Develop a Framework of strategic positioning for the order penetration point/decoupling point

Abstract

Recent global challenges to appropriate implementation of manufacturing value chain, their specific product is linked to specific customer order. The order penetration point defined to value addition of manufacturing value chain. According to strategic perspective, different factors such as Market, product, and production factors are identified that affect the OPP positioning and the shifting of the OPP upstream or downstream in the manufacturing value chain. The major factors such as demand volume and volatility and their relationship between delivery lead time and production lead time and logistic service integration have identified. Comparison of manufacturing strategies must be generate between pre-OPP operations (i.e. upstream; forecast-driven) and post-OPP operations (i.e. downstream, customer order-driven), which has fundamental differences examine. And finally develop a framework to the order penetrations point or decoupling point which has affected in different factors and strategic decision categories to such as production planning and control.