Drivers of global operations management

Internal Factors
Product y Poorly differentiated products forces local production outlets Resource/Commitment y Levels of human capital, technology, production, and marketing skills determine entry mode options

External Factors
Target Market y Primary element y Sales volume potential Production y Determined by costs and infrastructure capabilities Environmental y Encompasses economic, political, and socio-cultural elements y Dual economic structures demand unique marketing programs

Drivers
Market Drivers

Common customer needs: Coca-Cola, McDonalds  Global channels: Carrefour, Toys R Us, Wal-Mart  Marketing Transfers and Global Branding: IBM, Toyota, Kodak.  Lead Countries: Japan for consumer electronics, Switzerland for watches


Drivers
Cost Drivers

Economies of scale:  Low Cost Production: textiles  Favorable Logistics: transportation costs important) lumber, chemicals  New Product Development Costs: airlines, telecommunications, chips, pharmaceuticals


Drivers
Competitive Drivers

Competing with imports and other global rivals have placed increasing pressures on both domestic and international companies to be competitive in national and international markets.
Government Drivers

United Nations, and its agencies like the IMF, World Bank and WTO: free trade, privatization Technology drivers

WHO,WHAT,WHERE,WHEN,HOW
y The organizing function entails, in addition to setting y y y y

y y

department structure, deciding how resources will be allocated. Allocation is to be efficient (profitable, cheap, timely,etc.) as possible within given constraints. Who : Manpower assignments What: Product line decisions Where : Facility location, product distribution, and sources of supply When: Timing of inputs, outputs; hours of work; manpower schedules; inventory supply problems How : What technology to apply

Scope of production and operations management

Operations Decisions
DRIVERS

INTERNAL EXTERNAL Five areas that affects the operations decision:1.Process 2.Quality 3. Capacity 4. Inventory 5.Technology

PESTLE -External environmental Influence

SWOT -Internal Organizational Influence SMART* -Operation specific Influence

*S:-Specific, M:-Measurable, A:-Achievable:-Realistic, T:-Timeline

The Marina Barrage

y Opening date:-30th October 2008 y Length :-350 m y Impounds:- Marina Channel y Creates :- Marina Reservoir y It is the result of Minister LEE KUAN YEWs vision

to create freshwater reservoir. y It was conferred as the Superior Achievement Award. y It beat 33 other entries, & became the second project outside of USA to win the award, in the last decade.