Production logistics subsystem

From CEOpedia | Management online

Production logistics subsystem provides the link between the supply of logistics distribution in companies whose activities include the manufacture or assembly of the products offered at least. Logistical tasks in the production area are related to the supply of raw materials, materials, semi-finished and purchased parts, the movements of goods between successive stages of processing and transmission of finished goods to the warehouses and to the market.

Along with making decisions about the production, solutions for the flow of goods and information is determined, according to emerging needs. Basic problems which the outcome determines the usefulness of specific logistics solutions in this area can be presented on the basis of the characteristics of the production process:

  • Type of production (depending on the production program) - it concerns the choice between mass production and the production of certain types of products, batch or unit.
  • Organization of production flow - pipelining, permanently synchronized, unsynchronized, lines pipelining, variable arrangement workshop, sockets of repetitive manufacturing, sockets of unique production.
  • Location of the production process and distribution of the devices involved in the process, location of warehouses for buffer stocking and securing business continuity,
  • Rules for the supply of materials - associated primarily with the choice between orders based on demand (determined on the basis of the production plan) or based on consumption (providing supply when it reaches the minimum level - so-called. safety stock)

Highlighted features are fundamental characteristics used in the manufacturing process. The decisions taken should, however, take into account the availability of suitable logistics solutions regarding the range of tasks to implement flow of goods and information in the area of ​​production. Availability of adequate logistics solution also depends on the possibility to cooperate with specialized service providers.

Examples of Production logistics subsystem

  • Inventory Management: This involves tracking of materials, components, and products as they move through the production process. It also involves tracking of inventory levels, storage locations, and location of parts in transit.
  • Production Scheduling: This involves optimizing production schedules to meet customer requirements while minimizing production costs. It also involves selecting the most efficient production processes and ensuring the availability of necessary resources.
  • Quality Management: This involves ensuring that product quality meets customer requirements. It also involves controlling the quality of raw materials, components, and finished products to ensure that they meet customer specifications.
  • Maintenance Management: This involves maintaining production equipment in good working condition to ensure efficient and reliable operation. It also involves scheduling preventive maintenance and coordinating repairs.
  • Logistics Management: This involves managing the flow of materials, components, and products between different stages of the production process and between the production facility and its suppliers. It also involves coordinating the transportation of materials, components, and products.

Advantages of Production logistics subsystem

A Production logistics subsystem can provide a number of advantages for companies, such as:

  • Improved efficiency in supply chain operations, as it allows for the tracking of materials and goods in the production process.
  • Reduced costs associated with stocking and managing inventory, as well as increased accuracy in stock control.
  • Increased customer satisfaction due to faster delivery times and better communication between suppliers, manufacturers and customers.
  • Improved coordination between production and distribution activities, leading to faster response times and reduced costs.
  • Increased visibility into the production process, allowing for better decision-making in terms of resource allocation and production planning.
  • Improved forecasting and planning capabilities, allowing companies to respond quickly and effectively to changes in customer demand.

Limitations of Production logistics subsystem

  • An introduction: The following are some of the limitations of the Production logistics subsystem:
  • One limitation is that it can be difficult to accurately forecast and plan production schedules, due to the complex nature of the supply chain and the ever-changing demands of the market.
  • Another limitation is that production logistics is expensive to implement, as it requires a high level of expertise and the coordination of many different processes and stakeholders.
  • It can also be difficult to ensure the quality of products, as production logistics involves multiple steps and processes that can introduce errors.
  • Additionally, production logistics can be complex to manage and coordinate due to the sheer number of stakeholders involved.
  • Finally, production logistics is not always able to keep up with the fast-evolving nature of the market, as changes can occur quickly and without warning.

Other approaches related to Production logistics subsystem

  • To begin, other approaches related to Production logistics subsystem include:
  • Supply Chain Management: Supply chain management (SCM) is the management of the flow of goods and services and involves the coordination of multiple activities in order to deliver the desired product or service to the customer. SCM activities include inventory management, order processing, procurement, transportation, warehousing, and customer service.
  • Manufacturing Planning and Control: Manufacturing planning and control (MPC) is the process by which production activities are planned and controlled in order to ensure that the desired output is achieved in a timely, cost-effective manner. MPC activities include production scheduling, inventory control, quality control, and capacity planning.
  • Production Logistics Information Management: Production logistics information management (PLIM) is the process of collecting, storing, analyzing, and disseminating information related to the production logistics process. This includes data related to materials, orders, inventory, transportation, and production performance.

In summary, other approaches related to Production logistics subsystem include Supply Chain Management, Manufacturing Planning and Control, and Production Logistics Information Management. These approaches are used to plan, coordinate, and manage the flow of goods and services to ensure that the desired product or service is delivered in a timely and cost-effective manner.


Production logistics subsystem — recommended articles
Dependent demand — Material stream — Contract logistics — MRP II — Coordinative function of logistics — Master production schedule — Supply logistics subsystem — SCM system — IT systems in production management

References

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