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Chapter 15

ADM 3318 - Chapter 15 Notes - Global Manufacturing and Material Management.docx

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University of Ottawa

ADM 3318International BusinessDecember 10 2012Chapter 15 Global Manufacturing and Materials ManagementStrategy Production and LogisticsLogistics The procurement and transmission of material through the supply chain from suppliers to customersStrategic Objectives1Lower Costs Dispersing production activities to various locations around the globe where each activity can be performed most efficiently can lower costsoEfficient supply chain management SCM reduces the amount of inventory in the system and increases inventory turnover which means less investment2Increase Product Quality In this context quality refers to reliability Total Management Quality Philosophy of management that focuses on improving the quality of a companys products or services Developed by a number of American consultants such as W Edward Deming and Joseph JuranDeming identified a number of steps that should be part of any TQM programoMistakes defects and poorquality materials are not acceptableoQuality of supervision should be improvedoWork standards should not only be about quotas but also about qualityoManagement has the responsibility to keep employees trainedoAchieving better quality requires commitment from everyone in the companySix Sigma The modern successor to TQM a statistically based managemen
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