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"Build-to-Order & Mass Customization; the Ultimate Supply Chain Management and Lean Manufacturing Strategy for Low-Cost On-Demand Production without Forecasts or Inventory," by Dr. David M. Anderson, (2004, CIM Press, 805-924-0200), Hardbound, 520 pages, ISBN 1-878072-30-7; $49.95. Leading-edge methodologies correspond to Dr. Anderson’s consulting and seminars.

See the complete Table of Contents below.

To order the book, go to this book's page at www.amazon.com

Description:  This new book challenges many conventional practices and shows how to implement a revolutionary business model with evolutionary self-supporting steps. Instead of managing complex supply chains, the book has five chapters to show how to simplify supply chains to the point where parts can be spontaneously resupplied without forecasts or purchase orders. Instead of wrestling with all the problems of inventory, "on-demand lean production" can build products spontaneously without any finished-goods inventory. This and several other cost reduction strategies allow significant reductions in total cost. The same production facilities can build-to-order a wide variety of standard products and mass-customize products for niche markets or individual customers.
    The book is written for both managers and implementers with a 64 page executive overview of the whole book followed by 400 pages of detailed methodologies and implementation strategies. There are 300 sidebars throughout the book that emphasize key points.

Many product scenarios has been worked out for several industries and will be published in the subsequent "Build-to-Order & Mass Customization Casebook." These specific methodologies are available now for consulting and seminars clients.

See Table of Contents below for "Build-to-Order & Mass Customization."

Free BTO book, signed by the author, for US callers.  Just call Dr. Anderson at 805-924-0100 (after 8:30 am Pacific) for a free assessment of how much these methodologies can help your company

bBTO BOOK Table of Contents, Build-to-Order & Mass Customization

PART I: OVERVIEW

INTRODUCTION 1

        Current Attempts at Build-to-Order 2
            Searching for Inventory 2
            Capital Equipment Built "To Order" 2
            BTO from Forecasted Parts Inventory 4 
        Precedents 4
           Dell Computer 5
        Strategy For BTO&MC 7

Shortcomings of Mass Production, Summary 13
Supply Chain Simplification, Summary 13
Product Line Rationalization, Summary 14
Part Standardization, Summary 16
Raw Material Variety Reduction, Summary 19
Outsourcing vs. Integration, Summary 21
Spontaneous Supply Chain, Summary 28
On-Demand Lean Production, Summary 37
Mass Customization, Summary 44
Concurrent Design of Products and Processes, Summary 49
Minimizing Total Cost, Summary 54
Measuring Total Cost, Summary 58
Implementing BTO&MC, Summary 61
The Business Case for BTO&MC, Summary 69

        1923 – The Heyday of Mass Production 75
        If You Build It, They Might Come 75
        Forecasting – A High Stakes Gamble 77
        Defects by The Batch 79
        Its Only Overhead 79
        Take All Orders 80
        The Effect of Variety on Mass Production 81
        The Cost of Variety 82 
        Trying to Make Mass Production Flexible 85
        Time For New Paradigms 86  

Pareto’s Law for Product Lines 90
Focus 90
How Rationalization Can Triple Profits! 91
Cost Savings From Rationalization 94
    Short Term Cash Savings: 94
    Investments: 95
Shifting Focus to The Most Profitable Products 96
What Is The Goal of a Business? 98
Volume Growth Strategies 99
    Eliminating Duplicate Products 100
The Rationalization Procedure 100
Total Cost Implications 102
    The Margin Trap 103
    Seldom Built Products 103
    Obsolescence Costs 104
Overcoming Inhibitions, Fears, And Resistance 104
Implementation & Corporate Strategy 108
    Mass Production Scenario 108
    BTO&MC Scenario 108
    Product Family Criteria 108
The Value of Rationalization 109

        Part Proliferation 114
           The Cost of Part Proliferation 114
           Why Part Proliferation Happens 115
           The Results of Parts Proliferation 118
        Part Standardization Strategy 119
            New Products 119
            Existing Products 119
        Early Standardization Steps 119
            Eliminate Duplicate Parts 119
            Eliminate Approved but Unused Parts 121
            Part Listing 121
        Standardization Procedure 122
            The Zero-Based Approach 122
            Standard Part List Generation 124
            Part Standardization Results 130
        Tool Standardization 131
        Feature Standardization 132
        Processes Standardization 134
        Standardization of Expensive Parts 135
        Encouraging Standardization 138
        Why Standardization Is So Important 140
            Cost Reduction 141
            Quality 142
            Flexibility 143
            Responsiveness 144

