The folllowing sample essay on Life Cycle Logistics discusses it in detail, offering basic facts and pros and cons associated with it. To read the essay’s introduction, body and conclusion, scroll down.
As a brief description of the subject in the study, the life cycle of logistics can also be maximized through establishing effective management organizing efforts to maintain a certain company’s operational structure that will avoid or prevent errors and mismanagement that can take place within the corporation.
In this case, the 360 degree logistics can be found when there will be a capital expenditure that will be reared out to fund materials and human resources that will be helping to manufacture product. As soon as the product will be made and distributed to the market, there will be an exchange of commodity as well as financial trade value. This process will undergo the procedural profit taking to collect the monetary amount of profits that has been sold to the market.
The monetary value be distributed to the accounting department of a certain organization to fund services, raw materials, and salaries to employees that completes the life cycle of the business operating organization. Image is one of the most sensitive factors that should be taken cared In long-term basis for the reason that It can be used for the marketing plan that will promote the company’s products to boost sales to the public as mentioned by Pointers (2008).
Location is one of the most important considerations that will be considered for companies such as Panasonic because it is an electrical distributing company that aims to Identify potential target market to maintain their production capacity and market endurance in monopolizing output in specific period of time.
The organizational structure of the company is also focused on establishing officers that will be destined to key manufacturing areas in all satellite areas around the world to maximize the production facilities and operation.
In addition, manufacturing all kinds of electrical equipments and appliances utilizes the standards of manufacturing practice that are abided according to the laws and policies imposed in the market. Logistics minimization is one of the most effective management activities that will help to sustain transporting finished products that will be available anywhere around the world.
These kinds of ways that can be made by using logistics will help to restructure and implement effective strategies that conform to the production and management capacity of the company to perform ‘OFF Life-cycle cost analysis purpose is to determine the system, product, and process of the future total life cycle cost that includes design and development, production/ construction, system utilization, maintenance and support, and retirement and disposal, high cost contributors, cause and affect relationships, potential risk, and identification for improvement to reduce cost if possible (Blanchard, 2004).
When this kind of analysis is conducted the person is looking at the entire life span of the product and how much it cost to sustain it through logistics and maintenance at first, because it is the most expensive part of the total life cycle cost. The supportability analysis helps developed the information to input into the life-cycle cost analysis, this enable the analysis to be initiated in the beginning of the design phase where it is most cost beneficial.
The analysis is usually conducted as the design progress toward completion to gather vital assumptions and facts on the how the analysis findings an be applied through the acquisition process. Factors are broken down into the types of cost that makes up the overall total cost, such as acquisition cost, operating cost, and disposal cost. A complete life cycle cost also includes other costs such as financial and labor cost as well. The evaluation will usually start with initial cost of making a product by looking at element like capitol cost, which is needed to start and complete the project.
Then there is operation, maintenance, and repair cost that factors in heavily to the life cycle cost analysis, that can be the largest percentage of the total cost. The number and timing of capital replacements of systems or products depend on the estimated life of the system, so replacement cost must be calculated in also. It is helpful for companies to use the same sources that provide cost estimates for initial investments to obtain estimates of replacement costs and expected useful lives (Blanchard, 2004).
Without logistics planning, the company will not be able to identify potential resource markets that will be significant to boost their competitiveness as well as their productivity in creating better financial performances. Logistics is important for he reason that it helps the company to fulfill all kinds of goals and without this factor will affect the company’s growth performance in a specific period for having a stagnant or negative flow of financial productivity.
The absence of logistics planning halts the company’s ability to produce quality products, which will result for having health threats for users and will not be safe to use in the market according to Barman (2011). The standards of production performance without logistics planning will fail to reach goal standards for producing quality products by having defects that an cause potential accidents for users that will be acquiring the product. Lucas are usually performed early in the design process when only estimates of costs and savings are available, rather than certain dollar amounts.
Uncertainty in input values means that actual outcomes may differ from estimated outcomes. It has been proven that LOCAL provides a significantly better assessment of the long-term cost- effectiveness of a project than alternative economic methods that focus only on first costs or on operating-related costs in the short run The effects of the current economy have made the business and logistics world hang the way products are secured, transported, and financed.
The global economy is slowly rebounding from the World Financial Crisis of 2008, where major unemployment record rose to an all-time high. There are major factors that contributed to the new challenge that transportation and logistics managers currently faced; most of the challenges are a result of the current Global Financial Crisis the world. There was a large reduction in capital investment for business shortly after the downturn of the world markets due to the decline in financial credit availability from banks; causing businesses to lose profits.
