Global Manufacturing & Supply Chain Management
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Which term refers to the network that links together the different aspects of the value chain and coordinates materials, information, and funds from the initial raw-material supplier to the ultimate customer?

  • supply chain (correct)
  • materials management device
  • logistics strategy information system
  • customer service

    • Sourcing and procuring refer to ______ .

  • integration management
  • production management
  • supply chain management (correct)
  • service operations management

    • Jordan, a manager at an MNE, is responsible for supervising the transportation and storage of materials and final goods. Jordan is most likely a manager involved with ______ .

  • logistics (correct)
  • inventory management
  • quality control
  • offshoring

    • Logistics is also known as _______ .

    <p>material management</p> Signup and view all the answers

    Which of the following BEST describes a major difference between supply chain management and logistics?

    <p>Supply chain management involves handling suppliers and customers.</p> Signup and view all the answers

    In a global supply chain, suppliers must be part of the manufacturer's organizational structure.

    <p>False</p> Signup and view all the answers

    Logistics is also known as materials management.

    <p>True</p> Signup and view all the answers

    Supply-chain management refers to activities in the value chain that occur inside the company, whereas logistics management refers to external activities.

    <p>False</p> Signup and view all the answers

    What is a supply chain? How does a supply chain differ from materials management and logistics?

    <p>A company's supply chain encompasses the coordination of materials, information, and funds from the initial raw material supplier to the ultimate customer. Logistics (also called materials management) is an important dimension of the supply chain. Logistics is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements. Materials management is inbound logistics or the movement and management of materials and products from purchasing through production. The difference between supply chain management and logistics is one of degree. Logistics focuses much more on the transportation and storage of materials and final goods, whereas supply chain management extends beyond that to include the management of supplier and customer relations.</p> Signup and view all the answers

    In the context of manufacturing strategy, the degree of consistency between the foreign investment decision and the company's competitive strategy is known as ______ .

    <p>compatibility</p> Signup and view all the answers

    Burron Manufacturing is striving to improve its performance reliability, speed of delivery, and product reliability. Burron is most likely focusing on a(n) ______ strategy.

    <p>quality</p> Signup and view all the answers

    The ability of the production process to make different kinds of products and to adjust the volume of output is known as ______ .

    <p>flexibility</p> Signup and view all the answers

    The need for greater efficiency, which is closely linked to ______ , forces MNEs to align their overall strategy with operations.

    <p>cost reduction</p> Signup and view all the answers

    When GM moved some of its manufacturing operations to Mexico to be closer to the American market, they were doing what's known as ______ .

    <p>nearshoring</p> Signup and view all the answers

    The relocation of a business process or entire manufacturing facility to a foreign country is known as ______ .

    <p>offshoring</p> Signup and view all the answers

    Bocce Shoes, an Italian firm, set up a production facility in Vietnam to manufacture the firm's line of athletic shoes. Bocce is most likely using a(n) ______ strategy.

    <p>efficiency/cost</p> Signup and view all the answers

    When a company has improved its operations efficiency so much that it decided to move back to its home country, this is called ______ .

    <p>onshoring</p> Signup and view all the answers

    Which of the following is NOT one of the three basic configurations that MNEs consider when establishing a global manufacturing strategy?

    <p>multicultural manufacturing</p> Signup and view all the answers

    Ronald Enterprises, an American company, has a manufacturing facility in France in order to serve customers throughout Europe. Ronald is most likely using a ______ manufacturing strategy.

    <p>regional</p> Signup and view all the answers

    A multidomestic configuration is most important when ______ .

    <p>demand in individual countries becomes significant</p> Signup and view all the answers

    Deciding whether to establish production facilities in many different countries or in one centralized location is called ______ .

    <p>centralized manufacturing</p> Signup and view all the answers

    Once a firm has determined what its manufacturing configuration will be, and has coordinated its supply chain, it must create a(n) ______ system to ensure that the firm's strategies are carried out.

    <p>control</p> Signup and view all the answers

    ______ is the linking or integrating of activities into a unified system.

    <p>Coordination</p> Signup and view all the answers

    ______ is the measuring of performance so that companies can respond appropriately to changing conditions.

    <p>Control</p> Signup and view all the answers

    The success of a global manufacturing strategy depends on compatibility, configuration, coordination, and control.

    <p>True</p> Signup and view all the answers

    Configuration is the linking or integrating of activities into a unified system.

    <p>False</p> Signup and view all the answers

    Strategies to reduce operational costs are linked to efficiency.

    <p>True</p> Signup and view all the answers

    Innovation is the ability of the production process to make different kinds of products and to adjust the volume of output.

    <p>False</p> Signup and view all the answers

    Nearshoring implies moving the supply chain closer to the home market.

    <p>True</p> Signup and view all the answers

    Offshore manufacturing is attractive because it offers high labor costs, cheap materials and components, and proximity to markets.

    <p>False</p> Signup and view all the answers

    ______ is the process of a firm having inputs supplied to it for the production process.

    <p>Sourcing</p> Signup and view all the answers

    Alta Designs is considering the idea of global sourcing. What would be the most likely result for Alta Designs?

    <p>lower costs and improve quality</p> Signup and view all the answers

    All of the following tend to be more expensive when sourcing abroad, EXCEPT ______ .

    <p>labor rates</p> Signup and view all the answers

    ACE Computers established an assembly operation in Malaysia so that it would be close to its key suppliers. ACE is most likely engaging in ______ .

    <p>industrial clustering</p> Signup and view all the answers

    Which of the following would most likely be reduced by vertical integration?