5. MATERIAL VARIETY REDUCTION 149

Raw Material Standardization 150
    Bar Stock and Tubing 150
    Sheetmetal 150
    Molding and Casting 151
    Protective Coatings 151
    Programmable Chips 152
Standardization of Linear Materials 152
    Cut as Needed 152
    Kanban Reordering 152
    Printing While Dispensing 153
On-Demand Cutting-to-Shape 153
     Sheetmetal 154
     Linear Cut-Off 157
     CNC Material Standardization 157
     Order Material After Receipt of Product Order 158
Consolidation of Inflexible Parts 159
     Consolidation Examples 161
     Custom Silicon Consolidation 162

  6. OUTSOURCING vs. INTEGRATION 165

Core Competencies 165
Outsourcing 166
    Inappropriate Outsourcing 166
    Definitions: Outsourcing, Integration 167
    Outsourcing and Cost Savings 169
    Outsourcing and Profitability 172
    Outsourcing and Speed 173
    Outsourcing and Flexibility 175
    Outsourcing and Quality 177
    Outsourcing and Product Development 177
    Outsourcing and Manufacturability 178
    Outsourcing and Leading Edge Processing 178
When to Outsource 180
Speed & Parts Plant/Suppliers Location 182
Internal Integration 182
    Tightening the Supply Chain with Selective Vertical Integration 182
    When to Integrate Internally 184
Overseas Manufacturing "To Save Cost" 187
    Total Cost Considerations for Overseas Manufacturing 188
    Competitive Considerations: Overseas Manufacturing 192
    When Overseas Manufacturing Does Make Sense 195
World Trade in The Era of BTO&MC 195

The Role of Part Standardization 203
Raw Material Resupply 203
    Steady Flow of Standard Raw Materials 204
    Material Cut-to-Length/Shape 204
    Linear Cut-Off 205
    Min/Max Stacks 205
    Kanban 205
    Strategic Stockpiles 206
    Order Material After Receipt of Product Order 206
Parts Resupply 206
Part Resupply Strategy 207
    Steady Flow of Parts 207
    Breadtruck Resupply 208
    Criteria for Breadtruck Deliveries: 208
    Kanban 209
    Spontaneous Build-to-Order of Parts 211
    Parts Made On-Demand by Suppliers 212    
    Parts Made On-Demand In-House 212
    Flexible Processing 213
    Strategic Stockpiles 213
    Order Parts After Receipt of Product Order 213
Supplier Lead-Time Reduction 214
Dock-to-Line Part Deliveries 216
    Dock-to-Receiving-to-IQC-to-Warehouse-to-Kitting 216
    Prerequisites for Dock-to-Line 216
    Dock-to-Line 217
    The Problems with Incoming Inspections 217
    Eliminating Incoming Inspections 218
    Certification 218
Low-Bidding For Parts 219
    The Cost Reduction Illusion 219
    Cheap Parts – Save Now; Pay Later 221
    The Value of Relationships for Cost Reduction 222
    Reducing Total Cost Instead of Focusing on Cheap Parts 225
    The Value of High-Quality Parts 225
    The Value of On-Demand Part Delivery 227
    Product Development 228
No Such Thing as Commodities in BTO&MC 229 

