Lean Supply Chain Management

Powerful Essays
Int. J. Production Economics 85 (2003) 183–198

The strategic integration of agile and lean supply
R. Strattona,*, R.D.H. Warburtonb a School of Engineering, Nottingham Trent University, Burton St., Nottingham NG1 4BU, UK b Griffin Manufacturing, Fall River, MA, USA

Abstract Lean supply is closely associated with enabling flow and the elimination of wasteful variation within the supply chain. However, lean operations depend on level scheduling and the growing need to accommodate variety and demand uncertainty has resulted in the emergence of the concept of agility. This paper explores the role of inventory and capacity in accommodating such variation and identifies how TRIZ separation principles and TOC tools may be combined in the integrated development of responsive and efficient supply chains. A detailed apparel industry case study is used to illustrate the application of these concepts and tools. r 2003 Elsevier Science B.V. All rights reserved.
Keywords: Agile; Trade-offs; Lean; Quick response

1. Introduction Outsourcing manufacture to low cost overseas suppliers is an attractive lure in our global economy, but often undertaken without adequate regard for the market needs and the corresponding demands on the associated delivery systems. Products compete in different ways in different markets and delivery systems need to be designed with this in mind. Offshore supply offers attractive cost benefits, but the trade-off is often high levels of inventory to support a slower response capability. When these higher levels of inventory are combined with volatile demand the trade-off is more significant, with resulting obsolescence and shortages. However, what is commonly assumed is
*Corresponding author. Tel.: +44-115-8482336; fax: +44-115-9486166. E-mail address: roy.stratton@ntu.ac.uk (R. Stratton).

that one solution fits all and the consequence of the mismatch is not appreciated until it is too late. The Griffin Manufacturing Company (Warburton and



References: Christopher, M., Towill, D.R., 2000. Supply chain migration from lean and functional to agile and customised. Supply Chain Management 5 (4), 206–213. Feitzinger, E., Lee, H.L., 1997. Mass customization at HewlettPackard: The power of postponement. Harvard Business Review (Jan.–Feb.), 116–121. Fisher, M.L., 1997. What is the right supply chain for your product? Harvard Business Review (March–April), 105–116. 13. Conclusion The lean supply paradigm has taught us the importance of reducing variation and enabling flow, so reducing the need for protective inventory and capacity. However, with the growth in 198 R. Stratton, R.D.H. Warburton / Int. J. Production Economics 85 (2003) 183–198 Scheinkopf, L.J., 1999. Thinking for a Change-putting the TOC Thinking Processes to Use. CRC, Boca Raton, FL. Skinner, W., 1969. Manufacturing-missing link in corporate strategy. Harvard Business Review (May–June), 136–145. Stratton, R., Yusuf, Y., 2000. Agile manufacturing and constraints management: A strategic perspective. Proceedings of SPIE—The International Society of Optical Engineering 4192, 86–94. Van Hoek, R.I., 1998. Reconfiguring the supply chain to implement postponed manufacturing. International Journal of Logistics Management 9 (1), 95–110. Warburton, R.D.H., Stratton, R., 2002. Questioning the relentless shift to offshore manufacturing. Supply Chain Management: An International Journal 7 (2), 101–108. Warburton, R.D.H., Warner, S., 2000. How much domestic quick response manufacturing can a business afford? Proceedings of SPIE—The International Society of Optical Engineering 4192, 107–113. Westmacott, S., 2001. Problem Solving Soviet-Style, Daily Telegraph, UK, June 21, p. A10. Womack, J.P., Jones, D.T., 1996. Lean Thinking – Banishing Waste and Creating Wealth in Your Corporation. Simon and Schuster, New York. Womack, J.P., Jones, D.T., Roos, D., 1990. The Machine that Changed the World. Macmillan, New York. Yusuf, Y.Y., Sarhadi, M., Gunasekaran, A., 1999. Agile manufacturing: The drivers, concepts and attributes. International Journal of Production Economics 62, 33–43. Fisher, M.L., Hamond, J.H., Obermeyer, W.R., 1994. Making supply meet demand in an uncertain world. Harvard Business Review (May–June), 83–93. Goldratt, E., 1990. The Haystack Syndrome. North River Press, New York. Hill, T., 2000. Manufacturing Strategy—Text and Cases, 2nd Edition. Palgrave, London. Hoekstra, S., Romme, J., Argelo, S.M., 1991. Integrated Logistics Structures: Developing Customer-oriented Goods Flow. McGraw-Hill, London. Kaplan, R.S., Norton, D.P., 2001. The Strategy-focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Harvard Business School, Boston, MA. Mason-Jones, R., Towill, D.R., 1997. Information enrichment: Designing the supply chain for competitive advantage. Supply Chain Management 2 (4), 137–148. Mason-Jones, R., Naylor, J.B., Towill, D.R., 2000. Engineering the leagile supply chain. International Journal of Agile Manufacturing Systems 02 (1), 54–61. Ohno, T., 1988. The Toyota Production System; Beyond Largescale Production. Productivity Press, New York. Preiss, K., Goldman, S.L., Nagel, R.N., 1996. Cooperate to Compete-building Agile Business Relationships. VNR, New York. Salamatov, Y., 1999. TRIZ: The Right Solution at the Right Time. Insytec B.V., Hattem, The Netherlands.

