ADM 3318 Lecture Notes - Lecture 18: Materials Management, Total Quality Management, Outsourcing
16 Jun 2018
School
Department
Course
Professor
Global Production, Outsourcing and Logistics
Global operation talk about…
Production, logistics and quality control - a critical aspect
Materials management
It’s the activity that controls the transmission of physical
materials through the value chain
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Logistics
The procurement and physical transmission of material
through the supply chain from suppliers to customers
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Total quality management (TQM)
A management philosophy is which the central focus is the
need to improve the quality if a company's product and
services
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Manufacturing and materials management objective
Enable lower costs of value creation and superior servicing
of customer requirements
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Better quality control reduces overall costs
Increased productivity as no time lost in poor quality
unsold production
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Reducing direct rejections
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Lower rework, rectification and scrap costs
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Lower warranty and rework costs
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The decision- where to produce?
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What are the factors to consider?
Country factors
Political ideology
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Economic policy
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Cultural adaptive
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Skills and talent
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Forex
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Size
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Levels of development
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Technology factors
Scale and size□
Complexity□
Fixed costs□
Minimum efficiency □
Levels □
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Product factors
Volume, weight ratio□
Commonality of consumer needs, universal needs
Nearness to consumption points, or centralized
production factors
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Is there any advantages?
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Is there any advantage?
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Is there a strategic role for foreign production facility?
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Should I outsource production?
The make-or-buy decision
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What does all this mean?
In terms of international business?
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Class 18 -Mar. 14th
Wednesday, March 14, 2018
08:55
