Upload
evangeline-lynch
View
220
Download
4
Tags:
Embed Size (px)
Citation preview
Total Quality Management
MBA650Dr Pavlos Panayi
MBA650 - Dr. Pavlos Panayi 1-2
Globalization and Competitiveness
• Favorable cost• Access to international
markets• Response to changes in
demand• Reliable sources of supply• 14 major trade agreements
in 1990s• Peak: 26% in 2000
World Trade Compared to World GDPSource: “Real GDP and Trade Growth of OECD Countries, 2001–03,” International Trade Statistics 2003, World Trade Organization, www.wto.org
MBA650 - Dr. Pavlos Panayi 1-3
Globalization and Competitiveness (cont.)
Hourly Wage Rates for Selected CountriesSource: “International Comparisons of Hourly Compensation Costs for Production Workers in Manufacturing,” Bureau of Labor Statistics, U.S. Department of Labor, Updated September 30, 2003.
Germany: $26.18Germany: $26.18
USA: $21.33USA: $21.33
Taiwan: $5.41Taiwan: $5.41
Mexico: $2.38Mexico: $2.38
China: $0.50China: $0.50
MBA650 - Dr. Pavlos Panayi 1-4
Globalization and Competitiveness (cont.)
Trade with China: Percent of each country‘s trade Source: “Share of China in Exports and Imports of Major Traders, 2000 and 2002,” International
Trade Statistics 2003, World Trade Organization, www.wto.org
MBA650 - Dr. Pavlos Panayi 1-5
Risks of Globalization
• Cultural differences• Supply chain logistics• Safety, security, and stability• Quality problems• Corporate image • Loss of capabilities
MBA650 - Dr. Pavlos Panayi 1-6
Competitiveness and Productivity
• Competitiveness– degree to which a nation can produce goods and
services that meet the test of international markets• Productivity
– ratio of output to input• Output
– sales made, products produced, customers served, meals delivered, or calls answered
• Input– labor hours, investment in equipment, material usage,
or square footage
MBA650 - Dr. Pavlos Panayi 1-7
Measures of Productivity
Competitiveness and Productivity (cont.)
MBA650 - Dr. Pavlos Panayi 1-8
Changes in Productivity for Select Countries
Internet-enabled productivityInternet-enabled productivity
- Dot com bust- 9/11 terrorist attacks- Dot com bust- 9/11 terrorist attacks
Source: “International Comparisons of Manufacturing Productivity and Unit Labor Cost Trends, 2002,” Bureau of Labor Statistics, U.S. Department of Labor, September 2003. U.S. figures for 2002–2003 from “Major Sector Productivity and Costs Index,” Bureau of Labor Statistics, U.S. Department of Labor, March 2004
MBA650 - Dr. Pavlos Panayi 1-9
• Become efficient– output increases with little or no increase in input
• Expand– both output and input grow with output growing more
rapidly• Achieve breakthroughs
– output increases while input decreases• Downsize
– output remains the same and input is reduced• Retrench
– both output and input decrease, with input decreasing at a faster rate
Productivity Increase
MBA650 - Dr. Pavlos Panayi 1-10
Competitiveness and Productivity
Productivity as a Function of Inputs and Outputs, 2001–2002Source: “International Comparisons of Manufacturing Productivity and Unit Labor Cost Trends, 2002,” Bureau of Labor Statistics, U.S. Department of Labor, September 2003
Breakthrough PerformanceBreakthrough Performance
More EfficientMore Efficient
RetrenchRetrench
MBA650 - Dr. Pavlos Panayi 1-11
Global Competitiveness Ranking
1. Finland2. United States3. Sweden4. Denmark5. Taiwan6. Singapore7. Switzerland8. Iceland9. Norway10. Australia
Source: Global Competitiveness Report 2003–2004, World Economic Forum, January 2004, www.weforum.org
MBA650 - Dr. Pavlos Panayi 1-12
• Economies of Scale• Capital Investment• Access to Supply and Distribution
Channels• Learning Curve
Operations–oriented Barriers to Entry
MBA650 - Dr. Pavlos Panayi 1-13
Primary Topics in Operations Management
MBA650 - Dr. Pavlos Panayi 1-14
Primary Topics in Operations Management (cont.)