Logistics Engineering and Management, Sixth Edition PDF by Benjamin S. Blanchard

Table of Contents

Introduction to Logistics
This text deals with the subject of logistics and the design of systems for supportability. Logistics, as defined herein, is approached from a total system perspective and includes all the activities associated with the initial design for logistics and supportability; the procurement and acquisition of the elements of support; the supply, materials handling, and physical distribution of components; the transportation and warehousing of products; and the maintenance and support of systems throughout their planned period of utilization. Logistics, to include the various aspects of supply chain management and the follow-on maintenance and support of systems, is addressed from a total lifecycle view and must be considered in all phases of a program; that is, logistics must be considered as an inherent element in the system design process, as it constitutes a major activity in the construction and/or production of a system and its components.

A logistics and support capability must be in place and effective throughout the period when the system is in operational use, and logistics includes a necessary element of support when the system is retired and its various components are processed for either recycling or disposal.The emphasis throughout this text is on logistics in the context of the system design process; that is, the phase of the life cycle when system requirements are defined and when one can significantly influence the activities that will be required later on when the system is operational, as well as the overall cost-effectiveness of the system itself.

The objective of this chapter is to address the subject of logistics in general, to include some terms and definitions, and to describe the need for logistics in the context of the current international and global environment.The requirements for logistics are addressed from a system perspective, the elements of logistics are discussed, an integrated logistics approach is emphasized, and the need for considering logistics in the system design process is highlighted.

THE CURRENT ENVIRONMENT
Having a good understanding of the overall environment is certainly a prerequisite to determining logistics and related requirements, and for successfully implementing the principles and concepts discussed throughout this text. Although individual perceptions will differ depending on personal experiences and observations, there are a number of trends that appear to be significant from our perspective.These trends, shown in Figure 1, are all interrelated and need to be addressed as an integrated set when determining the requirements for systems and for the logistics and maintenance infrastructure necessary to support those systems.

1. Constantly changing requirements. The requirements for new systems are constantly changing owing to the dynamic conditions worldwide, to changes in mission thrusts and priorities, and to the introduction and evolution of new technologies.Thus, there is a need for a highly flexible (agile) logistics and maintenance support capability.

2. More emphasis on systems. There is a greater emphasis on total systems versus the components of a system. The system needs to be addressed in total, and throughout its entire life cycle, to ensure that the necessary functions are being accomplished in an effective and efficient manner. Thus, a logistics and maintenance support infrastructure must be considered as a major element of the system, must be in place and reliable, and must be available to support the prime mission-related elements of the system when needed.

3. Increasing system complexities. It appears that the structures of many systems are becoming more complex as new technologies are introduced and evolve. An open-architecture approach in design is necessary, as systems must be designed such that changes can be incorporated quickly, efficiently, and without significantly affecting the overall configuration of the system. Given these constraints, the logistics and maintenance support infrastructure must be designed to support the added complexities.

4. Extended system life cycles—shorter technology life cycles.The life cycles of many current systems are being extended for one reason or another while at the same time the life cycles of most technologies are becoming relatively shorter (due to obsolescence). As in the situation mentioned in item 3, it is necessary to design systems such that a new technology can be incorporated easily and efficiently.At the same time, the logistics and maintenance support infrastructure must be designed to be responsive, and the duration of the support capability is thus likely to be greater due to the extended system life cycles.

5. Greater utilization of commercial off-the-shelf (COTS) products. With current goals pertaining to lower initial costs and shorter and more efficient procurement and acquisition cycles, there has been more emphasis on the utilization of best commercial practices, standard processes, and commercial off-the-shelf (COTS) equipment and software. As a result, there is a greater need for a good definition of requirements at the outset, and there is greater emphasis on the design of systems (and their major subsystems) versus the design of components. Further, much of the required logistics and maintenance support activity has shifted from the major producer to one or more suppliers.This shift, in turn, has increased the complexity of the overall logistics and support network, with more organizations participating, as well as added some challenges in determining the detailed support requirements for many of the COTS items being utilized in the system design configuration.

6. Increasing globalization. The world is shrinking and there is more trading with and dependency on different nationalities (and manufacturers) throughout the world thanks to the introduction of rapid and improved communications practices, the availability of quicker and more efficient packaging and transportation methods, the application of electronic commerce (EC) methods for expediting the accomplishment of procurement and related processes, and related reasons. At the same time, the logistics and support configuration must be responsive to the many challenges pertaining to rapid and reliable communications, short transportation times and safe/secure transportation routes, and quick turnaround times in support of maintenance requirements.

7. More outsourcing. There is more outsourcing and procurement of COTS items (equipment, software, processes) from external sources of supply than ever before. Thus, there are more suppliers associated with almost any given program. Consequently, there must be a greater emphasis on the early definition and allocation of system-level requirements, the development of a good and complete set of specifications, and a closely coordinated and integrated level of activity throughout the system development and acquisition process. At the same time, a closely and well-integrated logistics and maintenance support capability must be developed and operational when required.

8. Greater international competition. Along with the noted trends toward increasing globalization and more outsourcing, there is more international competition than ever before, owing not only to improvements in communications and transportation methods but to the greater utilization of COTS items and the establishment of effective partnerships worldwide. A major goal is, of course, to deliver in a short time frame a product or service that is reliable and of high quality, costeffective, and with customer satisfaction in mind. This goal requires a highly responsive, effective, and efficient logistics and maintenance support infrastructure.

9. Higher overall life-cycle costs. In general, experience has indicated that the lifecycle costs of many current systems are increasing.Whereas much emphasis has been placed on minimizing the costs associated with the procurement and acquisition of systems, little attention has been dedicated to the costs of system operation and support. In designing systems, one needs to view all decisions in the context of total cost to properly assess the risks associated with the decision(s) in question. As the logistics and maintenance support infrastructure is a major element of the system, the various alternative approaches in the design of such must be justified on the basis of life-cycle cost.

Although some of the foregoing and related trends have evolved over time, the tendency is to ignore the changes that have taken place and continue with a business-asusual approach by implementing some past practices, many of which tend to inhibit innovation and growth. Because the operating environment has undergone a major transition in recent years, the requirements for logistics and system support have also undergone significant changes, and it is anticipated that such changes will continue to evolve. It is thus essential that the logistics discipline continue to grow and evolve as well.