Chap016 - 16 Chapter Global Manufacturing and Materials...

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Chapter Global Manufacturing and Materials Management 16
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Case: Competitive advantage at Dell Dells business model based on direct selling of customized product at low prices Location advantages (Brazil, Ireland, Close to markets Low shipping costs Speed of delivery Supply base global Dell manages global supply chain to minimize inventory and customize PCs in three days
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Materials management Activity that controls the transmission of physical materials through the value chain Includes procurement, production and into distribution Logistics : Procurement and physical transmission of materials through the supply chain, from suppliers to customers
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Manufacturing and materials management Strategic objectives Lower costs Disperse manufacturing activities to efficient global locations Increase productivity Using Total Quality Management (W. Edward Demming)
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Manufacturing and materials management Strategic objectives Accommodate demands for local responsiveness decentralize production Respond quickly to shifts on customer demand time-based competition extremely important
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The relationship between quality and cost Fig 16.1
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Country Factors Technological Factors Product Factors Locating Manufacturing Facilities Where to manufacture?
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Optimum economic, political, and cultural conditions Externalities
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Chap016 - 16 Chapter Global Manufacturing and Materials...

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