Griffin ib7 inppt_17

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Chapter 17 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 17 - 1 International Operations Management

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Griffin ib7 inppt_17

Transcript of Griffin ib7 inppt_17

Page 1: Griffin ib7 inppt_17

Chapter 17 - 1

Chapter 17

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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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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The Nature of International Operations

Management

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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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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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Summary of Discussion

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Chapter 17 - 9

International Production Management

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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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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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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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Location Decisions

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Country-RelatedIssues

Product-RelatedIssues

GovernmentPolicies

OrganizationalIssues

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• Resources• Infrastructure• Brand Image

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Country-Related Issues

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Product-Related Issues

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Value-to-Weight Ratio

ProductionTechnology

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Government Policies

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Political Processes

National TradePolicies

Foreign TradeZones

Development Incentives

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Organizational Issues

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• Business Strategy

• Organizational Structure

• Inventory Management

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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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International Issues

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Logistics and Materials Management

Information Technology

Factory LocationPackaging

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Summary of Discussion

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International Service Operations

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International Services

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•Resources

•Output

•Utility

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The Nature of Services

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Intangible Non-Storable

Customer Participation

AssociatedProducts

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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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• Capacity• Location• Facilities• Schedules

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Service Operations

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Summary of Discussion

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Chapter 17 - 29

Managing Productivity in International Business

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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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Summary of Discussion

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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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Importance of Quality

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•Competition•Productivity•Customer Loyalty

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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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Summary of Discussion

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Managing Information in International Business

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How Do Managers Use Information?

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•Understanding

•Responding

•Controlling

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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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Summary of Discussion

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Chapter 17

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International Operations

Management

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Chapter 17 - 45Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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