Demand Fulfilment Process for Configure to Order Products

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Helsinki University of Technology | Diplomityö
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Date

2004

Department

Konetekniikan osasto

Major/Subject

Teollisuustalous

Mcode

TU-22

Degree programme

Language

en

Pages

106

Series

Abstract

The objective of this thesis is to improve the demand fulfillment process of a new product generation at the target company with consideration on delivery reliability and short manufacturing lead-times. Additionally, productivity and availability should be built into the process. In the theory part of the study, the theoretical framework applied in the application part is presented through a brief literature study. Process management, theory of constraints, performance measurement, demand/supply planning and demand/supply chain management is mainly discussed. These concepts are essential in order to achieve and maintain a customer oriented and efficient fulfillment process. In the application part of the study the present demand fulfillment process is defined and the status of the process analyzed and compared to the development targets. Causes for poor delivery reliability and long manufacturing lead-times are identified and analyzed and related process improvements presented. Based on the theoretical framework and the identified process gaps a target demand fulfillment process model is created, a performance measurement system built up, a demand-supply planning process defined and central process rules discussed. The study shows that the main reasons for poor delivery reliability in the demand fulfillment process are due to incapability to schedule and load the constraint (final assembly) and secure supply into the constraint. The study presents several process improvements by which the on-time delivery capability and process control can significantly be improved, enabling on-time deliveries. Further, the study brings out that manufacturing lead-time is mainly accumulated at the constraint. The study indicates that lead-times can significantly be reduced by securing supply into the constraint and by exploiting the constraint more effectively. The study concludes that the underlying reason for poor on-time delivery performance, long manufacturing lead-times and poor productivity is actually due to lack of constraint management in the demand fulfillment process.

Description

Supervisor

Eloranta, Eero

Thesis advisor

Skogster, Niklas

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Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-2020120450489

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[dipl] Teknillinen korkeakoulu / TKK