Sei sulla pagina 1di 18

Supply Chain Management

Presented By, Preyas Shukla

International Issues in SCM


Design For Logistics Mass Customization

Design For Logistics


DFL addresses the following three key components. Economic Packaging And transportation Concurrent And Parallel Processing Standardization

Packaging And Transportation


Packaging and transport is one of the most obvious of all DFL concepts Products if packed more compactly are cheaper to transport. Products that can be stored more compactly can be transported less expensively Products that are designed nowadays are designed in such a way that they can be packed more compactly. Reducing storage space reduces the inventory costs

Concurrent And Parallel Processing


Here, the manufacturing process is modified in itself. The modification is done in such a way so as to perform two processes in a parallel manner rather than it being sequential. Helps reduce manufacturing Lead time, Lower the inventory costs, reduce safety stock requirements.

Standardization
There are four different approaches to Standardization 1. Part Standardization 2. Process Standardization 3. Product Standardization 4. Procurement Standardization

Part Standardization
Common Parts are used across many products It reduces Required Part Inventories. No risk Pooling Reduces Part Cost due to economics of scale. Cannibalizes sales of more expensive parts. Sometimes the product is in itself redesigned.

Process Standardization
Involves standardizing the process as much as possible for different products. It is also known as Postponement or delayed product differentiation Production starts are based on aggregate forecasts Addresses the Uncertainty in the Final Demand

Product Standardization
A large variety of products are offered but only few kept in inventory. When a product not kept in stock is ordered, the order is fulfilled by a product that offers a superset of features required by the customer. This is known as Downward Substitution which is common in many industries.

Procurement Standardization
It involves standardizing processing equipment and approaches even when the product itself is not standardized. This is particularly valuable when processing equipment is very expensive Although end products are highly customized and demand is unpredictable, The same equipment is used to produce each of the possible end products. Thus equipment procurement can be managed independent of final demand.

Mass Customization
Mass Customization is an operational strategy focused on inducing velocity and flexibility in a make-to-order production process It has the capability of producing at a minimum, a quantity of one, or large quantities with minimal changeovers and interruptions. Mass Customization products compete directly with standard products It provides a company a competitive edge by having the capability to manufacture specialized or custom products at the speed, volume, cost, and quality as standard products.

Mass Customization
Mass Customization combines the principles of Lean Manufacturing and Synchronous Manufacturing principles with those of agility. It takes full advantage of all three production strategies. Mass Customization is oriented toward highvolume/high mix, adding velocity and flexibility in the production process. It applies to environments where a large degree of customized, or specialized orders, offer a competitive advantage.

Mass Customization
Mass Customization requires an agile supply chain to function optimally. Supply chain agility is the extent of network capability that the organization possesses. Key to the success of an agile supply chain is the speed and flexibility with which these activities can be accomplished

Key Attributes To Implement MC


Instantaneousness: Modules and products to be linked up quickly. Allows rapid response. Costless: The linkages should add little cost to the process so as to make it a low-cost alternative. Seamless: The linkages and individual modules should be invisible to the customer. Frictionless: Networks or collection of modules must be formed with little overhead. Communication must work instantly, without taking time for team building.

Mass Customization Benefits


Make to order High or low volumes Low inventories Short lead times Just-In-Time materials/pull scheduling in early stages Synchronized scheduling in later stages Short cycle times

Mass Customization Benefits


Highly flexible and responsive processes Highly flexible machines and equipment Quick changeover Continuous flow work cells Collocated machines, equipment, tools and people Compressed space Multi-skilled employees Empowered employees High first-pass yields with major reductions in defects

Issues Of Mass Customization


It requires radical change. A major issue with Mass Customization is the high capitalization often required for flexibility in the production and assembly areas. Mass Customization is no panacea, nor should it be embraced as a religion. It is an operational strategy that, if implemented properly, will provide a new dimension to competing.

Pragmatic Applications
Mass Customization is a combination of speed and flexibility that is difficult to achieve because it requires radical changes to traditional thinking. A broad front approach to implementation is likely to bog an organization down. A series of pilots following a master plan, taking a grassfire approach where continual pilot implementations over several years eventually result in a blaze of change.

Potrebbero piacerti anche