OHT 12.1 International operations management and logistics Wall

OHT 12.1 International operations management and logistics Wall

OHT 12.1 International operations management and logistics Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004 OHT 12.2 The operations management systems approach

Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004 OHT 12.3 Characteristics of some traditional methods of manufacture Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004 OHT 12.4 Methods of manufacture

Project processes Jobbing processes Batch processes Continuous processes Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004

OHT 12.5 Lean production (1) Involves both management and workers in the decision-making and suggestion-making process Minimises the use of key resources such as materials, manpower, floor space, capacity and time Introduces just-in-time (JIT) materials handling in order to lower stockholding costs and to minimise the need for buffer stocks

Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004 OHT 12.6 Lean production (2) Encourages worker participation in quality circles where improvements can be suggested and discussed Introduces preventative maintenance Uses multiple purpose machines for flexible production Employs and trains multi-skilled operatives

Encourages teamwork Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004 OHT 12.7 Advantages of lean production An increase in quality of product and after sales service Shorter product development time Faster reaction to changes in consumer preferences

A reduction in unit costs of production without sacrificing quality A better trained and more motivated workforce Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004 OHT 12.8 Experience or learning curve: declining average costs as a function of cumulative output Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004

OHT 12.9 Three arenas of modularisation Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004 OHT 12.10 Finding the economic order quantity (EOQ) Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004

OHT 12.11 Logistical principles Square root law Logistical cost trade-offs Time compression Postponement principle

Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004 OHT 12.12 Incoterms

Ex works (EXW) Free on board (FOB) Free carrier (RRC) Cost, insurance and freight (CIF) Delivered at frontier (DAF) Delivered duty paid (DDP) Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004 OHT 12.13

Types of Distributional Channel Direct system Transit system Classical system Multicountry system Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004

OHT 12.14 Choice of distributional channel A few key factors will determine that choice: Foreign customer base Export volumes Value density of product Order lead times Wall and Rees: International Business, 2nd edition Pearson Education Limited 2004

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