customers as I open the doors of McDonalds and
then learned cashier at a very young age. I was little bit competitive
back then as I want to be the best among other kids. In terms of
foods, they can use moving averages on what menus that are most
likely to be bought in a span of months. They can easily determine the
best selling products. They could also use Exponential Smoothing for
that but Moving Average is much more recommended. I really believe
that McDonalds already made its impact and still being competitive
among the market. I know from the fact that they are already
maximizing the use of forecast for future plans.
E. OM in Action:
(page 151 or 175)
Forecasting at Olive garden, gave me a bright idea and thinking that
forecasting plays a major role in small scale restaurants. They already
forecasted what the raw materials that are needed and on what
potential customers would buy according to the conditions that they
have set based on demand history. It helped them save lots of money
and minimized their expenses.
I honestly think that Lindo Chinese restaurant needed forecasting. I
observed that there are tons of restaurant that disregarding the
importance of these forecasts. Filipinos usually chose to estimate on
what raw materials that are needed but always end up wasting it.

Chapter 5: Design of Goods and Services

A. Summary of Chapter 5 This chapter deals with Product Strategy that pertains with the
strategy that meets the demand of the marketplace with a
competitive advantage. It is consists of generating new products,
product development, issues for product design and product
development continuum. Well in terms products, as potential
operation managers you must be prepared to develop new products,
they must also be prepared to develop strategies for new and existing
products. Strategies change as products move through their life cycle.
Most successful products strategies require determining the best
strategy for each product approach. It has four phases, the
introductory phase, growth phase, maturity phase and the declining
phase. An effective product strategy requires designing, selecting,
and defining the improvement and transition of the product through
process. The task of the manager is to build a development system
that has the ability to catch the attention of consumers for
competitive advantage on its industry. Both tangible and intangible
assets has their own different approaches in having an upper hand in
the industry. There must be a specific step by step production process
for a high quality product.

B. Interesting Topic or By reading this chapter, Adding Service Efficiency caught my

Lesson within this Chapter 5
attention. For what we all observed, service productivity is really low
because it complicated in terms of the delivery of the service or
design that complicates the product design challenge. The first thing
is to limit the options because customers may participate in the
design of the services, specification may take the form of everything
from menu, to a list of options or a series. You can also delay the
customization of design, this how salon operates and some
restaurant so that the output would fit according to the preferences
of the consumer. Modularize the services so that customization takes
the form of changing modules. It allows you to be flexible and lets
you build a chemistry according to your taste. Automation will divide
 the service into small parts and identify those parts that lend
themselves to automation. The last one is to build a relationship
between the provider and the customer. We must always make sure
that the satisfaction of the customers would be full because as long
as we treat them right they will play a crucial role on the increase of
demand of your product or service.
C. Summary of the Global Forty years after it founding by potato farmer Paul Kuck, Regal
Company Profile in Chapter Marine has become a powerful force on the water of the world. Their
5 product design is critical in the high competitive pleasure boat
(page 198) business. It is crucial to keep in touch with customers and respond to
the marketplace since they are exporters of more than 30 countries
including Russia and China. Regal Marine is a frequent user of
computer-aided design. They’ll make sure that the new designs will
come to life. All of their products, from its $14,000 19-foot boat to
the $500,000 52-foot Sports yacht, follow a similar production
process. They are in constant issue of cost competitiveness that is
combines with the need to provide good value for the customers.
Because of the changing consumer tastes, compounded by material
changes and ever-improving marine engineering. Just like what Kuck
stated, “We’re introducing six models this year alone. I’d’ say we’re
definitely on the aggressive end of the spectrum”
D. Purchased Product This company holds dear to me especially when I held my first
birthday on this restaurant. I used their product to show a sample of
how close to them to my heart. Well, I ordered chicken sandwich
which is filled with mayonnaise and boneless chicken inside of it. This
is my comfort food whenever I am stressed of hungry. It never fails to
satisfy my taste buds whenever I feel like eating it. Well, there are
restaurants that provides food and yet it disappoints me. Even if it’s
Jollibee, sometimes the quality varies on the franchise on how they
prepared it. I also always order Iced Tea as a compliment on what I’m
eating since I am a little bit health conscious I don’t like to drink coke
or soft drinks. I always choose an alternative that has a lower sugar
level. I know that Mc Do is already known across the globe, kudos to
mc do for being consistent throughout these years.

E. OM in Action: The process of operational that is existing in this OM in Action is that

(page 2010 or 212) they are maximizing the use of technology in creating product designs
that is essential for each business. Specifically, 3D printers are now
useful in creating designs. Everything that seem impossible to create
became possible through this.

I honestly think that schools should use 3D printers because right now
I could still see that these printers are still underrated to education.
Only top companies are capable of maximizing its use. I feel bad if
artists, digital designers and designers can’t use this. It’s a waste of
talent and of opportunity if schools don’t invest in these printers.