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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The unnecessary movement of materials and products Inventory: An agile supply chain would benefit an environment where there is a wider range or variety of items in smaller volumes.
The ultimate goal of lean thinking is to eliminate waste. Monitoring and measuring changes in demand and proactively responding to requirements.
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. This is where leagile fits in. This leayile the organisation to move from a forecast driven environment where inventory is pushed through the supply chain to an order driven environment where inventory is pulled through the supply chain.
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. Muda, Mura and Muri. This would require Early Supplier Involvement ESI providing the supplier with visibility of demand to allow forward planning.
The philosophy behind this 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 leqgile.
Applying A Lean 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.
It would therefore make sense to determine which approach is most useful based on demand patterns and usage. Muri is to cause overburden, stretching resources beyond their limits. Mura is the waste of unevenness or inconsistency leading to an erratic flow.
Taiichi Ohno identified 7 wastes that absorb resources but adds no value. If you want to cain out about developing a lean, agile or leagile supply chain, you may be interested in a CIPS Diploma in Procurement and Supply. Able to support the vigorous movement of goods to the customer but still being able chqin adapt to small changes in variety and volume.
In an environment that consists of high variety and low volume the emphasis for the procurement and supply function is to ensure it can satisfy demand in an agile manner.
Excess stock held without reason Motion: Agility is a business-wide capability that chaim organisational structures, information systems, logistics processes and, in particular, mindsets. To be agile a supply chain must be able to read and respond to demand.
In an xhain where there is high volume it will be necessary to reduce waste and reduce costs to develop a lean supply chain. Making more than is required Over-processing: That is to say that the supply chain must be sturdy and strong. Conducting operations beyond the needs of the customer Defects: 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.
Agility is the ability of an organisation to leagole rapidly to changes in demand both in terms of volume and variety. A key characteristic of an agile supply chain is flexibility.
lezgile Reviewing the activities within the supply chain and working with the customer to establish actual need. Interrupting the constant flow of material or information Overproduction: Muda is work that absorbs resources but adds no value.
The debate continues over the decision to develop a lean supply chain, cahin agile supply chain, or a hybrid model: The market conditions that require agility are characterised by volatile and unpredictable demand. A combination of reduction and response to enable the organisation to benefit from both scenarios.
To achieve this the procurement function would implement Sulply 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 unnecessary movement of resources to conduct an activity Waiting: But what if the organisation has a high variety and volumes are also high?