global manufacturing and scm
TRANSCRIPT
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Global Manufacturingand
Supply Chain Management
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Factors Influencing Supply Chain
Management
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SupplyChain Management
Supply chain - the coordination of
materials, information, and funds from the
initial raw material supplier to the ultimate
customer.
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Logistics
Logistics, or materials management, is
that part of the supply chain process that
plans, implements, and controls the
efficient, effective flow and storage ofgoods, services, and related information
from the point of origin to the point of
consumption in order to meet customers
requirements
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Global Manufacturing Strategies
The success of a global manufacturing
strategy depends on four key factors:compatibility
configurationcoordinationcontrol
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Compatibility
The degree of consistency between FDI
decisions and a companys competitive
strategy.
Some company strategies that managersmust consider:
Efficiency/cost
DependabilityQualityInnovationFlexibility
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Manufacturing Configuration
Three broad categories of manufacturing
configuration are:
centralized facilityregional facilitiesmultidomestic facilities
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Coordination and Control
Coordinating is the linking or integrating of
activities into a unified system.
Control can be the measuring of
performance so companies can respondappropriately to changing conditions.
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Information Technology
EDI (electronic data interchange)ERP (enterprise resource planning)MRP (material requirements planning)
RFID (radio frequency ID)E-commercePrivate technology exchange (PTX)
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Quality
Quality is defined as meeting or exceeding
the expectations of customers.
Quality standards can be:
general (ISO 9000)industry-specificcompany-specific (AQL, zero defects,
TQM, and Six Sigma)
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Total Quality Management
Total quality management (TQM) is a
process that stresses:customer satisfaction
employee involvementcontinuous improvements
The goal of TQM is to eliminate all defects.
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Global Sourcing and Production
Strategy
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Supplier Networks
Sourcing: the process of a firm havinginputs supplied to it from outside suppliers(both domestic and foreign) for theproduction process.
Domestic sourcing allows the company toavoid problems related to:languageculturecurrency
tariffs, and so forthForeign sourcing allows the company toreduce costs and improve quality, amongother things
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Outsourcing
Major outsourcing configurations:Vertical integration.Outsourcing through industrial clusters.
Other outsourcing.
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Make or Buy Decision
Under the make or buy decision,
companies have to decide if they will make
their own parts or buy them from an
independent company .Companies go through different
purchasing phases as they become more
committed to global sourcing
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Supplier Relations
When a company sources parts from
suppliers around the world, distance,
time, and the uncertainty of the
international political and economicenvironment can make it difficult for
managers to manage inventory flows
accurately
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The Purchasing Function
Global progression in the purchasing
function:Domestic purchasing only.
Foreign buying based on need.Foreign buying as part of a
procurement strategy.Integration of global procurement
strategy.
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Major Sourcing Strategies
Assign domestic buyers for foreignpurchasing.Use foreign subsidiaries or business
agents.Establish international purchasing offices.Assign the responsibility for global
sourcing to a specific business unit or units.
Integrate and coordinate worldwidesourcing.
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Steps In Global Sourcing Process
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Lean Manufacturing and Just-in-Time
Systems
Lean manufacturing - a productive system
whose focus is on optimizing processes
through the philosophy of continualimprovement.
JIT - sourcing raw materials and parts just
as they are needed in the manufacturingprocess.
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Transportation Networks
The transportation system links together
suppliers, companies and customers.
Foreign trade zones (FTZs) - special
locations for storing domestic and importedinventory in order to avoid paying duties
until the inventory is used in production or
sold.