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Demand Driven Manufacturing
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Effect of Demand Response Strategies on Other Manufacturing Functions

Based on the characteristics of the product and the market, and using Figure 1 as a guide, marketing and manufactur­ing should jointly decide on which demand response strategy should be used for their products. This decision determines how customer demand will be satisfied and what the lead time of all products will be. This decision will also influence the selection of the Manufacturing Process and the Pro­duction Planning and Control System. It will also influence the operation of Demand Management and the Master Production Schedule functions. These topics are dis­cussed in the following paragraphs.

Selecting the Manufacturing Process

Figure 2 shows the influence of the De­mand Response Strategy on the Manufac­turing Process. The Manufacturing Pro­cesses are defined more completely in Oden.

 A rectangle made of circles indicates a primary match while a rectangle made of dots indicates a secondary match. We discuss each of the primary matches and secondary matches below.

  • The Engineer-to-Order response strategy will prima­rily use the Project Process since this process is nor­mally used for research and development or one-of-a-kind efforts. However, if several new products are to be manufactured, a Job Shop process could be used.

  • The Make-to-Order response strategy will use the Job Shop process for most products. However, if the volume is very high, the Small Batch Line should be used. If the volume is extremely low, the Project Process would be more appropriate.

  • The Assemble-to-Order response strat­egy will primarily use the Repetitive Line Flow Process. However, it the product volume is low, the Small Batch Line Flow would be more appropriate.

  • The Make-to-Stock response strategy will use the Repetitive Line Flow if the prod­uct is discrete or the Continuous Line Flow if the product is continuous.

  • The Make-to-Demand response Strategy will use either the Agile or the Flexible Manufacturing System in order to satisfy the varying time responses required by the Make-to-Demand strategy.

Selecting Manufacturing Planning and Control Process

Figure 3 shows the influence of the Demand Response Strategy on the Manufacturing Planning and Control Systems. The Manu­facturing Planning and Control Systems are defined more completely in Oden.

A rectangle made of circles indicates a pri­mary match while a rectangle made of dots indicates a secondary match. We discuss each of the primary matches and secondary matches below.

  • The Engineer-to-Order response strategy will primarily use the Project Manage­ment System for research and develop­ment or one-of-a-kind efforts. However, if several new products are to be designed and manufactured, a MCRP/MRPII Sys­tem could be used.

  • The Make-to-Order response strategy will use the MCRP/MRPII System for most products. However, if the quantity is one, or very low, the Project Management Sys­tem may be used. The Assemble-to-Order response strategy should use the MCRP/ MRP II System if the product volume is fairly low. However, if the product vol­ume is high, the Just-in-Time System would be more appropriate.

  • The Make-to-Demand response strategy must use either the Agile or the Flexible Control System in order to control the Agile or Flexible Manufacturing System in meeting the varying time response required by the Make-to-Demand strategy.

To be Continued


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