This course covers production and operations management. It highlights planning, organizing, and controlling the production process as well as managing interface functions in organizations. The course provides both managerial and technical/quantitative aspects of the discipline. It aims to provide an understanding of concepts and techniques in production/operations management that can improve organizational productivity, quality, and competitiveness. Key topics include forecasting, facility planning, capacity planning, inventory management, quality management, and maintenance management. Student performance will be evaluated based on oral presentations, class participation, a final oral exam, submitted reports, attendance, and internet/factory research.

1. I. Course Number: MM 111/MMBM 125/MMME 152
II. Course Title: PRODUCTION AND OPERATION MANAGEMENT
III. COURSE DESCRIPTION:
The course highlights the planning, organizing, and controlling functions of the
production process and the management of the interface functions in the organizations.
This course provides a blend of the managerial issues in production and operations
management with the technical and quantitative aspects of the discipline. Discussions
of topics in this course are underpinned by the mission, vision and the core values of
LDCU which are excellence, integrity, loyalty, discipline and community service.
IV. Credits Units: 3 units
V. Time Frame: 54 Hours/Trimester
VI. General Objectives:
The course aims to provide the students with the understanding of the concepts
and techniques in production and operations management as well as these can be
effectively applied to improve an organization’s productivity, quality, and competitive
position.
VII. Topic Outline:
MODULE 1 – Introduction to Operations Management
1 Production / Operations Management : concepts, brief history, importance,
competitiveness and operations strategy, measures of performance
2 Forecasting : strategic importance, approaches, types, demand
management, time series analysis, causal relationship forecasting, monitoring
and controlling forecasts.
3 Decision Making : fundamentals, process, operations decisions, decision
trees, sensitivity analysis
MODULE 2 –Building World Class Operations
4 Product design and Process Selection :
• Manufacturing – product design and developing sequence, frequency
of design changes, origin of product design, process selection, process
automation, and process flow design.
• Services – nature and importance of services, operational
classification, designing service organizations, the service-system
design matrix
5 Facility Planning and Distribution System Design : location criteria, factors
affecting location decisions, evaluating location alternatives, distribution
systems design, service location strategy design
6 Capacity Planning : Importance of capacity decisions, capacity concepts,
capacity strategies, capacity planning, forecasting capacity requirements.
7 Layout Designs : strategic importance of lay-out designs, process layout,
product layout, group technology layout, fixed-position layout, office layout,
retail store layout, warehousing and storage layout, product oriented layout

2. 8 People and Work Systems : job design, behavioral considerations in job
design, labor standards and measurement, ergonomics.
9 Quality Management : Strategic role of quality, ISO 9000, Total Quality
Management (TQM), cost of quality, seven basic quality control tools, the role
of inspection, statistical process control, TQM in services.
MODULE 3 –Maintaining and Operating World Class Operations
10 Scheduling :
• Aggregate Scheduling – definition, nature and importance, overview
of manufacturing planning activities, methods of aggregate scheduling,
disaggregating, aggregate scheduling in services.
• Short term Scheduling – Scheduling of processes on work centers,
loading and sequencing jobs in work centers, finite scheduling,
repetitive manufacturing, scheduling for services.
11 Inventory Management.
• Inventory for Independent Demand – definition, purpose, inventory
costs, inventory systems, economic order quantity, inventory control in
services
• Inventory for Dependent Demand – Materials Requirement Planning
(MRP), benefits of MRP, MRP structure, MRP management, lot-sizing
techniques, MRP in services
12 Just-In-Time Systems : Japanese approach to productivity, waste
elimination, accomplishing JIT production, kanban, relationship of JIT and
quality, JIT in services
13 Supply-Chain Management : importance of supply chain management,
purchasing strategies, purchasing management, materials management,
benchmarking supply-chain management.
14 Maintenance Management: strategic importance of maintenance
management, maintenance categories, preventive, predictive, and breakdown
maintenance, maintenance policy.
15 5S Housekeeping Discipline: Importance of good housekeeping, concepts
and process in the application of 5S.
VIII. Thought Questions:
• To differentiate the manufacturing operations from non-manufacturing or
service operations.
• To discuss the types of manufacturing operations and the skills needed by
operations mangers.
• To set up an operation strategy, starting from the company’s mission and
conditions to the corporate strategies and back.
• To use the computer in making forecast of demand.
• To explain the various model forecast of demand.
• To formulate strategies to adjust capacity in response to demand operations.
• To distinguish the business planning from production planning.
• To describe the material management from the purchase of material to the
planning and control of work-in process to the warehousing, shipping and
distribution of finished product.

3. • To identify how much of inventory should a company keep.
• To manage the inventory of independent-demand of materials through the
use of computer.
• To set up with the use of the computer the material production schedule for
certain item and the material requirement planning inventory for all other
dependent items.
• To coordinate the capacity requirement planning with the material
requirement planning.
• Schedule and control the input/outputs flow at the right rate and time so as to
prevent bottleneck.
• To describe what is just-in-time management and execute just-in-time flow of
items bust before they are needed for the operation to eliminate the waste
associated with queues.
• To estimate the time sequence of projects, using PERT and CPM.
• To use the computer for the management of big projects.
• To indicate some indicators of quality performance in a company.
• To elaborate on the three major categories of factors that greatly influence the
decision on location selection of a business.
• Illustrate the company philosophy on lay outing the facilities: facilitate the
work of employees and satisfy customer needs.
• To lay out facilities according to products and according to process.
• Show the advantages and disadvantages in the use by companies of
technology.
• To illustrate the use of technology in the manufacturing jobs, using CAD and
CAM.
• To explain how most jobs nowadays are designed.
• To illustrate how an office or a shop with all technology facilities become
employee friendly.
• To illustrate the current ways or types of individual incentive plan like the
piece-rate and the like.
• Outline how work is measured and consequently compensated.
IX. Methodology:
• Oral presentation of assigned module
• Active class participation
• Final Examination – Oral
• Submission of synthesis of reports presented
• Regular attendance
• Internet
• Factory visit
• Discussion-question
X. Performance Evaluation:
Oral presentation of assigned module 20%
Active class participation 20%
Final Examination – Oral 20%
Submission of synthesis of reports presented 20%
Regular attendance 20%
Total 100%
XI. References:
Any book on Operations Management from year 2000 and up. You may also browse on
the Internet for the topics described.