School of management studies

PUNJABI UNIVERSITY PATIALA

SEMINAR-4
OPEARTIONS MANAGEMENT IN
INTERNATIONAL FIRMS
In partial fulfillment of the requirement of the degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)

BY
ANMOL BANSAL
ROLL -No….20421119
UNDER THE SUPERVISION OF
Dr. B.B Singla
OPERATIONS MANAGEMENT

 Operations management (OM) is the business function responsible for managing the
process of creation of goods and services. It involves planning, organizing, coordinating,
and controlling all the resources needed to produce a company's goods and services.

 For example, if an organization makes furniture, some of the operations management

decisions involve the following: purchasing wood and fabric, hiring and training workers,
location and layout of the furniture factory, purchase cutting tools and other fabrication
equipment.
NATURE OF INTERNATIONAL
OPERATIONS MANAGEMENT

 Transformational Process
 Dynamic
 Continuous Process
 Administration
IMPORTANCE OF OPERATIONS
MANAGEMENT
 To ensure timely delivery of the products and to successfully turn the raw materials
into the finished products (input to output).
 Optimum utilization of resources leading to enormous profits of the organization.
 Reduced Operating Cost
  Customer Satisfaction
 To improve the overall productivity. 
Scope of Operations management

 Facility Location
 Material handling
 Product design
 Process design
 Quality control
 Material and maintenance management
 OPERATIONS MANAGEMENT
PROCESS

Standardized
Standardized Process
Process

ACQUISITION
ACQUISITION OF OF LOCATION Logistics
Logistics and
and material
material
RESOURCES LOCATION DECISIONS
DECISIONS
RESOURCES management
management
Country
Country related
related issues
issues
Supply
Supply chain
chain management Flow
management
Product related issues
Product related issues Flow of
of material
material
Vertical
Vertical integration Transportation
integration
Government policies
Government policies Transportation options
options
Make
Make oror buy
buy Inventory
Inventory levels
levels
Supply Chain Management

 Supply chain management is the set of processes and steps a

firm uses to acquire the various resources it needs to create
its products.The first issue an international production
manager faces is deciding how to acquire the inputs. Other
common terms for this activity include sourcing and
procuring. Supply chain management clearly affects product
cost, product quality, and internal demands for capital.
Because of these impacts, most international firms approach
supply chain management as a strategic issue to be carefully
planned and implemented by top management.
VERTICAL INTEGRATION

 Vertical integration is a strategy whereby a

company owns or controls its suppliers,
distributors, or retail locations to control its
value or supply chain. Vertical integration
benefits companies by allowing them to
control processes, reduce costs and improve
efficiencies.
Basic Make-or-Buy Options

 The first step in developing a supply

chain management strategy is to
determine the appropriate degree of
vertical integration. Vertical integration is
the extent to which a firm either provides
its own resources or obtains them from
outsiders.
Influence Factors- Make or Buy
Decision
 Size
 Scope of operations
 Technological expertise
 Nature of product
Factors Affecting Location Decisions

 Country-related issues
 Product-related issues
 Government policies
Country-Related Issues

 Resource availability
 Cost
 Infrastructure
Product-Related Issues

 Value-to-weight ratio
 Required production technology
Government Policies

 National trade policies

 Economic development incentives
 Existence of foreign trade zones (FTZ)
Om Across Organization

 Most businesses are supported by the functions of operations, marketing, and finance.
 The major functional areas must interact to achieve the organization goals
 Human resources must understand job requirements and worker skills.
 Accounting needs to consider inventory management, capacity information, and labor
standards.
International Logistics

 International logistics is the management of the flow of materials, parts,

supplies, and other resources from suppliers to the firm; the flow of materials,
parts, supplies, and other resources within and between units of the firm
itself; and the flow of finished products, services, and goods from the firm to
customers.
Inventory management

 Inventory management is how you track and control your business’ inventory
as it is bought, manufactured, stored, and used. It governs the entire flow of
goods — from purchasing right through to sale — ensuring that you always
have the right quantities of the right item in the right location at the right time.
Strategies for Enhancing Productivity

 Spend more on R&D

 Improve operations
 Increase employee involvement
 Total Quality Management

 Strategic Commitment to Quality

 Employee Involvement
 High-Quality Materials
 Up-to-Date Technology
 Effective Methods
CHALLENGES OF OPERATION
MANAGEMENT
 Culture
 Business Environment:
 Quality Standards
 Pricing
 Technology
 Economies of Scale
 Usage of resources: 
THANK
YOU