MANUFACTURING LOGISTICS

MOHAMMED FARIS S2,MBA (T-T)

Logistics
Definition by The Council Of Logistics Management

The process of planning, implementing, and

controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. Logistics involves planning, creating and monitoring flows of goods and information.

Manufacturing Logistics Manufacturing logistics means all the steps involved from preparation of raw material to its final delivery to the customer. It adds the value of time and place utility.

Manufacturing Logistics

contd..

The term is used for describing logistic processes

within an industry. The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right time.
That part of logistics concerning research, design,

development, manufacture, and acceptance of material.

Logistics Functions

Order Processing

Inventory control

Warehousing Transportation

Material Handling

Logistical Information Packaging

Manufacturing logistics includes

Standardization and interoperability Contracting (3rd party logistics) Quality assurance Inventory Control Transportability Specifications and production processes Trials and testing Equipment documentation

Standardization And Interoperability

Interoperability is a property referring to the ability of

diverse systems and organizations to work together (inter-operate).

the ability of two or more systems or components to

exchange information and to use the information that has been exchanged.
Interoperability can be achieved in four ways: through

product engineering, industry/community partnership, access to technology and implementation of standards.

Contracting (3rd Party Logistics)

The supply chain functions of a company is performed by a third

party. The firm hires an outside firm to perform an operation.

Standard 3PL provider Service developer The customer adapter The customer developer

Quality And Safety Assurance

Quality Assurance (QA) includes all those planned or

systematic actions necessary to provide adequate confidence that a product or service will satisfy given requirements for quality.
Safety standards are standards designed to ensure

the safety of products, activities or processes, etc.

They

may be advisory or compulsory and are normally laid down by an advisory or regulatory body that may be either voluntary or statutory

Inventory Control
The right material should be provided at the right time at

the right place and in required quantity.

Inventory control is concerned with minimizing the total

cost of inventory.
Warehouses

helps the companies to stock these

materials
A warehouse is a commercial building for storage of

goods.

Transportability
It is the process of movement of goods from

one place to another.

The materials must be moved from one place to

another with in the factory.

There should be no delay in working.
The materials should be provided with no delay.

Specifications And Production Processes

A specification is an explicit set of requirements

to be satisfied by a material, product, or service.

Production

process includes planning and

scheduling.
Scheduling is the process of allotting specific

time and persons for doing particular jobs

Trials And Testing

It is the process of verifying the authenticity of

pre-determined plans.
Testing helps in making corrective actions

Equipment documentation
Documentation is any communicable material used to

explain some attributes of an object, system or procedure.

It is often used to mean engineering or software

documentation, which is usually paper books or computer readable files that describe the structure and components, or on the other hand, operation, of a system/product.

Need
Gain Competitive advantage

Reduce cost through outsourcing

Face competition Less investment Ensure continuous production Meet demand

SCOPE
The scope of manufacturing logistics is described on the basis of two perspectives
o The primary domain o The essential context

Requirements for Manufacturing Logistics to be effective

Infrastructure Organization Systems

INFRASTRUCTURE Production Unit Production Facility Enterprise Supply Chain

ORGANISATION Operations & Control Planning Organizational Design Decision Structure

Advantages of Manufacturing Logistics

Improve the accuracy
Achieve better visibility, collaboration, and

control across supplier networks. Increase the speed and reduce the costs Tap into advanced techniques Manage supplier and procurement activities

CURRENT ISSUES AND PROBLEMS IN MANUFACTURING LOGISTICS

Uncertainty and Variability Human Behavior Globalization Limitations of Current Information Systems Data Overload and Bad Data Product Proliferation and Shortening Life Cycles Misaligned Decisions and Performance Measures