        Problems With Setup 234
        Setup & Batch Elimination 235
            Setup & Batch Elimination Steps: 236
            Part Setup 236
            Part/Material Positioning Setup 237
            Tool & Tooling Setup 237
            CNC to Eliminate Machining Setup 238
            Program/Instruction Setup 239
            Process Variable Setup 239
            Manual Processing Setup 240
            Eliminating Setup with Dedicated Lines 240
            Parts with Unavoidable Setup 241
        Flow Manufacturing/One-Piece Flow 242
            Assuring Quality with One-Piece Flow 243
            Defining Product Families 243
            Cellular Manufacture 244
            U-Shaped Lines 245
            Machine Maintenance 246
            Line Balancing 246
        Leveling Production 247
            Artificially Induced Irregularities. 247
            Seasonal Products 250
        Capacity 251
            Short-Term Capacity Challenges 251
            Long-Term Capacity Challenges 252
        Results of Setup Elimination/Batch-Size-of-One Flow 253
        How BTO & Mass Customization Work 254
            BTO&MC for Fabricated Parts or Products, illustration 255    
            BTO&MC for Electronic Systems, illustration 258
            BTO&MC for Manual Assembly, illustration 261

        Awkward, and Expensive, Customization Attempts 268
        The Buzz about Mass Customization 269
        What Mass Customization Really Is 271
        How to Mass-Customize 272
            Modular Customization 274
            Adjustable Customization 277
            Dimensional Customization 278
        Postponement 280
        What to Mass-Customize 281
        Extra Value-Added Opportunities 282
        Order Entry 283
        Marketing BTO & Mass Customization 284
        Combined Mass Customization And BTO 287
        The 98% Solution 288

PART IV: IMPLEMENTATION

Challenges With Existing Products 291
Developing Products For BTO&MC 292
Product Portfolio Planning 292
Designing Products For BTO&MC 293
    Product Definition for BTO&MC 293
    Concurrently Engineer Products and Processes 298
Designing For On-Demand Production 300
    Designing for No Setup 300
    Designing for CNC 301
Designing For Spontaneous Supply 303
    Designing Around Standard Parts 303
    Designing to Reduce Material Variety 303
    Designing Around Readily Available Parts/Materials 304
Design For Manufacturability 305
    Avoid Left/Right Hand Parts 305
    Combine Parts and Functions into a Single Part 306
    Specify Prefinished Material 307
    Arbitrary Decisions 307
Modular Design 308
    Modular Design Principles 310
Off-the-Shelf Parts 311
    Finding Off-the-Shelf Parts 313

        How Not to Achieve Low Cost 318
         Cost Measurements 320
            Usual Definition of Cost 320
            Part Cost Percentage Thru Outsourced Supply Chain 323
        Minimizing Cost Through Design 326
        Minimizing Product Development Expenses 328
        Minimizing Engineering Change Order Cost 332
        Minimizing the Cost of Quality 333
        Maximizing Factory Efficiency 335
        Rational Selection of Lowest Cost Supplier 335
        Lowering Overhead Costs with Flexibility 337
        Eliminating Inventory Costs 337
        Minimizing Customization/Configuration Costs 339
        Minimizing the Cost of Variety 340
        Minimizing Materials Management Costs 343
        Minimizing Marketing Costs 344
        Minimizing Sales/Distribution Costs 344
        Minimizing Supply Chain Costs 345
        Minimizing Life Cycle Costs 345
        Saving Cost with Build-to-Order 345
        Economies-of-Scale 348

12. MEASURING TOTAL COST 353

Total Cost Measurement 353
Quantifying Overhead Costs 355
    Acknowledge Deficiencies of Traditional Accounting 355
    Estimate the Degree of Cost Distortions 359
    Understand the Value of Total Cost Measurements 359
    Implementing Total Cost Measurements 361
Total Cost Thinking 362
Implementing Total Cost Accounting 364
Tracking Product Development Expenses 370
Implementing "abc" – The Low Hanging Fruit Approach 371
Typical Results of ABC Implementations 373

