Lean and agile supply chain

In their pure form three models of supply chain can be identified being traditional, lean and agile. 

Although many supply chains will be a hybrid of models, it is important to understand the differences and the apphcation of each model and application whether pure or hybrid. The traditional supply chain model has been covered 

This just-in-time approach generally precludes large batch production instead items are made in batches of one. This means that operators have to be flexible, the system has to be flexible and single minute exchange of dies (SMED) becomes the norm. A lean approach reduces the number of supervisors and quality inspectors. The operators are trained to know the production standards required and are authorized to take corrective action, in short they become their own inspectors/snpervisors. The principles of TPM (Total Productive Maintenance) and Five Ss (Sort, Set in place. Shine, Standardize and Sustain) are followed and as a result the equipment becomes more reliable and the operator develops ownership towards the equipment. 

Before anything can be eliminated it first has to be identified. The Toyota approach to identifying areas of waste is to classify waste into seven mudas . 

Movement or transportation Unnecessary motion Non-essential process Inventory Defects 

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A process related to lean and agile supply chain (see Chapter 13) should increase its velocity. 

Case example A lean and agile supply chain... 

Zara s rapid and sustainable growth in a competitive market is attributed to its ability to establish an agile supply chain which also incorporates many lean characteristics. There is a success story of a combined lean and agile supply chain strategy. 

One manufacturer has found a way to overcome the lead-time problems so as to be able to quickly respond to fashion. Benetton, an Italian apparel manufacturer makes sweaters in bulk, but delays the dyeing process until after initial sales figures are received from the retailers. In other words, colour choices are made after the manufacture. This approach has increased the cost of production by 10 per cent but has resulted in improved forecasts, less surplus stock and due to quick response to customer demand higher sales which has more than compensated for the inCTease in production cost. Major retailers are responding to challenges of lean and agile supply chain (see Chapter 13) as the following case example of Tesco illustrates. 

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