Lecture 11 - Inter and Intra-supply chains

Question 1

What are the different kinds of pressures for Global Integration?

Answer 1

1. Strategic
2. Operational
3. Infrastructural
4. Customer needs
5. Market needs
6. Political needs

Question 2

What are the three L’s that has to be considered when setting up a production?

Answer 2

1. Localisation
2. Location
3. Linkage

Question 3

What could be 2 reasons for setting up an operational facility outside existing locations?

Answer 3

1. Competitive Forces

2. Growth Opportunities

Question 4

How does one determine Location choices?

Answer 4

1. National and Regional Research

2. Site Research

Question 5

what is meant by linkage?

Answer 5

What is the role of a particular operation in the global network and how does it link with other operations and to which degree of autonomy?

Moreover, how important is that facility.

Question 6

A plant could have one of four positions in the network, which are the four?

Answer 6

1. Isolated plant
2. Receiver plant
3. Hosting network plant
4. Active network plant

Question 7

What are the 3 dimensions of focus for product allocation in networks?

Answer 7

1. Market
2. Product
3. Process

Question 8

What is meant by a “General Purpose strategy”?

Answer 8

We have two plants that produce in the same order but in different countries

Question 9

What is meant by a “Market plant strategy”?

Answer 9

Here, the plants are in different countries and will therefore only produce for the market in that country

Question 10

What is meant by a “Product plant strategy”?

Answer 10

Here we have the situation where the factories produce one product each. Can then evaluate these processes to see which one that is the best.

Question 11

What is meant by a “Process plant strategy”?

Answer 11

In this situation the plants produce different components of the products. Maybe half of it on one plant and the other half in the plant.

Question 12

What is meant by a “Partial Market plant strategy”?

Answer 12

Combination of market plant strategy and then they will be adaptable to satisfy a sudden demand in another market if that is needed.

Question 13

What are some characteristics for a MARKET plant?

Answer 13

typical organisation = Profit Centre
Management = Decentralized
Competitive success factors = Flexible, easy tech and support services, speed.
Competitive disadvantage = . . .
Logistics = Little intra company transport
Location choice = close to market, tariff barriers

Question 14

What are some characteristics for a PRODUCT plant?

Answer 14

typical organisation = Profit centre?
Management = decentralized and centralized
Competitive success factors = flexible & focused factory
Competitive disadvantage = . . .
Logistics = much intra-company transport
Location choice = labour costs, skilled workers, know-how

Question 15

What are some characteristics for a PROCESS plant?

Answer 15

typical organisation = cost centre
Management = centralized
Competitive success factors = minimization costs
Competitive disadvantage = little flexibility & long throughput time
Logistics = much intra-company transport
Location choice = know-how and qualified workers.