        The Flexibility Spectrum 379
        BTO&MC Implementation 382
        Identify Goals and Drivers 382
        Obtain Customer Inputs 382
        Identify Where to Start 382
        Line up Resources 384
        Minimize Fears and Inhibitions 385
        Establish Criteria for "Within the BTO&MC System" 386
        Create Implementation Road Map 387
            Implementation Activities with Early Deliverables 388
            Implementation Cautions 390
        Focus And Staffing For BTO&MC 390
            Segregating BTO&MC and Oddball/Craft Products 392
        Product Families 393
            Grouping Products into Families 395
        BTO&MC Production Strategy 396
            High-Volume/No-Variation Products 396
            Medium-Volume/No-Variety Products 397
            Low-Volume/High-Variety and Custom Products 398
        Implementation Scenarios 398
            Build Standard Products To-Order 399
            Build Custom Products On-Demand 399
            Regional/Industry-Specific Plants 400
            Customer-Specific Lines 400
            Expand Downstream 401
            Expand Upstream 402
        Capital Costs For Implementation 402
            High-Volume Dedicated Production Lines 402
            Medium-Volume Dedicated Production Lines 403
            Low-Volume and Customized Products 403
            Capital Cost Summary 404
        Human Resources for Implementation 405
            View BTO&MC as an Investment 405
            Bring in Outside Expertise 406
            Start with Pilot(s) 406
            Combine Programs 406
            Minimize Competing Programs 407
            Focus on Compatible Products & Processes 407
            Redirect Cost Reduction Efforts 407
            Delegate Firefighting 408
            Offloading Responsibilities 408
            Identify Money-Losing Products 408
            Rationalization 408
        Downturn Strategies 409
            Don’t Lay off People 409
            Don’t Halt Training and Improvement Programs 412
            Don’t Compromise Product Development 413
            Don’t Keep Plants Busy Building Inventory 413
            Don’t Cut Prices 414
            Do Expand into Related Products/Services 415
            Do Pull in Outsourced Production, Selectively 415
            Do Improve Productivity and Invest in the Business 416
            Do Implement Improvement Programs 416

PART V: THE BOTTOM LINE

Cost Advantages of BTO&MC 420
Responsive Advantages of BTO&MC 422
Distribution 423
Customer Satisfaction From BTO&MC 424
Competitive Advantages of BTO&MC 425
Bottom Line Advantages of BTO&MC 426
Growth, Sales, and Profits from BTO&MC 426
    Trying to Grow Without a Viable Strategy 426
Mergers And Acquisitions 428
    M & A Distractions 430
    Appropriate Use of M & A 432
Growth from the Core 432
    Expansion of Standard Product Sales 435
    Niche Market Growth 435
    New Markets for Customized Products 435
    Avoiding Commodity Status 437
Lean Retailing 438
Conclusions 439

=====================================================

1.1   Manufacturing Before DFM
1.2   Motivation for DFM
1.3   Resistance to DFM
1.4   Myths & Realities of Product Development
1.5   Designing Products for Manufacturability
1.6   Product Development Teams
1.7   The Importance of Concept Architecture Optimization
1.8   Do it Right the First Time
1.9   Strategy to Do it Right the First Time
1.10 Tools to Do-it-right-the-first-time
1.11 Benefits of DFM

2.1   Design Considerations
2.2   Implementing the Design Considerations
2.3   Minimizing Risk
2.4   Focus
2.5   DFM Vs. Design Freedom
2.6   Arbitrary Decisions
2.7   DFM Vs. Design Time
2.8   Engineering Change Orders
2.9   Creative Product Development
2.10 Brainstorming
2.11 Implement Designs
2.12 Enhancing DFM Capabilities
2.13 Understanding Manufacturing
2.14 The Individual's Role in DFM

3.1  Concurrent Engineering Design Teams
3.2  The Team Leader
3.3  Organizational Structures
3.4  Empowerment
3.5  Parallel and Future Projects
3.6  Early Team Participation and Issue Resolution
3.7  Product Definition: QFD
3.8  Importance of Good Product Architecture
3.9  Optimizing Product Architecture

4.1  Lean Production
4.2  Build-to-Order
4.3  Mass Customization
4.4  Designing Flexible Products
4.5  Designing for Flexible Operations
4.6  Reusable Engineering
4.7  Modular Design
4.8  The Value of Flexibility

5.1   Part Proliferation
5.2   The Cost of Part Proliferation
5.3   Why Part Proliferation Happens
5.4   The Results of Parts Proliferation
5.5   Eliminating Duplicate Parts
5.6   Part Listing
5.7   The Zero-based Approach
5.8   Standard Part List Generation
5.9   Part Standardization Results
5.10 Raw Materials Standardization
5.11 Tool Standardization
5.12 Feature Standardization
5.13 Processes Standardization
5.14 Standardization of Expensive Parts
5.15 Encouraging Standardization
5.16 Why Standardization Is So Important
5.17 Purchased Parts ("Anderson’s Law")
5.18 Cost Savings of Purchased Parts
5.19 Time Savings of Purchased Parts
5.20 Spare Parts Availability
5.21 Special Parts from Catalogs
5.22 Make or Buy Decisions
5.23 Finding Off-the-Shelf Parts
5.24 Information in Catalogs
5.25 Suppliers Designing Parts

