Through comparing the simulation results of these two kinds of supply chain, we show the advantages of leagile supply chain. The results hold that shorten the. ASC. –. Agile Supply Chain. DFID. -. Department for International Development. EFA. -. Exploratory Factor Analysis. FSCA. -. Exploratory Factor Analysis. ICS. –. LEAN, AGILE & LEAGILE SUPPLY CHAIN: A COMPARATIVE STUDY. Rajeev Kant*. Dept. of Production Engineering. Birla Institute Technology. Mesra, Ranchi .
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A key characteristic of an agile supply chain is flexibility.
What to Develop: A Lean Supply Chain, Agile or Leagile?
To be agile a supply chain must be able to read and respond to demand. Muda is work that absorbs resources but adds no value. An agile supply chain would benefit an environment where there is a wider range or variety of items in smaller volumes.
Conducting operations beyond the needs of the customer Defects: From a procurement perspective the application of lean, agile or leagile creates a number of strategic and tactical decisions to ensure that the approach is viable. The unnecessary movement of resources to conduct an activity Waiting: With high variety and high volume there will be a need for a collaborative approach to managing the supply chain and developing an optimal solution.
If you want to find out about developing a lean, agile or lwagile supply chain, you may be interested in a CIPS Diploma in Procurement and Supply.
Taiichi Ohno identified 7 wastes that absorb resources but adds no value. In an environment that consists of high variety and low volume the legaile for the procurement and supply function is to ensure it can satisfy demand in an agile manner. The market conditions that require agility are characterised sypply volatile and unpredictable demand. In an environment where there is high volume it will be necessary to reduce waste and reduce costs to develop a lean supply chain.
Excess stock held without reason Motion: Mura is the waste of unevenness or inconsistency leading to an erratic flow. Agility is a business-wide capability that embraces organisational structures, information systems, logistics processes and, in particular, mindsets. To achieve this the procurement function would implement Early Buyer Involvement EBI to ensure their expertise is used on a consultancy basis to advise the organisation on the best way to reduce waste.
The philosophy behind leavile would be to have inventory Just In Progress JIP using postponement opportunities to cut down on waste and still be able to respond to changes in demand. Monitoring and measuring changes in demand and proactively responding to requirements. A lean supply chain would benefit an environment where there are high volumes and predictable demand.
In an environment of low variety and low volume the procurement and supply function must ensure that the flow of product and information is provided by a robust supply chain.
It would therefore make sense to determine which approach is most useful based on demand patterns and usage. Applying A Chwin Supply Chain, Agile or Leagile From a procurement perspective the application of lean, agile or leagile creates a number of strategic and tactical decisions to ensure that the approach is viable.
Poor quality leading to lezgile and rework Agile Supply chain Agility is a business-wide capability that embraces organisational structures, information systems, logistics processes and, in particular, mindsets.
This would require Early Supplier Involvement ESI providing the supplier with visibility of demand to allow forward planning. These range from the overall strategic objective of the procurement and supply function, through types of relationship actions, to the supporting philosophy behind the approach. This is where leagile fits in.
The debate continues over the decision to develop a lean supply chain, an agile supply chain, or chhain hybrid model: Muri is to cause overburden, stretching resources beyond their limits.
That is to say that the supply chain must be sturdy and strong. Making more than is required Over-processing: The unnecessary movement of materials and products Inventory: Muda, Mura and Muri.
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The ultimate goal of lean thinking is to eliminate waste. This requires the organisation to move from a forecast driven environment where spuply is pushed through the supply chain to an order driven environment where inventory is pulled through the supply chain.
Agility is the ability of an organisation to respond rapidly to changes in demand both in terms of volume and variety. But what if the organisation has a high variety and volumes are also high?
Interrupting the constant flow of material or information Overproduction: Able to support the vigorous movement of goods to the customer but still being able to adapt to small changes in variety and volume.