Republic of the Philippines

PALAWAN STATE UNIVERSITY

College of Business and Accountancy

Department of Financial Management, Human Resource
Management and Business Economics
Puerto Princesa City, Palawan, 5300, Philippines

MODULE 1:
PRODUCTION AND OPERATIONS
MANAGEMENT
BMEC 1: OPERATIONS MANAGEMENT
2nd Semester | SY: 2021-2022

Modification of course contents, teaching-learning activities, and assessment tasks to ensure alignment
with the most essential learning outcomes in the context of teaching and learning amid COVID-19
pandemic
 TABLE OF CONTENTS

Title Page of Module 1

Table of Contents 2

Overview 3-4
Course Outcome 4
Learning Outcomes 4
Summary of Topics 4

Content
Topic 1: Introduction to Production and Operations
Management 5-8
Topic 2: Operations and Management Levels, Functions
Styles and Types 9-15
Topic 3: Porters Five Forces of Model 16-19

Module Activity No. 1,2 & 3 20-21

Supplementary Readings/Materials 22
References 22

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 MODULE 1 |
PRODUCTION AND OPERATIONS
MANAGEMENT

Our Dear PSU Students,

You deserve to be CONGRATULATED for facing our current condition with strength, hard
work and utmost dedication. Please know that we completely understand what you
are going through. Rest assured that you will have the best mode of learning according
to your current circumstances. We will help you get through this.

If you have any questions or concerns, or even if you would like to express your feelings,
please feel free to reach out to us, your instructors/professors. Let us all welcome this
academic year with a blast as we embrace the New Normal.

Overview

According to the Cambridge Dictionary, the meaning of operations management is

defined as “The control of the activities involved in producing goods and providing
services, and the study of the best ways to do this.”

In essence, the role of operations management is crucial to any business. Imagine this:
You’re a plastic manufacturer and supply various companies with packaging. You’ve
just brought a new client on board and they’re looking to launch their goods within a
month or so. Where do you start? Well, the operations manager will ensure that the
correct budget is allocated, the right people are on the job, and to make sure that
everyone involved is aware of the roles they play. This will help to ensure that the
deadline is met and within budget.

Effective operations management also helps with employee engagement and defines
the roles and responsibilities within an organization. No matter what obstacle an
organization faces, operations management plan in place will ensure that employees’
workflow and company
production remain unaffected.

___________________________________________________________________________________

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Obviously without organization there would be chaos all over. Operations
Management is a big part keeping things organized and flowing correctly.

This chapter provides a definition of production and operations management. The role
and importance of production and operations management in an organization are
described, along with operations decisions that are made. The differences between
manufacturing and services are described. The history and current trends of operations
management are discussed, including its advantages, level and importance.
(www.sba.oakland.edu)

Production and Operations Management is the process, which combines and

transforms various resources used in the production/operations subsystem of the
organization into value added product/services in a controlled manner as per the
policies of the organization. Therefore, it is that part of an organization, which is
concerned with the transformation of a range of inputs into the required
(products/services) having the requisite quality level. (www.slideshare.net/niaz007)

Course Outcome:
Explain how operations management contributes to the achievement of an
organization’s strategic objectives

Intended Learning Outcomes:

✓ Describe the core concepts of the course particularly in the definition of terms,
the role of production and operations management in an organization, the
relationship between production and operations management and the internal
and external environments.
✓ Evaluate one (1) Local Company / Business that practices good operations
management.
✓ Identify factors in today’s business operations affects the Porters Five Forces of
Model

Topics:

1. Introduction to Production and Operations Management

2. Operations and Management Levels, Functions, Skills, Styles and Types

3. Porters Five (5) Forces of Model

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Topic #1: INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT

Operation Management is the management of that part of an organization that is

responsible for producing good and/or services, according to William J. Stevenson.
Recognizing the importance of operations management and knowing how it works
among society today, is the key to learning what it is. Business organizations typically
have three basic functional areas which are finance, marketing and operations.
Operations entail the production of a product or service and must manage the inputs
to production such as workers’ time, aluminum, and machine time to create airplane
parts Finance manages the assets, such as the building used for production, investments
and cash flows related to production, such as providing the needed machines.
Marketing generate sales of the product or serves, such as finding customers for the
proposed airplanes. (www.sba.oakland.edu)
Most business have three basic functional areas:
o Finance/Accounting – it secures, allocate and manage financial resources
o Marketing – assess consumer needs, generate demand, sell, promote and
distribute solutions (i.e. products)
o Operations – manage the production process. Linked to supply chain, also
vital for all firms.

