Global operations management

Global operations management

1. GLOBAL OPERATIONS MANAGEMENT

2. OPERATIONS MANAGEMENTS Operations management  refers to the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labour into goods and services as efficiently as possible to maximize the profit of an organization.

3. GLOBAL OPERATIONS MANAGEMENTS Global Operations Management (GOM) concentration prepares graduates with state-of-the-art knowledge of managing operations in a global context. The focus will be on contemporary issues related to operations function which are of relevance in a firm’s ability to effectively collaborate with its supply chain partners in order to remain competitive in a global economy. The GOM concentration prepares students for careers with global manufacturing, service, and consulting organizations by offering a variety of courses in management of materials, quality, supply chains, services, global projects, and operations strategy.

4. Global Operations Careers Supply Chain and Logistics Manager Purchasing Manager General Operations Manager Operations Research Analyst

5. operations management AND COMPETITIVE ADVANTAGE Competing on differentiation Competing on cost Competing on response a. flexible response b. reliability of scheduling c. quickness

6. IMPORTANCE OF MANAGING GLOBAL OPERATIONS Reduce cost Reduce risk Secure supply sources Improve customer services Attract new markets Learn to improve operations Attract global talent

7. 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. Manufacturing involves transformation or conversion of new materials and inputs into good and services. It is therefor associated with activities or decisions related with manufacturing.

8. The operation strategy in a manufacturing company involves many issues. The more important among them are: Manufacturing management Procuring Logistics management Other issues in managing global operations

9. MANUFACTURING MANAGEMENT International manufacturing management provides an unparalleled opportunity for companies to grow into new markets while at the same time boosting their competitiveness. However, most of today’s networks are legacy structures only a fraction was strategically planned. As a result, there is huge potential to be captured from rethinking traditional structures, approaches and supply relations, and huge potential for getting it wrong.

10. FORCES ACCELERATING GLOBAL MANUFACTURING Huge factor cost differences High growth in emerging markets Lower transaction cost

11. KEY ISSUES IN INTERNATIONAL MANUFACTURING MANAGEMENT Geographical dimension Regulatory regimes dimension Working issues for labour force Location issues Increase in cost of production

12. LOGISTICS MANAGEMENT GLOBAL LOGISTICS is the process of planning, implementing and controlling the flow and storage of goods and services and related information from a point of origin to appoint of consumption located in a different country. The global logistics function management function is naturally more complex than the logistics function managed within one particular country.

13. COMPONENTS OF GLOBAL LOGISTICS International transportation International insurance Packaging needs International means of payment Teams of trade The crossing of borders Inventory Environment of international logistics

14. INTERNATIONAL LOGISTIC DECISION Warehouse managements Packaging Inventory management Material handling Information systems Transportation a. railway transportation b. road transportation c. water transportation d. air transportation 7. insurances

15. PROCURING Global procuring or sourcing occurs when buyers purchase goods and services from sellers located anywhere in the in the world. Global sourcing of goods, crops and other commodities has been common for many years in industries such as manufacturing and agriculture, used as appositive strategy to reap economic advantage.

16. ENABLING FACTORS OF GLOBAL PROCURING Growing pools of highly skilled resources State-of-the-art facilities Advances in telecommunications Improvement in collaborative tools and platforms Maturing delivery models

17. MODES OF GLOBAL PROCCURING Importation Establishment of international procurement offices (IPOs) Sourcing through direct investment

18. OTHER ISSUES IN MANAGING GLOBAL OPERATIONS Make or buy International standardisation of production facilities Robotics and flexible manufacturing Contract manufacturing Strategic role of foreign plants Managing technology transfers Internationalisation of R&D International quality standards

19. TECHNOLOGY TRANSFER Technology transfer is the process of sharing of skill, knowledge, technologies, methods of manufacturing, sample of manufacturing and facilities among governments and other institutions to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products, processes, applications, materials or services.

20. REASONS FOR TECHNOLOGY TRANSFER Profit from selling technology Location and logistics advantage Competitive edge Grants and subsidiaries Limitations of home country superior capital market Enhance competence

21. METHOD OF TECHNOLOGIC TRANSFER FDI Licensing Franchising Management Contracts Contract manufacturing Joint Venture Technological consortium and joint R&D projects

22. IMPORTANCE OF TECHNOLOGICAL TRANSFER Encourage use of technology Create competitive advantage Promote research and development Enhance capability and innovations Leverage business environment

23. Marketing Management Responsibilities of Marketing Management Market analysis Set Goals Forecast sales & profits Strategies, policies & procedures Evolve appropriate marketing mix Organize marketing activities Organize resources Participation in product planning Managing Supply chain After Sales activities

24. Benefits of International Marketing Provides higher standard of living Ensures rational & optimum utilization of resources Rapid industrial growth Benefits of comparative cost International cooperation and world peace Facilitates cultural exchange Better utilization of surplus production Availability of foreign exchange Expansion of tertiary sector Special benefits at times of emergency

25. Major activities In International marketing Market Assessment Product decisions Promotion strategies Pricing decisions Place or distribution strategies

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