Engineering Economy and System Analysis: Design For Logistics and Supportability

Engineering Economy and System
Analysis
Week 9
Design for Logistics and Supportability

Learning Outcome
LO4: Analyze selected systems engineering

problems by applying tools, methodologies,
and procedures.
Industrial Engineering
A process-oriented, integrated
approach to procuring, producing, and delivering end products
and services to customers. It includes sub-suppliers, suppliers,
internal operations, trade customers, and end users. It covers
the management of materials, information, and funds flow
SCM Definition (1)

P. J. Metz, “Demystifying Supply Chain Management,” Supply Chain Management
Review,Winter 1998 (New York: Reed Elsevier, 1998).
The systemic, strategic coordination of the traditional business
functions within a particular company and across businesses
within the supply chain, for the purposes of improving the long-
term performance of the individual companies and the supply
chain as a whole
SCM Definition (2)

J.T. Mentzer (University of Tennessee),W. DeWitt (University of Maryland), J. S. Keebler (St. Cloud State
University), Soonhong Min (Georgia Southern University), N.W. Nix (Texas Christian University), C. D.
Smith (University of San Diego), and Z. G. Zacharia (Texas Christian University), “Defining Supply Chain
Management,” Journal of Business Logistics,Vol. 22, No. 2, 2001 (Lombard, IL: CSCMP).
LOGISTICS IN THE SYSTEM-OF-
SYSTEMS ENVIRONMENT
Logistics and Supply Chain
Activities
• The logistics and supply chain activities
associated with :
• the initial purchasing and acquisition
• manufacture and/or production
• transportation and distribution
• installation of the system and its elements
at the appropriate customer (user)
operational site
System Major Activities
Blanchard, Benjamin S., & Fabrycky, Wolter J. (2011).

Systems Engineering and Analysis (Fifth ed.). Upper
Saddle River, New Jersey: Pearson Education Inc.
Logistics and Supply Chain
Activities
• Aspects of the logistics supply chain (SC) throughout the
commercial sector :
• The physical supply of items from the various applicable
sources of supply to the manufacturer;
• The materials handling, associated inventories, and flow of
items throughout the production process;
• The transportation and physical distribution of finished
goods from the manufacturer/ producer to the customer’s
operational site(s)
https://www.dlf.pt/pngs/37315/
Logistics and supply
chain activities.

https://www.dlf.pt/pngs/37315/ Industrial Engineering Systems Engineering and Analysis (Fifth ed.). Upper
LOGISTICS IN THE
SYSTEM-OF-SYSTEMS
(SOS) ENVIRONMENT
A System-of-systems
(SOS) Network
• A new system within the context of a system-of-systems (SOS)
network, one needs to ensure that :
• (1) the specified logistics and maintenance support
infrastructure for this new system is both effective and
efficient and is completely responsive to the new system
requirements; and
• (2) that the newly developed maintenance and support
infrastructure is compatible and does not in any way
degrade the equivalent capabilities of the other systems
with the same SOS configuration
A System-of-systems
(SOS) Network
• A set of logistics system support may different one to another
system because the differences of:
• nationalities with different language, cultural, work-
oriented, and related unique capabilities
• the working environment (labor requirements, local and
national holidays, business and ethical practices, etc.) in
one supplier’s organization
extensive logistics delays, not providing the right support at the place and time of need, and
overall inefficiencies in logistics responsiveness in general
A System-of-systems (SOS)
Network

Industrial Engineering Saddle River, New Jersey: Pearson Education Inc.
THE ELEMENTS OF LOGISTICS
AND SYSTEM SUPPORT
Blanchard, Benjamin S., & Fabrycky, Wolter

J. (2011). Systems Engineering and Analysis
Industrial Engineering (Fifth ed.). Upper Saddle River, New Jersey:
Pearson Education Inc.
THE MEASURES OF LOGISTICS AND
SUPPORTABILITY
• The measurement including : capability, availability,
and quality for each logistics activity

Industrial Engineering Systems Engineering and Analysis (Fifth ed.). Upper
Capability Measurement
To measure the ability to accomplish all of the

functions required
• e.g., purchasing, materials handling, transportation,
warehousing, and maintenance
The measurement should conduct to assess

the performance of the overall flow
• e.g., purchasing, materials handling, transportation, etc
Availability Measurement
• To measure :
• the ability to respond to any or all of the requirements
• at any point in time when needed.
This pertains to the reliability of the flow in Figure 5, and can also
be stated in terms of operational availability (Ao).
Quality Measurement
• Measurement the process responsiveness in terms of stated

customer objectives (e.g., performance of the right function, in
the right location, at the right time, with the right information,
and at the right value).
• This term can be related to :
• the quality rate (Q) utilized as one of the metrics in
determining the OEE for a manufacturing capability.
• There are some underlying expectations that need to be
realized from a customer satisfaction perspective, and any
deviation here would constitute a subsystem defect.
Quality Measurement
Example :
• The response time (i.e., time to react in response
to an identified need) for the logistics and
maintenance support infrastructure shall not
exceed 4 hours.
• The total processing time, from the identification
of a need for a product (or service) to the
delivery of the product to the point of
consumption
Quality Measurement
Example :
• The total cost of processing an item through the logistics and
maintenance support infrastructure
• The process time for removing an obsolete item from the
inventory shall not exceed 12 hours, and the cost per item
processed shall not exceed x dollars.
• The defect rate in terms of products delivered (services
provided) shall not exceed 1% per designated interval of time.
Total Logistics Cost