What is Operations Management?

Operations management is the administration of business practices to create the
highest level of efficiency possible within an organization. It is concerned with
converting materials and labor into goods and services as efficiently as possible to
maximize the profit of an organization. Operations management teams attempt to
balance cost with revenue to achieve the highest net operating profit possible.
(investopedia.com)
• Set of activities that creates value in the form of goods and services by
transforming input into output.
• The organizing and controlling of the fundamental business activity of
producing goods and services to customers.
• The management of processes or systems that create goods and/or provide
services.
• The maintenance, control, and improvement of organizational activities that
are required to produce goods and services for customers.
(www.chegg.com)

Levels of Operations Management

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You can think of operations management as three levels; strategic, tactical, and
operations. To achieve the company’s goals, operations managers develop strategies.
Under those broad strategies are tactics, or specific tasks and steps to implement the
strategies. (www.smartsheet.com)

Strategic level - Strategic issues such as determining size and location of

manufacturing plants; the structure and designing supply chains, etc.

Tactical level - Tactical issues such as plant layout and structure, project
management methods, equipment selection and replacement etc.

Operational level - Operational issues such as production scheduling and

control, inventory management, quality control and inspection, traffic and
materials handling, equipment and maintenance policies etc.

Supply Chain

Supply chain - the sequence of organizations’ facilities and production and distribution
functions. (www.csus.edu)

Why manage supply chain?

• To handle complex challenges in improving performance

• To avoid unwanted inventory oscillations and quality problems by streamlining
the marketing, production and inventory functions.
• To adjust to emerging practices such as lean operation, JIT and TQM which
improve quality and reduce costs
• To deal with increasing levels of outsourcing - which increase time and money
spent on supply-related activities (e.g. wrapping, packaging, moving,
loading, unloading and sorting).
• To reduce increasing freight and haulage costs through proper planning
• To deal with competition related challenges of incessant new products,
shorter product development cycles and increased demand for
customization
• To deal with the emerging vast expanse of the supply chain playing field due
to globalization.
• To deal with the challenges of the emerging all-important ‘e-business’.
• To ensure optimal inventory levels at all times (i.e. no shortages; no excesses).
• To deal with numerous supply chain related challenges such as: late deliveries,
inaccurate forecasts, substandard quality equipment or machine
breakdowns, power failure and cancelled or changed orders etc.

Essential Activities in Operations Management

• Forecasting – Estimating demand, and required operational conditions to

achieve set goals.
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 • Capacity planning – Estimating optimal operating levels with adequate cash
flow and revenue projections.
• Scheduling – setting time schedules for production schedules to meet
estimated demands.
• Managing inventory – Maintaining optimal stock levels; EOQ; right quality;
storage facilities; material handling systems, supplier relations etc.
• Assuring quality – Ensuring reliable quality control measure to meet customer
expectations.
• Motivating employees – Training and motivating employees to meet
production targets
• Locating facilities – Deciding location of operations units and distribution
points.

Production Management
Production Management means planning, organizing, directing and controlling of
production activities. Production management deals with converting raw materials
into finished goods or products. (kalyan-city.blogspot.com)
It is the facilitation of activities involved in the creation of goods and services.
Goods - physical items (e.g. mobile phone including its components)
Services - activities that provide a combination of time, location or
psychological value.

Importance of Operating Systems

Operation Systems - An operating system is a configuration (design, pattern) of
resources for the conversion of inputs into outputs to satisfy customer wants and
needs.
Importance of Operation - An effective and efficient operating system enables
organizations to:
• Compete on Cost – eliminate waste by analyzing activities and value and
tightening production standards
• Competing on Quality - minimizing defect rate; conforming to design
specification and meeting customer’s expectation of quality
• Competing on Flexibility - produce variety of products; introduce new products;
modify existing products; respond quickly to customer needs
• Competing on speed – making fast moves; adapting fast and maintaining tight
linkages with suppliers

Why Study Operations Management?

