LEAGILE SUPPLY CHAIN PDF

LEAGILE SUPPLY CHAIN PDF

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 debate continues over leagole decision to develop a lean supply chain, an agile supply chain, or a hybrid model: The ultimate goal of lean thinking is to eliminate waste.

Muda, Mura and Muri. Muda is work that absorbs resources but adds no value.

Mura is the waste of unevenness or inconsistency leading to an erratic flow. Muri is to cause overburden, stretching resources beyond their limits. Taiichi Ohno identified 7 wastes that absorb resources but adds no value.

Sypply is a business-wide capability that embraces organisational structures, information systems, logistics processes and, in particular, mindsets.

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A key characteristic of an agile supply chain is flexibility. Agility is the ability of an organisation to respond rapidly to changes in demand both in terms of volume and variety. The market conditions that require agility are characterised by volatile and unpredictable demand.

To be agile a supply chain must be able to read and respond to demand. This requires 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.

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It would therefore make sense to determine which approach is most useful based on demand patterns and usage. A lean supply chain would benefit an environment where there are high volumes and predictable chai. An agile supply chain would benefit an environment where there is leagilr wider range or variety of items in smaller volumes.

But what if the organisation has a high variety and volumes are also high? This is where leagile fits in.

Chaim combination of reduction and suppyl to enable the organisation to benefit from both scenarios. 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. 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.

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 lwagile robust supply chain.

That is to say that the supply chain must be sturdy and strong. Able to support the vigorous movement of goods to the customer but still being able to adapt to small changes in variety and volume.

What to Develop: A Lean Supply Chain, Agile or Leagile?

legile 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. Monitoring and measuring changes in demand and proactively responding to requirements.

This would require Early Supplier Involvement ESI providing the supplier with visibility of demand to allow forward planning. In an environment where there supplh high volume it will be necessary to reduce waste and reduce costs to develop a lean supply chain. Reviewing the activities within the supply chain and working with the customer to establish actual need.

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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.

With high variety ,eagile high volume there will be a need for a collaborative approach to managing the supply chain and developing an optimal solution.

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 demand.

If you want to find out about developing a lean, agile or leagile supply chain, you may be interested in a CIPS Diploma in Procurement and Supply.

What to Develop: A Lean Supply Chain, Agile or Leagile?

The unnecessary movement of materials and products Inventory: Excess stock held without reason Motion: The unnecessary movement of resources to conduct an activity Waiting: Interrupting the constant flow of material or information Overproduction: Making more than is required Over-processing: Conducting operations beyond the needs of the customer Defects: Poor quality leading to rejects and rework Agile Supply chain Agility is a business-wide capability that embraces organisational structures, information systems, logistics processes and, in particular, mindsets.

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.

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