- International Operations Management
Operations Management: the set of activities an organization uses to transform different kinds of inputs into final goods and services
International Operations Management: the transformation-related activities of an international
- The International Operations Management Process
Strategic Context
• Differentiation
• Cost leadership
• Focus
Standardized vs. Customized
Production
Acquisition of
Resources
• Supply Chain
• Management
• Vertical Integration
• Make-or-buy decision
Location Decisions
• Country-related issues
• Product-related issues
• Government policies
• Organizational issues
Logistics and
Materials
Management
• Flow of materials
• Transportation options
• Inventory levels
• Packaging
- Complexities of International Operations Management
- Resources
- Location
- Logistics
- Basic Make-or-Buy Options and Influence Factors for it
- Competitive Advantage versus Strategic Vulnerability in the Make-or-Buy Decisions
- Factors affecting Location Decisions
- Country-Related Issues
- Product-Related Issues
- Government Policies
- Organizational Issues
- Country-Related Issues
- Resource availability
- Cost
- Infrastructure
- Country-of-origin effects
- Product-Related Issues
- Value-to-weight ratio
- Technology
- Importance of customer feedback
- Government Policies
o Stability of political process
o National trade policies
o Economic development incentives
o Existence of foreign trade zones (FTZ)
- Organizational Issues
- Business strategy
- Cost leadership
- Differentiation
- Organizational structure
- Inventory management policies
- Just-in-time (JIT) inventory management system
- International Logistics and
Materials Management
International logistics: management of the
- flow of materials, parts, supplies, and other resource from suppliers to the firm
- flow of materials, parts, supplies, and other resources within and between units of the firm itself
- flow of finished products, services, goods from the firm to customers
- Differences in Domestic and International Materials Management
- Distance involved in shipping
- Number of transport modes
- Complexity of regulatory context
- International Service Operations
International Service Business: firm that transforms resources into an intangible output that creates utility for its customers
- Productivity
Economic measure of efficiency that summarizes the value of outputs relative to the value of inputs used to create the outputs
- Helps to determine firm’s overall success
- Contributes to long-term survival
- Contributes to overall standard of living
- Strategies for Enhancing Productivity
- Spend more on research and development
- Improve operations
- Increase employee involvement
- Managing Quality in
International Business
· Quality: totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs
- American Society for Quality Control
· ISO 9000: 2000
- International set of quality guidelines
- Basis for quality certification
- International Organization for Standardization
- The Essential Components of Total Quality Management
Strategic Commitment To Quality :
- Employee Involvement
- High Quality Materials
- Up-to-Date Technology
- Effective Methods
- Total Quality Management
TQM: Integrated effort to systematically and continuously improve the quality of an organization’s products and/or services
Statistical process control: family of mathematically based tools for monitoring and controlling quality
Benchmarking: process of legally and ethically studying how other firms do something in a high-quality way and then either imitating or improving on their methods
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