1LecturefocusProductionandlogisticsLocationofproductionMakeorbuydecisionManagementofglobalsupplychain
2ChapterGlobalProduction,Outsourcing,andLogistics16
3ProductionandlogisticsProductionTheactivitiesinvolvedincreatingproductsofbothmanufacturedgoodsandservicesLogisticsActivitiesthatcontrolthetransmissionofphysicalmaterialsthroughthevaluechain,fromsuppliersthroughproductionandintocustomersCloselylinkedwitheachotherEfficientproductionactivitiesdependsonatimelysupplyofhighqualitymaterialinputs
4StrategicobjectivesofproductionandlogisticsTolowercostsDispersemanufacturingand sourcingactivitiestoefficient globallocationsToincreaseproductqualityEliminatedefectiveproductsfromboththesupplychainandthemanufacturingprocessHelpreducecostsTomodatedemandsforlocalresponsivenessTorespondquicklytoshiftsincustomerdemands
5TotalqualitymanagementRequirestheinvolvementofallpeople,allstagesandallprocessesinqualitymanagementStepsofTQMprogramManagementshouldembracethephilosophythatmistakes,defects,andpoorqualitymaterialsarenotacceptableSupervisorsshouldworkmorewithemployeesandprovidethemwiththetoolstheyneedtodothejobManagementshouldcreateanenvironmentinwhichemployeeswillnotfearreportingproblemsWorkstandardsshouldnotonlybedefinedasnumbersorquotas,butshouldincludesomenotionofquality
6SixSigma(6σ)ThemodernsuccessortoTQMStatisticallybasedphilosophythataimstoreducedefects,boostproductivity,eliminatewastes,andcutcoststhroughoutacompanySigmaisthestandarddeviationfromameanProductionprocessoperatingatSixSigmaare99.99966percentaccurateOnly3.4defectspermillionunits
7SixSigma
8WheretoproduceTwobasiclocationstrategiesConcentratedproductionInacentralisedlocationandservingtheworldmarketDecentralisationInvariousregionalornationallocationsclosetomajormarketsFi
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