Production and Operation Managements Advancement in Production Planning and Control Dr.Na GENG Prof.Zhibin JIANG Department of Industrial Engineering Management Shanghai Jiao Tong University
Production and Operation Managements Dr. Na GENG Prof. Zhibin JIANG Department of Industrial Engineering & Management Shanghai Jiao Tong University Advancement in Production Planning and Control
Content Optimized Production Planning Theory of Constraint (TOC) Advanced Planning System (APS) 国 Mass Customization and its Production Planning 2 上浒充通大粤
Content Optimized Production Planning Theory of Constraint (TOC) Advanced Planning System (APS) Mass Customization and its Production Planning 2
CS-Introduction With the increasing competition in the global market,the manufacturing industry has been facing the challenge of increasing customer value; More importantly,quality means ensuring customer satisfaction and enhancing customer value to the extent that customers are willing to pay for the goods and services; A well-accepted practice in both academia and industry is the exploration of flexibility in modern manufacturing systems to provide quick response to customers with new products catering to a particular spectrum of customer needs; 上浒充通大粤
CS-Introduction With the increasing competition in the global market, the manufacturing industry has been facing the challenge of increasing customer value; More importantly, quality means ensuring customer satisfaction and enhancing customer value to the extent that customers are willing to pay for the goods and services; A well-accepted practice in both academia and industry is the exploration of flexibility in modern manufacturing systems to provide quick response to customers with new products catering to a particular spectrum of customer needs;
CS-Introduction The key to success in the highly competitive manufacturing enterprise often is the company's ability to design,produce, and market high-quality products within a short time frame and at a price that customers are willing to pay; © In order to meet these pragmatic and highly competitive needs of today's industries,it is imperative to promote high-value- added products and services; Mass customization enhances profitability through a synergy of increasing customer-perceived values and reducing the costs of production and logistics. 上浒充通大粤
CS-Introduction The key to success in the highly competitive manufacturing enterprise often is the company’s ability to design, produce, and market high-quality products within a short time frame and at a price that customers are willing to pay; In order to meet these pragmatic and highly competitive needs of today’s industries, it is imperative to promote high-valueadded products and services; Mass customization enhances profitability through a synergy of increasing customer-perceived values and reducing the costs of production and logistics
CS-Introduction Mass customization is"producing goods and services to meet individual customer's needs with near mass production efficiency”, Mass customization is a new paradigm for industries to provide products and services that best serve customer needs while maintaining near-mass production efficiency. Contradicted two sides: S/Unit Mass production Mass Production Cost Curve demonstrates an advantage in Economy of Scope nigh-volume production; Economy of Scale Satisfying each individual Price that customers are willing to pay customer's needs can often be added Mass Customization Cast Curve Net vafid-added translated into higher value, Medium High however,economically not Production Volume viable; 上泽充通大婆
CS-Introduction Mass customization is “producing goods and services to meet individual customer’s needs with near mass production efficiency”; Mass customization is a new paradigm for industries to provide products and services that best serve customer needs while maintaining near-mass production efficiency. Contradicted two sides: Mass production demonstrates an advantage in high-volume production; Satisfying each individual customer’s needs can often be translated into higher value, however, economically not viable;
CS-Introduction Economic Implication of Mass Customization Mass customization is capable of reducing costs and lead time by accommodating companies to garner economy of scale by repetitions. With flexibility and programmability,companies with low to medium production volume can gain an edge over competitors by implementing MC; Mass customization can potentially develop customer loyalty, propel company growth,and increase market share by widening the product range 上浒充通大粤
CS-Introduction Economic Implication of Mass Customization Mass customization is capable of reducing costs and lead time by accommodating companies to garner economy of scale by repetitions. With flexibility and programmability, companies with low to medium production volume can gain an edge over competitors by implementing MC; Mass customization can potentially develop customer loyalty, propel company growth, and increase market share by widening the product range
CS-Introduction Technical challenges The essence of mass customization lies in the product and service providers'ability to perceive and capture latent market niches and subsequently develop technical capabilities to meet the diverse needs of target customers; To encapsulate the needs of target customer groups means to emulate existing or potential competitors in quality,cost,quick response, © Therefore,the requirements of mass customization depend on three aspects:time-to-market (quick responsiveness),variety (customization),and economy of scale (volume production efficiency); Successful mass customization depends on a balance of three elements:features,cost,and schedule 上浒充通大粤
