GlobalStandardization of Production Processes and Procedures
Standardizationis the process of complying with a standard or the process ofestablishing a standard. On the other hand, global standardization isthe process of applying similar production processes and proceduresinternationally. Standardization helps in ensuring that the products,materials, processes, and services are suitable for their purposes,and they are of the established standard weight, size, strength, andquality. It also helps in maximizing interoperability, compatibility,repeatability, quality, and safety. Standardization has the potentialto simplify organization tasks through replications because a smallstaff support personnel can accomplish a task, and it is possible toapply internal best practices across all international operations ofa company. Further, Mikler(2013) states that standardization brings benefits to companies suchas cost reduction, promotion of unique international image,competition reduction, consolidation of market position, andreductions of international prices.
Theimpediments to global standardization fall under three maincategories, economic forces, cultural forces, and political forces(Milkler, 2013). Economic impediments are the factors that determinethe environment competitiveness in which a firm operates. Theyinclude the cost of production, variations in worldwide marketinfrastructure, sizes, and the backward vertical integration. Thecultural impediments refer to the influencing mechanism thatinfluences a population on business practices. They include thecultural differences, language diversity, alternatives in consumerlifestyles, absenteeism, lack of skilled workers, favoritism ofspecialized machines, and resources directed to technical versusprofessional education. Lastly, the political impediments areinfluences from political practices such as the governmentregulations and the country need for the new jobs. All the abovefactors cause an international multi-plant operation to differ inprocedures, machinery, and size hence, it becomes difficult toachieve standardization procedures and processes.
Mikler,J. (Ed.). (2013). Thehandbook of global companies.John Wiley & Sons.