Developing global manufacturing operations

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Developing global manufacturing operations

  1. 1. Developing Global ManufacturingOperations
  2. 2. Manufacturing companies have started venturing globallyto take advantage of low cost manufacturing, geographicallocation, resource availability and so forth. Developing andmanaging global manufacturing operations havecontinuously been a challenging task for companys worldwide. Visit David Pulman GSK for more info. This articleattempts to explore 10 most significant issues of concern,challenges faced, and potential solutions for multi-nationalmanufacturing organizations as they start operatingglobally.
  3. 3. 1. Management PhilosophyManagement philosophy guides the stakeholders of theorganization in providing an understanding of what theCompanys operations are, where they are heading towards,and why they are in business. Companies need to provide aclear statement of their vision, mission and values to thestake holders. It becomes vital especially in a globalcompany to dedicate thought and efforts in framing thisphilosophy, as individual companies may have slightlydifferent focus, but the group as such should sail towards afocused destination.
  4. 4. Equally important are the business policies and strategiesby which the Company targets to achieve its vision. As thecompanys grow and become multi-national, it becomesimperative to have a clear organizational structure at entitylevel and individual level. This would form the basis forbetter communication, development of collaborativeoperations, and effective decision making. Notably,organizations should adopt ways of proving itscommitment to the strategies and philosophies, link theiroperational and tactical activities towards their vision, andcontinuously communicate them to their stakeholders.
  5. 5. 2. Systems and Systems ThinkingSystems are procedural approach that channels the individuals,departments and the management in effective operations at alllevels. An organization operating in different countries need tohave a common system by which they deal with operations atsame level in their entities. This provides a visibility forindividuals from different entities in collaborating their workwith each other.The concept of Systems Thinking evolved with the developmentof supply chain integration. Organizations that concentrate onthe individual development of the entities often fail to notice theintegrated links and the advantages they can extract off them.Systems Thinking would help look the whole network of entitiesas one organization, with one business and one objective, andfocus on overall development across the supply chain.
  6. 6. 3. Collaborative OperationsCollaborative operations help organizations take advantagein areas such as utilization of low operations cost, skilledlabor, material availability, and so forth though it poseshigh demands on seamless business processes,interoperability, supply chain visibility, demandforecasting, and customer integration.
  7. 7. 4. BrandingAs companies go global, brand management becomes a keyaspect. Customers perception for a product varies with thecountry in which it is manufactured. This urges Multinational companies to concentrate on development ofbrand and strongly commit to their offerings. This becomesan issue of concern especially for companies that go globalbefore creating a niche brand in the market. Multiplebrands and multiple product offerings are to be handledwith appropriate concern.
  8. 8. 5. Sigma LevelSigma is a statistical term to express how much a processvaries from the target. Sigma level allows comparison ofprocess performance through out the entire organization,provides figures on overall yield, and DPMO. Thoughindustries have risen to the level of six sigma targeting3.4DPMO, a lot majority of the companies lie in 3 sigmalevel where they spend at least 30% of its revenue ondefects, corrections, reworks, and rejects. Global companiesshould have a focused roadmap on improving the sigmalevel and link them to their business strategies.https://twitter.com/DavidPulman
  9. 9. 5. Sigma LevelSigma is a statistical term to express how much a processvaries from the target. Sigma level allows comparison ofprocess performance through out the entire organization,provides figures on overall yield, and DPMO. Thoughindustries have risen to the level of six sigma targeting3.4DPMO, a lot majority of the companies lie in 3 sigmalevel where they spend at least 30% of its revenue ondefects, corrections, reworks, and rejects. Global companiesshould have a focused roadmap on improving the sigmalevel and link them to their business strategies.https://twitter.com/DavidPulman

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