Strategic Operations Management - Moog Controls

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Moog Inc. is widely known as a worldwide manufacturer of aircraft and air control components and systems and other avionics instruments, navigation aids, state-of-the-art electronics, engine controls, surveillance and sensor systems, surgical instruments, robotics and many more, fulfilling the various needs of a wide and diversified client base. Hughes, Martin and Loral, Royal Ordnance and Boeing are but a few in their long list of customers Moog,Inc. is one of the principal suppliers of flight control servo valves and servo actuators used in military and commercial aircrafts – primary components in steering aircraft and missile directions.In 1985 Moog established a manufacturing operation in Baguio, City, Philippines which currently has more than 1,000 employees. The civil servo valves undergo final phase manufacture and assembly in this facility. Almost sixty years later and with fourteen top-of-the line facilities distributed worldwide, and surviving several internal and external crises, Moog Inc. has greatly superseded the founder’s expectations. This report would like to present current strategic operational processes being used by Moog Controls, Inc., Philippines, primarily those involved in human resource management and production, and the impact of these innovations to the whole organization.

When Moog Controls, Philippines started its operations in 1985, the following were seen as problems:Looking for the right employee for the job was difficult enough with the on-going brain-drain phenomenon in the Philippines. Other than that, the call to work for organizations abroad that offer higher pay as well as better benefits was becoming stronger also because of the political and social environment of the country. •Machinery was difficult to bring into the city, simply because it took a six-hour drive from Manila. Looking for equipment that can be transported easily, as well as updated easily and regularly was also a problem back then. •The method of operations was based on the normal top-down organizational structure. •The question of either buying or importing the material needed in producing the servo valves and actuators, or looking into manufacturing this was a question that involved cost covering manpower, facility and equipment. With these problems, several solutions have been put into play. Today, Moog Controls, Philippines is being acclaimed as one of the best companies to work for in the Philippines.

Strategic operations management could not be illustrated in a simple form for Moog Controls since it involves the entire organization in its planning, execution and improvements. On the other hand, it can be simply described as paving the way for the organization to reach its future state based on its current status. Strategy involves the senior management team planning for the organization’s competitive advantage, balancing and forecasting the consequences of these strategic decisions and finally looking into the long-term implications of such decisions.(Brown et al. 2005) The strategic areas that are encompassed within operations management include scheduling, quality management, process technology and inventory management. Bill Moog has always known that the work environment played an important role in any company’s success. He has observed the manufacturing environments of other industries and noticed that employees worked better when they were treated with trust and respect. These modest ideas rested the base for what would ultimately become part of Moog’s much-acclaimed work environment and culture.(About Moog 2010)It could safely be said, therefore that the strategy involved in improving Moog Controls Philippines revolves around its human resources, from proper selection, training, developing and maintaining them, keeping them involved in achieving the whole organization’s goals.

The human...
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