griffin ib7 inppt_17
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Griffin ib7 inppt_17TRANSCRIPT
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Chapter 17 - 1
Chapter 17
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International Operations
Management
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Chapter 17 - 2
Learning Objectives
• Describe the nature of international operations management
• Analyze the supply chain management and vertical integration decisions facing international production managers
• Analyze the meaning of productivity and discuss how international firms work to improve it
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Chapter 17 - 3
Learning Objectives
• Explain how firms control quality and discuss total quality management in international business
• Analyze how international firms control the information their managers need to make effective decisions
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Chapter 17 - 4
The Nature of International Operations
Management
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Chapter 17 - 5
International Operations Management
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Strategic Context
Standardized vs. Customized Production
Logistics and Materials Mgmt.
Location Decisions
Acquisition ofResources
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Chapter 17 - 6
Strategic Context
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•Superior Value
•Business Strategy
•Production Processes
•Production Technologies
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Chapter 17 - 7Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Complexities of Operations Management
•Resources•Location •Logistics
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Chapter 17 - 8
Summary of Discussion
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Chapter 17 - 9
International Production Management
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Chapter 17 - 10
What Is Supply Chain Management?
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Acquire Resources for Production
Cost of Production
Quality of Products
Internal Demand for Capital
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Chapter 17 - 11
Vertical Integration
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Higher Integration
Lower IntegrationLess
More More
Less
Leve
l of E
ngag
emen
t Level of Engagement
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Chapter 17 - 12
Make-or-Buy Decision
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Type of Decision
Internal Production
Buy “Off-the-Shelf”
Special Ventures or Contracts
Competitive Advantage
Strategic Vulnerability
High High
Low Low
Intermediate Moderate
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Chapter 17 - 13Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Additional Factors
•Control
•Risk Levels
•Flexibility
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Chapter 17 - 14
Location Decisions
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Country-RelatedIssues
Product-RelatedIssues
GovernmentPolicies
OrganizationalIssues
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Chapter 17 - 15
• Resources• Infrastructure• Brand Image
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Country-Related Issues
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Chapter 17 - 16
Product-Related Issues
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Value-to-Weight Ratio
ProductionTechnology
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Chapter 17 - 17
Government Policies
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Political Processes
National TradePolicies
Foreign TradeZones
Development Incentives
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Chapter 17 - 18
Organizational Issues
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• Business Strategy
• Organizational Structure
• Inventory Management
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Chapter 17 - 19
International Logistics
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Parts
Other Resources
MaterialsSu
pplie
s
From Suppliers to the Firm
Between Units of the Firm
From the Firm to Customers
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Chapter 17 - 20Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Domestic vs. International Materials
Management•Shipping•Transporting•Regulating
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Chapter 17 - 21
International Issues
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Logistics and Materials Management
Information Technology
Factory LocationPackaging
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Chapter 17 - 22
Summary of Discussion
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Chapter 17 - 23
International Service Operations
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Chapter 17 - 24
International Services
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•Resources
•Output
•Utility
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Chapter 17 - 25
The Nature of Services
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Intangible Non-Storable
Customer Participation
AssociatedProducts
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Chapter 17 - 26
The Role of Government in International Services
Trade
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Protecting Local Professionals
Traditional Functions
Restricting Entry of Firms
Upholding Domestic Standards
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Chapter 17 - 27
• Capacity• Location• Facilities• Schedules
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Service Operations
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Chapter 17 - 28
Summary of Discussion
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Chapter 17 - 29
Managing Productivity in International Business
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Chapter 17 - 30
The Importance of Productivity
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Overall Success Living Standards
Long-Term Survival Business Revenues
The Company The Country
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Chapter 17 - 31Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Increase Research and Development
Improve Operations and Productivity
Increase Employee Involvement
Maintaining and Boosting Productivity
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Chapter 17 - 32
Summary of Discussion
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Chapter 17 - 33
Managing Quality in International Business
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Chapter 17 - 34Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
•Product Testing
•Employee Training
•Record Keeping
•Supplier Relations
•Repair Policies
International Organization for
Standardization (ISO)
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Chapter 17 - 35
Importance of Quality
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•Competition•Productivity•Customer Loyalty
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Chapter 17 - 36
Total Quality Management
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Strategic Commitment to Quality
EmployeeInvolvement
High-Quality
Materials
Up-to-DateTechnology
EffectiveMethods
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Chapter 17 - 37Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
TQM Techniques
Statistical Process Control
Benchmarking
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Chapter 17 - 38
Summary of Discussion
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Chapter 17 - 39
Managing Information in International Business
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Chapter 17 - 40
How Do Managers Use Information?
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•Understanding
•Responding
•Controlling
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Chapter 17 - 41
Information Management
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Strategy and Organization Design
Importance of Information
Related Diversification
Unrelated Diversification
Centralized Structure
Decentralized Structure
Higher
Lower
Higher
Lower
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Chapter 17 - 42Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Information System
•Gather Data•Assemble Data•Provide Data
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Chapter 17 - 43
Summary of Discussion
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Chapter 17 - 44
Chapter 17
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International Operations
Management
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Chapter 17 - 45Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.