global considerations of operations management Flashcards
global sourcing of inputs
where a business looks to use suppliers from different countries.seeks most cost effective materials, including from overseas
advantages of global sourcing of inputs
increasing capacity of total supply, access skills that arent available domestically.
disadvantages of global sourcing of inputs
long lead times, exposure to potential high risk(financial and political)
overseas manufacture
refers to production of a good in a different country, also known as offshoring.
monitoring processes
able to check that no child labour is used, decent working conditions are provided and people making the products are paid adequately.
advantages of overseas manufacture
costs less than manufacturing in australia because wages are lower, reduced labour and overhead
disadvantages of overseas manufacture
loss of job opportunities
global outsourcing
where a business hands over part of its operations to another operation to another person or business, usually outsources non-core activities.
advantages of global outsourcing
business is able to focus on its core activities, production can be quicker.
disadvantages of global outsourcing
may be difficult to maintain quality, loss of local jobs and career prospects.
supply chain management
range of suppliers from which the business purchases materials and resources.
advantages of supply chain management
quality products are produced, monitoring processes ensure working conditions are legal
disadvantages of supply chain management
if supplier relationship is weak, it threatens production
what is globalisation
where the world trade barriers are broken, and businesses are able to trade inputs and resources with other businesses from around the world
