Operations Strategy in Global Environment

Operations Strategy in a
2 Global Environment
PowerPoint presentation to accompany

Heizer and Render
Operations Management, 10e
Principles of Operations Management, 8e
PowerPoint slides by Jeff Heyl
© 2011 Pearson Education, Inc. publishing as Prentice Hall 2-1

Outline
 Global Company Profile: Boeing

 A Global View of Operations
 Cultural and Ethical Issues
 Developing Missions And
Strategies
 Mission
 Strategy

Outline – Continued
 Achieving Competitive Advantage

Through Operations
 Competing On Differentiation
 Competing On Cost
 Competing On Response
 Ten Strategic OM Decisions

 Strategy Development and

Implementation
 Key Success Factors and Core
Competencies
 Build and Staff the Organization
 Integrate OM with Other Activities

 Global Operations Strategy

Options
 International Strategy
 Multidomestic Strategy
 Global Strategy
 Transnational Strategy

Learning Objectives
When you complete this chapter you
should be able to:
1. Define mission and strategy

2. Identify and explain three strategic
approaches to competitive
advantage
3. Identify and define the 10 decisions
of operations management

Learning Objectives
When you complete this chapter you
should be able to:
4. Understand the significant key

success factors and core
competencies
5. Identify and explain four global
operations strategy options

Some Boeing Suppliers (787)
Firm Country Component
Latecoere France Passenger doors
Labinel France Wiring
Dassault France Design and
PLM software
Messier-Bugatti France Electric brakes
Thales France Electrical power
conversion system
and integrated
standby flight display
Messier-Dowty France Landing gear structure
Diehl Germany Interior lighting
Cobham UK Fuel pumps and valves
Rolls-Royce UK Engines
Smiths Aerospace UK Central computer
system
BAE SYSTEMS UK Electronics
Alenia Aeronautics Italy Upper center
fuselage &
horizontal stabilizer
Toray Industries Japan Carbon fiber for
wing and tail units

Fuji Heavy Japan Center wing box
Industries
Kawasaki Heavy Japan Forward fuselage,
Industries fixed section of wing,
landing gear well
Teijin Seiki Japan Hydraulic actuators
Mitsubishi Heavy Japan Wing box
Industries
Chengdu Aircraft China Rudder
Group
Hafei Aviation China Parts
© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 10
Korean Aviation South Wingtips
Korea
Saab Sweden Cargo access doors

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 until recently was 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
the US market) and wine cabinets (it has
half of the US market) in South Carolina

Growth of World Trade
35 –
30 – Collapse of the
Berlin Wall
25 –
Percent
20 –
15 –
10 –
5–
0 –| | | | | | | | | | |
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 (est*)
Year
Figure 2.1
Some Multinational
Corporations
% Sales % Assets
Outside Outside
Home Home Home % Foreign
Company Country Country Country Workforce
Citicorp USA 34 46 NA
Colgate- USA 72 63 NA
Palmolive
Dow USA 60 50 NA
Chemical
Gillette USA 62 53 NA
Honda Japan 63 36 NA
IBM USA 57 47 51

Some Multinational
Corporations
% Sales % Assets
Outside Outside
Home Home Home % Foreign
Company Country Country Country Workforce
ICI Britain 78 50 NA
Nestle Switzerland 98 95 97
Philips Netherlands 94 85 82
Electronics
Siemens Germany 51 NA 38
Unilever Britain & 95 70 64
Netherlands

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, CAFTA
 European Union (EU)
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
 On-time deliveries
 Cultural variables
 Improved customer service

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

Learn to Improve
Operations
 Remain open to the free flow of
ideas
 General Motors partnered with a
Japanese auto manufacturer to
learn new approaches to
production and inventory control
 Equipment and layout have been
improved using Scandinavian
ergonomic competence

Attract and Retain Global
Talent
 Offer better employment
opportunities
 Better growth opportunities and
insulation against unemployment
 Relocate unneeded personnel to
more prosperous locations

Cultural and Ethical Issues
 Cultures can be quite different
 Attitudes can be quite different
towards
 Punctuality  Thievery
 Lunch breaks  Bribery
 Environment  Child labor
 Intellectual
property

