MANUFACTURING, PROCESSES AND
LAYOUT
By; Vikneswary Suresh
,Steps in Manufacturing Process
SOURCE MAKE DELIVER
1. Source - where parts are procured from one or more than one
supplier
2. Make – where manufacturing take place
3. Deliver - where the product is shipped to the customers
,Key Concepts in Manufacturing Process
• Customer order decoupling point – determines where inventory is
positioned to allow processes or entities in supply chain to operate
independently.
• Example : If product is stocked at a retailer, the customer pulls the items fro
shelf and the manufacturer never sees a customer order.
• Selection of decoupling points is a strategic decision that determines
customer lead time and also impact inventory investment.
• Lead time – the time needed to response to customer’s order
, Manufacturing Environments
• Make to stock - Firms that serve customers from finished
goods inventory. Eg : TV, clothes, packed food and etc
• Assemble to order – combinations of pre-assembled
modules to meet customer’s specifications. Eg: Dell computer
• Make to Order - make the customers product from raw
materials, parts and components. Eg: Commercial aircraft,
• Engineer to Order - Firm will work with customer to design
the product and then make it from purchased, materials,
parts and components. Eg : Satellites, Jewelries and etc
LAYOUT
By; Vikneswary Suresh
,Steps in Manufacturing Process
SOURCE MAKE DELIVER
1. Source - where parts are procured from one or more than one
supplier
2. Make – where manufacturing take place
3. Deliver - where the product is shipped to the customers
,Key Concepts in Manufacturing Process
• Customer order decoupling point – determines where inventory is
positioned to allow processes or entities in supply chain to operate
independently.
• Example : If product is stocked at a retailer, the customer pulls the items fro
shelf and the manufacturer never sees a customer order.
• Selection of decoupling points is a strategic decision that determines
customer lead time and also impact inventory investment.
• Lead time – the time needed to response to customer’s order
, Manufacturing Environments
• Make to stock - Firms that serve customers from finished
goods inventory. Eg : TV, clothes, packed food and etc
• Assemble to order – combinations of pre-assembled
modules to meet customer’s specifications. Eg: Dell computer
• Make to Order - make the customers product from raw
materials, parts and components. Eg: Commercial aircraft,
• Engineer to Order - Firm will work with customer to design
the product and then make it from purchased, materials,
parts and components. Eg : Satellites, Jewelries and etc
