Design for Supply Chain Management: Concepts and Examples

Abstract

In recent years, there has been increased emphasis on linking the design of products and processes to cost, quality and efficiency measures in manufacturing. Concepts such as “design for manufacturability,” “design for assembly,” “design for producibility,” and “design for testability,” have emerged. The underlying motivation of these concepts is that product costs are largely determined by the design of the product. Hence, functionality and performance are no longer sufficient criteria for excellent design. There are additional important cost and service determinants of product success and profit that go well beyond a narrow definition of manufacturing. Factors such as logistics and distribution costs, inventory investment, product availability, customs duties, serviceability, and flexibility in dealing with unexpected changes, are important considerations which can be affected by the design of the product or its manufacturing process. We define a supply chain as a network including the procurement of raw materials, processing of intermediate and finished products, customization of the product for local market needs, and distribution of the product to customers. This paper describes emerging concepts for product and process design that include a supply chain perspective. Four case studies are presented to illustrate how these concepts can be implemented in real situations. Page