    <p>transaction costs</p> Signup and view all the answers

    Rapid Technologies owns its entire supplier network, which means that the firm most likely uses ______ .

    <p>vertical integration</p> Signup and view all the answers

    Japanese ______ are groups of independent companies that work together to manage the flow of goods and services along an entire value chain.

    <p>keiretsus</p> Signup and view all the answers

    In deciding whether to make or buy, MNEs should focus on those parts that are ______ to the product and that they are ______ at making.

    <p>critical; distinctively good</p> Signup and view all the answers

    Which of the following is one of the biggest barriers to expanding the use of outsourcing?

    <p>loss of operational control</p> Signup and view all the answers

    Onshoring is also knows as reshoring.

    <p>True</p> Signup and view all the answers

    Japanese keiretsus are groups of independent companies that work together to manage the flow of goods and services along the entire value chain.

    <p>True</p> Signup and view all the answers

    Utilizing vertical integration is an alternative way to reduce transportation and transaction costs.

    <p>False</p> Signup and view all the answers

    If MNEs outsource parts instead of sourcing them from internal production, they need to determine the degree of involvement with suppliers.

    <p>True</p> Signup and view all the answers

    The purchasing agent is the link between a company's outsourcing decision and its supplier relationships.

    <p>True</p> Signup and view all the answers

    Conflict minerals are certain minerals that come from warring areas, principally the eastern provinces of the Democratic Republic of the Congo, that generate revenues to fund conflicts.

    <p>True</p> Signup and view all the answers

    Contract manufacturers are companies that enter into a contract with the hiring company, to assume the entire manufacturing process.

    <p>True</p> Signup and view all the answers

    A comprehensive global sourcing strategy should include inventory management.

    <p>True</p> Signup and view all the answers

    The use of JIT does not depend on the quality of incoming parts or the time of their arrival.

    <p>False</p> Signup and view all the answers

    JIT is the process of sourcing raw materials and parts just as they are needed in the manufacturing process.

    <p>True</p> Signup and view all the answers

    What is a just-in-time (JIT) inventory system? What are the implications of JIT for firms that use foreign sourcing?

    <p>JIT systems focus on reducing inefficiency and unproductive time in the production process to continuously improve the process and the quality of the product. The JIT system gets raw materials, parts, and components to the buyer &quot;just in time&quot; for use, sparing companies the cost of storing large inventories. However, the use of JIT means that parts must have few defects and must arrive on time. That is why companies need to develop solid supplier relationships to ensure good quality and delivery times if JIT is to work. Foreign sourcing can create big risks for companies that use JIT, because interruptions in the supply line can cause havoc. Quality of inventory is important, because inventory with significant amounts of defects will create problems for JIT. If the buyer has to purchase more because of expected defects, there will be not only wasted inventory but also higher carrying costs.</p> Signup and view all the answers

    Most U.S. companies have moved from a total quality management (TQM) approach to an acceptable quality level (AQL) approach.

    <p>False</p> Signup and view all the answers

    Six Sigma is an effective statistical approach to quality management developed by Motorola and popularized by General Electric.

    <p>True</p> Signup and view all the answers

    A comprehensive supply chain strategy should include good inventory management.

    <p>True</p> Signup and view all the answers

    An element of total quality management (TQM) that focuses on continuous improvement by identifying problems and enlisting employees to help eliminate them is known as ______ .

    <p>kaizen</p> Signup and view all the answers

    Fortis Manufacturing Systems uses a highly focused system of quality control that takes a statistical approach and scrutinizes the firm's entire production system. Fortis most likely uses ______ .

    <p>Six Sigma processes</p> Signup and view all the answers

    What are the three levels of quality standards?

    <p>general, industry-specific, and company</p> Signup and view all the answers

    Study Notes

    Summary of Global Manufacturing and Supply-Chain Management

    • Supply chain management is a network that links various aspects of the value chain, coordinating materials, information, and funds from initial raw materials to the ultimate customer.
    • Sourcing and procuring are key elements of supply chain management.
    • Logistics is the aspect of supply chain management responsible for the transportation and storage of materials and final products.
    • Logistics is also known as materials management.
    • Supply chain management involves managing suppliers and customers, whereas logistics focuses on the transportation and storage of goods.
    • A global supply chain may have its suppliers as part of the manufacturer's organizational structure.
    • Supply chain management may involve both internal and external activities in the value chain.
    • Companies implementing global supply chains face decisions on manufacturing strategies, such as deciding whether to centralize or decentralize operations.
    • Factors like compatibility, configuration, coordination, and control are critical for a successful global manufacturing strategy.
    • Compatibility refers to the consistency between FDI decisions and the company's competitive strategy.
    • Global sourcing, a key aspect of global supply chain and operations, can lead to lower costs and quality improvements.
    • Nearshoring is moving production facilities closer to the home market.
    • Offshoring is moving production facilities to a foreign country.
    • Companies often use technology (e.g., EDI, RFID, ERP, and e-commerce) to manage their global supply chains.
    • Quality is a crucial factor in global manufacturing strategies and supply-chain management strategies.
    • Quality management systems like TQM (Total Quality Management) and Six Sigma aim to improve quality throughout the process.
    • The use of JIT (Just-In-Time) inventory systems in foreign sourcing requires careful management of suppliers, minimizing risks of interruptions in supply, and ensuring quality.

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    Chapter 18 Global Manufacturing and Supply-Chain Management PDF

    Description

    This quiz explores the key concepts of global manufacturing and supply chain management, including sourcing, logistics, and the value chain. It examines how companies manage suppliers, customers, and transportation of goods. Test your knowledge on strategies related to centralizing or decentralizing operations.

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