1. Strategi Operasi di Lingkungan Global
J0444
OPERATION MANAGEMENT
Pert 4
Strategi Operasi di Lingkungan Global
Universitas Bina Nusantara

2. Examples of Global Strategies
Boeing – both sales and production are worldwide.
Benetton – moves inventory to stores around the world faster than its competitor by building flexibility into design, production, and distribution
Sony – purchases components from suppliers in Thailand, Malaysia, and around the world
GM is building four similar plants in Argentina, Poland, China, and Thailand

3. Boeing Suppliers (777) Firm Country Parts Alenia Italy Wing flaps
AeroSpace
Technologies
Australia
Rudder
CASA
Spain
Ailerons
doors, wing section
Fuji
Japan
Landing gear
GEC Avionics
United Kingdom
Flight computers
Korean Air
Korea
Flap supports
Menasco
Aerospace
Canada
Landing gears
Short Brothers
Ireland
Landing gear doors
Singapore

4. The Role of Maquiladoras World Trade Organization (WTC)
North American Free Trade Agreement (NAFTA)
European Union (EU)

5. Management Issues in Global Operations
Global Strategic Context
Differentiation
Cost leadership
Response
Supply Chain Management
Location Decisions
Logistics Management

6. Supply-Chain Management
Sourcing
Vertical integration
Make-or-buy decisions
Partnering

7. Location Decisions Country-related issues Product-related issues
Government policy/political risk
Organizational issues

8. Materials Management Flow of materials
Transportation options and speed
Inventory levels
Packaging
Storage

9. Defining Global Operations
International business - engages in cross-border transactions
Multinational Corporation - has extensive involvement in international business, owning or controlling facilities in more than one country
Global company - integrates operations from different countries, and views world as a single marketplace
Transnational company - seeks to combine the benefits of global-scale efficiencies with the benefits of local responsiveness

10. Some Multinational Corporations
Workforce
Company
Home
Country
% Sales
Outside
% Assets
% Foreign
Colgate-
Palmolive
USA 72 63 NA
Dow
Chemical 60 50
Gillette 62 53
Honda
Japan 36
IBM 57 47 51
Citicorp 34 46

11. Some Multinational Corporations
Workforce
Company
Home
Country
% Sales
Outside
% Assets
% Foreign
ICI
Britain 78 50 NA
Nestlé
Switzerland 98 95 97
Philips
Netherlands 94 85 82
Siemens
Germany 51 38
Electronics
Unilever
Britain & Netherlands 70 64

12. Reasons to Globalize Operations
Tangible
Intangible
Reduce costs (labor, taxes, tariffs, etc.)
Improve the supply chain
Provide better goods and services
Attract new markets
Learn to improve operations
Attract and retain global talent

13. Trade and Tariff
Maquiladoras - Mexican factories located along the U.S.-Mexico border that receive preferential tariff treatment
GATT - an international treaty that helps promote world trade by lowering barriers to the free flow of goods across borders
NAFTA - a free trade agreement between Canada, Mexico, and the United States

14. Trade Pays GDP (PPP*) per Person 1990 Growth Rates, %
*PPP – Purchasing Power Parity

15. Free trade may
take us into the era of the floating factory - a six person crew will take a factory from port to port in order to obtain the best market, material, labor and tax advantages

16. Achieving Global Operations -Four Considerations-
Global product design
Global process design and technology
Global factory location analysis
Impact of Culture and Ethics

17. Global Product Design Remember social and cultural differences
packaging and marketing can help make product seem “domestic” but -
“liter” versus “quart”
“sweetness” and “taste”

18. Global Process Design and Technology
Information technology enables management of integrated, globally dispersed operation
Texas Instruments: 50 plants in 19 countries
Hewlett-Packard - product development teams in U.S., Japan, Great Britain, and Germany
Reduces time-to-market

19. Global Facility Location Analysis
Using CSFs for Country Selection
Select CSFs based on parent organization;’s strategic or operations objectives
Obtain country-specific information on the CSFs
Evaluate each country’s CSFs using a 1 (bad) to 5 (good) rating scale
Sum the ratings

20. You May Wish To Consider
work ethic
tax rates
inflation
availability of raw materials
interest rates
population
number of miles of highway
national literacy rate
rate of innovation
rate of technology change
number of skilled workers
stability of government
product liability laws
export restrictions
similarity in language

21. Managing Global Service Operations
Must take a different perspective on
Capacity planning
Location Planning
Facilities design and layout
Scheduling

22. Some Global Strategies
International Strategy: uses exports and licenses to penetrate the global area
Multidomestic Strategy: uses decentralized authority with substantial autonomy at each business
Global Strategy: Uses a high degree of centralization, with headquarters coordinating to seek standardization and learning between plants
Transnational Strategy: Exploits economies of scale and learning, as well as pressure for responsiveness, by recognizing that core competencies reside everywhere in the organization

23. Match Product & Parent Arrow shirts Braun Household Appliances
Burger King
Firestone Tires
Godiva Chocolate
Haagen_dazs Ice Cream
Jaguar Autos
MGM Movies
Lamborghini Autos
Goodrich Tires
Alpo Petfoods
1. Volkswagen
2. Bidermann International
3. Bridgestone
4. Campbell Soup
5. Credit Lyonnais
6. Ford Motor Company
7. Gillette
8. Grand Metropolitan
9. Michelin
10. Nestlé

24. Match Product & Country
Arrow shirts
Braun Household Appliances
Burger King
Firestone Tires
Godiva Chocolate
Haagen_Dazs Ice Cream
Jaguar Autos
MGM Movies
Lamborghini Autos
Goodrich Tires
Alpo Petfoods
1. France
2. Great Britain
3. Germany
4. Japan
5. United States
6. Switzerland

25. Developing Missions and Strategies

26. 10 Strategic OM Decisions
Goods & service design
Quality
Process & capacity design
Location selection
Layout design
Human resource and job design
Supply-chain management
Inventory
Scheduling
Maintenance

27. Goods & Services and the 10 OM Decisions

28. Goods & Services and the 10 OM Decisions – Continued

29. Goods & Services and the 10 OM Decisions – Continued

30. Goods & Services and the 10 OM Decisions – Continued

31. Process Design Job Shops Mass Customization Assembly line Continuous
Process-focused
Job Shops
(Print shop, emergency
room , machine shop,
fine dining
Repetitive (modular)
focus
Assembly line
(Cars, appliances, TVs,
fast-food restaurants)
Product-focused
Continuous
(steel, beer, paper, bread, institutional kitchen)
Mass Customization
Customization at high Volume
(Dell Computer’s PC)
Low Moderate High
Volume
High
Moderate
Low
Variety of Products

32. Operations Strategies for Two Drug Companies

33. Operations Strategies for Two Drug Companies - Continued

34. Operations Strategies for Two Drug Companies - Continued

35. Operations Strategies for Two Drug Companies - Continued

36. How It Works If competitive advantage, leads to achieving
Company
Mission
Business
Strategy
Functional Area
Strategies
Marketing
Decisions
Operations
Fin./Acct.
If competitive advantage, leads to achieving
Distinctive competencies affect

37. Four International Operations Strategies

38. Multidomestic Strategy
Operating decisions are decentralized to each country to enhance local responsiveness

39. Global Strategy
Operating decisions are centralized and headquarters coordinates the standardization and learning between facilities

40. Transnational Strategies
Combines the benefits of global-scale efficiencies with the benefits of local responsiveness

41. International Strategy
Global markets are penetrated using exports and licenses