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Lecture Production operations management: Lecture 3 - Osman Bin Saif

In this chapter, the following content will be discussed: Growth of world trade, reasons to globalize, improve the supply chain, attract and retain global talent, cultural and ethical issues, developing mission and strategies, strategic for competitive advantage, global operation strategy options. | LSM 733- Production Operations Management OSMAN BIN SAIF LECTURE 3 Summary of last Session Definition of Production Operations Management (OM) Organizational Functions Why Study POM? A brief history of operations management The future of the discipline Goods Versus Services Measuring productivity Career opportunities in operations management 2 Agenda of this Session The Global Environment and Operations Strategy Growth of World Trade Reasons to Globalize Improve the supply chain Attract and Retain Global Talent Cultural and Ethical Issues Developing Mission and Strategies Strategic for Competitive Advantage Global Operation Strategy Options The Global Environment and Operations Strategy Section 1, Chapter 2 Growth of World Trade Figure 2.1 60 – 55 – 50 – 45 – 40 – 35 – 30 – 25 – 20 – 15 – 10 – | | | | | | | | | 1970 1975 1980 1985 1990 1995 2000 2005 2010 Year Percent Reasons to Globalize Improve the supply chain Reduce costs (labor, taxes, tariffs, etc.) Improve operations Understand | LSM 733- Production Operations Management OSMAN BIN SAIF LECTURE 3 Summary of last Session Definition of Production Operations Management (OM) Organizational Functions Why Study POM? A brief history of operations management The future of the discipline Goods Versus Services Measuring productivity Career opportunities in operations management 2 Agenda of this Session The Global Environment and Operations Strategy Growth of World Trade Reasons to Globalize Improve the supply chain Attract and Retain Global Talent Cultural and Ethical Issues Developing Mission and Strategies Strategic for Competitive Advantage Global Operation Strategy Options The Global Environment and Operations Strategy Section 1, Chapter 2 Growth of World Trade Figure 2.1 60 – 55 – 50 – 45 – 40 – 35 – 30 – 25 – 20 – 15 – 10 – | | | | | | | | | 1970 1975 1980 1985 1990 1995 2000 2005 2010 Year Percent Reasons to Globalize Improve the supply chain Reduce costs (labor, taxes, tariffs, etc.) Improve operations Understand markets Improve products Attract and retain global talent 6 Improve the Supply Chain Locating facilities closer to unique resources Auto design to California Athletic shoe production to China Perfume manufacturing in France 7 Reduce Costs Foreign locations with lower wage rates can lower direct and indirect costs Trade agreements can lower tariffs Maquiladoras World Trade Organization (WTO) North American Free Trade Agreement (NAFTA) APEC, SEATO, MERCOSUR, CAFTA European Union (EU) 8 Improve Operations Understand differences between how business is handled in other countries Japanese – inventory management Scandinavians – ergonomics International operations can improve response time and customer service 9 Understand Markets Interacting with foreign customers, suppliers, competition can lead to new opportunities Cell phone design moved from Europe to Japan Extend the product life cycle 10 Improve Products Remain open to free flow of ideas Toyota and BMW manage joint research and .