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Design for-supply


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Design for-supply principles

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Design for-supply

  1. 1.   By Madeleine Lee
  2. 2.  Adaption of the fittest. o The know-how of global supplier management. 1. 2. Ability to spot trend Capability to change supply networks o Example 1: Microsoft Xbox beat Sony PS2 • Short term – KSF is time to market, Xbox supplier Flextronics decides to manufacture Xbox in Hungry and Mexico, they are near the target market, NAM and Europe. • Long term – the KSF is cost effectiveness, hence, Flextronics move the manufacture to China. o Example 2 : Cisco’s supplier policy Standard, mass production Commissioning contract manufactures Mid-value items Commissioning contract manufactures customize Near-shore supplier
  3. 3.  Three principles for the Design-For-Supply 1. 2. 3. Commonality – products share components Postponement – delays the step at which products become different. Standardization – use of catalogue items Source: the triple-A supply chain by Dr. Hau L. Lee