1. ME 59700 Spring 2015 Systems Engineering, Part II Session 16 5 March 2015 Mr. Larry Hopp, CPL

2. 2 Supply Chain Factors Capability Availability Quality Goal - Right Asset, Right Place, Right Time

3. 3 Purchasing & Material Flow Factors Initial purchasing –# of purchase orders processed –Quality of purchasing process Flow of Materials –Cost of Materials Processed. Goal - Right Asset, Right Place, Right Time

4. Copyright ©2011, ©2006, ©1998 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Systems Engineering and Analysis, Fifth Edition Benjamin S. Blanchard Wolter J. Fabrycky Figure 15.6 The various forms of transportation.

5. 5 Transportation & Packaging Factors Route Capacity Time Cost Goal - Right Asset, Right Place, Right Time

6. 6 Warehousing & Distribution Factors Functions –Receiving –Stock or transfer –Pick –Cross dock –Shipping Goal - Right Asset, Right Place, Right Time

7. 7 Warehousing & Distribution Factors Metrics –Time –Cost of each shipment –Cost of holding inventory –Value of products –Space utilization and cost per area –Volume of products handled Goal - Right Asset, Right Place, Right Time

8. 8 Maintenance Organization Factors Direct Maintenance Time –MLH/OH, MLH/mission cycle, MLH/month, MLH/Labor action Indirect labor Turnover rate Amount of training Work orders processed Administrative Delay Time Goal - Right Asset, Right Place, Right Time

9. 9 Spares, Repair Parts, & Related Inventory Factors Spares and repair parts Additional Stock –Items in maintenance –Procurement lead time –Beyond economical repair (BER) Goal - Right Asset, Right Place, Right Time

10. Copyright ©2011, ©2006, ©1998 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Systems Engineering and Analysis, Fifth Edition Benjamin S. Blanchard Wolter J. Fabrycky Figure 15.8a Spare-part requirement nomograph

11. Copyright ©2011, ©2006, ©1998 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Systems Engineering and Analysis, Fifth Edition Benjamin S. Blanchard Wolter J. Fabrycky Figure 15.8b Spare-part requirement nomograph

12. 12 Spares, Repair Parts, & Related Inventory Factors Excess Inventory costs money Could become obsolete To little inventory could lead to a stock out You need just the right amount. Goal - Right Asset, Right Place, Right Time

13. 13 Spares, Repair Parts, & Related Inventory Factors Economic Order Quantity –Reorder point = (Order ship time X Day of Supply) + Safety Level –EOQ = Sq rt (2 C o D/C i ) C o - Cost to Order D - Demands /year C i – Cost to hold in inventory –Doesn’t apply to high value items or mission critical items Goal - Right Asset, Right Place, Right Time

14. Copyright ©2011, ©2006, ©1998 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Systems Engineering and Analysis, Fifth Edition Benjamin S. Blanchard Wolter J. Fabrycky Figure 15.9 Representation of an actual inventory cycle.

15. 15 Test & Support Equipment Factors What is it? Where does it go? What does it service? What is the reliability of the test equipment? What kind of spares do you need for the test equipment? Goal - Right Asset, Right Place, Right Time

16. 16 Maintenance Facility Factors Turn around time (TAT) Facility Utilization Energy Utilization Facility Cost Goal - Right Asset, Right Place, Right Time

17. 17 Computer Resources & Maintenance Software Factors Major element Software Maintainability Software Reliability –Initial development errors Software Failure Goal - Right Asset, Right Place, Right Time

18. 18 Technical Data and Information Systems Factors Data availability Data Protection Logistics Response Data Access Item Location Information Processing Change implementation Cost Goal - Right Asset, Right Place, Right Time

19. 19 Chapter 15 Tuesday 10 March –Test #1 Room 110 Tuesday 24 March –CP3 Thursday 26 March –Homework Chapter 15 Problems 7, 9, 15, 17, and 27 (some is 2) Goal - Right Asset, Right Place, Right Time