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Casual Articles - Developing Global Manufacturing Operations - Issues, Challenges and Potential Solutions
Ditch Advertising To Win New Customers ry of their standard products and some provide customized parts assembly at the final stages.Are you a business on shoestring advertising budget struggling to attract new customers? This article is about to change your business model on its head... and may even make you a very wealthy person!We live in an age of overexposure. We are exposed to all types of marketing messages of every kind from every type of business imaginable. Can you think of how many sales messages an average person gets exposed to every day? These promotional messages are on billboards on the road side, inside trains, buses, they are on TV and radio, they are in newspapers, on leaflets that are being out by kids in the street and so on.Thousands of such advertisements and promotions during any average day are trying to sell you some thing. No wonder the cooperation is not getting easier for any type of business. it is getting harder by the day.But that is true only if you are using the same old tactics every one else is using to attract customers. In this age information overload, people are increasingly relying on the power of p 7. Human resource & Cultural Impacts in Global scenario As globalization develops and boundaries shrink, growing economies have started accepting and developing multi-cultural working environments. Companies have already realized the need for greater majority of local employees in their established ventures overseas. These companies spend lot of efforts in understanding and promoting cross cultural communication and motivational activities. Another vital factor would be the Company’s HR policies, and training and development. HR policies may vary according to the local human resource standards and their conformance to the international standards. Nevertheless companies must ensure a systematic training structure and curriculum for their employees. This will provide organization’s in maintaining balanced skills among employees multi-nationally. 8. Technology Development Technology development is the process of research and development of technology. If companies fail to develop innovative technologies, the competitors take a lead. Technology development has become a continuously evolving activity. These technological innovations provide organizations specialization in product centric or process centric areas that help them differentiate in the market How Business Davids Can Overcome Goliaths IntroductionIn the story of David and Goliath, young David challenged the mighty Goliath. King Saul wanted David to wear his armour so that he could fight Goliath in the traditional way. But David chose to forgo the armour, used a weapon of his choosing, and relied on his own speed, and was ultimately successful in slaying the giant Goliath.Small business owners viewing the Goliaths of their industry slugging it out using all the marketing weaponry in their well stocked armoury, can be daunted by the battles raging around them. And if they choose to fight them with the same weapons, they have much to fear. For large businesses, economies of scale is their most potent weapon. A very powerful weapon. But like Goliath, their strengths are also their weaknesses.RelationshipsThe biggest point of vulnerability for business Goliaths is their need for volume, and their inability to react quickly to changes in the marketplace. For small business, this means that relationships are the key. It is the flexibility to do the little bi Manufacturing companies have started venturing globally to take advantage of low cost manufacturing, geographical location, resource availability and so forth. Developing and managing global manufacturing operations have continuously been a challenging task for company’s world wide. This article attempts to explore 10 most significant issues of concern, challenges faced, and potential solutions for multi-national manufacturing organizations as they start operating globally. 1. Management Philosophy Management philosophy guides the stakeholders of the organization in providing an understanding of what the Company’s operations are, where they are heading towards, and why they are in business. Companies need to provide a clear statement of their vision, mission and values to the stake holders. It becomes vital especially in a global company to dedicate thought and efforts in framing this philosophy, as individual companies may have slightly different focus, but the group as such should sail towards a focused destination. Equally important are the business policies and strategies by which the Company targets to achieve its vision. As the company’s grow and become multi-national, it becomes imperative to have a clear organizational structure at entity level and individual level. This would form the basis for better communication, development of collaborative operations, and effective decision making. Notably, organizations should adopt ways of proving its commitment to the strategies and philosophies, link their operational and tactical activities towards their vision, and continuously communicate them to their stakeholders. 2. Systems and Systems Thinking Systems are procedural approach that channels the individuals, departments and the management in effective operations at all levels. An organization operating in different countries need to have a common system by which they deal with operations at same level in their entities. This provides a visibility for individuals from different entities in collaborating their work with each other. Also, a system gives the Company less dependency on a particular individual or group of individuals, which growing organizations will realize to be important in the long run. A system provides the multi-national organization a dynamic work culture, and easier adaptability to working procedure. The concept of Systems Thinking evolved with the development of supply chain integration. Organizations that concentrate on the individual development of the entities often fail to notice the integrated links and the advantages they can extract off them. Systems Thinking would help look the whole network of entities as one organization, with one business and one objective, and focus on overall development across the supply chain. 