Outbound logistics focus on processes related to storage and movement of the final product. It also entails information flows from the end of production line to the consumer.
Based on the tasks performed by the logisticians, logistics is broken into a number of fields including procurement logistics, disposal logistics, domestic logistics, distribution logistics among others (Waters, 2003).
Effects of maintenance scheduling on logistics and cost management
Maintenance Scheduling, also referred to as planned preventive maintenance (PPM) or simply planned maintenance, is any maintenance activity extended towards an object or equipment. It involves scheduled service visits which are performed by competent agents with a view …show more content…
The logisticians should focus on the operation phase of the equipment as this is the stage where profits and loses can occur. The operation phase of the equipment continues until the equipment is eventually decommissioned and disposed of. Since businesses related to logistics are started with the expectation of making profits from the operation within a specified time, it is important to consider scheduling maintenance practices on the equipment in order to generate profits. Every logistician would bear witness that the more the profitable the operation, the faster the business is returned. Therefore, if profits are to be maximized, there should be no more costs than the expected ones during the investment decision was made. Such huge losses usually occur due to poor maintenance approaches and procedures. For example, rather than waiting until an engine of a car or truck fails and calls for a complete overhaul, it is cheap to perform prior planning and schedule for …show more content…
This can be achieved by making sure that least number of people and resources involved are minimized and making sure that the resources are used wisely for the benefit of the firm. Thus, logisticians acknowledge that the primary aim of scheduled maintenance is to gain the highest work utilization from the maintenance mechanic. However, logisticians argue that, not only does the nature of maintenance determine the operation costs, but also the decisions made during feasibility, design and construction in a business. Therefore, if low operations cost are to be realized, rational decisions geared towards lowering operational costs when selecting operating processes and buying the associated plant or equipment (Anders, 1990).
In order for logistic companies to achieve their goals, they should observe scheduling maintenance management process which include;
1. Identification of work done performed by the equipment
2. Planning the work in terms of materials and human resources
3. Scheduling work i.e for example, when maintenance time intervals
4. Executing work i.e assigning competent personnel for maintenance