Delft University of Technology
Faculty Mechanical, Maritime and Materials Engineering
Transport Technology

O.M. Kooymans Ontkoppelpunten: KOOP en OSOP
Literature survey, Report 92.3.LT.3054, Transport Engineering and Logistics.

This study is about two decoupling points, named the Order Specification Decoupling Point (Du.: OSOP) and Customer Order Decoupling Point (Du.: KOOP). The choice of the position of these points in the logistic basic form, is an important strategic decision. Simply stated the basic form is the construction of primary functions and the belonging flows of goods. The structure elements that are used to depict the basic form are: the primary processes (indicated by a rectangle), the stockpoints (indicated by a triangle) and the movements of goods between the processes and stockpoints (indicated by an open arrow).

The orderspecification process runs from order acceptation in the Commercial Department via Design and Construction to Production Planning. The OSOP indicates how far a customer's order penetrates in this specification process. It separates the customerorder dependent parts from the customerorder independent developments.
The KOOP is the point that indicates how far a customer's order enters the realisation process. It divides the production on stock from the production on order.
The next model shows four possible positions of the OSOP and five of the KOOP.

OSOP 1: No order bound actions
OSOP 2: Orderspecification goes from Commercial Department directly to Production Planning
OSOP 3: The elements are specified, the combination not yet
OSOP 4: Engineering done per order
KOOP 1: Make and send to stock
KOOP 2: Make to stock
KOOP 3: Assemble on order
KOOP 4: Make on order
KOOP 5: Buy and make on order
Many OSOP/KOOP combinations are possible and are seen in practice. In case of combination of OSOP and KOOP the position of OSOP determines the maximum possible position of KOOP. For example: you can not produce to stock if you have to specify the product for every possible customer's order. So combination of KOOP 1 and OSOP 4 is not possible.
Stream up from KOOP the rise of investments in stocks gets dominant. Down the stream from KOOP the increase of the number of missed orders gets to be dominant; this can be better influenced by good management. The position of KOOP can be influenced by the forces that work on it, the effect can be stream up or stream down.
Stream down:
  • limits imposed by the process
  • demands asked of the supply Stream up:
  • limits imposed by the product or the market
  • demands asked of the level of the stockcosts
    With the procedure of chapter 4, the optimal position of KOOP can be determined.

    Stream up of OSOP developments take place for standard modules. Downstream of OSOP the developments are initiated by customer's orders, these are developments of modules specially designed for customers.
    The position of the OSOP can be influenced by the structure of the product, the possibility to separate the customer's order dependent modules from the customer's order independent modules.
    The optimal position of OSOP in the orderspecification process is down the stream as far as possible, so customer's order dependent changes will influence this process as little as possible.

    Reports on Transport Engineering and Logistics (in Dutch)
    Modified: 2008.02.13; , TU Delft / 3mE / TT / LT.