6.1   How Not to Achieve Low Cost
6.2   Minimizing Cost Through Design
6.3   Cost Measurements
6.4   Minimizing Overhead Costs
6.5   Minimizing Product Development Expenses
6.6   Minimizing Engineering Change Order Cost
6.7   Minimizing Cost of Quality
6.8   Maximizing Factory Efficiency
6.9   Rational Selection of the Lowest Cost Supplier
6.10 Lowering Overhead Costs with Flexibility
6.11 Minimizing Customization and Configuration Costs
6.12 Minimizing the Cost of Variety
6.13 Minimizing Materials Management Costs
6.14 Minimizing Marketing Costs
6.15 Minimizing Sales/Distribution Costs
6.16 Minimizing Supply Chain Costs
6.17 Minimizing Life Cycle Costs
6.18 Saving Cost with Build-to-Order

7.1   Total Cost Measurement
7.2   Quantifying Overhead Costs
        A. Acknowledge Deficiencies of Traditional Accounting
        B. Estimate the Degree of Cost Distortions
        C. Understand the Value of Total Cost Measurements
        D. Implementing Total Cost Measurements
7.3   Total Cost Thinking
7.4   Cost Drivers
7.5   Implementing Total Cost Accounting
7.6   Resistance to Activity Based Costing
7.7   Implementation Effort for ABC
7.8   Tracking Product Development Expenses
7.9   Implementing "ABC" – the Low Hanging Fruit Approach
7.10 Typical Results of ABC Implementations

8.1  Guideline Numbering System
8.2  Assembly Guidelines
8.3  Fastening Guidelines
8.4  Assembly Motion Guidelines
8.5  Test Guidelines
8.6  Testing in Quality Vs. Building in Quality

9.1  Standardization
9.2  Criteria for Combining Parts
9.3  Part Design Guidelines
9.4  Tolerancing
9.5  Handling by Automation Guidelines

10.1  Effect of Design on Quality
10.2  Quality Design Guidelines to Design in Quality
10.3  Cumulative Effects on Product Quality
10.4  Quality Strategies For Products
10.5  Reliability Design Guidelines to Design in Reliability
10.6  Measurement of Reliability
10.7  Reliability Phases

11.1  Repair Design Guidelines
11.2  Maintenance
11.3  Maintenance Measurements
11.4  Design For Maintenance Guidelines

12.1  Poka-Yoke: Mistake-Proofing
12.2  Design Guidelines to Minimize Errors
12.3  Solutions to Error Prevention after Design

Figure 1-1:   Product Cost vs. Time
Figure 2-1:   Increasing revenue with early introductions & upgrades
Figure 2-2    Cost of Engineering Changes
Figure 3-1:   QFD Executive Overview
Figure 3-2:   The QFD "House of Quality" Chart
Figure 3-3:   Linear vs. Concurrent Time-to-Market Models
Figure 4-1:   Kanban automatic resupply
Figure 5-1    Examples of Part Type Listing Orders
Figure 5-2:   Inherent Standardization Pareto Chart
Figure 5-3:   Standardization of Expensive Parts
Figure 5-4:   "Never Design a Part You Can Buy Out of a Catalog"
Figure 6-1:   Cost Breakdowns With and Without Overhead
Figure 6-2    Cost of Engineering Changes (repeated)
Figure 7-1:   Changes in Cost after Implementing ABC
Figure 8-1:   Autofeed Screwdriver
Figure 9-1:   Cost as a Function of Process
Figure 10-1: Parts Within Spec, but Many at Tolerance Extreme
Figure 10-2: Continuous Improvement Curve Closer to Target
Figure 10-3: Quality as a Function of Part Count and Part Quality
Figure 10-4: Reliability Phases

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