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SMU SYS 7340

NTU SY-521-N

Logistics Systems Engineering

Logistics System Definitions

Dr. Jerrell T. Stracener,

SAE Fellow

Logistics System Definition

System elements System requirements System description

Elements of Logistics
Maintenance Planning Manpower and Personnel Materials Management Support Equipment Technical Data Training and Training Support Computer Resources Support Facilities Packaging, Handling, Storage and Tranportation Design Interface Physical Distribution

Elements of Logistics
Maintenance Planning The process conducted to evolve and establish maintenance concepts and requirements for the lifetime of the system. Manpower and Personnel The identification and acquisition personnel with the skills and grades required to operate and support the system over its lifetime.

Elements of Logistics
Materials Management All management actions, procedures, and techniques used to determine requirements to acquire, catalog, receive, store, transfer, issue and dispose of secondary items. This includes provisioning for both initial support and replenishment supply support. It includes the acquisition of logistics support for support and test equipment: Raw Material In-Process Material Finished Products and Spare Parts

Elements of Logistics
Support Equipment All equipment (mobile or fixed) required to support the operation and maintenance of the system. This includes associated multiuse end items, ground handling and maintenance equipment, tools, metrology and calibration equipment, test equipment, and automatic test equipment.

Elements of Logistics
Technical Data Scientific or technical information recorded in any form or related medium (such as manuals and drawings). Computer programs and related software are not technical data; documentation of computer programs and related software are. Also excluded are financial data or other information related to contract administration.

Elements of Logistics
Training and Training Support the process, procedures, techniques, training devices, and equipment used to train personnel to operate and support the system. This includes individual and crew training (both initial and continuation); new equipment training; initial, forma, and onthe-job training; and logistics support planning for training equipment and training device acquisitions and installations.

Elements of Logistics
Computer Resources Support The facilities, hardware, system software, software development and support tools, documentation and people needed to operate and support embedded computer systems.

Elements of Logistics
Facilities The permanent, semi-permanent or temporary real property assess required to support the system, including conducting studies to define facilities or facility improvements, locations, space needs, utilities, environmental requirements, real estate requirements, and equipment.


Elements of Logistics
Packaging, Handling, Storage and Transportation The resources, processes, procedures, design considerations and methods to ensure that all system, equipment, and support items are preserved, packaged, handled and transported properly, including environmental considerations, equipment preservation requirements for short and long term storage, and transportability.


Elements of Logistics
Design Interface The relationship of logistics related design parameters to readiness and support resource requirements. These logistics related design parameters are expressed in operational terms rather than as inherent values and specifically relate to system readiness objectives and support costs of the system.


Elements of Logistics
Physical Distribution Storage / Warehousing Inventory Maintenance Materials / Product Packaging & Handling Transportation Materials / Product Scheduling


Some Other Elements of Logistics

Traffic and transportation Warehousing and storage Industrial packaging Materials handling Inventory control Order processing Customer service levels Demand forecasting Procurement Distribution communications Plant and warehouse locations Return goods handling Parts and service support Salvage and scrap disposal


The Logistics Function

The elements of logistics make up the logistic function, which, although essential to cost-effective and efficient operation of the firm, has only in recent times been identified as a separate activity, yet one that becomes meaningless if isolated.


Evolution of Logistics
Demand Forecasting Purchasing Requirements Planning Production Planning Manufacturing Inventory Warehousing Materials Handling Industrial Packaging Finished Goods Inventory Distribution Planning Order Processing Transportation Customer Service

Materials Management


Physical Distribution


Logistics in Product Development

The primary thrust is two-fold - Influence product design to ensure reliability, usability, safety, system

- Identify the Logistics resources to ensure supportability of the delivered product and customer support Logistics translates performance, user requirements and user experience into the operational, maintenance and support concepts

Logistics in Product Development - continued

Logistics design criteria and guidelines are provided to design As the schedule progresses, maintenance and support requirements (scheduled and unscheduled) are determined Requirements for support equipment, spare parts, publications, training, facilities, personnel and skills are established


Quality planning Tool design

Production planning Product design

Logistics characteristics




Manpower, personnel and skills

Training analysis

Logistic support analysis

Logistic Definition Package

Technical support data


Logistics Requirements
Increase customer satisfaction Decrease cost of doing business on a continuing basis


Characteristics of Good Logistics

Competitive advantage Predictable Innovative Responsive On time service Cost Error free Dependable


Logistics - An Integrated Approach

Sales forecasting
Production Planning & Scheduling Customer service/ marketing Logistics systems/ communication Warehousing/ Storage Outbound transportation

Order processing
Materials handling Packaging Inventory

Inbound transportation


Logistics Systems Engineering

Broadly defined, systems engineering is the effective application of scientific and engineering efforts to transform an operational need into a defined system configuration through the top-down iterative process of requirements definition, functional analysis, allocation, synthesis, design optimization, test, and evaluation. The systems engineering process, in its evolving of functional detail and design requirements, has as its goal the achievement of the proper balance between operational (i.e. performance), economic, and logistics factors.

Logistics Spans From Cradle to Grave

Concept Development


Post Prod.


Dsgn Influ & Supt Sys Devlp

Supt Planing R,M & SLSA Flight Test Config.Mgmt Provisioning

Support System Production

Tech Data Spares Supt Equip Training Sys

Initial Support

Initial Contractor Support Training

Prog Mgmt Field/ Base Supt Tech Supt Serv Depot Maint/Mods Spares Inven Mgmt Engine/Comp Maint, 25 Repair & Overhaul

Logistics is Complex
Engineering and design Air Customer


Single Source Information

Information Consolidator De-consolidator Customs Financial

Product/ Material




Freight Fwd


The Systems View

Business Process Integration Feedback


Product Development Product Production Product Usage


Life Cycle Integration

Increased Competitive Position


Life Cycle Integration

Increased Competitive Position Reduced Cost Increase Market Share/Profit Margin Reduced Cycle Time Sales Profit Margin Increased Customer Satisfaction


Logistics Initiatives
JIT (just in time) Process Integration LEAN Virtual Warehouse e-business


Logistics Technology
Electronic Commerce Internet Intranet Extranet Bar coding RF Tags Satellite Tracking


Business Process Integration

Marketing Operations Engineering Finance Human Resources Information Technology Materials Initiatives Technology Life Cycle Integration Feedback


Current Emphasis on Logistics

Increasingly, companies look at processes, instead of functions to achieve competitive advantage - Advanced planning software allows companies to achieve efficiencies in order-todelivery processes - Companies try to emulate success of inventory replenishment strategies of Wal-Mart and other industry leaders

International sourcing of goods required better coordination with suppliers and transportation providers to minimize costs

Current Emphasis on Logistics

Time based competition and Just-in-Time production necessitates - Better coordination between customers and suppliers - Improved flow of information - Reliable transportation


The Value of Early Decisions

100X 10X





Logistics System Life Cycle

Life Cycle Cost Committed
100% 80% 66%


Cost Incurred

Ease of Change

Need And Req.

Concept Development

Design & Devlpmnt


Customer Use

Logistics Cost Over the Life Cycles

Typical DOD Acquisition program with a service life of about 30 years.12

Life Cycle Cost Operation and Support System Acquisition





Technology Infusion Dilemma

Product Development Cycle Trends

10 Years

5 Years
Technology Life TODAY

Logistics Systems Definition Summary

A systems view is required utilizing systems engineering Effectiveness of logistics depends on sequencing and timing of events Flexibility and adaptability to change is essential Globalization Technology Competitive pressure