Product
and
Supply
Chain
Design
McGraw-Hill/Irwin
General Framework
Two
The
11-2
11-3
Key Characteristics of
Development Chain
Technology
clock speed
Speed
Make/Buy
decisions
Decisions
Product
structure
Level
Fishers concept :
Functional
slow
Innovative
fast
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11-7
11-8
Objective
11-10
Standardization
Recall:
reliable
We can have better forecasts for a product family
(rather than a specific product or style)
Designing the product and manufacturing
processes so that decisions about which specific
product is being manufactured (differentiation) can
be delayed until after manufacturing is under way
11-11
Product:
Can
Process:
Each
standardization
Process standardization
Product standardization
Procurement standardization
11-13
Part Standardization
Common
products.
Common parts reduce:
inventories
Process Standardization
Standardize
11-15
Delayed Differentiation
May
11-16
Postponement
Point of differentiation
11-17
Benetton
Old Manufacturing Process
Spin or Purchase Yarn
Dye Yarn
Finish Yarn
Manufacture Garment Parts
Join Parts
11-18
Benetton
New Manufacturing Process
Spin or Purchase Yarn
Manufacture Garment Parts
Join Parts
Dye Garment
Finish Garment
11-19
Benetton Postponement
Why
the change?
The
What
Delayed
with postponement
Costs
Product Standardization
Downward
Substitution
Guide
11-21
Procurement Standardization
Standardizing
approches.
Consider a large semiconductor manufacturer
Produces highly customized integrated circuits
Processing equipment that manufactures these
wafers are very expensive with long lead time
and are made to order
Each wafer has to undergo a common set of
operations
The firm reduces risk of investing in the wrong
equipment by pooling demand across a variety of
products
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Push-Pull Boundary
Pull-based
reduction
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Steps to follow:
Determine
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Black
Box
If
Grey
If
Box
White
Box
If
Select
Capability
Mass Customization
Evolved
Mass
production
efficient
production
involves
Absence of Trade-Offs
Have
Low-cost,
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Key Attributes
Instantaneous
Modules
quickly
Allows rapid response to various customer demands.
Costless
Linkages
Frictionless
Networks
SUMMARY
Design
Efficient
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