17-1 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Global Manufacturing and Supply Chain Management

17-2 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Supply Chain Management Supply chain - the coordination of materials, information, and funds from the initial raw material supplier to the ultimate customer.

17-3 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Logistics Logistics, or materials management, is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers’ requirements

17-4 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Global Manufacturing Strategies The success of a global manufacturing strategy depends on factors like: – compatibility – coordination – control

17-5 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Compatibility The degree of consistency between FDI decisions and a company’s competitive strategy. Some company strategies that managers must consider: – Efficiency/cost – Dependability – Quality – Innovation – Flexibility

17-6 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Coordination and Control Coordinating is the linking or integrating of activities into a unified system. Control can be the measuring of performance so companies can respond appropriately to changing conditions.

17-7 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Quality Quality is defined as meeting or exceeding the expectations of customers. Quality standards can be: – general (ISO 9000) – industry-specific – company-specific (zero defects, TQM)

17-8 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Total Quality Management Total quality management (TQM) is a process that stresses: – customer satisfaction – employee involvement – continuous improvements The goal of TQM is to eliminate all defects.

17-9 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Make or Buy Decision Under the make or buy decision, companies have to decide if they will make their own parts or buy them from an independent company

17-10 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Supplier Relations When a company sources parts from suppliers around the world, distance, time, and the uncertainty of the international political and economic environment can make it difficult for managers to manage inventory flows accurately

17-11 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Major Sourcing Strategies Assign domestic buyers for foreign purchasing. Use foreign business agents. Establish international purchasing offices. Assign the responsibility for global sourcing to a specific business unit or units. Integrate and coordinate worldwide sourcing.

17-12 Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Just-in-Time Systems JIT - sourcing raw materials and parts just as they are needed in the manufacturing process.