ITM 100 Chapter Notes - Chapter 5: Switching Barriers, Material Requirements Planning, Purchase Order

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 100
• Professor: Ron Babin

Document Summary

Production is the creation of goods and services using the factors of production: land, labour, capital, entrepreneurship and knowledge. Running the process that takes inputs and creates output (example is a factory) The best scm is run by is. Production management describes all the activities managers do to help companies create goods. Operation management (om) is the management of systems or processes that convert or transform resources (including human resources) into goods and services. A transformation process is often referred to as the technical core, especially in manufacturing organizations, and is the actual conversion of inputs into outputs. Example: restaurant inputs include hungry customers, food, wait staff. The transformation is well prepared food, well served and an agreeable environment. Value-added is the term used to describe the difference between the cost of inputs and the price value of outputs. Automobile inputs include sheet steel, engine parts, and tires. The transformation is the fabrication and assembly of cars.