Coordinated Product and Supply Chain Design Flashcards
Supply chain
Flow of physical products from suppliers through manufacturing and distribution all the way to retail outlets and customers
Development chain
Focuses on new product introduction
Product architecture, make or buy decisions, earlier supplier involvements, strategic partnering, supplier footprint and supply contracts
Key characteristics of SC
- Demand uncertainty and variability - bullwhip effect
- Economies of scale in production and transport
- Lead time
Key characteristics of development chain
- Technology clock speed
- Make or buy decisions - internally or buy from outside suppliers?
- Product structure - level of modularity and integrality of product
Design for logistics aspects
Economic packaging and transport
Sequential or parallel processing
Standardisation
Forms of standardisation
Part - IKEA
Process - Cars
Product - Hotels or airlines
Procurement - Stamps
Mass customisation
Deliver wide variety customised goods or services quickly and efficiently at low cost - best from mass and craft production
Mass customisation requirements
Seamless
Costless
Frictionless
Instantaneousness
Point of differentiation
Push pull boundary
Organisational design principles Mass Customisation
- Modular product design
- Modular process design
- Agile supply network