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d ? Oil refining is not modular since it is continuous and inventory storage of semifinished product is difficult ? Modular products are not always made from modular processes – Biotech and pharmaceutical industries make modular products but use nonmodular processes。 many products are made by varying the mix of a small number of ingredients ? Part Standardization(部件標(biāo)準(zhǔn)化) – Common parts(通用部件) are used across many processes – Product redesign might be necessary ? Process Standardization(流程標(biāo)準(zhǔn)化) – Standardizing as much of the process as possible, making a generic or family product – Delaying differentiation –Called “Delayed differentiation”, “Postponement” Postponement: Key Concepts ? Delay differentiation of products in the same family as late as possible ? Enables the use of aggregate forecasts ? Enables the delay of detailed forecasts ? Reduces scrapped or obsolete inventory, increases customer service ? May require new processes or product design with associated costs Postponement Considerations ? Tradeoff increased product cost with decreased inventory ? Need to decide where to postpone the pushpull boundary ? Position in product lifecycle is factor in postponement strategies ? Inventory value may increase ? Consider tariffs and duties HP DeskJet Case: Background ? High volume, high speed manufacturing in Vancouver ? Many different models, all pleted in Vancouver ? Three distribution centers – North American – Asian – European ? Manufacturing time one week ? Transportation lead times: – Europe: 45 weeks – US : 1 day ? At distribution centers, simple standardized process HP DeskJet Case: Analysis ? Problems – High inventory levels – Inventory imbalance in Europe ? Causes – Uncertainty about correct inventory levels – Many geographic options (localization) – Long lead times – Uncertain market – Difficulty at getting divisions to work together ? What are HP’s options? HP DeskJet Case: Options ? Short Term – Ration