3. Collaborative Operations Collaborative operations help organizations take advantage in areas such as utilization of low operations cost, skilled labor, material availability, and so forth though it poses high demands on seamless business processes, interoperability, supply chain visibility, demand forecasting, and customer integration. As the individual entities of the organization grow, they tend to develop functional expertise in specific disciplines. Often the companies that operate at multi national level concentrate less on getting trained in this expertise from their fellow entities, but involve in sourcing the specific activity to this expert entity of the group. This approach has to be assessed on case to case basis. In a typical organization where the entities do similar activities at different locations, it may not be suitable to source a particular activity to a location. Also an imbalance in a specific functional expertise level among the entities might grow to be a barrier in overall growth. 4. Branding As companies go global, brand management becomes a key aspect. Customer’s perception for a product varies with the country in which it is manufactured. This urges Multi national companies to concentrate on development of brand and strongly commit to their offerings. This becomes an issue of concern especially for companies that go global before creating a niche brand in the market. Multiple brands and multiple product offerings are to be handled with appropriate concern. 5. Sigma Level Sigma is a statistical term to express how much a process varies from the target. Sigma level allows comparison of process performance through out the entire organization, provides figures on overall yield, and DPMO. Though industries have risen to the level of six sigma targeting 3.4DPMO, a lot majority of the companies lie in 3 sigma level where they spend at least 30% of its revenue on defects, corrections, reworks, and rejects. Global companies should have a focused roadmap on improving the sigma level and link them to their business strategies. 6. Global Distribution and logistics With the evolution of global supply chain management, organizations have centralized or decentralized distribution/procurement systems. Applications of appropriate principles of direct shipment, warehousing, or cross docking depending on the Manufacturing/customer locations, customer dispersion and concentration, and transportation involved have saved billions of dollars for multi-national corporations. Also appropriate push-pull systems are designed to their product and demand requirements. Many companies choose to maintain component level inventory of their standard products and some provide customized parts assembly at the final stages. 7. Human resource & Cultural Impacts in Global scenario As globalization develops and boundaries shrink, growing economies have started accepting and developing multi-cultural working environments. Companies have already realized the need for greater majority of local employees in their established ventures overseas. These companies spend lot of efforts in understanding and promoting cross cultural communication and motivational activities. Another vital factor would be the Company’s HR policies, and training and development. HR policies may vary according to the local human resource standards and their conformance to the international standards. Nevertheless companies must ensure a systematic training structure and curriculum for their employees. This will provide organization’s in maintaining balanced skills among employees multi-nationally. 8. Technology Development Technology development is the process of research and development of technology. If companies fail to develop innovative technologies, the competitors take a lead. Technology development has become a continuously evolving activity. These technological innovations provide organizations specialization in product centric or process centric areas that help them differentiate in the market p Medical Device Contract Manufacturing ollaborative operations, and effective decision making. Notably, organizations should adopt ways of proving its commitment to the strategies and philosophies, link their operational and tactical activities towards their vision, and continuously communicate them to their stakeholders.Contract manufactured medical devices are widely used in a variety of markets such as critical care, emergency room, home health care and industrial laboratories. The critical care section includes medical devices for respiratory therapy and operating rooms. The emergency room includes the medical devices for the cardiac lab, labor and delivery. Medical devices used in home health care such as a doctor?s office and medical laboratories can also be manufactured on contract basis. Contract manufactured medical products usually include simple tubing sets, very complicated bio-sensors, and even ultra-precision devices made from plastics, metals, electronics and ceramics.Medical device contract manufacturing companies offer clean room and non-clean room assembly, testing and packaging services for class I, class II and class III medical devices. Class I medical devices do not cause any harm to the user and are very simple in design, compared to the other two devices. In class II devices there are special controls to ensure safe 2. Systems