Final Report - ME C491

DESIGN AND ANALYSIS OF SUPPLY CHAIN MANAGEMENT SYSTEMS IN LEAN MANUFACTURING (WITH SPECIAL REFERENCE TO TOYOTA SUPPLY CHAIN) ( Report Submitted as final conclusion to Special Project ; Course No. – ME C491 ) NAME – SASWATA GHOSH ID - 2007A4PS277P

CONTENTS

NO. TOPIC PG. 1 INTRODUCTION TO LEAN SUPPLY CHAINS 1 2 FUNDAMENTAL STRUCTURE OF TOYOTA SUPPLY

CHAIN 2

3 THE DETAILED ELEMENTS THAT CONSTITUTE THE TOYOTA SUPPLY CHAIN NETWORK

6

4 FRAMEWORK DEVELOPMENT FOR LEAN SUPPLY CHAIN

12

5 FRAMEWORK DEVELOPMENT FOR AGILE SUPPLY CHAIN

22

6 FRAMEWORK DEVELOPMENT FOR LE-AGILE SUPPL- -Y CHAINS

32

7 CONCLUSION 40 8 ACKNOWLEDGEMENTS AND BIBLIOGRAPHY 41

INTRODUCTION TO LEAN SUPPLY CHAINS With the spread of lean manufacturing principles worldwide from Japan in the late 70’s and throughout the 80’s , a manufacturing revolution was set to overtake the world ; or was it ? Time after time , organizations in various manufacturing sectors went the lean way without any significant results. Principles like pull-based production , Just In Time ( JIT) and Jidoka were applied discretely to individual production units with only temporary outcomes which could not be sustained for long or replicated in other production units of the organization with ease. Soon it was realized that applying lean principles discretely to the equipment manufacturer’s plant could not yield any significant results until and unless the essence of lean could be spread all throughout the organization as well as its partners in the act of supply , procurement , logistics and delivery , ie ; in other words what is known as the supply chain. By the mid 80’s the scenario of business competition was changing . The competition was no longer between individual production houses but rather between whole supply networks , since it was more than clear that it was the whole supply network that was crucial to supporting a company’s survival. In the coming report , I shall discuss the prime principles and practices that are followed in creating and sustaining a lean supply chain . This , I shall do through a detailed discussion of the Toyota Supply Chain , since Toyota is the first company in the world to have invented and applied the lean way all throughout its supply chain . By this report , I wish to convey the fact that leanness in supply is a much more critical function to attain than simple leanness in manufacturing and it entrails very detailed and minute applications of the lean principles ( and surprisingly , in certain cases, even gross deviations from principles that are traditionally labeled lean ) .

THE FUNDAMENTAL STRUCTURE OF TOYOTA SUPPLY CHAIN

Before we start analyzing Toyota’s lean supply network , there are some fundamental questions whose answers we must know :-

1> WHAT ARE THE PRODUCT FEATURES WE NEED TO KNOW? -> Make , Model , Body Style , Grade , Engine , Transmission ,Accessories, Exterior Colour , Interior Trim. 2> WHO ARE THE CUSTOMERS? -> Retail Buyers- Range from serious shoppers to serious buyers. Production based on backflow of sales info from dealer. -> Employees – Receive limited number of cars every year at substantial discount . Prior approval of company required.Offer to limited no. of employees -> Rental Companies & Commercial Fleet- Advanced monthly orders placed for `number and type of vehicle required. Production scheduled based on delivery schedule. HOW CUSTOMERS AFFECT (some eg.)

In Japan , about 40 % stable export orders buffer for more order changes at later stages to the 60% stable orders.

