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Logistics Systems EngineeringLogistics System Definitions

NTUSY-521-N

SMUSYS 7340

Dr. Jerrell T. Stracener, SAE Fellow

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Logistics System Definition

• System elements

• System requirements

• System description

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• 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

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• 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

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• 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 MaterialIn-Process MaterialFinished Products and Spare Parts

Elements of Logistics

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• Support Equipment– All equipment (mobile or fixed) required to

support the operation and maintenance of the system. This includes associated multi-use end items, ground handling and maintenance equipment, tools, metrology and calibration equipment, test equipment, and automatic test equipment.

Elements of Logistics

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• 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

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• 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 on-the-job training; and logistics support planning for training equipment and training device acquisitions and installations.

Elements of Logistics

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• 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

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• 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

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• 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

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• 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

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• Physical Distribution– Storage / Warehousing– Inventory Maintenance– Materials / Product Packaging & Handling– Transportation– Materials / Product Scheduling

Elements of Logistics

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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

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The Logistics Function

The elements of logistics make up the logisticfunction, which, although essential to cost-effectiveand efficient operation of the firm, has only inrecent times been identified as a separate activity,yet one that becomes meaningless if isolated.

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Evolution of Logistics

Demand ForecastingPurchasingRequirements PlanningProduction PlanningManufacturing InventoryWarehousingMaterials HandlingIndustrial PackagingFinished Goods InventoryDistribution PlanningOrder ProcessingTransportationCustomer Service

Materials Management

Physical Distribution

Logistics

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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 andcustomer support

• Logistics translates performance, user requirements and user experience into the operational, maintenance and support concepts

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Logistics in Product Development - continued

• Logistics design criteria and guidelines are provided to design

• As the schedule progresses, maintenance andsupport requirements (scheduled and unscheduled)are determined

• Requirements for support equipment, spare parts,publications, training, facilities, personnel and skillsare established

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Build-to-Package

Build-to-Package

Productdesign

Productionplanning

Qualityplanning

Tooldesign

Process

Logisticscharacteristics

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Build-to-Package

Logistic Definition Package

Logisticsupportanalysis

Manpower,personneland skills

ProvisioningTraininganalysis

Technicalsupport

data

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Logistics Requirements

• Increase customer satisfaction

• Decrease cost of doing business on a continuing basis

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Characteristics of Good Logistics

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

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Logistics - An Integrated Approach

Salesforecasting

Customerservice/marketing

Orderprocessing

Inboundtransportation

ProductionPlanning &Scheduling

Warehousing/Storage

Outboundtransportation

Logistics systems/communication

Materialshandling

Packaging Inventory

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Logistics Systems Engineering

Broadly defined, systems engineering is ‘the effective application of scientific and engineeringefforts to transform an operational need into a defined system configuration through the top-downiterative process of requirements definition, functional analysis, allocation, synthesis, designoptimization, test, and evaluation.’ The systemsengineering process, in its evolving of functionaldetail and design requirements, has as its goal theachievement of the proper balance between operational (i.e. performance), economic, andlogistics factors.

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Logistics Spans From Cradle to Grave

Supt PlaningR,M & SLSAFlight Test

Config.MgmtProvisioning Tech Data

SparesSupt Equip

Training Sys Initial ContractorSupportTraining Prog Mgmt Field/

Base SuptTech Supt Serv

Depot Maint/ModsSpares Inven Mgmt

Engine/Comp Maint, Repair & Overhaul

Dsgn Influ & SuptSys Devlp

Support SystemProduction

Initial Support

Sustainment

Concept Development Production Post Prod. Retirement

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Logistics is Complex

Customer

FinancialCustoms

Air

Freight FwdMotorRail

Ocean

Mfg

Information

Product/Material

ConsolidatorDe-consolidator

Single SourceInformation

Users

Engineeringand design

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Product Development

The Systems ViewIn

itiativ

es

Business Process Integration

Tech

nolo

gy

Increased Competitive Position

Life Cycle Integration

Product Production

Product Usage

Feedback

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Increased Competitive PositionReduced Cost Increase Market

Share/Profit MarginReduced Cycle Time Sales Profit MarginIncreased Customer Satisfaction

Life Cycle Integration

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Logistics Initiatives

JIT (just in time)Process IntegrationLEANVirtual Warehousee-business

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Electronic CommerceInternetIntranetExtranetBar codingRF TagsSatellite Tracking

Logistics Technology

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Business Process Integration

MarketingOperationsEngineeringFinanceHuman ResourcesInformation TechnologyMaterialsInitiativesTechnologyLife Cycle IntegrationFeedback

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Current Emphasis on Logistics

• Increasingly, companies look at processes, insteadof functions to achieve competitive advantage

- Advanced planning software allowscompanies to achieve efficiencies in order-to-delivery processes- Companies try to emulate success of inventory replenishment strategies ofWal-Mart and other industry leaders

• International sourcing of goods required bettercoordination with suppliers and transportation providers to minimize costs

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Current Emphasis on Logistics

• Time based competition and Just-in-Time production necessitates

- Better coordination between customersand suppliers- Improved flow of information- Reliable transportation

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The Value of Early Decisions

DESIGN PROTOTYPE PRODCUTION SERVICE USE

1X

10X

100X

1000X

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Logistics System Life Cycle

NeedAndReq.

ConceptDevel-opment

Design &Devlpmnt

Production Customer Use

100%

80%

66%

Ease of Change

KnowledgeCost Incurred

Life Cycle Cost Committed

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

Logistics Cost Over the Life Cycles

72%

28%

System Acquisition

Operation and Support

Life Cycle Cost

Years

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Technology Infusion Dilemma

10 Years

5 Years

TODAY

Technology“Life”

TrendsProduct

DevelopmentCycle

?

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Logistics Systems Definition Summary

• A systems view is required utilizing systemsengineering

• Effectiveness of logistics depends on sequencingand timing of events

• Flexibility and adaptability to change is essentialGlobalizationTechnologyCompetitive pressure