Textbook Notes (362,768)
Canada (158,052)
ITM 102 (293)
Chapter 5

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Ryerson University
Information Technology Management
ITM 102

Chapter 5 Operations management and supply chain  management (SCM) Textbook notes - Production: creation of goods and services using the factors of production: land, labour, capital, entrepreneurship, and knowledge. - Canada is a service economy - Supply chain management: Collecting, analyzing and distributing transactional information to all relevant parties o Helps different entities in the supply chain work together more effectively 5.1 operations management OPERATIONS MANAGEMENT FUNDAMENTALS - 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 OPERATIONS MANAGEMENT FUNDAMENTALS - The scope of OM ranges across the organization and includes many interrelated activities - Typical OM activities include: o Forecasting o Capacity planning o Scheduling o Managing inventory o Assuring quality o Motivating and training employees o Locating facilities INFORMATION SYSTEMS’ ROLE IN OPERATIONS MANAGEMENT - Managers can use information systems to heavily influence OM decisions - Numerous managerial and strategic key decisions are based on OM information systems that affect the entire organization, including: o What: what resources will be needed, and in what amounts o When: when will each resource be need, when will work be scheduled o Where: where will the world be performed o How: how will the product or service be designed o Who: who will perform the work OM STRATEGIC BUSINESS SYSTEMS - Operation strategy is concerned with developing a long term plan for determining how to best use the firm’s major resources so that there is a high degree of compatibility between these resources and the firm’s long term corporate strategy - Large organizations operates in strategic business units Hierarchy of operational planning - Strategic planning : o Doing the right thing o Long range  Primary system used is Material requirements planning MRP systems • Makes sure needed parts and materials are available at the right time and place in a specific company - Tactical planning o Intermediate range decisions  Global inventory management systems GIMS • Ability to locate, track, and predict the movement of every component or material anywhere upstream or downstream in the business process - Operational planning and control o Day to day procedures for performing work  Uses inventory management and control systems • Provides control and visibility to the status of individual items maintained in inventory  Operational planning and control composed 2 systems: • Transportation planning systems
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