| # Designed solution The customer fully determines the requirements of the required end item, the basis for a design that is either determined internally, or by the customer themselves. The price of the end-item is not fixed and will be defined during negotiations as time based or fixed, according to approved specifications. The customer is willing to accept a long to very long lead-time, due to the specificity and complexity of the end item in terms of number of components required by numerous activities to be synchronized. The activity supports a low demand volume, with each demand representing few processes that are customized each time. During the long project life cycle, continual project requirements and changes are balanced with availability of people, equipment, and materials, and then incorporated into the cost estimates and budgets. Amendments on order are common through continuous adjustments and change in scope. Sold under a contractual agreement, the components that are required are assembled through an activity-driven process in order to build the product. Even if some components are stock maintained, a global procurement process will try to consolidate purchase for multiple projects. The required components are sourced from a large number of suppliers, and are delivered to a specific customer or a group of customers. Distribution control is directed towards converging flows. A particular project/customer requests a multitude of goods from multiple sources at specific points in time through synchronized activities. Emphasis lies with procurement, planning, and budgeting. |