KAIST

SUPPLY CHAIN MANAGEMNT

Sir BOWON KIM

‘’ASSIGNMENT NO 3”

SUBMITTED BY

Ali Abbas Sipra

27-July-2014

KAIST

Answer1I would like to start my assignment first by describing the Flexible/Cross functional approach. It’s a modern approach of developing the new or Innovative Product. Moving towards the core topic the advantages and disadvantages of CFT.

ADVANTAGES:Cross functional team approach have some advantages over other approaches in the same area. Like Feedback, Diversity and improve the coordination and integration and also reduce the time factor of developing the new product.

FeedbackWhen organization works on developing the new product, they required a span of time period. During this period many changes can happen like if current condition is favoring the new product development may be after some time condition will change. So what if it happens? The answer is if you are continuously receiving the feedback and you able to adopt the changes you can easily fix the new condition, Like in CFT approach does. In CFT approach organization believe on constant feedback approach. So if any changes happen at any time through constant feedback process adaption will occur and that thing leads the quality improvement.

DiversityBecause the entire departments sharing the information and people from different departments working together so number of ideas generating occur under a one roof. We all know that diversity brings the ideas so the information and ideas leads the new product development in better manner. So different departments work together in a product at the same time enhance the CFT approach credit rating.

Lead TimeBecause of the improved way of coordination and integration among the different Departments the product lead time enhances. No department required to wait until the first department finishes his work. At any stage any department will coordinate and integrate in the project.

DISADVATGES:

CFT is the modern approach no doubt at all but it has some disadvantages as well. Like the conflicts will arise, communication load and resource waste.Conflicts:Negative feedback create the conflict among the team member like if a member come up with the idea and the other team member not respond accordingly that may lead the conflict which can reduce the actual fruit of the project.Communication Load:

KAIST

Because every department involve in the initial stages of the project so there is a lot of information available there. So handling of this information and dissemination of the information accordingly is difficult task. Delivering the right information in an actual manner is a big question mark.

Resource Waste:Because number of departments involve at the same time which leads the ambiguity and confusion so allocation of resource and there utilization is also a big problem in that approach.

Answer2When the Market uncertainty is very high and the benefit is high then the cost then it’s better to used CFT approach.Most of the time it’s benefited for the industries in which rapid changes occurs, like mobile phone industry where everyone is waiting for upcoming design, and companies always facing the high uncertainty. So in that kind of the organization CFT approaches is better because it reduces the lead time and problem solving capability increases. Using CFT approach means the Product Quality and it’s directly proportional to the value which is the ultimate goal of the organization.