3> WHAT ARE THE DISTRIBUTION MODELS? ->North American – Plant -> Marshalling Yards -> Dealerships. Dealership allocations made 2- 3 weeks prior to production . ->North American Overseas – Port -> Dealerships. Cars equipped with only most basic accessories while being manufactured abroad. ->Scion Luxury Model- Port -> Marshalling Yards / Intermediate Hubs ->Dealers. Cars fitted with the most basic accessories at plant. Additional features at marshalling yards based on customer specifications conveyed from dealers. ->Japanese –Plant > Consolidation Centres > Dealerships. One car sold & then order sent to

consolidation centre for next. -> European – Zonal Marshalling Yards > Hub Centres >Dealerships. Similar in working to Japanese model. 4>PHYSICAL FLOW AT TOYOTA SUPPLY CHAIN Suppliers > Inbound Logistics > Manufacturing Plant > Outbound Logistics > Dealer a>SUPPLIERS ->Supply basic components to manufacturer ->Tier 1/2/3

b>INBOUND LOGISTICS -> Dedicated Logistics Partners. ->Multiple Suppliers > Cross Docks >Multiple Destinations ->Lead time pre calculated so that trucks don’t have to wait. c>PRODUCTION SHOP -> Initial Body > Painting > Accessories -> Parts directly delivered from dock J.I.T; based on takt time calculations. Bar code reading employed.. d>OUTBOUND LOGISTICS ->75% -Marshalling Yards > Rail Cars (Staged) >Trucks >Dealers ->25% -Trucks > Dealers ->Volume forecast has to be provided in advance by manufacturer e> DEALERS -> Face of the company to the customer -> J.D Power Survey – Selling Process Rating index is influenced by dealer performance. -> Provide delivery requirements back to manufacturer. Thus influences manufacturing as well as outbound logistics. ( More important in Japan where dealer has no inventory). -> Proper stock mix is important ( keeping in mind serious buyers). OPERATIONAL ACTIVITIES 1> MIX PLANNING -> Ratio of feature combinations to be sent to various regions -> Based on customer preferences in the region. ->eg. Emphasis on light coloured vehicles in Arizona..4-wheel drives in Southern States , 2 in Southern States in the U.S . 2> SALES FORECASTING -> Performed by Sales Dept. -> Prediction of Production Volume on 3-month basis based on sales data available from previous months. -> Calculated region wise and model wise based on predictions from mix planning -> Initially calculated for 1 month. However can be modified after the 1-month period based on results of sales results. Calculations are initially made by regional offices and then integrated and refined by Toyota Motor Company headquarters based on various capacity & logistics constraints. 3> PRODUCTION SCHEDULING -> Date and time to be decided for each individual model. -> Heijunka principle used to level out production based on component importance and workload. -> For example , engine installation is given more priority than painting and hence is alloted a higher takt time than the painting operation. -> Models involving higher workload alternated with those involving lower workload.

-> Production calander divided into days weeks and months . Months decided on the basis of first day of the first weekday’s date. ( Say the Monday of a particular month falls on the 31st of January then that particular week is allocated a January week irrespective of the fact that rest of the days of the month fall in February. 4>DEALER ALLOCATION -> Data from mix planning and sales forecasting used . ->Allocation based on fair share method (more number of vehicles allotted to dealer who has success- -fully sold more vehicles in the preceding 3 month period. ->Individual preference orders also taken into account ( besides predictions of mix and sales forecasting) ->Dealers have access to manufacturing pipeline information . Hence they can change request. 5>ORDERING OF PARTS FROM SUPPLIER -> Sales Forecasting data used. -> Lead time calculated from production schedule with the help of knowledge of takt time -> Time of delivery from supplier to dock also taken into account to ensure JIT. -> Adjustments made on basis of freeze point . -> Freeze point calculated latest date by which change in specification is tolerated. -> Freeze point calculated as time within which 80% of supplies can be delivered ->Changes made if a supplier overshoots freeze time repeatedly . Order to the concerned supplier is to be altered in that case. 6>LOGISTICS PLANNING -> Optimization of traffic routing in inbound and outbound supplies -> Minimizes distances travelled and maximizes no. of units being transferred -> Done with the help of transportation models and other optimization tools.

PLANNING ISSUES THAT HAVE AN IMPACT ON TOYOTA SUPPLY CHAIN

PRODUCT PLANNING AND DESIGN -> 18-36 months prior to production -> Design , Product Planning , Sales and Marketing , Production departments contribute to the process HOW’S PRODUCT PLANNING AN ISSUE IN SUPPLY CHAIN? A> More the number of individual components shared between two models-lesser the no. of suppliers and lesser variation in routing of inbound logistics.

