Distributed Manufacturing And Capacity Planning

1841 Words8 Pages
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
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