ITM 102 Chapter Notes - Chapter 5: Strategic Planning, Capacity Planning, Cost Leadership

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 102
• Professor: johnlaughseen

Document Summary

Production: creation of goods and services using the factors of production: land, labour, capital, entrepreneurship, and knowledge. Supply chain management: collecting, analyzing and distributing transactional information to all relevant parties: helps different entities in the supply chain work together more effectively. Production management: describes all the activities managers perform to help companies create goods. Operations management (om): the management of systems or processes that convert or transform resources (including human resources) into goods and services. Transformation process: often referred to as the technical core, especially in manufacturing organizations and it is the actual conversion of inputs to outputs. Value added: the term used to describe the difference between the cost of inputs and the price value of outputs. The scope of om ranges across the organization and includes many interrelated activities. Typical om activities include: forecasting, capacity planning, scheduling, managing inventory, assuring quality, motivating and training employees, locating facilities. Managers can use information systems to heavily influence om decisions.