International Operations Management
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Transcript International Operations Management
International Operations
Management
MGMT 6367
Lecture 06
Instructor: Yan Qin
Fall 2012
Outline
Review for Mid-term Exam
Case study
◦ Case: New Balance
◦ Case: Xbox
◦ Case: Mattel
Review for Mid-term Exam
Additional office hours:
◦ 7:00 pm – 8:00 pm, Oct 11 CST
◦ 7:00 pm – 8:00 pm, Oct 13 CST
Mid-term Exam: 2 hours, open book/slides, in class
Only Multiple-choice questions will be given on the exam.
◦ There will be 30 multiple-choice questions on the exam. Each is
worth 4 points.
Anything that is not listed on the review slides will
not be tested.
No case-related questions will be asked on the exam.
What you should know – Week 1
Definitions of Production, Operations, and Operations
Management
Four competitive priorities
Definitions of qualifying/winning criteria
What is Logistics
Global Vs. Domestic Operations and Logistics
Differences between goods and services
What you should know – Week 3
Definitions of Outsourcing, Off-shoring, Back-sourcing, and
Near-shoring
Why outsourcing
Four types of components classified based on the SIC matrix
◦ Outsource/in-house recommendations for each type of
component
What are the 5 typical buyer-supplier relationships
◦ Pros and Cons of each type of relationship
Products suitable for global outsourcing
Risks of outsourcing
What you should know – Week 3
Calculation:You should know how to
◦ Use the method of Factor Rating to find the supplier with the
highest/lowest overall rating;
◦ Solve for the break-even quantity
◦ Give make-or-buy suggestions based on the relative magnitude
of break-even quantity and the expected production quantity
What you should know – Week 4
Definitions of Supply Chain Management
What is Bull-whip effect?
◦ Major causes and possible remedies
What is risk?
Four types of risks in a Supply Chain
Possible risk management strategies
Common types of qualitative and quantitative forecasting
methods
What you should know – Week 4
Calculation:You should know how to
◦ Compute Inventory Turnover and Weeks of Supply based on the
information given.
◦ Compute the significance of a risk event
◦ Use moving average methods and exponential smoothing
method to make required forecasts
What you should know – Week 5
Definitions of customer value, value-added activities, nonvalue-added activities, and waste
Ohno’s seven wastes
Expectations in a Lean Supply Chain
What is Group Technology
◦ Benefits offered by the use of Group Technology
Pros and Cons of small transfer batches
Definition of setup time
Differences between internal and external setup steps
What you should know – Week 6
Key in storage design
Common types of storage systems
Inputs to the layout decision for production facilities
Four basic production layouts
◦ Description of each layout
◦ Suitable products for each layout
Calculation:You should know how to
◦ Compute the material handling costs for a process layout. Pay
attention to the example given on Process Layout Design;
◦ Compute the required workstation cycle time, the theoretical
minimum number of workstations, and efficiency in assembly-line
balancing.
Case study
Sample answers to the case-related questions can be found in
the PDF document titled “Case Study – Sample Answers”
posted on the course website.
Please note that the sample answers may not be 100% correct
or the only solutions.
Case Study: New Balance
Please read the case “New Balance Athletic Shoe, Inc.” and think
about the following questions:
What are the competitive implications of the Adidas/Reebok
transaction for New Balance? You may want to refer to figures in
Exhibit 2.
In what aspects did New Balance see itself differentiated from
Nike, Adidas, or Reebok?
New Balance placed a disproportionately large emphasis (relative
to sales generated) on serving smaller retailers and ensuring timely
delivery of products to them. What are the reasons for them to do
that?
New Balance – Cont.
New balance performed 25% of its manufacturing in the United
states at a time when nearly all of its competitors were
manufacturing 100% of their products in Asia. What are the
primary reasons for them to maintain domestic manufacturing?
Suppose the total US volume of athletic shoes per year is 400
million pairs. How much is the cost penalty resulted from New
Balance’s domestic manufacturing?
Case study: X-Box
Read the case on X-box and think about the following
questions:
What were the challenges facing Microsoft with the original Xbox?
What supply chain changes did Microsoft make between Xbox and
the Xbox 360? And what’s the motivation?
What are the benefits and risks of the global launch planned for the
Xbox 360?
Microsoft planned to use three EMS firms for the Xbox 360, all
manufacturing in China. What were the benefits and limitations of
the approach?
Case study:
and the toy recalls (A)
This case details the events leading up to the recalls at MATTEL
in 2007 and highlights the difficulties a multi-national company
faces in managing global operations. Please read the case
carefully and think about the following questions:
What are the characteristics of the toy industry and how do they
affect toy production?
Two quality problems were mentioned in the case: lead paint and
small magnets. What were the causes of these problems?
What challenges do toy companies face in managing offshore-
outsourcing?
Good luck on the exam!
Just let me know if you have any questions!