Manufacturing Flow Management - 2018 LOA …

1 The AFIT of Today is the Air Force of University: The Intellectual and Leadership Center of the Air ForceAim - Fight - WinDistribution D Distribution Authorized to Department of Defense and DoD Contractors OnlyManufacturing Manufacturing Flow ManagementFlow ManagementThe AFIT of Today is the Air Force of University: The Intellectual and Leadership Center of the Air ForceAim - Fight - WinSupply Chain Management ProcessesSupply Chain Management ProcessesLogisticsMarketingFinanceTier 2 SupplierConsumer/EnduserManufacturerInfo rmation FlowPurchasingProductionTier 1 SupplierCustomerR&DPRODUCT FLOWCUSTOMER RELATIONSHIP MANAGEMENTSUPPLIER RELATIONSHIP MANAGEMENTPRODUCT DEVELOPMENT AND COMMERCIALIZATIONRETURNS MANAGEMENTORDER FULFILLMENTDEMAND Management Supply Chain Management Institute.

2 Source: Supply Chain Management : Processes, Partnerships, Performance, p. FLOW MANAGEMENTCUSTOMER SERVICE MANAGEMENTThe AFIT of Today is the Air Force of University: The Intellectual and Leadership Center of the Air ForceAim - Fight - WinManufacturing Flow Management Manufacturing Flow Management includes all activities necessary to obtain, implement, and manage Manufacturing flexibility and to pull the products through the plants. Manufacturing flexibility is the ability to manage Manufacturing resources and uncertainty to meet various customer requests at the lowest possible cost.

3 Supply Chain Management Institute. Source: Supply Chain Management : Processes, Partnerships, AFIT of Today is the Air Force of University: The Intellectual and Leadership Center of the Air ForceAim - Fight - WinManufacturing FlowManufacturing Flow ManagementManagementStrategic Sub-ProcessesOperational Sub-processesDetermine Routing and Velocity through ManufacturingManufacturing & Material PlanningExecute Capacityand Demand PlansMeasure PerformanceReview Manufacturing , Sourcing, Marketing.

4 And Logistics StrategiesDetermine Degree of ManufacturingFlexibility RequirementDetermine Push/Pull BoundariesIdentify ManufacturingConstraints and Determine CapabilitiesDevelop Framework of MetricsProcesses InterfacesCustomer Relationship ManagementCustomer Service ManagementDemand ManagementOrder FulfillmentSupplier Relationship ManagementReturns ManagementProduct Development & Commercialization Supply Chain Management Institute. Source: Supply Chain Management : Processes, Partnerships, Performance, p.

5 AFIT of Today is the Air Force of University: The Intellectual and Leadership Center of the Air ForceAim - Fight - WinForces for Change Globalization Technology Shifts in channel power Growth in outsourcing New mentality From: We sell what we make To: We make what we sell Supply chain Management Supply Chain Management AFIT of Today is the Air Force of University: The Intellectual and Leadership Center of the Air ForceAim - Fight - WinInfluences on Manufacturing Flexibility Product characteristics Differentiation vs.

6 Standardization Product complexity Profit margins Customer Demand characteristics Demand volumes and fluctuation Tolerance for out-of-stocks Tolerance for waiting Lead time Manufacturing process time Suppliers lead times Customer delivery lead time Supply Chain Management Institute. The AFIT of Today is the Air Force of University: The Intellectual and Leadership Center of the Air ForceAim - Fight - WinStrategic Manufacturing Flow Management ProcessStrategic Sub-ProcessesActivitiesProcess Interfaces Establish preparedness for future market changes Forecast expertise needed Forecast/study laws and regulations Document capabilities Determine stock quantities and location Develop disposal/disposition requirements Develop contingency plans Develop supplier development strategy Develop acceptance criteria Develop

7 Communications mechanisms - to other processes supporting requirements - to order acceptance guidelines Determine customer tolerance time Establish quality policy and controls Define minimum batch size and cycle time Plan capacity growth Establish make vs. buy decisions Review customer service goals Determine inventory/stocking points Evaluate postponement opportunitiesReview Manufacturing , Sourcing, Marketing, and Logistics StrategiesDetermine Degree of ManufacturingFlexibility RequirementDetermine Push/PullBoundariesIdentify ManufacturingConstraints and Determine CapabilitiesCustomer Relationship ManagementCustomer Service ManagementDemand ManagementOrder FulfillmentSupplier Relationship ManagementReturns ManagementProduct Development & CommercializationDevelop Framework of Metrics Develop measurement framework Establish communication and feedback loops Supply Chain Management Institute.

8 Source: Supply Chain Management : Processes, Partnerships, Performance, p. AFIT of Today is the Air Force of University: The Intellectual and Leadership Center of the Air ForceAim - Fight - WinStrategic Sub-Process #1 Review Manufacturing , Sourcing, Marketing, and Logistics Strategies Assess strategic fit Competitive priorities SWOT analysis Threats and opportunities?The AFIT of Today is the Air Force of University: The Intellectual and Leadership Center of the Air ForceAim - Fight - WinGeneric Manufacturing StrategiesShip to StockMake to StockAssemble to OrderMake to OrderBuy to OrderDemand VolatilityProductVarietyHighHighLowLowDe gree of Manufacturing Flexibility Supply Chain Management Institute.

9 Source: Supply Chain Management : Processes, Partnerships, Performance, p. AFIT of Today is the Air Force of University: The Intellectual and Leadership Center of the Air ForceAim - Fight - WinLean Manufacturing Characteristics: Focus on perfect, first-time quality (zero defects) Waste minimization Overproduction Waiting Unnecessary transport Overprocessing of parts Inventories Unnecessary movement by employees Defective parts Focus on continuous improvement, minimizing variability Typically relies on short production plans Best applied to.

10 Standardized, price-sensitive products with stable demand and long life cyclesThe AFIT of Today is the Air Force of University: The Intellectual and Leadership Center of the Air ForceAim - Fight - WinAgile Manufacturing Characteristics: Flexible demand accommodation Flexible Manufacturing Flexible workforce Arbitrary lot sizing Reconfigurable operating architecture Integrated product design and manufacture Short supply chains Intense information sharing Postponement Best applied to: Non-standardized or customized, high-margin products with volatile demand and short life cyclesThe AFIT of Today is the Air Force of University: The Intellectual and Leadership Center of the Air ForceAim - Fight - WinLean vs.