Companies Want To Consider
 National literacy rate  Work ethic
 Rate of innovation  Tax rates
 Rate of technology  Inflation
change  Availability of raw
 Number of skilled materials
workers  Interest rates
 Political stability  Population
 Product liability laws  Number of miles of
 Export restrictions highway
 Variations in language  Phone system

Match Product & Parent
 Braun Household
Appliances 1. Volkswagen
 Firestone Tires 2. Bridgestone
 Godiva Chocolate 3. Campbell Soup
 Haagen-Dazs Ice 4. Tata Motors Limited
Cream 5. Proctor and Gamble
 Jaguar Autos 6. Nestlé
 MGM Movies 7. Pillsbury
 Lamborghini Autos 8. Sony
 Alpo Petfoods

Match Product & Parent
 Braun Household
Appliances 1. Volkswagen
 Firestone Tires 2. Bridgestone
 Godiva Chocolate 3. Campbell Soup
 Haagen-Dazs Ice 4. Tata Motors Limited
Cream 5. Proctor and Gamble
 Jaguar Autos 6. Nestlé
 MGM Movies 7. Pillsbury
 Lamborghini Autos 8. Sony
 Alpo Petfoods

Match Product & Country
 Braun Household
Appliances
 Firestone Tires 1. Great Britain
 Godiva Chocolate 2. Germany
 Haagen-Dazs Ice 3. Japan
Cream
4. United States
 Jaguar Autos
5. Switzerland
 MGM Movies
6. India
 Lamborghini Autos
 Alpo Pet Foods

Match Product & Country
 Braun Household
Appliances
 Firestone Tires 1. Great Britain
 Godiva Chocolate 2. Germany
 Haagen-Dazs Ice 3. Japan
Cream
4. United States
 Jaguar Autos
5. Switzerland
 MGM Movies
6. India
 Lamborghini Autos
 Alpo Pet Foods

Developing Missions and
Strategies
Mission statements tell an
organization where it is going
The Strategy tells the

organization how to get there

Mission
 Mission - where are

you going?
 Organization’s
purpose for being
 Answers ‘What do
we provide society?’
 Provides boundaries
and focus

Merck
The mission of Merck is to provide
society with superior products and
services—innovations and solutions
that improve the quality of life and
satisfy customer needs—to provide
employees with meaningful work and
advancement opportunities and
investors with a superior rate of return.
Figure 2.2
Hard Rock Cafe
Our Mission: To spread the spirit of
Rock ’n’ Roll by delivering an
exceptional entertainment and dining
experience. We are committed to being
an important, contributing member of
our community and offering the Hard
Rock family a fun, healthy, and
nurturing work environment while
ensuring our long-term success.
Figure 2.2
Arnold Palmer Hospital
Arnold Palmer Hospital for

Children provides state-of-the-art,
family centered healthcare
focused on restoring the joy of
childhood in an environment of
compassion, healing, and hope.
Figure 2.2
Factors Affecting Mission
Philosophy
and Values
Profitability
Environment
and Growth
Mission
Customers Public Image
Benefit to
Society

Sample Missions
Sample Company Mission

To manufacture and service an innovative, growing, and
profitable worldwide microwave communications business
that exceeds our customers’ expectations.
Sample Operations Management Mission
To produce products consistent with the company’s mission

as the worldwide low-cost manufacturer.
Figure 2.3
Sample Missions
Sample OM Department Missions
Product design To design and produce products and
services with outstanding quality and
inherent customer value.
Quality management To attain the exceptional value that is
consistent with our company mission and
marketing objectives by close attention to
design, procurement, production, and field
service operations
Process design To determine, design, and produce the

production process and equipment that will
be compatible with low-cost product, high
quality, and good quality of work life at
economical cost.
Figure 2.3
Sample Missions
Location To locate, design, and build efficient and
economical facilities that will yield high
value to the company, its employees, and the
community.
Layout design To achieve, through skill, imagination, and
resourcefulness in layout and work methods,
production effectiveness and efficiency
while supporting a high quality of work life.
Human resources To provide a good quality of work life, with

