This document discusses international operations management. It describes how international operations management differs from domestic operations in areas like culture, economies, and quality standards. It also outlines several strategic issues in international operations management, such as international sourcing and facilities location. Finally, it examines topics like supply chain management, quality standards, and technology transfer in international contexts.

1. INTERNATIONAL OPERATIONS
MANAGEMENT
Dr.S.Oviya
M.Com Department
BMS College For Women

2. INTERNATIONAL OPERATIONS MANAGEMENT
 Nature of operations management
 International operations management
compared with domestic operations
management
 Operation management and competitive
advantage
 International operations management and
corporate strategy

3. NATURE OF OPERATION MANAGEMENT
 Production management
 Operation management

4. INTERNATIONAL OPERATION MANAGEMENT
COMPARED WITH DOMESTIC MANAGEMENT
 International operation management
Advantage of location
Enjoys benefits of experience curve
 Domestic operation management
severe competition
government support

5. DOMESTIC OPERATION MANAGEMENT
INTERNATIONAL OPERATION
MANAGEMENT
 Homogenous culture
 Local economies & social
factors
 Not much variation in
quality
 Pricing may not be
challenging
 Scope is limited
 Resources within one
location
 Multi culture
 Economical and social
factors across countries
 Different quality standards
requirements.
 Pricing varies country to
country
 Scope is wide
 Resources From high cost
to low cost market

6. STRATEGIC ISSUES
1) International sourcing and vertical
integration
Sourcing:
means procuring
a firm uses to acquire the different
components it needs to produce its own
goods and services

7. Vertical integration:
means owing or controlling all the
supply sources or the channels through which
the firms products or services are distributed.
Arguments To Make and To Buy:
Make Or Buy
By self In partnership short long
term
term
supplier
controlled non

8. Outsourcing:
is the act of moving some of
the firms internal activities and decision
responsibility to external service providers.
2) Facilities location:
 Country factors – resource availability,
infrastructure, culture, country origin
 Technology factors-
 Product factors - universal need, weight
 Government policies
 Organisational issues- strategy, structure,
inventory mgt

9. 3) Standardisation of production facilities:
 Interchange ability of components across
plants and the ability to shift production
b/w countries easily and quickly
 Less need for production planning &
design
 Simplicity in comparison of performances
of production units in various countries

10.  Less worldwide stockholding and more efficient
inventory mgt across plant
 Easy transfer of technology among plants
 Easy establishment of new plants

11. 4)CONTRACT MANUFACTURING
Advantages :
 Avoidance of FDI
 Easy exploitation of foreign markets with less
investments
 Home-grow image can be attached to the
goods
5) STRATEGIC ROLE OF FOREIGN PLANTS

12. 6) SUPPLY CHAIN MANAGEMENT
 Elements:
Customer service requirements
Plant and distribution center
Inventory management
Outsourcing
Business processes
Information system
Organisational designs and training
program

13. SUPPLY CHAIN FOR MANUFACTURER


s
s
s
sto mfg sto
di
s
ret con

14. SUPPLY CHAIN FOR A SERVICE PROVIDER

s
s
storage
Servi
provider Consumer

15. MATERIAL MANAGEMENT
 Two issues:
 Flow of materials, parts and supplies from
suppliers to the firm
 Flow of materials, parts within and supplies
between units of the firm
1

16. FACTORS DIFFERENTIATE DOMESTIC AND
INTERNATIONAL MATERIALS MANAGEMENT
 1) Distance
 2)transport modes
 3)regulatory context
 Managing cost :
 purchasing
Currency exchange
Inbound & outbound transportation
Production
Inventory
Communication

17. 7) MANAGING SERVICES OPERATIONS
 International services business basic issues:
 Capacity planning
 Location planning
 Facility design and layout
 Operation scheduling
 Intervention of government

18. 8) INTERNATIONAL QUALITY STANDARDS
 Total quality management:
 Principles:
• Customer satisfaction
• Employee involvement
• Continuous improvement in
• quality

19.  Other elements:
 Team approach
 Decisions based on facts than opinion
 Knowledge about quality tools and their
application
 Inclusion of suppliers in quality improvement
programme
Quality certification:
ISO 9000, 9001,9002,9003,9004

20. 9) INTERNATIONALIZATION OF R & D
 Comprises
 Basic research
 Applied research
 R & D
10) MANAGING TECHNOLOGY TRANSFER