For strong business intelligence, strategic initiatives and international competitive
advantage in today’s fast paced global market. The OM function permeates all other
business functions. 50% or more jobs in OM–related areas—e.g. customer service, Q-

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assurance, prodn. planning & control, job design, scheduling, inventory management
etc. - all intertwined. OM knowledge required to improve technology (procedures and
equipment) used in accounting, finance, administration, HR, logistics, MIS, marketing,
purchasing etc. Work is interrelated – Accountants need OM knowledge e.g. (inventory
management, work measurement and processing systems) to estimate costs, conduct
audits, and prepare financial reports. Also, finance – for ‘make-or-buy’ decisions.
To ensure steady growth and expansion of establishments, entrepreneurs need OM
knowledge to guarantee customers value for their money. OM spells effective
management and thus all managers need some knowledge in all aspects of it. OM is a
costly facet of an organization and knowledge enhances managerial judgments and
decision making.
Careers / Opportunities in OM
Opportunities abound in both service and manufacturing establishments;

• Technology/methods - Professional institutions, e.g. ICA Ghana, ACCA

• Facilities/space utilization - Consultancy firms
• Strategic issues - Production and Inventory Control or management
departments
• Response time – Parcel delivery and restaurant services
• People/team development - Religious bodies, societies etc,
• Customer service and Quality control and assurance units
• Procurement or National Association of Purchasing and supply Management
• Management information systems units
• Banking and Financial Services institutions
• Operations research and statistical service institutes
• Cost reduction/productivity improvement - manufacturing companies
• Project management sections of constructions companies, etc.
• Job titles include plant manager, operations analyst, quality manager, supply
chain manager and planner, process improvement consultants, etc.

___________________________________________________________________________________________

Topic #2: OPERATIONS AND MANAGEMENT LEVELS, FUNCTIONS, STYLES

AND TYPES

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What is Management?

Management is the process of dealing with or controlling things or people. It includes

the activities of setting the strategy of an organization and coordinating the efforts of
its employees (or of volunteers) to accomplish its objectives through the application of
available resources, such as financial, natural, technological, and human resources.
(en.wikipedia.org)
Operations management focuses on carefully managing the processes to produce
and distribute products and services. A great deal of focus is on efficiency and
effectiveness of processes. Therefore, operations management often includes
substantial measurement and analysis of internal processes.

Managers at the operational level in a company occupy the lowest rung in the
management hierarchy. These managers directly supervise employees and may be
known as first-line or front-line managers, supervisors, team leaders or team facilitators.
To operational managers falls the responsibility of the day-to-day operations that
directly affect a company's external customers. This makes the operational
management level crucial to the success of the strategic and competitive goals of an
organization.

Levels of Management
The three levels of management typically found in an organization are low-level
management, middle-level management, and top-level management.
✓ Top (high-level) Management
is also referred to as the administrative level. They coordinate services and are
keen on planning. The top-level management is made up of positions such as
president, CEO, CFO and vice-president who make decisions regarding the firm’s
long-run objectives.
(Add)

They control the management of goals and policies and the ultimate source of
authority of the organization. They apply control and coordination of all the
activities of the firm as they organize the several departments of the enterprise
which would include their budget, technique and agendas.
(managementstudyhq.com)

_____________________________________________________________________________

Upper management is concerned with the organization as a whole -- its mission,

vision, and long-term strategy. As such, top management plans heavily, playing
the role of company visionary. In a sole proprietorship or partnership, owners
and top management are synonymous. In a corporation, key top management
roles are appointed by a board of directors to which top management must
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 answer. Besides planning, upper management oversees middle managers. If
any alliances with outside organizations are needed, it is top management that
creates the partnerships.

✓ Middle Level Management

is also referred to as the executory level, they are subordinates of the top-level
management and are responsible for the organization and direction of the low-
level management. They account for the top-level management for the activities
of their departments.