https://www.clipart.email/download/106009.html
Purchasing and Material
Flow Factors
• In the area of purchasing, there may be a number of
measures, such as :
• The time that it takes to initiate and process a purchase
order.
• The quantity of purchase orders processed within a
designated time period.
• The quality of the purchasing process.
https://support.erplain.com/en-us/article/73-the-
sales-workflow-estimate-sales-orders-invoices
Purchasing and Material
Flow Factors
• Relative to the issue of quality, the following standards
may be applied:
Delivered Delivered on
complete time
Complete & Delivered in

accurate perfect
documentation condition
Delivered in
correct https://www.clipart.email/download/106009.html
configuration
Transportation and
Packaging Factors

Transportation and Packaging
Factors Consideration
• The availability, or the probability that the appropriate
transportation capability will be available when required.
• The reliability, or given that the appropriate transportation is
available when required, the probability that it will complete
its mission as planned.
• The time that it takes to transport a product from one point to
another.
https://www.clipart.email/download/3160849.html
Transportation and Packaging
Factors Consideration
• The maintainability of a given transportation capability, or the
probability that the applicable transportation capability can
be repaired within a specified time and with the specified
resources in the event of a failure.
• The cost of transportation, or the cost per one-way trip.
• The LCC of a given transportation capability for a designated
period of time (in years).
Warehousing and
Distribution Factors
• Warehousing is an integral part of every logistics capability. The
basic functions of warehousing are movement, storage, and
information transfer.
• The movement function can be broken down to include
activities such as the following:
Transfer/put away: Order picking: the

Receiving: the
the physical selection of
unloading of goods
movement of products from
and products
products storage
Cross-docking: the Shipping: the

movement of packing, loading on
products directly an outbound carrier,
from the inbound and shipment
Spares, Repair Parts, and Related
Inventory Factors
Spares and Repair Parts
• Spares and repair parts (and associated inventories)
are necessary for the performance of all
unscheduled (corrective) maintenance actions and
for those scheduled maintenance actions where
component replacements are required
Probability of Success with
Spares Availability
• Assume that a single component with a reliability of 0.8 (for time t) is
used in a unique system application and that one backup spare
component is purchased. Determine the probability of system success
having a spare available in time t (given that failures occur randomly
and are exponentially distributed)
• This situation is analogous to the case of an operating component and
a parallel component in standby (i.e., standby redundancy).The
applicable expression is stated as (t = 0.223 ):
the probability of system

success having a spare available
in time t is 97,84%
• If we next assume that the component is supported with two
backup spares (where all three components are
interchangeable), the probability of success during time t is
determined from
Or
With a component reliability of 0.8 and a value of t = 0.223, the probability of

success is
Probability of Mission
Completion
• Suppose that one needs to determine the probability that a
system will complete a 30-hour mission without a failure when
the system has a known mean life of 100 hours. Let :
With nt = 0.3 and r equals zero The probability
that the system will complete a 30-hour mission is
0.73.
Spare-Part Quantity
Determination
• Spare-part quantity determination is a function of a
probability of having a spare part available when required,
the reliability of the item in question, the quantity of items
used in the system, and so on. An expression, derived from
the Poisson distribution, useful for spare-part quantity
determination is
P = probability of having a spare of a particular
item available when required
S = number of spare parts carried in stock
R = composite reliability (probability of
survival);
K = of parts used of a particular type
ln R = natural logarithm of R
LOGISTICS AND
MAINTENANCE SUPPORT IN
THE SYSTEM LIFE CYCLE
Design Review
and Evaluation
SUMMARY AND
EXTENSIONS
• This chapter covers the subject of logistics and supportability in
the broader context of the system life cycle; thus, the phrase
logistics and supportability engineering
• The assumption is that, to be successful in meeting the systems
engineering objectives described throughout this text, one has
to include both
• (1) the support-related functions associated with bringing
a system into being, and
• (2) the sustaining support functions after the system is
operational and over its life cycle
• All functional requirements must be properly addressed
through the system engineering process, and the design for
supportability
References


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Engineering Economy and System

Design for Logistics and Supportability

LO4: Analyze selected systems engineering

SCM Definition (1)

SCM Definition (2)

Blanchard, Benjamin S., & Fabrycky, Wolter J. (2011).

Blanchard, Benjamin S., & Fabrycky, Wolter J. (2011).

Blanchard, Benjamin S., & Fabrycky, Wolter J. (2011).

Blanchard, Benjamin S., & Fabrycky, Wolter

Blanchard, Benjamin S., & Fabrycky, Wolter J. (2011).

To measure the ability to accomplish all of the

The measurement should conduct to assess

• Measurement the process responsiveness in terms of stated

Blanchard, Benjamin S., & Fabrycky, Wolter J. (2011).

Complete & Delivered in

Blanchard, Benjamin S., & Fabrycky, Wolter J. (2011).

Transfer/put away: Order picking: the

Cross-docking: the Shipping: the

the probability of system

With a component reliability of 0.8 and a value of t = 0.223, the probability of

Blanchard, Benjamin S., & Fabrycky, Wolter J. (2011).

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