ITM 100 Lecture Notes - Lecture 5: Capacity Planning, Operations Management, Cash Flow

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 100
• Professor: Debashish Roy

Document Summary

Production is creating goods and services using the factors of production: labs, labour, capital, entrepreneurship, and knowledge. Productions management describes all the activities mangers perform to help companies produce. Operations management (om) is management of systems or processes that convert resources (including hr) into goods and services. Transformation process is the technical core, specially in manufacturing organizations, and is the conversion of inputs to outputs. Value added describes the difference between cost of inputs and price value of outputs (om increased value added during the transformation process) Is can be used in om to influence decisions of productivity, costs, flexibility, etc. Strategic business units (sbus) stand-alone businesses under a corporate umbrella location) Strategic planning focuses on long-range planning (plant-size, Material requirements planning (mrp) systems use sales forecasts to make sure needed parts and materials are available. Tactical planning focuses on being efficient, doing things right .