and Systems Thinking Systems are procedural approach that channels the individuals, departments and the management in effective operations at all levels. An organization operating in different countries need to have a common system by which they deal with operations at same level in their entities. This provides a visibility for individuals from different entities in collaborating their work with each other. Also, a system gives the Company less dependency on a particular individual or group of individuals, which growing organizations will realize to be important in the long run. A system provides the multi-national organization a dynamic work culture, and easier adaptability to working procedure. The concept of Systems Thinking evolved with the development of supply chain integration. Organizations that concentrate on the individual development of the entities often fail to notice the integrated links and the advantages they can extract off them. Systems Thinking would help look the whole network of entities as one organization, with one business and one objective, and focus on overall development across the supply chain. 3. Collaborative Operations Collaborative operations help organizations take advantage in areas such as utilization of low operations cost, skilled labor, material availability, and so forth though it poses high demands on seamless business processes, interoperability, supply chain visibility, demand forecasting, and customer integration. As the individual entities of the organization grow, they tend to develop functional expertise in specific disciplines. Often the companies that operate at multi national level concentrate less on getting trained in this expertise from their fellow entities, but involve in sourcing the specific activity to this expert entity of the group. This approach has to be assessed on case to case basis. In a typical organization where the entities do similar activities at different locations, it may not be suitable to source a particular activity to a location. Also an imbalance in a specific functional expertise level among the entities might grow to be a barrier in overall growth. 4. Branding As companies go global, brand management becomes a key aspect. Customer’s perception for a product varies with the country in which it is manufactured. This urges Multi national companies to concentrate on development of brand and strongly commit to their offerings. This becomes an issue of concern especially for companies that go global before creating a niche brand in the market. Multiple brands and multiple product offerings are to be handled with appropriate concern. 5. Sigma Level Sigma is a statistical term to express how much a process varies from the target. Sigma level allows comparison of process performance through out the entire organization, provides figures on overall yield, and DPMO. Though industries have risen to the level of six sigma targeting 3.4DPMO, a lot majority of the companies lie in 3 sigma level where they spend at least 30% of its revenue on defects, corrections, reworks, and rejects. Global companies should have a focused roadmap on improving the sigma level and link them to their business strategies. 6. Global Distribution and logistics With the evolution of global supply chain management, organizations have centralized or decentralized distribution/procurement systems. Applications of appropriate principles of direct shipment, warehousing, or cross docking depending on the Manufacturing/customer locations, customer dispersion and concentration, and transportation involved have saved billions of dollars for multi-national corporations. Also appropriate push-pull systems are designed to their product and demand requirements. Many companies choose to maintain component level inventory of their standard products and some provide customized parts assembly at the final stages. 7. Human resource & Cultural Impacts in Global scenario As globalization develops and boundaries shrink, growing economies have started accepting and developing multi-cultural working environments. Companies have already realized the need for greater majority of local employees in their established ventures overseas. These companies spend lot of efforts in understanding and promoting cross cultural communication and motivational activities. Another vital factor would be the Company’s HR policies, and training and development. HR policies may vary according to the local human resource standards and their conformance to the international standards. Nevertheless companies must ensure a systematic training structure and curriculum for their employees. This will provide organization’s in maintaining balanced skills among employees multi-nationally. 8. Technology Development Technology development is the process of research and development of technology. If companies fail to develop innovative technologies, the competitors take a lead. Technology development has become a continuously evolving activity. These technological innovations provide organizations specialization in product centric or process centric areas that help them differentiate in the market What Every Customer Truly Wants - And How You Can Provide It! e, and focus on overall development across the supply chain.It finally hit me this week what every single client, customer, person and patron truly wants -- and it's not what we're giving them. What we're giving people is details, lots of details. They come in the form of product specifications, a list of attributes, qualities, claims, guarantees, and service promises. These are all great but they don't scratch the itch... they don't satisfy the real craving that each person longs for in their day to day experience.That constant craving is for meaning.Think about it. When we are born, we are all basically blank slates -- empty notebooks upon which nothing yet is written. As we go through life