1 Logistics Systems Engineering Logistics System Definitions NTU SY-521-N SMU SYS 7340 Dr. Jerrell T. Stracener, SAE Fellow

2 Logistics System Definition System elements System requirements System description

3 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

4 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

5 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

6 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

7 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

8 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

9 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

10 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

11 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

12 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

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

14 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

15 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.

16 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

17 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

18 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

19 Build-to-Package Product design Production planning Quality planning Tool design Process Logistics characteristics

20 Build-to-Package Logistic Definition Package Logistic support analysis Manpower, personnel and skills Provisioning Training analysis Technical support data

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

22 Characteristics of Good Logistics Competitive advantage Predictable Innovative Responsive On time service Cost Error free Dependable

23 Logistics - An Integrated Approach Sales forecasting Customer service/ marketing Order processing Inbound transportation Production Planning & Scheduling Warehousing/ Storage Outbound transportation Logistics systems/ communication Materials handling PackagingInventory

24 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.

25 Logistics Spans From Cradle to Grave Supt Planing R,M & SLSA Flight Test Config.Mgmt Provisioning Tech Data Spares Supt Equip Training Sys Initial Contractor Support Training Prog Mgmt Field/ Base Supt Tech Supt Serv Depot Maint/Mods Spares Inven Mgmt Engine/Comp Maint, Repair & Overhaul Dsgn Influ & Supt Sys Devlp Support System Production Initial Support Sustainment Concept Development Production Post Prod.Retirement

26 Logistics is Complex Customer Financial Customs Air Freight Fwd Motor Rail Ocean Mfg Information Product/ Material Consolidator De-consolidator Single Source Information Users Engineering and design

27 Product Development The Systems View Initiatives Business Process Integration Technology Increased Competitive Position Life Cycle Integration Product Production Product Usage Feedback

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

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

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

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

32 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-to- delivery 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

33 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

34 The Value of Early Decisions DESIGN PROTOTYPEPRODCUTIONSERVICE USE 1X 10X 100X 1000X

35 Logistics System Life Cycle Need And Req. Concept Devel- opment Design & Devlpmnt ProductionCustomer Use 100% 80% 66% Ease of Change Knowledge Cost Incurred Life Cycle Cost Committed

36 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

37 Technology Infusion Dilemma 10 Years 5 Years TODAY Technology “Life” Trends Product Development Cycle ?

38 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