B> Existing supplier – ensures proven quality and greater subsidy.

PLANT DESIGN FOR CAPACITY AND FLEXIBILITY ->Multiple Mixed Model transfer lines used. Enables switchover from slower selling model to faster selling one. ->Total volume of production changes > Leads to change in the takt time as a result of rescheduling > Supply & Delivery schedules to be adjusted accordingly PACKAGE DESIGN FOR LOGISTICS -> Better space utilization within package (depends on product design) -> Better stacking of package boxes. -> Greater quality of packaging material. PURCHASING -> Selection of suppliers. ->Based on quality , prices , location ->Similar parts from same supplier ->Option related parts such as paint supply & interior trims – supplier should be local ANNUAL SALES AND OPERATIONS PLANNING ->Planning for annual production volume and sales. -> These are targets that are set in 2-3 years advance and different from mix and sales forecasting. -> However these plans perform the task of forecasting when model is introduced for the first time. Thus the overall goal of all the operational and planning activities can be summarized as:- ->Viewing supply chain as broad and comprehensive set of processes that must function cohesively ->Promoting cross functional teamwork to ensure both internal & external parties are confirming to

kaizen strictly. ->Streamlining the supply chain to be as synchronized as a “finely timed Swiss Watch.

THE DETAILED ELEMENTS THAT CONSTITUTE THE TOYOTA SUPPLY CHAIN NETWORK

For a period of two months during my project , I had thoroughly reviewed available literature on the Toyota Supply Chain and studied and presented on its various aspects. I had thoroughly analyzed each stage of the supply network and had identified all the elements that were crucial to making its design. In this section of the report , I shall summarize the same.

FOUNDATION PRINCIPLES THAT DRIVE TOYOTA’S SUPPLY By the foundation principles of Toyota’s supply , we mean those driving aspects of the Toyota Way which make the chain work smoothly and ensure the sustainance of the Toyota Culture throughout the network. The founding principles of the Toyota way of life are as follows :- 1>LEADERSHIP – All encompassing , staggered laterally ; Includes managers and executives of OEM , suppliers , logistics partners and dealers. 2>HUMAN ASPECTS – Proper motivation to continuously improve the present system , deep sense of mutual trust between not only the managers and workers of OEM , but also a sense of trust and belief of mutual benefit across people at all levels of supply chain – OEM , suppliers , logistics and dealers. 3>CULTURE – Customer oriented thinking of OEM , supplier and dealer. Teamwork approach to solving problems across the chain. 4>COMMITMENT-of employees and management of OEM , suppliers , logistics and dealers to the basic dictates of the Toyota System so that operations proceed uniformly throughout the chain. PILLARS OF THE TOYOTA SUPPLY CHAIN The pillars of the framework represent the key factors that make the Toyota Supply Chain work in a well timed and synchronized fashion like a sophisticated Swiss watch. These pillars support the elements that comprise the Toyota Supply and are in turn themselves dependent upon the very foundations of the Toyota doctrine : 1>SMOOTHING OF OPERATIONS AND WORKLOAD ( HEIJUNKA) – Controls variability , introduces uniformity into the supply chain , helps reduce waste and inventory at various levels of the chain. 2>ENSURING CONTINUOUS FLOW –to improve visibility and enable timely delivery of products and quick and easy detection of problems. 3>HIGH DEGREE OF MUTUAL COOPERATION AND CONTINUOUS NETWORKED EXCHANGE OF INFORMATION AND PERSONNEL BETWEEN DIFFERENT LEVELS OF THE SUPPLY CHAIN ( ie; between OEM , suppliers ,dealers, logistics partners ) – to enable integrated approach to solving chain-wide problems and also tackle crisis situations rapidly and effectively.

