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Global Busines Today

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Submitted By gabriellact
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Pages 26
Global Production, Outsourcing, and Logistics

Chapter Outline

OPENING CASE: Building the Boeing 787

INTRODUCTION

STRATEGY, PRODUCTION AND LOGISTICS

WHERE TO PRODUCE

Country Factors Management Focus: Philips in China Technological Factors Product Factors Locating Production Facilities

THE STRATEGIC ROLE OF FOREIGN FACTORIES

Management Focus: Hewlett Packard in Singapore

OUTSOURCING PRODUCTION: MAKE-OR-BUY DECISIONS

The Advantages of Make The Advantages of Buy Trade-offs Strategic Alliances with Suppliers

MANAGING A GLOBAL SUPPLY CHAIN

The Role of Just-in-Time Inventory The Role of Information Technology and the Internet

SUMMARY

CRITICAL THINKING AND DISCUSSION QUESTIONS

CLOSING CASE: Li & Fung

Learning Objectives

1. Explain why production and logistics decisions are of central importance to many multinational businesses.

2. Explain how country differences, production technology and product features all affect the choice of where to locate production activities.

3. Discuss how the role of foreign subsidiaries in production can be enhanced over time as they accumulate knowledge.

4. Identify the factors that influence a firm’s decision of whether to source supplies from within the company, or from foreign suppliers.

5. Articulate what is required to efficiently coordinate a globally dispersed production system.

Chapter Summary

This chapter explores the issues associated with global operations management. At the outset, the author defines the terms operations, production, and material management, and then goes on to discuss the importance of total quality management (TQM) and ISO 9000. Particular emphasis is placed on the topics of where international firms should locate their manufacturing operations and how

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