You May Also Find These Documents Helpful

  • Powerful Essays

    volatile marketplace. Leagile is the combination of the lean and agile paradigms within a total supply chain strategy by positioning the decoupling point so as to best suit the need for responding to a volatile demand downstream yet providing level scheduling upstream from the marketplace. The decoupling point separates the part of the organisation (supply chain) oriented towards customer orders from the part of the organisation (supply chain) based on planning. In this report, I attempt to prepare…

    • 1719 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Lean and Agile supply chain

    • 11174 Words
    • 45 Pages

    13 Lean and agile supply chain Introduction With the real-time access to the Internet and search engines like Google and with the increased global competition, customers have more power than ever before. They demand innovative product features, greater speed, more product variety, dependable performance and quality at a best in class and at a competitive price. Furthermore, today’s discerning consumers expect fulfilment of demand almost instantly. The risk attached to traditional forecast…

    • 11174 Words
    • 45 Pages
    Better Essays
  • Best Essays

    humble beginnings, Tesco has grown to become the UK's largest supermarket chain. Over ten years ago, Tesco set its sights on becoming the Toyota of the grocery business. Since then the company has become renowned for its best practices in supply chain management (SCM), which included lean management and the use of RFID technology. The company has got an advantage over its competitors by incorporating innovation in its supply chain like point of the sale data, continued replenishment triggered by customer…

    • 3959 Words
    • 16 Pages
    Best Essays
  • Best Essays

    Strategic Supply Chain Management: SCM and Lean Management Concepts LAW CHONG SENG University Technology of Malaysia (UTM) cslaw5@live.utm.my, mylawcs@gmail.com ABSTRACT One of the most significant paradigm shifts of modern business management is that individual businesses no longer compete as solely autonomous entities, but rather within supply chains. In this emerging competitive environment, the ultimate success of the business will depend on management’s ability to integrate the company’s…

    • 4055 Words
    • 17 Pages
    Best Essays
  • Powerful Essays

    Lean Agile Supply Chain Case

    • 4112 Words
    • 12 Pages

    Supply Chain Management in the Textiles and Clothing Industry: Case of Four UK based Companies Introduction Textiles and apparel is a major sector for both the industrialised and the lesser developed economies, contributing both to wealth generation and employment. The sector represents a key part of employment in Europe, and world-wide, and in Europe alone employs in excess of two million people. Turnover for 2000 was Euro 198 billion. The European industry sector is dominated by large numbers of…

    • 4112 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    | Lean and Agile Supply Chain Strategies | Seminar in Business Economics | | 30-03-2012 | Table of Contents Introduction 2 Subject 2 Purpose 3 Problem Formulation 3 Definition of Concepts 4 Theory and Methodology 5 Limitations 6 Structure 6 Exploratory Analysis 7 Lean Supply Chain: Toyota Motor Corporation 7 Agile Supply Chain: Dell 9 Comparison of the Two Strategies 10 Leagile Supply Chain: Hennes & Mauritz 12 Discussion 15 Summary and Conclusion 17 List…

    • 4922 Words
    • 20 Pages
    Powerful Essays
  • Satisfactory Essays

    Supply chain management

    • 37221 Words
    • 149 Pages

    Fundamentals of Supply Chain Management Download free eBooks at bookboon.com 2 Fundamentals of Supply Chain Management © 2011Dr. Dawei Lu & Ventus Publishing ApS ISBN 978-87-7681-798-5 Download free eBooks at bookboon.com 3 Fundamentals of Supply Chain Management Contents Contents Preface 7 1 Introduction 8 1.1 Why Supply Chain Management 8 1.2 Defining supply chains 9 1.2 Customer Orientation 11 1.3 Defining Supply Chain…

    • 37221 Words
    • 149 Pages
    Satisfactory Essays
  • Powerful Essays

    Supply Chain Management

    • 4658 Words
    • 19 Pages

    Supply Chain Management for Effective People Management: Issues and Challenges Indranil Mutsuddi* Managing people in the highly volatile and turbulent business environment has always been an issue of concern for Human Resource (HR) heads and industry captains. This has particularly become challenging with organizations facing high attrition rates, on the one side, and businesses demanding talent supplies having newer and more cross-functional skill and competency sets to meet the changing needs…

    • 4658 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Supply Chain Management

    • 1224 Words
    • 4 Pages

    Supply Chain is a very important aspect in the Project management world. It is essential to address all issues properly and with care in order to have a successful and operational project. Integrating Supply Chain Management into Project Management can significantly enhance the effectiveness of project management. The term Supply Chain Management encompasses a wide range of processes which help in delivering the product or service as required by the customer.(Dani) “The Massachusetts Institute…

    • 1224 Words
    • 4 Pages
    Powerful Essays
  • Best Essays

    Supply Chain Management

    • 3999 Words
    • 16 Pages

    Recent Sci. Review Paper An Overview of Green Supply Chain Management in India Nimawat Dheeraj1 and Namdev Vishal2, Department of Mechanical Engineering, Singhania University, Pacheri Bari, Jhunjhunu, Rajasthan, INDIA Government Engineering College Jhalawar, Rajasthan, INDIA Available online at: www.isca.in (Received 19th March 2012, revised 27th March 2012, accepted 30th March 2012) Abstract The green supply chain management (GSCM) is a powerful way to differentiate a company from…

    • 3999 Words
    • 16 Pages
    Best Essays