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L10 Specifications : Make vs. Buy (Types of Specifications (1 Performance…

- - - - 1 All the information
        2 provide objective evidence to follow performance specification
        
        Give the breath to design
      - technical specifications may constrain suppliers and increase lead-times
        and cost (Hicks, McGovern, and Earl 2000).
    - - Seperate to many doc 👆
  - - - identifying customer requirements ➡️
        feature/characteristics/process condition/ limit
        no technical detail
      - Functional specifications allow suppliers to innovate and reduce costs (Hicks, McGovern, and Earl 2000).
  - - - detailed guidance on the technical and procedural aspects of product implementation.
  - - - Better design at the start can prevent avoidable costs which can commit substantiak $ during manufacturing and product use stage
- - - - OEMs have 1st/2nd
    - - benefit Japan's car
        Product development
- - - - initiative stage
        general performance specification
    - - non physical+ physical
        
        for supplier who are awarded
  - - - hard to outsource
    - - hard to modular design
    - - Performance: system suppliers
      - Product: items that relate to core technology
        that are designed in-house
- - - - opportunity
        (Hicks, McGovern, and Earl 2000).
        
        better suppliers/ flexibility/ reduce cycle time/ quailty
      - problems
        Lysons and Farrington, 2015
        
        cost/overdependence/lack of flexibility/ unrealistic expectation
  - - - be review when circumstance change
        (Baily et al. 2015, p.188)
    - - volume/ peak demand/ risk/ waste.cost/level of inventory...
    - - what to make/ investment/
        develop new products/
  - - - Cost saving
        operational advantage
        
        no relationship to overall strategy
    - - a system of continuing evaluation
        multifuncional department
        
        based on 中短期 ,可能有缺點被忽視
    - - 1 strategic direction of firms公司策略和科技
        2 technological strength/ weakness
        
        difficult to intergrate