BA 187: Operations Management Prof. Pablo B.

Espaola

U.P. Visayas, College of Management 1st Semester, AY 2013-2014

A COMPANY STUDY GUIDE IN BA 187: OPERATIONS MANAGEMENT

I. BACKGROUND: INDUSTRY PROFILE A. History and Past Trends 1. Background 2. What Constitutes an Industry 3. Past Performance/Operations B. Industry Characteristics 1. Composition 2. Size C. Export Performance and Trends 1. Foreign Markets' Demand and Supply D. Government Interventions and/or Participation 1. Government Programs Implemented 2. Government Rules and Regulations E. Present Industry Status1, such as: 1. Technology Levels and Processes Utilized 2. Investment, Capital Intensity and Employment 3. Profitability Indices and Efficiency Measures 4. Capital Structure And Financial Leverage 5. Market Conditions F. Prospects 1. Future of the Industry COMPANY PROFILE A. Company History 1. Background and Evolution B. Management Structure 1. Organization and Personnel 2. Flow of Communications 3. Functions and Responsibilities of Each Personnel C. Market Analysis 1. Actual Supply And Demand Analysis 2. Potential Supply And Demand Analysis 3. Product Substitutes and Market Implementations 4. Trend Analysis and Determination of Critical Variables 5. Market Characteristics and Consumer Behavior D. Production/Operation Analysis2 1. Products Manufactured a) Physical Description b) Physical Components 2. Plant Size and Location a) Site Location and Dimensions b) Accessibility and Availability of Raw Materials, Cheap Utilities and Labor c) Proximity of the Distribution Outlets
Adapted in part from a study guide prepared by Prof. Teresa Tan. 1 Current condition, state of the art and various measures of performance.

II.

2 Analysis should be both qualitative and quantitative. Quantitative decision support tools should be applied whenever possible, to actual production operations in order to minimize cost, maximize profit or otherwise improved efficiency. These decision support tools should include any or all of these: Decision Tables, Decision Trees, Time Series Forecasting, Multiple Regression, Location Analysis, Layout Analysis, Line Balancing, Linear Programming, Integer Programming, Assignment Method, Transportation Method, Production Planning, Quality Assurance, Inventory Analysis I, Inventory Analysis II, Materials Req. Planning, Job Shop Scheduling, Queuing Analysis, Markov Analysis, and Network Flow Models.

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BA 187: Operations Management Prof. Pablo B. Espaola

U.P. Visayas, College of Management 1st Semester, AY 2013-2014

III. IV. V. VI.

d) Combined Fuel and Transportation Cost 3. Production Processes3 a) Types of Processing System Used b) Descriptive and Illustrated Procedures c) Working Plant Layouts/Facilities Design 4. Raw Materials and Supplies a) List of Raw Materials and Its Current Prospective Cost b) Sources/Suppliers c) Volume Required At Various Phases of Operation d) Physical Inventories/Inventory Turnover e) Inventory Control Systems 5. Utilities a) Current Sources, Volume and Cost b) Alternative Feasible Sources 6. Machinery and Equipment a) List and Number of Machinery and/or Equipment b) Their Respective Description and Capacity c) Maintenance and Turnover d) Worker-Machine Chart/Assignment 7. Production Capacity and Schedule a) Minimum, Maximum and Actual Rated Capacity b) Number of Operating Days and Shifts c) Production Output/Schedule d) Efficiency Measures, Such As: (1) Capacity Utilization (2) Product-Input-Output Transformations (3) Wastage and Rejects Levels (4) Capital to Sales Ratios 8. Waste Disposal a) Alternative Usage of Waste Materials b) Disposal System 9. Production Cost a) Operating Costs b) Fixed And Variable Costs E. Financial Analysis 1. Profitability Indices, Such As: a) Various Returns Measures Like Profits as A Percentage Of Sales, Of Total Assets, Of Fixed Assets, Of Project Investments And Of Equity. b) Gross and Operating Margins c) Discounted Cash Flow, Internal Rate Of Return CURRENT CONCERNS OF THE MANAGEMENT4 FUTURE PLANS OF THE COMPANY5 ANALYSIS6 RECOMMENDATION AND CONCLUSION7
3 Support with flow diagram and process charts, flow process and operation process. 4 Present problems faced by the management. 5 Company prospects and strategic plans for the future.

6 Analyze the companys overall strategy and operations. Describe the companys environment in terms of some broad economic assumptions, key governmental/regulatory threats, major technological forces, significant marketing opportunities/threats, and explicit competitive strategies for each major competitor. 7 Conclude by describing where the company stands in the industry. Assess its strength and weaknesses against the following market-based criteria: efficiency (low cost, high productivity), effectiveness (reliable and rapid delivery, availability from stock, technical capability, etc.), quality (high and consistent), and flexibility (fast introduction of new products and services and wide product/service

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BA 187: Operations Management Prof. Pablo B. Espaola

U.P. Visayas, College of Management 1st Semester, AY 2013-2014

range).

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