2. Operations Strategy in a Global Environment.ppt

8/16/2019 2. Operations Strategy in a Global Environment.ppt

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2 - 1 © 2011 Pearson Education, Inc. publishing as Prentice Hall

2 Operations Strategy in aGlobal Environment

PowerPoint pr

esentation to accompanyPowerPoint presentation to accompanyHei er and !enderHei er and !ender"perations #anagement, 10e"perations #anagement, 10ePrinciples o$ "perations #anagement, %ePrinciples o$ "perations #anagement, %e

PowerPoint slides by &e$$ Heyl


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2 - 2


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2 - '


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2 - (


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2 - )

Global Reachability

5


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2 - * © 2011 Pearson Education, Inc. publishing as Prentice Hall

GlobalGlobal StrategiesStrategies+oeing sales and production are worldwide

ony purchases components $romsuppliers in hailand, #alaysia, and aroundthe world

/ol o considered a wedish company butuntil recently was controlled by an mericancompany, ord. he current /ol o (0 isbuilt in +elgium and shares its plat$orm withthe #a da ' built in &apan and the ord

ocus built in Europe .


7/372 - 3 © 2011 Pearson Education, Inc. publishing as Prentice Hall

Global Global StrategiesStrategies

/ol o considered a wedish companybut until recently was controlled by an

merican company, ord. he current

/ol o (0 is built in +elgium and sharesits plat$orm with the #a da ' built in&apan and the ord ocus built in Europe .


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2 - % © 2011 Pearson Education, Inc. publishing as Prentice Hall

Six ReasonsSix Reasons toto GlobalizeGlobalize

!easons to 4lobali e!easons to 4lobali e1. !educe costs 5labor, ta6es, tari$$s, etc.7

2. Impro e supply chain'. Pro ide better goods and ser ices(. 8nderstand mar9ets). :earn to impro e operations

*. ttract and retain global talent

angible !easons

Intangible

!easons


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2 - ; © 2011 Pearson Education, Inc. publishing as Prentice Hall

1. Reduce Costs1. Reduce Costsoreign locations with lower wage

rates can lower direct and indirectcosts

#aorth merican ree rade

greement 5> 7PE?, E ", #E!?" 8!, ?

European 8nion 5E87


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2. Improve the Supply Chain2. Improve the Supply Chain

:ocating $acilities closer touni


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3. rovide !etter Goods3. rovide !etter Goodsand Servicesand Services

"b@ecti e and sub@ecti echaracteristics o$ goods andser ices

"n-time deli eries

?ultural ariables

Impro ed customer ser ice


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". #nderstand $ar%ets". #nderstand $ar%ets

Interacting with $oreign customersand suppliers can lead to newopportunities

E6tend the product li$e cycle


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&. 'earn to Improve&. 'earn to Improve

(perations(perations!emain open to the $ree $low o$ideas

4eneral #otors partnered with a&apanese auto manu$acturer tolearn new approaches toproduction and in entory control

E


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2 - 1( © 2011 Pearson Education, Inc. publishing as Prentice Hall

). *ttract and Retain Global). *ttract and Retain Global

+alent +alent "$$er better employmentopportunities

+etter growth opportunities andinsulation against unemployment

!elocate unneeded personnel to

more prosperous locations


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Cultural and ,thical IssuesCultural and ,thical Issues

?ultures can be


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2 - 1* © 2011 Pearson Education, Inc. publishing as Prentice Hall

CompaniesCompanies -ant +o Consider -ant +o Consider

>ational literacy rate

!ate o$ inno ation

!ate o$ technologychange

>umber o$ s9illedwor9ers

Political stability

Product liability lawsE6port restrictions

/ariations in language

=or9 ethic

a6 rates

In$lation

ailability o$ rawmaterials

Interest rates

Population

>umber o$ miles o$highway

Phone system


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evelopingeveloping $issions$issions andandStrategiesStrategies

#ission#ission statements tell anorgani ation where it is going

he trategytrategy tells theorgani ation how to get there


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$ission$ission

#ission - where areyou goingA

"rgani ationBspurpose $or being

nswers C=hat dowe pro ide society AB

Pro ides boundariesand $ocus


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+ene$it toociety

#ission

/actors *00ecting/actors *00ecting $ission$ission

Philosophyand /alues

Pro$itabilityand 4rowthEn ironment

?ustomers Public Image


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SampleSample $issions$issions

Sample Company Mission

To manufacture and service an innovative, growing, and profitableworldwide microwave communications business that exceeds ourcustomers’ expectations.

Sample perations Management Mission

To produce products consistent with the company’s mission as the

worldwide low!cost manufacturer.

igure 2.'