They are in charge of the employment and training of the lower levels. They ate
also the communicators between the top level and the lower level as they
transfer information, reports, and other data of the enterprise to the top level.
Managers who are often responsible for the firm’s short-term decisions.
(managementstudyhq.com)

Depending on their positions, middle managers may supervise first-line

managers, other middle managers, departments or whole divisions of a
company. Carrying titles of vice president or below, these managers create
plans and objectives they want realized in a year or less. Successful plans further
the overall strategy and direction of the company as set by upper
management. While the concern of operational plans is day-to-day work, the
focus of middle management’s plans focuses on competing in the
marketplace. Middle managers often serve as liaisons to other departments and
use interpersonal skills to coordinate and cooperate interdepartmentally

✓ Lower Level (first-line) Management

is also referred to as the supervisory or the operative level of managers. They
oversee and direct the operative employees. They spend most of their times
addressing the functions of the firm, as instructed by the managers above them.
Operational managers are also called first-line managers, supervisors, team
leaders or team facilitators. This management level deals directly with
employees, and must exercise strong leadership skills. Technical ability -- the
understanding of the actual work processes -- is also a key concern of
operational management.
__________________________________________________________________________________
Supervisors answer to middle management, who provide the first line with
tactical goals and plans. It’s up to operational managers to translate these
targets to short-term goals and plans that will eventually fulfill the expectations
of middle management.

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 They are the first line of managers as they feature at the base of operations, so
they are essential personnel that communicates the fundamental problems of
the firm to the higher levels. (managementstudyhq.com)

(managementstudyguide.com)

Comparison of Responsibilities Among Managers

• Top Management
Set new plan to expand production & increase sales.
Communicate those plans to all managers.
• Middle Managers
Determine how many new employees to hire.
Determine how to charge lower prices to increase sales.
Determine how to increase advertising to increase sales.
Determine how to obtain funds to finance the expansion.
• Supervisory Managers
Provide job assignments to the new employees who are hired.
Set time schedules for new employees who are hired.

___________________________________________________________________________________
Functions of Management

In the past, operations had a much more challenging time with boosting efficiency
within their production facility. This was due to a lack of thorough insight and hindrances
that included a lack of collaboration throughout the organization. As production

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facilities came across this problem frequently, operations management became a
viable solution.
Operations management pertains to managing the operation and process within an
organization. With effective operations management, there is much more
accountability and accuracy for successful delivery of a product or project. Within the
process, operations management performs various functions that are apart of aiding
the increase within production.

The four basic functions of management are planning, organizing, leading and
controlling. These function work together in the creation, execution and realization of
organizational goals. The four functions of management can be considered a process
where each functions builds on the previous function. (www.indeed.com)

• Planning
In the planning stage, managers establish organizational goals that
create a course of action to achieve them. During the planning phase, management
makes strategic decisions to set a direction for the organization. Managers can
brainstorm different alternatives to achieve the objective before choosing the best
course of action. While planning, managers typically conduct in-depth analysis of the
organization’s current state of affairs, taking into consideration its vision and mission and
evaluating what resources are available to meet organizational objectives.

Planning in Operations Management is the development of plans

and strategies that will allow your business to effectively seize opportunities and meet
challenges head on. It's linking strategic business goals to tactical objectives, which are
intermediate steps taken to achieve your goals. Operations management planning
also involves taking the necessary steps on the ground for achievement of business
goals.

• Organizing
The purpose of organizing is to distribute the resources and delegate
tasks to personnel to achieve the goals established in the planning stage. Managers
may need to work with other departments of the organization, such as finance and
human resources, to organize the budget and staffing. Managers typically takes
employee’s motivation and aptitude into account to match employees with roles and
tasks that best fit their abilities.

___________________________________________________________________________________
Organizing in OM involves assigning tasks, grouping tasks into
departments, delegating authority, and allocating resources across the organization.
During the organizing process, managers coordinate employees, resources, policies,
and procedures to facilitate the goals identified in the plan

• Leading

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 Leading consist of motivating employees and influencing their
behavior to achieve organizational objectives. Leading focuses on managing people,
such as individual employees, teams and groups rather than tasks. Though managers
direct team members by giving orders and directing to their team, managers who are
successful leaders usually connect with their employees by using interpersonal skills to
encourage, inspire and motivate team members to performs to the best of their abilities.

• Controlling
It is the process of evaluating the execution of the plan and making
adjustments to ensure that the organizational goal is achieved. During the controlling
stage, managers perform tasks such as training employees as necessary and managing
deadlines. Managers monitor employees and evaluate the quality of their work. They
can conduct performance appraisals and give employees feedback, providing
positive remarks on what they are doing well and suggestions for improvement. They
may also offer pay raise incentives to high-performing employees.

Controlling in Operations Management is used to regulate the

internal processes necessary to monitor and direct of the company in the short term. It
allows making business decisions related to ongoing business operations. The main tasks
of operational controlling include:
o controlling of the results,
o liquidity planning,
o monitoring of profitability,
o improving effectiveness of use of existing resources.