we sense this blankness and we look to fill it in, write on it, doodle, draw, and color all over the pages. In doing so our little book of life begins to take on the thing we want most... meaning.How does this affect your company, products and branding? This insight provides an opportunity to connect with your customer on a much deeper level -- an emotional 3. Collaborative Operations Collaborative operations help organizations take advantage in areas such as utilization of low operations cost, skilled labor, material availability, and so forth though it poses high demands on seamless business processes, interoperability, supply chain visibility, demand forecasting, and customer integration. As the individual entities of the organization grow, they tend to develop functional expertise in specific disciplines. Often the companies that operate at multi national level concentrate less on getting trained in this expertise from their fellow entities, but involve in sourcing the specific activity to this expert entity of the group. This approach has to be assessed on case to case basis. In a typical organization where the entities do similar activities at different locations, it may not be suitable to source a particular activity to a location. Also an imbalance in a specific functional expertise level among the entities might grow to be a barrier in overall growth. 4. Branding As companies go global, brand management becomes a key aspect. Customer’s perception for a product varies with the country in which it is manufactured. This urges Multi national companies to concentrate on development of brand and strongly commit to their offerings. This becomes an issue of concern especially for companies that go global before creating a niche brand in the market. Multiple brands and multiple product offerings are to be handled with appropriate concern. 5. Sigma Level Sigma is a statistical term to express how much a process varies from the target. Sigma level allows comparison of process performance through out the entire organization, provides figures on overall yield, and DPMO. Though industries have risen to the level of six sigma targeting 3.4DPMO, a lot majority of the companies lie in 3 sigma level where they spend at least 30% of its revenue on defects, corrections, reworks, and rejects. Global companies should have a focused roadmap on improving the sigma level and link them to their business strategies. 6. Global Distribution and logistics With the evolution of global supply chain management, organizations have centralized or decentralized distribution/procurement systems. Applications of appropriate principles of direct shipment, warehousing, or cross docking depending on the Manufacturing/customer locations, customer dispersion and concentration, and transportation involved have saved billions of dollars for multi-national corporations. Also appropriate push-pull systems are designed to their product and demand requirements. Many companies choose to maintain component level inventory of their standard products and some provide customized parts assembly at the final stages. 7. Human resource & Cultural Impacts in Global scenario As globalization develops and boundaries shrink, growing economies have started accepting and developing multi-cultural working environments. Companies have already realized the need for greater majority of local employees in their established ventures overseas. These companies spend lot of efforts in understanding and promoting cross cultural communication and motivational activities. Another vital factor would be the Company’s HR policies, and training and development. HR policies may vary according to the local human resource standards and their conformance to the international standards. Nevertheless companies must ensure a systematic training structure and curriculum for their employees. This will provide organization’s in maintaining balanced skills among employees multi-nationally. 8. Technology Development Technology development is the process of research and development of technology. If companies fail to develop innovative technologies, the competitors take a lead. Technology development has become a continuously evolving activity. These technological innovations provide organizations specialization in product centric or process centric areas that help them differentiate in the market Brand Components his becomes an issue of concern especially for companies that go global before creating a niche brand in the market. Multiple brands and multiple product offerings are to be handled with appropriate concern.Your brand is the culmination of everything about you and your business. It is how people come to know you. It is your business name, logo design or other symbol that identifies your goods and services. It’s what makes you different from everyone else in business. What are some of the components that come to make up your brand?1. Who I am. Your brand is a representation of who you are, including your talents, gifts, needs, values, and integrity. Your talents and gifts are what allow you to develop the products and services you offer. Needs are what you need fulfilled to be your very best. As a business owner you may have a need to accomplish. Values are behaviors or activities to which you are naturally drawn – perhaps creating or contributing to the welfare of others. Integrity is all about your thoughts and actions being highly aligned. What you think, what you speak, and what you do are consistent. Who are you? What are your most important values and needs? What talents are you sharing with 5. Sigma Level Sigma is a statistical term to express how much a process varies from the target. Sigma level allows comparison of process performance through out the entire organization, provides figures on overall yield, and DPMO. Though industries have risen to the level of six sigma targeting 3.4DPMO, a lot majority of the companies lie in 3 sigma level where they spend at least 30% of its revenue on defects, corrections, reworks, and rejects. Global companies should have a focused roadmap on improving the sigma level and link them to their business strategies. 