SMU
SYS 7340
NTU
SY-521-N
Logistics Systems Engineering
Logistics System Definitions
Dr. Jerrell T. Stracener,
SAE Fellow
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Logistics System Definition
• System elements
• System requirements
• System description
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Elements of Logistics
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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
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Elements of Logistics
• 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.
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Elements of Logistics
• 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
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Elements of Logistics
• Support Equipment
– All equipment (mobile or fixed) required to
support the operation and maintenance of
the system. This includes associated multiuse end items, ground handling and
maintenance equipment, tools, metrology
and calibration equipment, test equipment,
and automatic test equipment.
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Elements of Logistics
• 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.
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Elements of Logistics
• 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 onthe-job training; and logistics support
planning for training equipment and training
device acquisitions and installations.
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Elements of Logistics
• Computer Resources Support
– The facilities, hardware, system software,
software development and support tools,
documentation and people needed to operate
and support embedded computer systems.
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Elements of Logistics
• 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.
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Elements of Logistics
• 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.
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Elements of Logistics
• 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.
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Elements of Logistics
• Physical Distribution
– Storage / Warehousing
– Inventory Maintenance
– Materials / Product Packaging & Handling
– Transportation
– Materials / Product Scheduling
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Some Other Elements of Logistics
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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 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.
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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
Logistics
Physical Distribution
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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 and
customer 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 and
support requirements (scheduled and unscheduled)
are determined
• Requirements for support equipment, spare parts,
publications, training, facilities, personnel and skills
are established
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Build-to-Package
Production
planning
Quality
planning
Tool
design
Logistics
characteristics
Process
Product
design
Build-to-Package
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Build-to-Package
Manpower,
personnel
and skills
Logistic
support
analysis
Provisioning
Logistic
Definition
Package
Training
analysis
Technical
support
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
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Competitive advantage
Predictable
Innovative
Responsive
On time service
Cost
Error free
Dependable
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Logistics - An Integrated Approach
Sales
forecasting
Production
Planning &
Scheduling
Warehousing/
Storage
Outbound
transportation
Customer
service/
marketing
Logistics systems/
communication
Order
processing
Inbound
transportation
Materials
handling
Packaging
Inventory
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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.
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Logistics Spans From Cradle to Grave
Concept
Development
Production
Post Prod.
Retirement
Dsgn Influ & Supt
Sys Devlp
Supt Planing
R,M & SLSA
Flight Test
Config.Mgmt
Provisioning
Support System
Production
Tech Data
Spares
Supt Equip
Training Sys
Initial Support
Initial Contractor
Support
Training
Sustainment
Prog Mgmt Field/
Base Supt
Tech Supt Serv
Depot Maint/Mods
Spares Inven Mgmt
Engine/Comp Maint,
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Repair & Overhaul
Logistics is Complex
Engineering
and design
Air
Mfg
Customer
Single Source
Information
Users
Information
Consolidator
De-consolidator
Customs
Ocean
Product/
Material
Rail
Motor
Freight Fwd
Financial
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The Systems View
Business Process Integration
Product Development
Product Production
Product Usage
Initiatives
Technology
Feedback
Life Cycle Integration
Increased Competitive Position
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Life Cycle Integration
Increased Competitive Position
Reduced Cost
Increase Market
Share/Profit Margin
Reduced Cycle Time
Sales Profit Margin
Increased Customer Satisfaction
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Logistics Initiatives
JIT (just in time)
Process Integration
LEAN
Virtual Warehouse
e-business
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Logistics Technology
Electronic Commerce
Internet
Intranet
Extranet
Bar coding
RF Tags
Satellite Tracking
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Business Process Integration
Marketing
Operations
Engineering
Finance
Human Resources
Information Technology
Materials
Initiatives
Technology
Life Cycle Integration
Feedback
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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-todelivery 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
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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
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The Value of Early Decisions
1000X
100X
10X
1X
DESIGN
PROTOTYPE PRODCUTION SERVICE USE
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Logistics System Life Cycle
Life Cycle Cost Committed
100%
80%
66%
Knowledge
Cost Incurred
Ease of Change
Need
And
Req.
Concept
Development
Design &
Devlpmnt
Production
Customer Use
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Logistics Cost Over the Life Cycles
• Typical DOD Acquisition program with a service
life of about 30 years.12
Life Cycle Cost
Operation and Support
System Acquisition
72%
28%
Years
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Technology Infusion Dilemma
Trends
Product
Development
Cycle
?
10 Years
5 Years
Technology
“Life”
TODAY
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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
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