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Heizer 9 Ch2 F Operations Management

This document discusses operations management and operations strategy in a global environment. It covers several key topics: - Leveraging asset value through both tangible means like cost reduction and diversification, as well as intangible means like customer focus, innovation, and employee skills and motivation. - Examples of global strategies used by companies like Boeing, Benetton, Sony, Volvo, and Haier. - Reasons for companies to globalize, such as reducing costs, improving supply chains, providing better products and services, understanding markets, learning to improve operations, and attracting global talent. - Cultural and ethical issues that may arise when operating globally.

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Rena Rachmadani
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0% found this document useful (0 votes)
195 views4 pages

Heizer 9 Ch2 F Operations Management

This document discusses operations management and operations strategy in a global environment. It covers several key topics: - Leveraging asset value through both tangible means like cost reduction and diversification, as well as intangible means like customer focus, innovation, and employee skills and motivation. - Examples of global strategies used by companies like Boeing, Benetton, Sony, Volvo, and Haier. - Reasons for companies to globalize, such as reducing costs, improving supply chains, providing better products and services, understanding markets, learning to improve operations, and attracting global talent. - Cultural and ethical issues that may arise when operating globally.

Uploaded by

Rena Rachmadani
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Operations Management

Chapter 2 Operations Strategy in a Global Environment


PowerPoint presentation to accompany Heizer/Render Principles of Operations Management, 7e Operations Management, 9e
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Laveraging Asset Value:


Tangible: - Cost Reduction (lebih murah) - Deversifikasi (lebih baik) - Respons (lebih cepat) Intangible: - Related to customer - Inovasi & Kompetitif - ICT (International Commitment Technology) - Skill && Mootivasi Employee

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Global Strategies
Boeing sales and production are worldwide Benetton moves inventory to stores around the world faster than its competition by building flexibility into design, production, and distribution Sony purchases components from suppliers in Thailand, Malaysia, and around the world

Global Strategies
Volvo considered a Swedish company but it is controlled by an American company, Ford. The current Volvo S40 is built in Belgium and shares its platform with the Mazda 3 built in Japan and the Ford Focus built in Europe. Haier A Chinese company, produces compact refrigerators (it has one-third of onethe US market) and wine cabinets (it has half of the US market) in South Carolina

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Reasons to Globalize
Reasons to Globalize Tangible 1. Reduce costs (labor, taxes, tariffs, etc.) Reasons 2. Improve supply chain 3. Provide better goods and services 4. Understand markets Intangible 5. Learn to improve operations Reasons 6. Attract and retain global talent

Reduce Costs
Foreign locations with lower wage rates can lower direct and indirect costs
Maquiladoras World Trade Organization (WTO) North American Free Trade Agreement (NAFTA) APEC, SEATO, MERCOSUR European Union (EU)
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Improve the Supply Chain


Locating facilities closer to unique resources
Auto design to California Athletic shoe production to China Perfume manufacturing in France

Provide Better Goods and Services


Objective and subjective characteristics of goods and services
OnOn-time deliveries Cultural variables Improved customer service

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Understand Markets
Interacting with foreign customers and suppliers can lead to new opportunities
Cell phone design from Europe Cell phone fads from Japan Extend the product life cycle
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Learn to Improve Operations


Remain open to the free flow of ideas
General Motors partnered with a Japanese auto manufacturer to learn Equipment and layout have been improved using Scandinavian ergonomic competence

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Attract and Retain Global Talent


Offer better employment opportunities
Better growth opportunities and insulation against unemployment Relocate unneeded personnel to more prosperous locations Incentives for people who like to travel
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Cultural and Ethical Issues


Cultures can be quite different Attitudes can be quite different towards
Punctuality Lunch breaks Environment Intellectual property
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Thievery Bribery Child labor

You May Wish To Consider


National literacy rate Rate of innovation Rate of technology change Number of skilled workers Political stability Product liability laws Export restrictions Variations in language Work ethic Tax rates Inflation Availability of raw materials Interest rates Population Number of miles of highway Phone system
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Strategy
Action plan to achieve mission Functional areas have strategies Strategies exploit opportunities and strengths, neutralize threats, and avoid weaknesses

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Strategies for Competitive Advantage


Differentiation better, or at least different Cost leadership cheaper Response rapid response

Competing on Differentiation
Uniqueness can go beyond both the physical characteristics and service attributes to encompass everything that impacts customers perception of value
Safeskin gloves leading edge products Walt Disney Magic Kingdom experience differentiation Hard Rock Cafe dining experience
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Competing on Cost
Provide the maximum value as perceived by customer. Does not imply low quality.
Southwest Airlines secondary airports, no frills service, efficient utilization of equipment WalWal-Mart small overheads, shrinkage, distribution costs Franz Colruyt no bags, low light, no music, doors on freezers
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Competing on Response
Flexibility is matching market changes in design innovation and volumes
Institutionalization at Hewlett-Packard Hewlett-

Reliability is meeting schedules


German machine industry

Timeliness is quickness in design, production, and delivery


Johnson Electric, Bennigans, Motorola
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Tugas Individu Mereview jurnal dengan judul salah satu dari proses operasi slide di atas. (Journal download di PROQUEST) Tugas kelompok (2-3 orang) (2Buat journal dari seluruh proses operasi (masukkan ke situs UMB)

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