Book Ch 11: Design for Logistics (DFL) Flashcards
What is the supply chain and the development chain?
Supply chain: Focuses on the flow of physical products
Development chain: Focuses on new product introduction
What are key characteristics of the supply chain?
- Demand variability
- Economies of scale
- Lead time
What are key characteristics of the development chain?
- Technology clock speed
- Make/buy decisions
- Product structure
What are the characteristics of functional products?
- Slow clock speed
- Low product variety
- Low profit margins
What are the characteristics of innovative products?
- Fast clock speed
- Short life cycle
- High variety
- High margins
What are the characteristics of a push strategy?
- Predictable demand
- High economies of scale
- Cost efficiency
What are the characteristics of a pull strategy?
- Unpredictable demand
- Low economies of scale
- Responsiveness through reduced lead time
What are the three key components of Design for Logistics (DFL)?
- Economic packaging and transportation
- Concurrent and parallel processing
- Standardization
What are the three key components of Design for Logistics (DFL)?
- Economic packaging and transportation
- Concurrent and parallel processing
- Standardization
What is cross-docking?
Moving goods from one truck to another set of trucks
What is concurrent and parallel processing?
Involves modifying the manufacturing process so that steps previously performed in a sequence can be completed at the same time
What is the process of decoupling?
When components can be separated during manufacturing and be manufactured in parallel
What is the forecasting principle concerning aggregate and disaggregate data?
Aggregate demand information is always more accurate than disaggregate data
What is a modular product?
A product assembled from a variety of models such that for each module, there are a number of options
What is a modular process?
Process consist of discrete operations, so that inventory can be stored in partially manufactured form between operations
What is part standardization?
When common parts are used across many products
What is process standardization?
Standardizing the process as much as possible and then customizing the products as late as possible
What is resequencing?
Modifying the order of product manufacturing steps so that operations that result in differentiation are postponed as much has possible
What is product standardization?
- 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
What is procurement standardization?
Standardizing processing equipment and approaches, even when the product itself is not standardized
Create the Swaminathan framework for standardization
Check evernote
What are standardization strategies designed to deal with?
- Inaccurate forecasts
2. Product variety
What are drawbacks for standardization?
- Capital expenditure for redesign could exceed savings
- May not be possible to redesign
- Could make manufacturing process more expensive
What are the benefits of standardization?
- Increased flexibility
- Efficient customer service
- Decreased market response times