6. Global Distribution and logistics With the evolution of global supply chain management, organizations have centralized or decentralized distribution/procurement systems. Applications of appropriate principles of direct shipment, warehousing, or cross docking depending on the Manufacturing/customer locations, customer dispersion and concentration, and transportation involved have saved billions of dollars for multi-national corporations. Also appropriate push-pull systems are designed to their product and demand requirements. Many companies choose to maintain component level inventory of their standard products and some provide customized parts assembly at the final stages. 7. Human resource & Cultural Impacts in Global scenario As globalization develops and boundaries shrink, growing economies have started accepting and developing multi-cultural working environments. Companies have already realized the need for greater majority of local employees in their established ventures overseas. These companies spend lot of efforts in understanding and promoting cross cultural communication and motivational activities. Another vital factor would be the Company’s HR policies, and training and development. HR policies may vary according to the local human resource standards and their conformance to the international standards. Nevertheless companies must ensure a systematic training structure and curriculum for their employees. This will provide organization’s in maintaining balanced skills among employees multi-nationally. 8. Technology Development Technology development is the process of research and development of technology. If companies fail to develop innovative technologies, the competitors take a lead. Technology development has become a continuously evolving activity. These technological innovations provide organizations specialization in product centric or process centric areas that help them differentiate in the market Don't Get Scammed ry of their standard products and some provide customized parts assembly at the final stages.I've got a confession to make... I was scammed by a company promising me I can stay at home and type data into forms and make over two hundred dollars a day.There are a lot of scams going on out there, these are just a couple of scams to be on the look out for.Scam #1 You Won The Lottery!This is an e-mail scam from a person or company informing you that you have just won the lottery. Payment is required to get your huge unsolicited lottery winnings transferred into your country/bank account. There are no 'winnings' .If you receive a "prize notification" from a suspicious lottery: • don't respond to the emails • don't pay any money in advance to collect a prize • don't reveal your full identity • don't reveal your bank account number or credit card detailsScam #2 Employment and JobLook out for these:"Local Representative Needed" "Shipping Manager" "Financial Manager" "Sales Manager" "Type from home"These headlines a 7. Human resource & Cultural Impacts in Global scenario As globalization develops and boundaries shrink, growing economies have started accepting and developing multi-cultural working environments. Companies have already realized the need for greater majority of local employees in their established ventures overseas. These companies spend lot of efforts in understanding and promoting cross cultural communication and motivational activities. Another vital factor would be the Company’s HR policies, and training and development. HR policies may vary according to the local human resource standards and their conformance to the international standards. Nevertheless companies must ensure a systematic training structure and curriculum for their employees. This will provide organization’s in maintaining balanced skills among employees multi-nationally. 8. Technology Development Technology development is the process of research and development of technology. If companies fail to develop innovative technologies, the competitors take a lead. Technology development has become a continuously evolving activity. These technological innovations provide organizations specialization in product centric or process centric areas that help them differentiate in the market place. Growing companies need to concentrate on research and development on key processes that affect their business. 9. Leading Industry practices Leading industry practices are methodologies and systems that have evolved over time out of continuous research and development. These industrial practices in technology, application, and service areas are growing in a tremendous pace. Organizations that failed to make efforts to move in tandem with these developments are facing difficulties in moving ahead. On the other hand, practicing leading practices provides organizations greater industry recognition, professionalism, cost savings, and also improves employee morale. 10. Exploring market Companies need to do a market analysis on the trends of the business in their target countries for operations, target market, competitor analysis, government regulations, and so forth. This kind of analysis help companies choose to make an informed decision on whether to serve the local market or be an Export only Unit. Conclusion: These 10 development areas are just part of the extensive list of areas that companies need to concentrate on, nevertheless these would be the most significant ones. The article attempts to highlight some of the modern thoughts and approaches that would help manufacturing industries internationalize in a successful manner.
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