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Lesson 7Manufacturing and technical implications
ObjectiveIdentify the link between manufacturing and eBusiness.

Manufacturing and Technical Implications

Manufacturing

It should come as no surprise by now when we say that the effect of a successful eBusiness implementation on the manufacturing requirements of a company must not be ignored. So how does >manufacturing relate to eBusiness?
In identifying the link from eBusiness to manufacturing, the eBusiness architect will need to consider build capacity and flexibility, the impact of international standards, and how mass customization will change the manufacturing philosophy.

Build capacity

In previous lessons, we have pointed out that the company's stock holding levels may need to be increased to accommodate the different demands for stock in a "mail order" type of business, and that this fact alone will require a temporary increase in manufacturing output to create the extra stock. However, the success of the eBusiness in increasing sales will undoubtedly need to be matched by changes to manufacturing capabilities.
How does the architect plan for this?
The Slide Show below describes how the architect might address manufacturing issues in his/her design.
Stock holding levels: The quantity of inventory items that need to be held in order to fulfill demand in an acceptable time period. The quantity of inventory items which need to be held in order to fulfill demand in an acceptable time period.


Planning For Changes To Manufacturing
As mentioned above, linking Computer Aided Design/Computer Aided Manufacture offers significant benefits to the customer. The table below describes the benefits that this "mass customization" would deliver to both buyer and manufacturer.
Benefits to the buyer Benefits to the manufacturer
Customized design of products to suit tastes, for example, combinations of colors, fabrics, materials eTailoring of garments to all shapes and sizes and shape for a better fit Potential cost reductions as products are made to order without associated excess inventory and distribution costs Just-In-Time (JIT) manufacturing concept resulting in less inventory (both raw materials and finished stock) and less cost Greater customer satisfaction with less returns, leading to increased sales More customer and product requirement information, allowing automated links to manufacturing support processes like MRP (Materials Requirement Planning), pattern cutting and planning, and so on Reduced costs of distribution as the customer has a direct link to the factory

The next lesson wraps up this module.

ebusiness Incorporation into existing Business Services - Exercise

Click the Exercise link below to complete an exercise on the incorporation of eBusiness into existing business services.
ebusiness Incorporation into existing Business Services - Exercise