| # Specified (SPE) For a specified product-driven process, the customer specifies a customized product based on offered product lines. Specifications can be described in functional characteristics, or directly in technical components. The price of the end item product is not fixed and will be defined based on the configuration characteristics after negotiations. The customer is willing to accept a rather long lead-time due to the expected customization. The activity is characterized by a medium to low demand volume, and each item supports a low demand frequency. Order amendments are common and must be tracked by successive versions. The end-item is sold under a contractual agreement that describes all specific aspects. Purchasing activity is often driven by the order. The components that are required are assembled through a product-driven process to install the finished product. Distribution control is directed towards converging flows. A particular contract requests a multitude of goods from multiple sources at a specific point in time driven by the product building process. Emphasis lies with procurement and cost. |