Production/Operations Management (Chapter 2) – Flashcards
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1) Improve the supply chain 2) Reduce costs (labor, taxes, tariffs, etc.) 3) Improve operations 4) Understand markets 5) Improve products 6) Attract and retain global talent
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What are 6 Reasons to Globalize? 1) Improve the .... 2) Reduce .... 3) Improve .... 4) Understand .... 5) Improve .... 6) Attract and retain ....
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(1) unique resources
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Part of the reason that globalization improves the supply chain is because you can locate facilities closer to (1)
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(1) wage rates (2) tariffs
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Globalization can reduce costs because foreign locations with lower (1) can lower direct and indirect costs. Also, trade agreements can lower (2)
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(1) other countries (2) response time and customer service
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Globalization can improve operations because it helps companies understand differences between how business is handled in (1). Furthermore, international operations can improve (2) and (2).
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(1) new opportunities
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Globalization can help companies understand markets because interacting with foreign customers, supplier, and competition can lead to (1)
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(1) product life cycle
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Globalization can also extend the (1)
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where it is going
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Mission statements tell an organization....
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how to get there.
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The strategy tells the organization....
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1) Customers 2) Environment 3) Philosophy and Values 4) Profitability and Growth 5) Public Image CEPVPGPI
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What are 5 factors affecting the mission statement?
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(1) benefit to society
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The mission describes the company's (1)
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(1) action plan (2) Functional areas
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The Strategy is an (1) to achieve the mission. (2) also frequently have strategies.
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Strategies for Competitive Advantage 1) Differentiation - better, or at least different 2) Cost Leadership - cheaper 3) Response - more responsive
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What are three strategies for Competitive Advantage?
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(1) physical characteristics and service attributes (2) perception of value
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Competing on Differentiation Uniqueness can go beyond both the (1) and (1) to encompass everything that impacts a customer's (2)
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(1) Analyze the Environment (2) Determine the Corporate Mission (3) Form a Strategy
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Strategy Development Process (1) ---> (2) ---> (3)
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(1) implement an OM strategy (2) provide competitive advantage (3) increase productivity
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The operations manager's job is to: (1) (2) (3)
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Outsourcing is transferring activities that traditionally have been internal to external suppliers.
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What is outsourcing?
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(1) Increased technological expertise (2) More reliable and cheaper transportation (3) Rapid development and deployment of advancements in telecommunications and computers.
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Outsourcing is accelerating due to: (1) (2) (3)
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contract manufacturing
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Subcontracting = ?
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(1) do the work (2) core competencies (3) outsourcing
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Theory of Comparative Advantage If an external provider can perform activities more productively than the purchasing firm, then the external provider should (1). This way the purchasing firm focuses on their (2). This kind of thinking drives (3)
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Insufficient analysis
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What is the most common reason for failure when it comes to outsourcing?
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1) Global strategy (standardize product, economies of scale, and cross-cultural learning) 2) Transnational strategy (move material, people, ideas across national boundaries; economies of scale; cross-cultural learning) 3) International strategy (import/export or license existing product) 4) Multidomestic strategy (use existing domestic model globally; franchise, joint ventures, subsidiaries)
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What are four global operation strategies?
