MGMT2101 Lecture Notes - Lecture 7: Operations Management, Exchange Rate, Outsourcing
Document Summary
Mgmt2101 lecture 7 - global production, outsourcing, and logistics. Interrelated issues in global production: where (& how many places) should production activities be located (configuration, how should value activities and globally dispersed supply chain be managed (coordination, what are the best practices in operations management. In addition to improving quality, three objectives have particular importance. Production and logistics functions must be able to: achieve cost reduction, accommodate demands for local responsiveness, respond quickly to shifts in customer demand. Improve quality control: flexible machine cells, to perform a variety of operations (local responsiveness, product factors and location strategies, value to weigh ratio. High: electronics, pharmaceutical: product serves universal needs, concentrated production for investment & transportation benefits, two basic strategies, centralised location, decentralised locations. Vertical integration: stages in the raw material to consumer value chain: raw materials > component part manufacturing > final assembly > retail.
