Book Ch 11: Design for Logistics (DFL)

Question 1

What is the supply chain and the development chain?

Answer 1

Supply chain: Focuses on the flow of physical products

Development chain: Focuses on new product introduction

Question 2

What are key characteristics of the supply chain?

Answer 2

1. Demand variability
2. Economies of scale
3. Lead time

Question 3

What are key characteristics of the development chain?

Answer 3

1. Technology clock speed
2. Make/buy decisions
3. Product structure

Question 4

What are the characteristics of functional products?

Answer 4

1. Slow clock speed
2. Low product variety
3. Low profit margins

Question 5

What are the characteristics of innovative products?

Answer 5

1. Fast clock speed
2. Short life cycle
3. High variety
4. High margins

Question 6

What are the characteristics of a push strategy?

Answer 6

1. Predictable demand
2. High economies of scale
3. Cost efficiency

Question 7

What are the characteristics of a pull strategy?

Answer 7

1. Unpredictable demand
2. Low economies of scale
3. Responsiveness through reduced lead time

Question 8

What are the three key components of Design for Logistics (DFL)?

Answer 8

1. Economic packaging and transportation
2. Concurrent and parallel processing
3. Standardization

Question 9

What are the three key components of Design for Logistics (DFL)?

Answer 9

1. Economic packaging and transportation
2. Concurrent and parallel processing
3. Standardization

Question 10

What is cross-docking?

Answer 10

Moving goods from one truck to another set of trucks

Question 11

What is concurrent and parallel processing?

Answer 11

Involves modifying the manufacturing process so that steps previously performed in a sequence can be completed at the same time

Question 12

What is the process of decoupling?

Answer 12

When components can be separated during manufacturing and be manufactured in parallel

Question 13

What is the forecasting principle concerning aggregate and disaggregate data?

Answer 13

Aggregate demand information is always more accurate than disaggregate data

Question 14

What is a modular product?

Answer 14

A product assembled from a variety of models such that for each module, there are a number of options

Question 15

What is a modular process?

Answer 15

Process consist of discrete operations, so that inventory can be stored in partially manufactured form between operations

Question 16

What is part standardization?

Answer 16

When common parts are used across many products

Question 17

What is process standardization?

Answer 17

Standardizing the process as much as possible and then customizing the products as late as possible

Question 18

What is resequencing?

Answer 18

Modifying the order of product manufacturing steps so that operations that result in differentiation are postponed as much has possible

Question 19

What is product standardization?

Answer 19

• Large variety of products may be offered, but only a few kept in stock
• When product ordered not kept in stock, filled by product offering superset of features required by customer
• Downward substitution

Question 20

What is procurement standardization?

Answer 20

Standardizing processing equipment and approaches, even when the product itself is not standardized

Question 21

Create the Swaminathan framework for standardization

Answer 21

Check evernote

Question 22

What are standardization strategies designed to deal with?

Answer 22

1. Inaccurate forecasts

2. Product variety

Question 23

What are drawbacks for standardization?

Answer 23

1. Capital expenditure for redesign could exceed savings
2. May not be possible to redesign
3. Could make manufacturing process more expensive

Question 24

What are the benefits of standardization?

Answer 24

1. Increased flexibility
2. Efficient customer service
3. Decreased market response times