well-designed, safe, rewarding jobs, stable
employment, and equitable pay, in exchange
for outstanding individual contribution from
employees at all levels.
Figure 2.3
Sample Missions
Supply-chain To collaborate with suppliers to develop
management innovative products from stable, effective,
and efficient sources of supply.
Inventory To achieve low investment in inventory
consistent with high customer service levels
and high facility utilization.
Scheduling To achieve high levels of throughput and
timely customer delivery through effective
scheduling.
Maintenance To achieve high utilization of facilities and
equipment by effective preventive
maintenance and prompt repair of facilities
and equipment.
Figure 2.3
Strategic Process
Organization’s
Mission
Functional
Area Missions
Finance/
Marketing Operations
Accounting

Strategy
 Action plan to
achieve mission
 Functional areas
have strategies
 Strategies exploit
opportunities and
strengths, neutralize
threats, and avoid
weaknesses

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 customer’s perception
of value
 Safeskin gloves – leading edge products
 Walt Disney Magic Kingdom –
experience differentiation
 Hard Rock Cafe – dining experience

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
 Wal-Mart – small overhead, shrinkage,
distribution costs
 Franz Colruyt – no bags, low light, no
music, doors on freezers

Competing on Response
 Flexibility is matching market changes in
design innovation and volumes
 A way of life at Hewlett-Packard
 Reliability is meeting schedules
 German machine industry
 Timeliness is quickness
in design, production,
and delivery
 Johnson Electric,
Pizza Hut, Motorola

OM’s Contribution to Strategy
10 Operations Competitive
Decisions Approach Example Advantage
Product DIFFERENTIATION
Innovative design … Safeskin’s innovative gloves
Broad product line … Fidelity Security’s mutual funds
Quality After-sales service … Caterpillar’s heavy equipment
service
Process Experience … Hard Rock Café’s dining
experience
Location COST LEADERSHIP

Low overhead … Franz-Colruyt’s warehouse-type Differentiation
stores
Layout (better)
Effective capacity
use … Southwest Airline’s
Human aircraft utilization
resource Inventory Response
management … Wal Mart’s sophisticated
(faster)
distribution system
Supply chain Cost
RESPONSE leadership
Inventory Flexibility … Hewlett-Packard’s response to (cheaper)
volatile world market
Reliability … FedEx’s “absolutely, positively,
Scheduling on time”
Quickness … Pizza Hut’s 5-minute guarantee
at lunchtime
Maintenance Figure 2.4

10 Strategic OM Decisions
1. Goods and 6. Human resources

service design and job design
2. Quality 7. Supply-chain
3. Process and management
capacity design
8. Inventory
4. Location
selection 9. Scheduling
5. Layout design 10. Maintenance

Goods and Services and
the 10 OM Decisions
Operations
Decisions Goods Services
Goods and Product is usually Product is not
service tangible tangible
design
Quality Many objective Many subjective
standards standards
Process Customers not Customer may be
and involved directly involved
capacity Capacity must
design match demand
Table 2.1
the 10 OM Decisions
Operations
Location Near raw Near customers
selection materials and
labor
Layout Production Enhances product
design efficiency and production
Human Technical skills, Interact with
resources consistent labor customers, labor
and job standards, output standards vary
design based wages
Table 2.1
the 10 OM Decisions
Operations
Supply Relationship Important, but
chain critical to final may not be
product critical
Inventory Raw materials, Cannot be stored
work-in-process,
and finished
goods may be
held
Scheduling Level schedules Meet immediate
possible customer demand
Table 2.1
the 10 OM Decisions
Operations
Maintenance Often preventive Often “repair” and
and takes place takes place at
at production site customer’s site
Table 2.1
Managing Global Service
Operations
Requires a different perspective on:
 Capacity planning
 Location planning
 Facilities design and layout
 Scheduling

Process Design
High Process-focused Mass Customization
JOB SHOPS Customization at high
(Print shop, emergency Volume
room, machine shop, (Dell Computer’s PC,
Variety of Products
fine-dining Repetitive (modular) cafeteria)

restaurant) focus
ASSEMBLY LINE
Moderate (Cars, appliances,
TVs, fast-food
restaurants) Product focused
CONTINUOUS
(Steel, beer, paper,
bread, institutional
kitchen)
Low
Low Moderate High

