Chapter 17 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 17 - 1 International Operations Management
MBA 713 - Chapter 17
Sep 14, 2014
MBA 713 - Chapter 17
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Chapter 17 - 1
Chapter 17
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
International Operations
Management
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
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
Chapter 17 - 6
Strategic Context
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•Superior Value
•Business Strategy
•Production Processes
•Production Technologies
Chapter 17 - 7Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Complexities of Operations Management
•Resources•Location •Logistics
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
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
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
Chapter 17 - 13Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Additional Factors
•Control
•Risk Levels
•Flexibility
Chapter 17 - 14
Location Decisions
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Country-RelatedIssues
Product-RelatedIssues
GovernmentPolicies
OrganizationalIssues
Chapter 17 - 15
• Resources• Infrastructure• Brand Image
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Country-Related Issues
Chapter 17 - 16
Product-Related Issues
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Value-to-Weight Ratio
ProductionTechnology
Chapter 17 - 17
Government Policies
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Political Processes
National TradePolicies
Foreign TradeZones
Development Incentives
Chapter 17 - 18
Organizational Issues
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• Business Strategy
• Organizational Structure
• Inventory Management
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
Chapter 17 - 20Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Domestic vs. International Materials
Management•Shipping•Transporting•Regulating
Chapter 17 - 21
International Issues
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Logistics and Materials Management
Information Technology
Factory LocationPackaging
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
Chapter 17 - 25
The Nature of Services
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Intangible Non-Storable
Customer Participation
AssociatedProducts
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
Chapter 17 - 27
• Capacity• Location• Facilities• Schedules
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Service Operations
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
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
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)
Chapter 17 - 35
Importance of Quality
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•Competition•Productivity•Customer Loyalty
Chapter 17 - 36
Total Quality Management
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Strategic Commitment to Quality
EmployeeInvolvement
High-Quality
Materials
Up-to-DateTechnology
EffectiveMethods
Chapter 17 - 37Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
TQM Techniques
Statistical Process Control
Benchmarking
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
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
Chapter 17 - 42Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Information System
•Gather Data•Assemble Data•Provide Data
Chapter 17 - 43
Summary of Discussion
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Chapter 17 - 44
Chapter 17
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
International Operations
Management
Chapter 17 - 45Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
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