Time-phasing and decoupling points as analytical tools for purchasing

Abstract

Customization and customer-driven manufacturing are both explicitly based on end-customer relations and customer requirements. The impact of these aspects on internal operations is relatively well known and can be investigated using time phasing and decoupling points. These tools are however rarely used for analyzing purchased material. Based on the time phased product structure, items are categorized according to three criteria: driver, uniqueness, and make/buy. Purchased items can thus be identified using the last criteria and then driver and uniqueness are used as a point of departure for categorizing purchased material. The approach hence provides a platform for development of supplier relations based on the customer requirements which is the core theme of the method for customer-driven purchasing.