Chapter 14

Chapter 14 - Chapter 14: Logistics Design and Operational...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 14: Logistics Design and Operational Planning Planning Methodology Even for established industries, a firm’s markets, demands, cost, and service requirements change rapidly in response to customer behavior. We us a generalized planning process , segmented into: o Problem definition and planning o Data collection and analysis o Recommendation and implementation Phase I: Problem Definition and Planning . Feasibility Assessment o The process of evaluating change o Objective is to understand the environment, process, and performance characteristics of the current system and determine what, if any, modifications appear worthy of evaluation o Situation Analysis : the collection of performance measures, characteristics, and information that describes the current logistics environment. Include: Internal Operational Review: Focuses on developing a clear understanding of existing logistics practices and processes Examines all major resources, especially on a comprehensive evaluation of the existing capabilities and deficiencies Market Assessment : a review of the trends and service demands required by customers Technology Assessment : focuses on the application and capabilities of key logistics technologies (transportation, storage, materials handling, packaging, information processing) Supporting Logic The development of a supporting logic to integrate the findings of the internal review, market assessment, and technology study Purpose is to provide senior management with the best vision of the strengths and weaknesses of existing logistics system capabilities for existing and potential logistical requirements Cost/benefit jurisdiction Critically evaluates current procedures and practices Clear statements of potential redesign alternatives Cost/Benefit Estimate An estimate of the potential benefits and risks associated with performing a logistics analysis and implementing the recommendations Project Planning o Statement of Objectives Documents the cost and service expectations for the logistics system revisions
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
o Statement of Constraints One common restriction concerns the existing manufacturing facilities and their product- mix assortment All design constraints serve to limit the scope of the analysis o Measurement Standards and Assumptive Logic Measurement standards direct the analysis by identifying cost assumptions and performance objectives essential to evaluate recommendations Should include definitions of how cost components are quantified o Project Work Plan Project management is responsible for the achievement of expected results within the time and budget constraints Phase II: Data Collection and Analysis Assumptions and Data Collection o Develops detailed planning assumptions and identifies data collection requirements Defining Analysis Approaches and Techniques
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/18/2010 for the course BMGT 367 taught by Professor Fogul during the Fall '08 term at Maryland.

Page1 / 6

Chapter 14 - Chapter 14: Logistics Design and Operational...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online