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OPERATIONS MANAGEMENTS
• Purchasing Manager
• Competing on differentiation
• Competing on cost
• Competing on response
a. flexible response
b. reliability of scheduling
c. quickness
IMPORTANCE OF MANAGING GLOBAL OPERATIONS
1. Reduce cost
2. Reduce risk
3. Secure supply sources
4. Improve customer services
5. Attract new markets
6. Learn to improve operations
7. Attract global talent
STRATEGIC ISSUE IN OPERATION MANAGEMENT
When an international company possesses a particular technology
and decides to begin manufacturing, it needs to adopt a sound
operation strategy so as to enjoy competitive advantage.
1. Manufacturing management
2. Procuring
3. Logistics management
4. Other issues in managing global operations
MANUFACTURING MANAGEMENT
1. Geographical dimension
2. Regulatory regimes dimension
3. Working issues for labour force
4. Location issues
5. Increase in cost of production
LOGISTICS MANAGEMENT
1. International transportation
2. International insurance
3. Packaging needs
4. International means of payment
5. Teams of trade
6. The crossing of borders
7. Inventory
8. Environment of international logistics
INTERNATIONAL LOGISTIC DECISION
1. Warehouse managements
2. Packaging
3. Inventory management
4. Material handling
5. Information systems
6. Transportation
a. railway transportation
b. road transportation
c. water transportation
d. air transportation
7. insurances
PROCURING
1. Importation
2. Establishment of international procurement offices (IPOs)
3. Sourcing through direct investment
OTHER ISSUES IN MANAGING GLOBAL OPERATIONS
1. Make or buy
2. International standardisation of production facilities
3. Robotics and flexible manufacturing
4. Contract manufacturing
5. Strategic role of foreign plants
6. Managing technology transfers
7. Internationalisation of R&D
8. International quality standards
TECHNOLOGY TRANSFER
1. FDI
2. Licensing
3. Franchising
4. Management Contracts
5. Contract manufacturing
6. Joint Venture
7. Technological consortium and joint R&D projects
IMPORTANCE OF TECHNOLOGICAL TRANSFER
• Market Assessment
• Product decisions
• Promotion strategies
• Pricing decisions
• Place or distribution strategies
THANK YOU