International Business

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International Business
International Business 10e Daniels/Radebaugh/Sulli
van

• Chapter Eighteen
• Global Manufacturing and Supply Chain Management

2004, Prentice Hall, Inc
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Supply Chain Terms

• Supply chains the coordination of materials,
  information, and funds from the initial raw
  material supplier to the ultimate customer
• Logistics (materials management) that part of
  the supply chain process that plans, implements,
  and controls the efficient, effective flow and
  storage of goods, services, and related
  information

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Factors Managers Must Consider

• Efficiency - reduction of manufacturing and
  transport cost
• Dependability - degree of trust in a companys
  products and its delivery promises
• Quality - performance reliability, service
  quality, speed of delivery, and maintenance
  quality

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Factors ManagersMust Consider, cont

• Flexibility - ability of the production process
  to make different kinds of products and to adjust
  the volume of output
• Innovation - ability to develop new products and
  ideas

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Manufacturing Configurations

• Centralized manufacturing offering a selection of
  standard, lower-priced products to different
  markets
• Regional manufacturing to serve customers within
  a specific region
• Multi-domestic manufacturing (market expansion)
  in individual countries as their demand becomes
  significant so manufacturing is closer to
  customers and meeting local needs

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Supplier Networks

• Companies can manufacture parts internally or
  purchase them from external manufacturers
• make or buy decision
• Outsourcing is the process of a company having
  inputs supplied to it from outside suppliers for
  the production process

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Global Component Network
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Advantages of Global Sourcing

• Reduce costs due to less expensive labor
• Improve quality
• Increase exposure to worldwide technology
• Strengthen reliability of supply by supplementing
  domestic with foreign suppliers
• Gain access to materials available only abroad
• Establish presence in a foreign market
• Satisfy offset requirements

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Chapter Objectives

• Describe different dimensions of global
  manufacturing strategy
• Examine elements of global supply chain
  management
• Show how quality effects global supply chain
• Illustrate how supplier networks function
• Explain how inventory management is a key
  dimension of the global supply chain
• Present different alternatives for transporting
  products along the supply chain from suppliers to
  customers

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Studying Supply Chain Alternatives

• Customer requirements
• Plant and distribution center network design
• Inventory management
• Outsourcing and 3rd-party logistics relationships
• Key customer and supplier relationships
• Business processes
• Information systems
• Organizational design and training requirements
• Performance metrics
• Performance goals

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Quality

• Quality is the ability to meet or exceed the
  expectations of the customer
• Conformance to specifications
• Value
• Fitness for use
• Support provided by the company
• Psychological impressions (image)

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Quality Terms

• Acceptable Quality Level (AQL) premise allows an
  acceptable level of bad quality
• Total Quality Management (TQM) is a philosophy to
  eliminate all defects
• TQM stresses
• Customer satisfaction
• Employee involvement
• Continuous improvement
• TQM focuses on
• Benchmarking
• Product and service design
• Process design
• purchasing

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