Managerial Skills

A good manager has all the skills and can implement those skills for running the
organization properly. These skills are;

• Conceptual skills (analytic skills)

The ability to understand the relationships among the various tasks
of a firm and the ability to coordinate and integrates all pf an
organization’s interests and activities.
• Interpersonal skills (communication skills)
The skills necessary to communicate with customers and
Employees. Convey ideas and information to others and receive
information and ideas from others effectively

• Decision-making skills
Skills for using information to determine how the firm’s resources

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 should be allocated. Make decision that will lead the organization
to the attainment of its goals.

(www.management.com)

Managerial Styles

The type of leader you are has a significant impact on the success of your team. A
strong leader is likely to inspire loyalty, hard work, and high levels of morale, whereas a
poor leader can result in frequent turnover, loss of productivity, and unmotivated
employees.

• Autocratic
An autocratic or authoritarian manager makes all the decisions,
keeping the information and decision making among the senior
management.
The direction of the business will remain constant, and the decisions
will be quick and similar, this in turn can project an image of a
confident, well managed business.
Subordinates may become dependent upon the leaders and
supervision may be needed; This style can decrease motivation and
increase staff turnover.

• Democratic (participative)
The manager allows the employees to take part in decision-making:
therefore, everything is agreed by the majority. (empowerment)
This style can be particularly useful when complex decisions need to
be made that require a range of specialist skills;
From the overall business' point of view, job satisfaction and quality
of work will improve.
The decision-making process is severely slowed down, and the need
of a consensus may avoid taking the 'best' decision for the business.

___________________________________________________________________________________

• Laissez-faire (free-rein)

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 The leader delegates much authority to employees; the leader's role
is peripheral and staff manage their own areas of the business.
The style brings out the best in highly professional and creative
groups of employees.
The leader therefore evades the duties of management and
uncoordinated delegation occurs;
This leads to a lack of staff focus and sense of direction, which in turn
leads to much dissatisfaction, and a poor company image

Various management styles can be employed dependent on the culture of the

business, the nature of the task, the experience and personalities of the workforce and
the personality and skills of the leaders.

Managers should exercise a range of management styles and should deploy them as
appropriate.

Leadership vs Management

• In a nutshell, the difference between leadership and management is:

• Leadership is setting a new direction or vision for a group that they
follow, ie: a leader is the spearhead for that new direction;
• Management controls or directs people/resources in a group
according to principles
• or values that have already been established.

(www.management.com)

___________________________________________________________________________________

Topic #3: PORTERS FIVE FORCES OF MODEL

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Porter's five forces analysis is a framework that attempts to analyze the level of
competition within an industry and business strategy development. A framework for
understanding the competitive forces at work in an industry and which drive the way
economic value is divided among industry actors” ISC webpages
It draws upon industrial organization (IO) economics to derive five forces that determine
the competitive intensity and therefore attractiveness of an Industry.
Attractiveness in this context refers to the overall industry profitability. An "unattractive"
industry is one in which the combination of these five forces acts to drive down overall
profitability.
A very unattractive industry would be one approaching "pure competition", in which
available profits for all firms are driven to normal profit. This analysis is associated with its
principal innovator Michael E. Porter of Harvard University.
The Five Forces can help explain these kind of phenomena as well as help:

▪ understand your industry of interest

▪ identify attractive vs less attractive industries/markets
▪ identify opportunities and risks
▪ how profits within an industry will be distributed
▪ extrapolate industry trends & anticipate changing trends

Components of Porter’s Five Forces Model

Threat of new entrants

Threat of substitutes
Bargaining power of buyers
Bargaining power of suppliers
Rivalry inside the industry

(www.business-to-you.com)

Threat of New Entrants

Winners attract others that wish to get a share of their success.

___________________________________________________________________________________

A company that makes above industry-average profits will face the risk of new entrants
that may either imitate bluntly or come up with similar (or even somewhat better) value
proposals. This threat alone can keep a lid on the achievable profits. It may lead to

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having into continually add to the original value proposal with limited ability to increase
prices.