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Strategic rocessStrategic rocess

#ar9eting "perations inanceDccounting

unctional rea #issions

"rgani ationBs#ission


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Strategy Strategy

ction plan toachie e mission

unctional areasha e strategies

trategies e6ploitopportunities and

strengths , neutrali ethreats, and a oidwea9nesses


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2 - 2' © 2011 Pearson Education, Inc. publishing as Prentice Hall

Strategies 0orStrategies 0or

Competitive *dvantageCompetitive *dvantage. i$$erentiation better, or at

least di$$erent

+. ?ost leadership cheaper

?. !esponse rapid response


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2 - 2( © 2011 Pearson Education, Inc. publishing as Prentice Hall

*. Competing on *. Competing on

i00erentiationi00erentiation8ni


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2 - 2) © 2011 Pearson Education, Inc. publishing as Prentice Hall

!. Competing on!. Competing on Cost Cost

Pro ide the ma6imum alue aspercei ed by customer.

oes not imply low


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C. Competing onC. Competing on ResponseResponse

le6ibility is matching mar9et changes indesign inno ation and olumes

way o$ li$e at Hewlett-Pac9ard

!eliability is meeting schedules4erman machine industry

imeliness is


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($ s($ s Contribution toContribution to Strategy Strategy

Product

Guality

Process

:ocation

:ayout

Human resource

upply chain

In entory

cheduling

#aintenance

I E!E> I I">Inno ati e design a$es9inBs inno ati e glo es +road product line idelity ecurityBs mutual

$unds $ter-sales ser ice ?aterpillarBs hea y e E le6ibility Hewlett-Pac9ardBs response to

olatile world mar9et !eliability edE6Bs Jabsolutely, positi ely,

on timeK Guic9ness Pi a HutBs )-minute guarantee

at lunchtime

igure 2.(

10 "perations ?ompetiti eecisions pproach E6ample d antage

!esponse5$aster7

?ost

leadership5cheaper7

i$$erentiation5better7


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2 - 2% © 2011 Pearson Education, Inc. publishing as Prentice Hall

$anaging$anaging

Global Global Service (perationsService (perations

?apacity planning

:ocation planning

acilities design and layoutcheduling

!e


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rocessrocess esignesign

:ow #oderate High/olume

High

#oderate

:ow

/ a r

i e t y o

$ P r o

d u c

t s

Process-$ocused&"+ H"P

5Print shop, emergencyroom, machine shop,

$ine-dining

restaurant7!epetiti e 5modular7

$ocusE#+:M :I>E

5?ars, appliances,/s, $ast-$oodrestaurants7 Product $ocused

?"> I>8"85 teel, beer, paper,bread, institutional

9itchen7

#ass ?ustomi ation?ustomi ation at high

/olume5 ell ?omputerBs P?,

ca$eteria7


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IssuesIssues InIn (perations Strategy (perations Strategy

!esources iew

/alue ?hain analysis

PorterBs i e orces model

"perating in a system with manye6ternal $actors

?onstant change


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roductroduct '' i0ei0e C C ycleycle

+est period toincrease mar9etshare

!N engineering iscritical

Practical to changeprice or


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roductroduct '' i0ei0e C C ycleycle

Product designand de elopmentcritical

re


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2 - '' © 2011 Pearson Education, Inc. publishing as Prentice Hall

trategy

nalysis

S-(+ S-(+ *nalysis *nalysis

Internaltrengths

Internal= ea9nesses

E6ternal" pportunities

E6ternalhreats

#ission


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Strategy evelopmentStrategy evelopment rocessrocess

etermine the ?orporate #ission

tate the reason $or the $irmBs e6istence and identi$y thealue it wishes to create.

orm a trategy

+uild a competiti e ad antage, such as low price, design, orolume $le6ibility,


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Strategy evelopmentStrategy evelopment andand

ImplementationImplementationIdenti$y 9ey success $actors

+uild and sta$$ the organi ationIntegrate "# with other acti ities

+he operations manager s ob is to implementan ($ strategy provide competitiveadvantage and increase productivity


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4 4 eyey S S uccessuccess / / actorsactors

ProductionD"perations

igure 2.3

Mar"eting

Service#istribution$romotionChannels of distribution$roduct positioning %image, functions&

'inance()ccounting

*everageCost of capital+or"ing capital

eceivables$ayables'inancial control*ines of credit

#ecisions Sample ptions Chapter

$roduct-uality$rocess*ocation*ayout

uman resourceSupply chain/nventoryScheduleMaintenance

Customi0ed, or standardi0ed#efine customer expectations and how to achieve them'acility si0e, technology, capacity1ear supplier or near customer +or" cells or assembly lineSpeciali0ed or enriched 2obsSingle or multiple suppliers+hen to reorder, how much to "eep on handStable or fluctuating production rate

epair as re3uired or preventive maintenance

54, S4

, S67

8988, S88

8:, 8;, 848


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/our/our InternationalInternational(perations Strategies(perations Strategies

? o s

t ! e

d u c

t i o n

? o n s

i d e r a

t i o n s

High

:ow

High:ow:ocal !esponsi eness ?onsiderations

5G i 9 ! dD i$$ ti ti 7

tandardi ed productEconomies o$ scale?ross-cultural learning

E6amplesLe6as Instruments

?aterpillar

"tis Ele ator

4lobal trategy ransnational trategy

#o e material, people, ideasacross national boundariesEconomies o$ scale?ross-cultural learning

E6amples?oca-?ola

>estl

International trategy

ImportDe6port orlicense e6istingproduct

E6amples8. . teelHarley a idson

#ultidomestic trategy8se e6istingdomestic model globally

ranchise, @oint entures,subsidiaries

E6amplesHein he +ody hop#c onaldBs Hard !oc9 ?a$e

igure 2.;

Documents

2. Operations Strategy in a Global Environment.ppt