CS-Introduction Technical challenges The essence of mass customization lies in the product and service providers’ ability to perceive and capture latent market niches and subsequently develop technical capabilities to meet the diverse needs of target customers; To encapsulate the needs of target customer groups means to emulate existing or potential competitors in quality, cost, quick response; Therefore, the requirements of mass customization depend on three aspects: time-to-market (quick responsiveness), variety (customization), and economy of scale (volume production efficiency); Successful mass customization depends on a balance of three elements: features, cost, and schedule
CS-Introduction Maximizing reusability Maximal amounts of repetition are essential to achieve the efficiency of mass production,as well as efficiencies in sales,marketing,and logistics,which is attained through maximizing commonality in design,which leads to reusable tools,equipment,and expertise in subsequent manufacturing; Customization emphasizes the differentiation among products. An important step toward to this goal is the development and proliferation of design repositories that are capable of creating various customized products; Dynamic stability:a firm can serve the widest range of customers and changing product demands. ⊕ To achieve mass customization,the synergy of commonality and modularity needs to be tackled and needs to encompass both the physical and process domains of design. 上浒充通大粤
CS-Introduction Maximizing reusability Maximal amounts of repetition are essential to achieve the efficiency of mass production, as well as efficiencies in sales, marketing, and logistics, which is attained through maximizing commonality in design, which leads to reusable tools, equipment, and expertise in subsequent manufacturing; Customization emphasizes the differentiation among products. An important step toward to this goal is the development and proliferation of design repositories that are capable of creating various customized products; Dynamic stability: a firm can serve the widest range of customers and changing product demands. To achieve mass customization, the synergy of commonality and modularity needs to be tackled and needs to encompass both the physical and process domains of design
CS-Introduction Product platform The effectiveness of a firm's new product generation lies in: Its ability to create a continuous stream of successful new products over an extended period of time; The attractiveness of these products to the target market niches; The essence of mass customization is to maximize such a match of internal capabilities with external market needs; A product platform is impelled to provide the necessary taxonomy for positioning different products and the underpinning structure describing the interrelationships between various products with respect to customer requirements,competition information,and fulfillment processes; 国 This implicates two aspects: to represent the entire product portfolio,including both existing products and proactively anticipated ones,by characterizing various perceived customer needs,and to incorporate proven designs,materials,and process technologie
CS- Introduction Product platform The effectiveness of a firm’s new product generation lies in: • Its ability to create a continuous stream of successful new products over an extended period of time; • The attractiveness of these products to the target market niches; • The essence of mass customization is to maximize such a match of internal capabilities with external market needs; A product platform is impelled to provide the necessary taxonomy for positioning different products and the underpinning structure describing the interrelationships between various products with respect to customer requirements, competition information, and fulfillment processes; This implicates two aspects: • to represent the entire product portfolio, including both existing products and proactively anticipated ones, by characterizing various perceived customer needs, and • to incorporate proven designs, materials, and process technologies;
CS-Introduction Integrated product life cycle Mass customization starts from understanding customers'individual requirements and ends with a fulfillment process targeting each particular customer; The time-to-market can be achieved by telescoping lead time; Product realization should simultaneously satisfy various product life cycle concerns,including functionality,cost,schedule,reliability,manufacturability, marketability,and serviceability,to name but a few; The realization of mass customization requires not only integration across the product development horizon,but also the provision of a context-coherent integration of various viewpoints of product life cycle. 上浒充通大粤
CS- Introduction Integrated product life cycle Mass customization starts from understanding customers’ individual requirements and ends with a fulfillment process targeting each particular customer; The time-to-market can be achieved by telescoping lead time; Product realization should simultaneously satisfy various product life cycle concerns, including functionality, cost, schedule, reliability, manufacturability, marketability, and serviceability, to name but a few; The realization of mass customization requires not only integration across the product development horizon, but also the provision of a context-coherent integration of various viewpoints of product life cycle