Using Ahm Approach to Position Codp

Abstract

The concept of Customer Order Decoupling Point/CODP is a popular approach to increasing the diversity of end items, while taking advantage of standardization/unification due to increased repetitiveness of operations devoted to components and/or subassemblies manufacturing. CODP marks the place (the operation, the phase of the process etc.) where customer intervention occurs, in order to define, according to his/her wishes, the final mode of the end item (product or service). An underlying issue here is to make an economically motivated decision about the exact CODP position (1) among different end items of the company's product mix, and (2) inside a particular product/service line. Inside the operations process, before CODP, forecasts are usually used (Make-To-Stock), and after it-Make-To-Order. Consequently, the opportunities to achieve economies of scale are different before and after CODP. Therefore, the opportunities for optimizing the total operating costs are different as well. In the present paper, an approach is suggested for applying the Analytical Hierarchy Process/AHP in solving such a problem. Some examples of criteria are also presented to give reasons for the "pros" and "cons" during the decision making process about CODP position.

Customer order decoupling point issues in a project environment

“…In the present paper, we propose such a model for PM, which helps in defining the places in the project process where the interaction with the customer is to be realized, as well as the ways by which it is done. It is also a further development of some ideas, presented in Panayotova and Andreev (2011).…”

“…A more thorough study of the literature worldwide in this context shows that the majority of authors (Browning & Eppinger, 2002;McCord & Eppinger, 1993;Panayotova, 2005;Panayotova & Andreev, 2011;Steward, 1981; and so on) are considering the task relationships as depicted on following 3 types (see Figure 2): a) No link / dependence between tasks (both tasks are independent from each other); b) Sequential / one-way dependence (e.g. task B needs the result of / information from task A); c) Two-way dependence or interdependence -both tasks use each other's results / information -iteration process (cycle).…”

A Strategic Vision for Development of Flexible Industrial Enterprise

“…Each organization should develop indicators that meet the specificities of its activities. (Panayotova et al, 2011)…”