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

Connection between Manufacturing and Technology

Manufacturing and Technical Implications

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.

Planning for changes to Manufacturing Capability

1) In house growth and outsourcing: The architect's change is to find the extra manufacturing capacity, while monitoring and planning for quality.
1) In house growth and outsourcing: The architect's change is to find the extra manufacturing capacity, while monitoring and planning for quality. It is not generally the architect's role to resolve how this extra manufacturing capacity is to be found but it is important that he/she identifies the need for it and ensures that it is recognized and resolved.

2) In-house growth and outsourcing: While in-house growth is one option, taking the manufacturing requirements outside is another.
2) In-house growth and outsourcing: While in-house growth is one option, taking the manufacturing requirements outside is another. As long as quality can be maintained, outsouring remains an option.

3) Ease of change: In addition to build capacity, it may be necessary for the manufacturing plant to be better able to respond to fluctuating demand from eBusiness customers.
3) Ease of change: In addition to build capacity, it may be necessary for the manufacturing plant to be better able to respond to fluctuating demand from eBusiness customers.

4) Ease of change: The marketing department is likely to wish to explicit this ease of change and experiment with different approaches. In so doing their sources could create the need for a faster reaction by the manufacturing facility.
4) Ease of change: The marketing department is likely to wish to explicit this ease of change and experiment with different approaches. In so doing their sources could create the need for a faster reaction by the manufacturing facility.

5) Changing the manufacturing philosophy: This could create an opportunity for the company to change its manufacturing philosophy.
5) Changing the manufacturing philosophy: This could create an opportunity for the company to change its manufacturing philosophy.

6) International standards: Failure to identify these issues before trading commences could result in some very expensive returns handling and customer satisfaction issues and customer satisfaction issues
6) International standards: Failure to identify these issues before trading commences cojuld result in some very expensive returns handling and customer satisfaction issues.

7) Technical: If the manufacturing process is becoming increasingly computer driven and the buying process is equally becoming more computerized, it makes sense the two could be linked.
7) Technical: If the manufacturing process is becoming increasingly computer driven and the buying process is equally becoming more computerized, it makes sense the two could be linked.


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 e-business into existing business services.
existing Business Services - Exercise