The market is full of competition. Not only the existing firms pose threat to the business,
but the arrival of new entrants is also a challenge. As per the ideal scenario, the market
is always open for entry and exits, resulting in comparable profits to all the firms. But, this
is not applicable in the real picture market. In reality, all industries have some traits that
protect their high profits and help them in warding off potential new entrants by
erecting barriers

Threat of Substitute Products or Services

Let’s first clarify what a substitute is (and what it’s not). It is not the same product from a
different company. Buying petrol from a different brand petrol station is not a substitute.
Driving an electric vehicle is a substitute for using oil (it’s a substitute on the dimension
of energy but not one on the dimension of transport). Using a train to commute to work
is a substitute for using a car (on the transport dimension/industry)

Substitutes satisfy the same basic/economic need (or utility) using a different
technology (in a narrower viewpoint coming from the same industry). Clayton
Christensen’s concept of “getting the job done” extends this definition. E.g. there are
many things that compete for your recreational time which may be suitable to
substitute each other. In this case, the substitutes may be coming from an entirely
different industry.

The substitutes can be defined as the products of other industries that have the ability
to satisfy similar needs.

Example: Coffee can be a substitute for tea, as it can be also used as a caffeine drink
in the morning.

When price of a substitute product changes, the demand of a related product also
gets affected. When the number of substitute product increases, the competition also
increases as the customers have more alternatives to select from. This forces the
companies to raise or lower down the prices. Hence, it can be concluded that the
competition created by the substitute firms is ‘price competition.

___________________________________________________________________________________

BARGAINING POWER OF BUYERS

This has an important effect on the manufacturing industry. When there many producers
and there is a single customer in the market, then that situation is called as
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‘monopsony’. In these markets, the position of the buyer is very strong and he sets the
price. In reality, only a few monopsony markets exist. The bargaining power of the
buyers compels the firms to reduce the prices and may also demand a product or
service of higher quality at low price.

BARGAINING POWER OF SUPPLIERS

Where suppliers are powerful they may make a larger profit margin than the company
that integrates the inputs of several suppliers to sell to the end customer. Since the
company needs raw material for producing, therefore the producers have to build a
relationship with its suppliers. When suppliers have the power in their hands, they can
exert influence on the producing firms by selling them raw materials at higher prices.

Example: Wal-Mart as an organization thrives on the basis of its relationship with its
suppliers.

RIVALRY INSIDE THE INDUSTRY

For most industries the intensity of competitive rivalry is the major determinant of the
competitiveness of the industry. Not all industries are equal. Some are much more
competitive than others. Prof Porter has identified the settings that frequently lead to
fierce competition.

Ingredients of highly competitive industries are:

▪ Many competitors of similar size in the industry (i.e. level of fragmentation / low
degree of concentration within the industry) can lead to prolonged competition
with most innovations being harvested by buyers/consumers. Industries with only
a few competitors of similar size can lead to oligopolies
▪ Slow aggregate industry growth (on the demand side) can lead to rivals
competing for market share as the “only” way to grow thereby instigating a nil-
sum game where everybody tries to get market share from someone else
▪ High fixed costs, i.e. where idle capacities come at high cost leading to pressure
to sell at low margins to generate revenue contribution to the cost base
▪ High exit barriers (see above) where the productive assets remain in the market
due to their high remaining values
▪ Highly committed players, e.g. industries of national interest (airlines) or prestige
(smartphones)

___________________________________________________________________________________

Where competitors have different goals or ways of measuring success. Chinese heavy
industries, e.g. steel, have been supported by their government for their strategic
importance in urbanization. Their excess capacities used as exports were large enough
to subdue world steel prices.

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 MODULE ACTIVITY NO. 1 |
PRODUCTION AND OPERATIONS
MANAGEMENT
BMEC 1: Operations Management I Module 1: Production and Operations Management
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Instructions:
You are required to answer the following activities related to the topics discussed in
Chapter 1 - Production and Operations Management. Your answer should be well
supported and should include the required information/details in each question.
Write/encode your answer on a short size paper (letter: 21.59cm x 27.94cm, arial font
style, size 12).

Activity 1:
1. How is Operations Management relevant to the course you are taking?

Activity 2:
1. Evaluate one Local Company / Business which you consider practices good
operation management.

Activity 3:
1. Consonance to Porters Five Forces of Model, what factors in today’s business
operation would you think affects the following?