In early March 2009, the number of massive container ships sitting idle globally was estimated at an all-time high of 453 vessels, but the global transportation sector rebounded sharply in 2010. The declining economy had a detrimental affect within transportation and logistics management; that created transportation and logistical management challenges for companies to get financial backing for procurement of supplies and services (U. S. Bureau of Labor Statistics, 2011).
Over the last four years, economists have been in an uproar over the flow of exports and imports have slowed in the lobar trade market that has caused delays within the supply chain. The crisis in the economy has also caused high cost in fossil fuels, geographical fragmentation in production processes, along with the creation of wide-spread macroeconomic risk facing domestic and global economies. “The uneven recovery the economy continues to have major impact on freight transports flows that was facilitated by good and cheap transport”, according to an International Transport Forum review (Barman, 2010).
The Surface Transportation Board is continuously working on the challenges and lotions to intermediate transportation in regards to the aging of infrastructure, environmental issues, and congestion. In 2009, congestion was one of the biggest issues concerning the transportation sector of transportation and logistics management was congestion (TTS, 2009). The Surface Transportation Board reiterates the growing consensus of that petroleum based fuels have significant impacts on the environment, including greenhouse emissions and air pollutions.
Congress started debating proposals that are approved today to reduce greenhouse emissions and have met plans to meet fuel economies standard by 2016 (TTS, 2009). Congress have been tasked to provide solution to fund improvement to the critically aging transportation infrastructure systems across the United States; with rising issues of gaining funding support on critical issue of infrastructure preservation.
The Department of Homeland Security issues critical and mandatory regulations for the United States trading partners and the Transpiration Security Administration to ensure security of supply chains (TTS, 2011). The Coast Guard’s goal is to integrate maritime cyber security with the wider defense system that the U. S. Is building. Congress order to screen 100 percent of international inbound cargo; international efforts are more difficult since the agency has no authority to require foreign countries to screen cargo on passenger aircraft.
Port Security have made efforts to protect US ports by mandating 100 percent cargo screening of all inbound containers, but TTS argues that even if containers are being screened, the basic act of putting aluminum foil around a nuclear weapon can negate that procedure (TTS, 2011). Businesses and the government had taken actions to implement a risk management approach but had not conducted comprehensive risk assessments for o help ensure that resources are allocated to the highest-priority risks.
In the Global Logistics management article, posted by Jeff Barman, he stated that the “potential for innovations for potential management of greenhouse gases emissions transports are foster by technology in order to improve fuel economy’ (Barman 2010). This seems like one solution to promote climate change policy in the transport sector, since some research insists that policy do affect logistics and transportation; as well as the economy. Refinancing’ global growth is more a matter for policy-makers”, that would be creating the right macroeconomic conditions”for instance by ensuring that credit is available, that exchange rates reflect economic realities and, in transport, by setting the rules of the games in such a way that we are getting the prices right (Barman, 2010). Perhaps the key to improving the supply chain management is to strictly enforce demand forecasting based off the climate of the economy and eliminating unnecessary costs to the total cost of a products cycle.
This suggests that that converting back to basic fundamentals in supply chain management could consumer confidence in spending and improve the global trade arrest. As an implication, facility planning will involve to establish bidding procedure that are important in creating new products because this will determine the most effective product as well as choosing the product that has the highest quality rate that will be available in the market.
Facility planning improvement matters because it helps to restructure all kinds of equipments that will be used for the production of new products that will be sold to the market. In this process, facilities are needed to be maintained and regularly checked by maintenance personnel to identify potential effective facilities that will be subjected to replacement to avoid finished products that are defective and not safe to use as claimed by Pointers (2008).
The main benefit is saving cost, plus assessing whether a system can be operated and supported in an effective and efficient manner. All the costs associated with the development of the system become available at the beginning of the actual implementation of the project. This greatly assists the organization in deciding whether the project is to be developed or not from a costing perspective. It helps to analyze the business function interrelationships. By referencing the analysis report on expenditure, managers of a firm can predict accurate revenues at quite an early stage.
This will give managers the data they need to weigh the total amount invested against the estimated return on investment before the product is fully produced. Allowing a look at all design alternatives that will provide the lowest cost to manufacturer without compromising the quality or functionality of the product.