KAIST

SUPPLY CHAIN MANAGEMNT

Sir BOWON KIM
ASSIGNMENT NO 3
SUBMITTED BY
Ali Abbas Sipra
27-July-2014

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Answer1
I would like to start my assignment first by describing the Flexible/Cross functional approach.
Its a modern approach of developing the new or Innovative Product. Moving towards the core
topic the advantages and disadvantages of CFT.
ADVANTAGES:
Cross functional team approach have some advantages over other approaches in the same area.
Like Feedback, Diversity and improve the coordination and integration and also reduce the time
factor of developing the new product.

Feedback
When organization works on developing the new product, they required a span of time period.
During this period many changes can happen like if current condition is favoring the new
product development may be after some time condition will change. So what if it happens? The
answer is if you are continuously receiving the feedback and you able to adopt the changes you
can easily fix the new condition, Like in CFT approach does. In CFT approach organization
believe on constant feedback approach. So if any changes happen at any time through constant
feedback process adaption will occur and that thing leads the quality improvement.

Diversity
Because the entire departments sharing the information and people from different departments
working together so number of ideas generating occur under a one roof. We all know that
diversity brings the ideas so the information and ideas leads the new product development in
better manner. So different departments work together in a product at the same time enhance the
CFT approach credit rating.

Lead Time
Because of the improved way of coordination and integration among the different Departments
the product lead time enhances. No department required to wait until the first department finishes
his work. At any stage any department will coordinate and integrate in the project.
DISADVATGES:
CFT is the modern approach no doubt at all but it has some disadvantages as well. Like the
conflicts will arise, communication load and resource waste.

Conflicts:
Negative feedback create the conflict among the team member like if a member come up with
the idea and the other team member not respond accordingly that may lead the conflict which can
reduce the actual fruit of the project.

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Communication Load:
Because every department involve in the initial stages of the project so there is a lot of
information available there. So handling of this information and dissemination of the information
accordingly is difficult task. Delivering the right information in an actual manner is a big
question mark.

Resource Waste:
Because number of departments involve at the same time which leads the ambiguity and
confusion so allocation of resource and there utilization is also a big problem in that approach.

Answer2
When the Market uncertainty is very high and the benefit is high then the cost then its better to
used CFT approach.
Most of the time its benefited for the industries in which rapid changes occurs, like mobile
phone industry where everyone is waiting for upcoming design, and companies always facing the
high uncertainty. So in that kind of the organization CFT approaches is better because it reduces
the lead time and problem solving capability increases. Using CFT approach means the Product
Quality and its directly proportional to the value which is the ultimate goal of the organization.