Volume
Operations Strategies of
Two Drug Companies
Brand Name Drugs, Inc. Generic Drug Corp.
Competitive
Product Differentiation Low Cost
Advantage
Product Heavy R&D investment; Low R&D investment;
Selection and extensive labs; focus on focus on development
Design development in a broad of generic drugs
range of drug
categories
Quality Major priority, exceed Meets regulatory
regulatory requirements requirements on a
country by country
basis
Table 2.2
Two Drug Companies
Competitive
Advantage
Process Product and modular Process focused;
process; long general processes; “job
production runs in shop” approach, short-
specialized facilities; run production; focus
build capacity ahead of on high utilization
demand
Location Still located in the city Recently moved to low-
where it was founded tax, low-labor-cost
environment
Table 2.2
Two Drug Companies
Competitive
Advantage
Scheduling Centralized production Many short-run
planning products complicate
scheduling
Layout Layout supports Layout supports

automated product- process-focused “job
focused production shop” practices
Table 2.2
Two Drug Companies
Competitive
Advantage
Human Hire the best; Very experienced top
Resources nationwide searches executives; other
personnel paid below
industry average
Supply Chain Long-term supplier Tends to purchase

relationships competitively to find
bargains
Table 2.2
Two Drug Companies
Competitive
Advantage
Inventory High finished goods Process focus drives up
inventory to ensure all work-in-process
demands are met inventory; finished
goods inventory tends
to be low
Maintenance Highly trained staff; Highly trained staff to
extensive parts meet changing demand
inventory
Table 2.2
Issues In Operations Strategy
 Resources view
 Value Chain analysis
 Porter’s Five Forces model
 Operating in a system with many
external factors
 Constant change

Product Life Cycle
Introduction Growth Maturity Decline
Best period to Practical to change Poor time to Cost control
Company Strategy/Issues
increase market price or quality change image, critical

share image price, or quality
R&D engineering is Strengthen niche Competitive costs

critical become critical
Defend market
position Drive-through
Internet search engines restaurants
CD-ROMs
iPods LCD &
Xbox 360 plasma TVs
Sales
Avatars
Boeing 787 Analog

TVs
Twitter
Figure 2.5
Product Life Cycle
Introduction Growth Maturity Decline
Product design Forecasting Standardization Little product
and critical Fewer product differentiation
development Product and changes, more Cost
OM Strategy/Issues
critical process minor changes minimization

Frequent reliability Optimum Overcapacity
product and Competitive capacity in the
process design product industry
changes Increasing
improvements stability of Prune line to
Short production and options process eliminate
runs Increase capacity Long production items not
High production Shift toward runs returning
costs product focus good margin
Product
Limited models Enhance improvement Reduce
Attention to distribution and cost cutting capacity
quality
Figure 2.5
SWOT Analysis
Mission
Internal External
Strengths Opportunities
Analysis
Internal External
Weaknesses Threats
Strategy

Strategy Development Process
Analyze the Environment
Identify the strengths, weaknesses, opportunities, and threats.
Understand the environment, customers, industry, and competitors.
Determine the Corporate Mission

State the reason for the firm’s existence and identify the
value it wishes to create.
Form a Strategy
Build a competitive advantage, such as low price, design, or
volume flexibility, quality, quick delivery, dependability, after-
sale service, broad product lines.
Figure 2.6
Strategy Development and
Implementation
 Identify key success factors
 Build and staff the organization
 Integrate OM with other activities
The operations manager’s job is to implement

an OM strategy, provide competitive
advantage, and increase productivity

Key Success Factors
Support a Core Competence and Implement Strategy by
Identifying and Executing the Key Success Factors in the Functional Areas
Marketing Finance/Accounting Production/Operations
Service Leverage
Distribution Cost of capital
Promotion Working capital
Channels of distribution Receivables
Product positioning Payables
(image, functions) Financial control
Lines of credit
Decisions Sample Options Chapter
Product Customized, or standardized 5

