DISTRIBUTED MANUFACTURING AND CAPACITY PLANNING
DEFINITION: It is a decentralized manufacturing practiced by an organization using a geographically network manufacturing facilities which are coordinate using Information Technology. We can also say that making parts at different part of world and using supply chain management concepts to bring all different part at a particular place for the final production. This phenomenon is known as Distributed Manufacturing. INTRODUCTION: Today, the ability to rapidly adjust production and distribution in response to change in customer demand is viewed as a strategic challenge. Increase in product variety is a main reason for the distributed manufacturing. The ability is to create value at different location via manufacturing. Immense rise in technology has allowed companies a decentralized and geographically distribution manufacturing. Manufacturing has faced a significant change during the last year, they have moved from local economy towards global and competitive economy, with market demanding for high customized products of high quality at lower cost with different product variety. DIFFERENT CONCEPTS FOR PRODUCTION AND DISTRIBUTION NETWORK:
• In centralized production a product is manufactured at only one location or through a chain of single stations, one station per operation at one location. Whereas in centralized distribution products are delivered to the customer directly from one or a few central
Real-world businesses with customers which require product flexibility, in lower volumes, have the beginnings of a job shop production process (Choudhari, Adil, & Ananthakumar, 2012). Such a beginning is further evidenced when the job force is made up of highly skilled employees that are able to help create a wide array of products (Pederson, Dresdow, & Benson, 2013). The job shop process is also very widely used because of its many advantages, and despite the scheduling challenges which it presents (Meredith & Shafer, 2013). Organizations
Overall every component of the process could be considered to relay on each other. First it is fundamental to have a product generating demand within a specific target market. While the product generates demand consequently motivates companies to invest in manufacturing the product. At this point is where facilities come into consideration. Based upon product demand a production structure and distribution strategies are developed; the focus is for each facility to function productively, maximizing profits, avoiding unnecessary expenses (lowering cost), or avoid lost of sale due to lack of correct planning tactics. Once the product has been manufactured it is crucial to deliver to the locations where the consumers
Table of Contents Abstract…………………………………………………………………………………………....2 Background and Problem Definition……………………………………………………...2 Current Situation………………………………………………………………………………..2-5 Demand………………………………………………………………………………....2-3 Supply Side Concerns…………………………………………………………………..3-4 Prices……………………………………………………………………………………4-5 Distribution Network………………………………………………………………………...…5-7 Phase 1: From Suppliers to Distribution Centers…………………………………….....5-6 Phase 2: From Distribution Centers to
Manufacturing is where items In bulk are made like cars there are made in a assembly line where each car part is set to different groups of people then when the car comes down the line they place there part on while the car is still moving and then continue with the other cars then at the end of the line they are checked over to see if every thing is fitted properly and then shipped of to the seller then once it has arrived to the customer by the transport there will be documents that are handed to the customer that tells him about the car.
While mass customization is a viable option in manufacturing with digital factories and employing lean manufacturing designs, service firms have to employ a more productive environment to make mass customization profitable. Mass customization refers to using mass production technologies to quickly and cost-effectively assemble goods that are uniquely designed to fit the demands of individual customers (Daft, 2016, p. 271). The key challenge for service mass customization is to translate information about consumer preferences gained through market research into a format that can be easily used for service modularization decisions and customer-contact personnel training (Haas & Kunz, n.d., p. 603). In the service arena, mass customization becomes an ongoing configuration process with direct involvement of the customer coupled with professional advice by service personnel who understand the configuration rules and know them by heart. A clear understanding of the customer’s needs is required, as well as a requirement by service personnel to provide the customer clear and concise configuration options that strike the perfect balance between flexibility and complexity. Also, a continuous interaction between frontline contact personnel and the customer is a consequence that must be
Despite the fact that there are better manufacturing technologies to be found in today's modern world, it is still quite difficult for every Tom, Dick and Harry in business to manufacture their own products. This is because the cost of setting up a manufacturing plant is significantly high; in addition, one requires a team of professionals with a high level of expertise in various aspects of manufacturing in order to have everything up and running as smoothly as possible.
Broad programme of different production services Highly automated factory Economies of scale Capacity to react fast to drastic changes
This case is aimed for you to explore the tradeoffs shown in my notes "Product Design" on the last page. Each
Manufacturing today includes all facets of research, development, production, sales, distribution, logistics, customer service, marketing, and support. It extends from the making of physical products to the delivery of services (Deloitte, 2013). Manufacturing companies now compete on a global scale and utilize specific locations around the world to their advantage. For instance, basic, simple to make products will be produced in an area with cheap, low education labor. While products that use high tech machinery that require a skilled labor force would need to be produced
The most recommended distribution network suited for highly differentiated products would be drop-shipping network. It is the process where shipping avoids the retailers, meaning the retailer isn’t informed to hold any type of inventory for the customers, and instead, the products are directly delivered to the end customers from the manufacturers. In this network, the supply chain can divert and expand low level of inventory to a higher level of availability. It also gives an opportunity for manufacturers to reschedule the customization when necessary. This is excellent for sellers that are able to build to order, and for end customers who wants highly-differentiated products that are in low-demand but are highly valued and are willing to wait for delivery.
The technology used in mass production does not allow room for flexibility, therefore the products created on a certain production line will be identical. Although mass production reduces the possibility of human error, inflexibility of customization and design became one of the main disadvantages.
Standardization or modular design of manufacturing processes and supply chain will be crucial considerations to the sustainability of the company. As consumer demand grows, the CEO will no longer be able to oversee production of all products. In this case, JikoPower will want to consider third-way sourcing, which is placing personnel, equipment, or technology in supplier plants to oversee production and ensure quality standards are met (Russell & Taylor). Adopting standardization practices will contribute to optimizing
In today’s fast evolving technological environments, capacity planning is confronted with what may be the biggest challenge facing capacity planning and management is the migration to cloud computing. The objective of capacity planning in IT is to provide quality computing services to users in a way that makes fiscal sense to the company (TeamQuest, 2010). The difficulties introduced by cloud-based structures address the question of whether an organization should use capacity evaluations. Businesses use these evaluations in making decisions on their needs. Cloud computing is based on the idea of a shared computing, storage, network, and application resources all provided by a third party. This paper will explain what motivates a company a company to perform computer capacity evaluations.
The project of evaluating distributed goods after manufacturing them to start with, and continuing forward to
This addresses the common way manufactures work by giving the customer what is convenient for the manufacture. The Twenty-first century demands and requirements from customers are complex