MANUFACTURING

LOGISTICS

Abhilash.R.Krishna
S3,MBA (IB)
Logistics
The process of planning, implementing, and
controlling the efficient, cost effective flow of
raw materials, in-process inventory, finished
goods and related information from the point of
origin to the point of consumption for the
purpose of conforming to customer
requirements.
defined by The Council Of Logistics Management
Manufacturing Logistics
Manufacturing logistics is an emerging area of
research that refers to "all planning,
coordination and support functions required to
carry out manufacturing activities between the
point where end-item customer demands are
determined, and the point where they are
fulfilled."
Manufacturing Logistics contd..

 The term is used for describing logistic processes

within an industry. The purpose of production logistics
is to ensure that each machine and workstation is being
fed with the right product in the right quantity and
quality at the right point in time.
 That part of logistics concerning research, design,
development, manufacture, and acceptance of materiel.
 Logistics Functions

Order Inventory Material Logistical

Warehousing Transportation Information
Processing control Handling Packaging

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 Manufacturing logistics includes
 Standardization and interoperability
 Contracting (3rd party logistics)
 Quality assurance
 Inventory Control
 Transportability
 Specifications and production processes
 Trials and testing
 Equipment documentation
 Standardization And Interoperability
 Interoperability is a property referring to the ability of diverse
systems and organizations to work together (inter-operate).
 the ability of two or more systems or components to exchange
information and to use the information that has been
exchanged.
 Interoperability can be achieved in four ways: through product
engineering, industry/community partnership, access to
technology and implementation of standards.
 Contracting (3rd Party Logistics)

 The supply chain functions of a company is performed by a third party.

The firm hires an outside firm to perform an operation.
 Standard 3PL provider
 Service developer
 The customer adapter
 The customer developer
 Quality And Safety Assurance
 Quality Assurance (QA) includes all those planned or
systematic actions necessary to provide adequate confidence
that a product or service will satisfy given requirements for
quality.
 Safety standards are standards designed to ensure the safety of
products, activities or processes, etc.
 They may be advisory or compulsory and are normally laid
down by an advisory or regulatory body that may be either
voluntary or statutory
 Inventory Control
 The right material should be provided at the right time at the right
place and in required quantity.
 Inventory control is concerned with minimizing the total cost of
inventory.
 Warehouses helps the companies to stock these materials
 A warehouse is a commercial building for storage of goods.
 Transportability
 It is the process of movement of goods from one place
to another.
 The materials must be moved from one place to another
with in the factory.
 There should be no delay in working.
 The materials should be provided with no delay.
 Specifications And Production Processes
 A specification is an explicit set of requirements to be
satisfied by a material, product, or service.
 Production process includes planning and scheduling.
 Scheduling is the process of allotting specific time and
persons for doing particular jobs
Trials And Testing
 It is the process of verifying the authenticity of pre-
determined plans.
 Testing helps in making corrective actions
Equipment documentation
 Documentation is any communicable material used to explain
some attributes of an object, system or procedure.
 It is often used to mean engineering or software documentation,
which is usually paper books or computer readable files that
describe the structure and components, or on the other hand,
operation, of a system/product.
Need
 Gain Competitive advantage
 Reduce cost through outsourcing
 Face competition
 Less investment
 Ensure continuous production
 Meet demand
 Requirements for Manufacturing
Logistics to be effective
 Infrastructure

Organization

Systems
 INFRASTRUCTURE
Production Unit
Production Facility
Enterprise
Supply Chain

 ORGANISATION
Operations & Control
Planning
Organizational Design
Decision Structure
 CURRENT ISSUES AND PROBLEMS IN
MANUFACTURING LOGISTICS
Uncertainty and Variability
Human Behavior
Globalization
Limitations of Current Information Systems
Data Overload and Bad Data
Product Proliferation and Shortening Life
Cycles
Misaligned Decisions and Performance
Measures
Who stands where in Logistics Costs

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Thank You