Quality Define customer expectations and how to achieve them 6, S6
Process Facility size, technology, capacity 7, S7
Location Near supplier or near customer 8
Layout Work cells or assembly line 9
Human resource Specialized or enriched jobs 10
Supply chain Single or multiple suppliers 11, S11
Inventory When to reorder, how much to keep on hand 12, 14, 16
Schedule Stable or fluctuating production rate 13, 15
Maintenance Repair as required or preventive maintenance 17
© 2011 Pearson Education, Inc. publishing as Prentice Hall Figure 2.7 2 - 65

Activity Mapping at
Southwest Airlines
Courteous, but
Limited Passenger
Service
Lean, Short Haul, Point-to-

Productive Point Routes, Often to
Employees Secondary Airports
Competitive Advantage:
Low Cost
High Frequent,
Aircraft Reliable
Utilization Standardized Schedules
Fleet of Boeing
737 Aircraft
Figure 2.8
Activity Mapping at
Southwest Airlines
Courteous, but
Limited Passenger
Service
Lean, Short Haul, Point-to-

Automated ticketing machines
No seat assignments
Low Cost
No baggage transfers
High Frequent,
Aircraft No meals (peanuts) Reliable
Fleet of Boeing
737 Aircraft
Figure 2.8
Activity Mapping at
Southwest Airlines
Courteous, but
Limited Passenger
Service
No meals (peanuts)
Lean,
Lower gate costs at Short Haul, Point-to-
secondary airports
High number of flights
reduces employee idleCost
Low time
between flights
High Frequent,
Aircraft Reliable
Fleet of Boeing
737 Aircraft
Figure 2.8
Activity Mapping at
Southwest Airlines
Courteous,
High number but
of flights
Limited Passenger
reduces employee idle time
Service
between flights
Lean,
Saturate a city with flights, Short Haul, Point-to-
lowering administrative
costs (advertising, HR, etc.)
Competitive
per passenger Advantage:
for that city
Low Cost
Pilot training required on
Highonly one type of aircraft Frequent,
Aircraft Reliable
Reduced maintenance
Utilization Schedules
Standardized
inventory required because
Fleet of Boeing
of only one type737
ofAircraft
aircraft
Figure 2.8
Activity Mapping at
Southwest Airlines
Pilot training required on
Courteous,
onlyLimited
one type but
of aircraft
Passenger
Reduced Service
maintenance
Lean,
inventory required because Short Haul, Point-to-
Productive of only one type of aircraft
Point Routes, Often to
Excellent supplier relations
with Boeing
Competitive has aided
Advantage:
financing
Low Cost
High Frequent,
Aircraft Reliable
Fleet of Boeing
737 Aircraft
Figure 2.8
Activity Mapping at
Southwest Airlines
Courteous, but
Limited Passenger
Reduced maintenance
Service
inventory required because
Lean, of only one type of aircraft
Short Haul, Point-to-
Flexible union
Employees Flexible employeesSecondary
and Airports
contracts standard planes aid
scheduling
Low Cost
Maintenance personnel
High trained only one type of
Frequent,
Aircraft aircraft Reliable
20-minute gate turnarounds
Fleet of Boeing
737 Aircraft
Figure 2.8
Activity Mapping at
Southwest Airlines
Automated ticketing
Courteous, but
machines
Limited Passenger
Service
Empowered employees
Lean, High employee
Short Haul, Point-to-
compensation
Hire for attitude, then train
LowHigh level of stock
Cost
ownership
High High number of flightsFrequent,
Aircraft Reliable
Utilization reduces employee idle time
Schedules
Standardized
Fleetbetween
of Boeing flights
737 Aircraft
Figure 2.8
Four International
Operations Strategies
High International Figure 2.9
Strategy
Cost Reduction Considerations
 Import/export or
license existing
product
Examples
U.S. Steel
Harley Davidson
Low
Low High
Local Responsiveness Considerations
(Quick Response and/or Differentiation)
Four International
High Figure 2.9
International Strategy
license existing
product
Examples
U.S. Steel
Harley Davidson
Low
Low High
Four International
Operations
GlobalStrategies
High Figure 2.9
Strategy
 Standardized
product
 Economies of scale
 Cross-cultural
learning
Examples
license existing
Texas Instruments
product
U.S.Caterpillar
Examples
Steel
Harley Davidson
Otis Elevator
Low
Low High
Four International
High Figure 2.9
Global Strategy
 Standardized product
 Cross-cultural learning
Examples:
Texas Instruments
Caterpillar
Otis Elevator
license existing
product
Examples
U.S. Steel
Harley Davidson
Low
Low High
Four International
Multidomestic
Strategy
High Figure 2.9
 Use existing
Global Strategy
domestic
model
Examples:globally
 Franchise, joint
Texas Instruments
Caterpillar
Otis Elevator
ventures,
subsidiaries
Examples
license existing
product
Heinz
Examples
McDonald’s
U.S. Steel
Harley Davidson
Low The Body Shop

