RSM222H1 Chapter Notes - Chapter 1: Cost Driver, Marginal Cost, Fixed Cost
Document Summary
It provides information to managers for use in planning and controlling operations as well as decision making. The essential steps include: planning, directing and motivating, controlling making sure plan is followed, give feedback like performance reports, performance evaluation. A business process is a series of steps that are followed in order to carry out some task in business, and a value chain has major business functions that add value to a company"s products and services. There are different approaches to improve this process: This is also called supply chain management: lean production in a traditional push system, everyone is kept busy to produce as much as possible, but is costly because of high inventory costs. The lean approach takes 5 steps to improve flow: 1. Identify business processes that deliver this value 3. Organize work around the flow of the business process (manufacturing cell), 4. Create a pull system so production happens when there is consumer demand/orders, 5.
