Page 128 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management

Notes 14. With the help of examples, explain the concepts of mixed line layout and retail layouts.
15. Flexible manufacturing systems try to produce products with large variability on the
same set of equipments with minimal set up times. How does cellular manufacturing help
in this purpose?
16. Outline and assess the factors affecting the decisions corporations might take about the
location and management of key activities, such as research and development,
manufacturing, sales and marketing, in the light of the statement above. How might such
corporations respond to these challenges? Illustrate your answer with examples with
which you are familiar.
This question requires students to demonstrate an understanding of the potentially
competing requirements of globalization to be both global and local and how they can
respond to its challenges.
Indicative Content
Students may refer to a number of authors to illustrate key issues in the convergence—
divergence debate which is central to the process of globalization.
Some authors argue that markets are converging upon a global market and that
corporations need to base their strategies on global economies of scale by selling
standardized products.
However, others argue that globalization is more complex than this, with companies
facing competing pressures to be both global and local. This could involve centralizing
some activities, or at least coordinating activities on a global basis, whilst responding to
local requirements in other activities.
The central role of technology in determining both the nature of markets and the strategic/
operational opportunities and constraints upon organizations could usefully be mentioned.
Further, there is a debate over whether a strong home base provides the innovative
conditions necessary to compete on an international basis. This could lead to some
corporations moving key activities, like research and development, to a location exposed
to more favourable innovative conditions within an industrial cluster.
Illustration by reference to examples from companies with which the students are familiar
is important.

Answers: Self Assessment

1. True 2. True
3. False 4. False
5. True 6. False

7. False 8. True
9. False 10. True
11. Technology 12. Make to stock
13. Routing 14. 600 hrs/ month

15. Closeness rating

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