Low Hard Rock Cafe High
Four International
High Figure 2.9
Global Strategy
Examples:
Texas Instruments
Caterpillar
Otis Elevator
Multidomestic Strategy
International Strategy  Use existing
 Import/export or domestic model globally
license existing  Franchise, joint ventures,
product subsidiaries
Examples Examples
U.S. Steel Heinz The Body Shop
Harley Davidson McDonald’s Hard Rock Cafe
Low
Low High
Four International
Transnational
High Figure 2.9
Strategy
Global Strategy
 Move material,
Examples:
people, ideas
Texas across
Instruments national
Caterpillar
boundaries
Otis Elevator
 Cross-cultural
learning
license
product
existing  Franchise, joint ventures,
subsidiaries
Examples
Examples
Examples
McDonald’s Hard Rock Cafe
Harley Davidson
Coca-Cola
Low
Nestlé
Low High
Four International
High Figure 2.9
Global Strategy Transnational Strategy
 Standardized product  Move material, people, ideas

 Economies of scale across national boundaries
 Cross-cultural learning  Economies of scale
Examples:
Texas Instruments Examples
Caterpillar Coca-Cola
Otis Elevator Nestlé
license existing  Franchise, joint ventures,
product subsidiaries
Examples Examples
Harley Davidson McDonald’s Hard Rock Cafe
Low
Low High
Ranking Corruption
Rank Country 2011 CPI Score (out of 10)
1 New Zealand 9.5 Least
2 Demark, Finland 9.4 Corrupt
5 Singapore 9.2
6 Norway 9.0
8 Australia, Switzerland 8.8
10 Canada 8.7
12 Hong Kong 8.4
14 Germany, Japan 8.0
16 UK 7.8
24 USA 7.1
32 Taiwan 6.1
43 South Korea 5.4
60 Malaysia 4.3 Most
75 China 3.6 Corrupt
112 Vietnam 2.9
143 Russia 2.4
© 2011 Pearson Education
Education, Inc. publishing as Prentice Hall 2 - 81
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted, in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of the publisher.
Printed in the United States of America.

Operations Strategy in Global Environment

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Operations Strategy in Global Environment

Transféré par

Droits d'auteur :

Formats disponibles

Operations Strategy in a

PowerPoint presentation to accompany

PowerPoint slides by Jeff Heyl

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

 Global Company Profile: Boeing

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

 Achieving Competitive Advantage

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2-3

 Strategy Development and

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2-4

 Global Operations Strategy

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2-5

1. Define mission and strategy

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2-6

4. Understand the significant key

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2-7

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2-9

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 11

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 12

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 13

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 15

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 16

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 17

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 19

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 20

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 21

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 22

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 23

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 24

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 25

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 26

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 27

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 28

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 29

The Strategy tells the

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 30

 Mission - where are

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 31

Arnold Palmer Hospital for

Customers Public Image

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 35

Sample Company Mission

Sample Operations Management Mission

To produce products consistent with the company’s mission

Process design To determine, design, and produce the

Human resources To provide a good quality of work life, with

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 40

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 41

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 42

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 43

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 44

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 45

Location COST LEADERSHIP

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 46

1. Goods and 6. Human resources

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 47

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 52

fine-dining Repetitive (modular) cafeteria)

Low Moderate High

Layout Layout supports Layout supports

Supply Chain Long-term supplier Tends to purchase

© 2011 Pearson Education, Inc. publishing as Prentice Hall 2 - 59

increase market price or quality change image, critical