1. Bargaining Power of Buyer

2. Bargaining Power of Supplier
3. Threat of New Entrants
4. Threat of Substitute Products or Services
5. Rivalry Among Existing Competitors

___________________________________________________________________________________
The table below illustrated a grading rubric for assessing your answer in the given activity
above.
Rubric for Assessment of the Personal Essay
Total Score
25 PTS 5pts 4pts 3pts

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 Well-developed introduction engages Introduction creates interest. Sufficient Introduction adequately explains the
INTRODUCTION the reader and creates interest. Contains background information is provided. background, but may lack detail. States
Background/History detailed background information. Clearly states the position or belief. the position or belief.
Statement Clearly states a significant and Recognizable and ties up almost all
5PTS compelling position or belief. loose ends.
The main idea is clearly defined. There The main idea can be identified. The The main idea can be identified. The
may be more than one key point. writer shares relevant information, facts writer shares some information, facts
MAIN POINTS Appropriate relevant information and and experiences. There is a clear and experiences, but may show
Body Paragraphs details are shared from a variety of distinction between general observations problems going from general
5PTS sources including personal experiences, and specifics. Supporting details are observations to specifics. Stronger
observations, and prior knowledge. relevant and explain the main idea. support and greater attention to details
Supporting details are accurate, relevant, would strengthen this paper.
and helpful in clarifying the main
idea(s).
ORGANIZATION Logical progression of ideas with a clear Logical progression of Organization is clear. Transitions are
Structure structure that enhances the ideas. Transitions are present equally present.
Transitions essay. Transitions are mature and throughout essay.
5PTS graceful.
The paper is honest and enthusiastic. Writer's voice is consistent and Writer's voice may emerge strongly on
The language is natural yet thought- strong. The writer is aware of an occasion, then retreat behind general,
STYLE provoking. It brings the topic to life. The audience. The reader is informed and vague, tentative, or abstract language.
Writer’s Voice, reader feels a strong sense of interaction remains engaged. Sentences have varied The writer is aware of an audience. The
Audience Awareness, with the writer and senses the person structure. reader is informed, but must work at
5PTS behind the words. remaining engaged. Sentence structure
Writing is smooth, skillful, and shows some variety.
coherent. Sentences are strong and
expressive with varied structure
MECHANICS Punctuation, spelling, capitalizations are Punctuation, spelling, capitalizations are A few errors in punctuation, spelling,
Spelling, punctuation, correct. No errors. generally correct, with few errors. capitalization.
capitalization
5PTS
Introduction _______ Grade Equivalent (25 points maximum):
Main Points _______ A = 23 - 25 points
Organization _______ B = 20 - 22 points
Style _______ C = 17 - 19 points
Mechanics _______ D = 14 - 18 points
Total Points _______ F = 0 – 13

Grade of _________________________________ Source: Sample Rubric for a Concept Map, Adapted by Hilary McLeod from:
Beyond Monet, VISUTTronX, 2001. // mesacc.edu

___________________________________________________________________________________

SUPPLEMENTARY MATERIALS|

● International Organization for Standardization. (2016). ISO 9001: What does it

mean in the supply chain Retrieved from www.iso.org

BMEC 1: Operations Management I Module 1: Production and Operations Management

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 ● Onlinelibrary.wiley.com

● Mbecke, Z.-M. P. (2014). Operations and Quality Management for Public Service
Delivery Improvement. Journal of Governance and Regulation, III(4).

● Reid, R. D., & Sanders, N. R. (2011). Operations Management: an Integrated

Approach (4th ed.).

● Journal of OM: Wiley Online Library

● Stevenson, W. J. (2012). Operations Management (11th ed.). McGraw-Hill/Irwin.

REFERENCES|

Operations management by William J. Stevenson, 13 th edition

Mayer, Raymond R. Production and Operations Management Eighth Edition, Mc Grw-

Hill, Inc., 2010
Stevenson, William J. Production/Operations Management Seventh Edition, Richard D
Irvin, 2002
Dr. Schermerhorn, John Jr. R., Management Ninth Edition, John Wiley and Sons Inc, 2008

BMEC 1: Operations Management I Module 1: Production and Operations Management

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 Prepared by |

DONALD D. JANABAN, MBA, AFA, CCA, RMP

Subject Teacher / Faculty
PSU – College of Business and Accountancy
___________________________________________________________________________________

BMEC 1: Operations Management I Module 1: Production and Operations Management

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