4>A WHOLESOME, INTEGRATED VIEW OF ALL ASPECTS OF THE CHAIN – by all the employees and managers at all stages so that each has a clear understanding of the importance of his/her role in the overall consolidated success of the chain’s functioning. 5>CONTINUOUS IMPROVEMENT -through repeated execution of PDCA cycles. 6>HIGH LEVELS OF PLANNING IN DESIGNING AND EXECUTING EACH STAGE OF THE SUPPLY ( through proper implementation of heijunka and continuous flow) 7>HIGH LEVELS OF STANDARDISATION OF PRACTICES AMONGST SUPPLIERS AND DEALERS ( to achieve uniform standards of customer services , part supplies and quick response to crisis situations ) 8>FLEXIBILITY – in capabilities of suppliers , logistics and OEM to respond fast to changes in demand – both in quantity and model type. 9>ADAPTABILITY - to different regional operating conditions and local trends ( even if it implies compromising Toyota’s fundamental principles to ensure maximum efficiency and customer satisfaction in the region) ELEMENTS THAT CONSTITUE TOYOTA’S SUPPLY CHAIN In this part , I have summarized all the constituent elements that make up the body of Toyota’s supply in detail . The elements have been categorized into the various operational stages of the supply chain in which they are relevant. These elements are more of an operational nature and give us an insight into how Toyota’s supply network actually functions rather than focus on broader aspects of management principles which we have already dealt with while discussing the pillars and foundation of the chain. Elements about mix-planning

1 Synchronization of regional mix with demand in region based on previous sales data 2 80/20 rule – Dealer stock should include 20% SKU ‘s that satisfy 80% of the regional sales 3 Use of common parts across products to reduce parts variability during product planning 4 Standardising high volume options in demand in more than 90% vehicles 5 Optional parts to be sourced from local suppliers to reduce lead time 6 Accessories designed so that they can be separately installed later to reduce impact on OEM 7 Guide sales through advertising the limited product offering in a region 8 Upselling – combining high selling options into packages to reduce variation 9 Demand management-training dealers to deal with customer requests for cars not in stock

Elements Dealing with Sales and Production Planning 1-7 – Annual Planning 8-10-Capacity Planning 11-Monthly order 12 –Production calendar preparation 13-14-Daily production planning(plantwise) 15-17 -Determining the final mix and volumes by integrating daily plans and preparing the final sales order.

1 Annual planning for establishing a rolling forecast for a three year frame 2 Added incentives to create demand for low selling models 3 Special edition models to boost chances of sales of upcoming 4 Re-organizations of existing production lines before a model change 5 Component planning to check that requisite component targets for new models can be met

within supplier constraints

6 Running scenarios to determine supply and production line constraints 7 Creating buy-in ie; convincing suppliers , dealers , logistics of the potential success of plans by

showing them the results of the scenario simulations 8 Internal capacity planning on an annual and semi annual basis 9 Flexibility to increase or reduce workforce to adjust to changing production rates 10 Identifying bottlenecks in the chain and correcting them 11 Creating a three month rolling production plan ( reflecting the monthly order ,) for each plant 12 Creating a production calendar on a 53 week annual basis 13 Determining the standard work hours , overtime and takt times ( time required for individual op)14 Determining the no . of vehicles produced per hour / per day 15 Determining the model ratio and overall model volume 16 Integration of data from all the plants to determine overall regional requirements in terms of

exact volumes 17 Final sales order preparation by integrating data of all regions

Elements in Production Scheduling

1 Preparing a daily schedule plantwise line by line 2 Smoothing of the daily mix variation by heijunka and sequencing the vehicles to reduce

workload as much as possible 3 Scheduling so that variation in supplier parts does not vary beyond 5% 4 Priority weighting of demand , production and supply while making the daily schedule 5 Applying heijunka based on vehicle destination 6 Giving a Unique Reference Number ( URN) to each vehicle following completion of schedule

Elements in Parts Ordering

Elements in Supplier Management

1 Maintaining of a Specifications Management System ( SMS ) database 2 Maintaining parts and supplier master database specifying vendor share 3 Forecasting to supplier on a rolling 13 week basis about parts requirements 4 Instituting separate order procedures for local , long lead time overseas , in-house and

sequenced part orders 5 Regular flexible modification of daily part orders based on latest production status 6 Taking actual lead time variabilities between parts into consideration while placing the order 7 Taking variations due to scrap , misuse and inventory loss into consideration while placing

order. 8 Determining actual order lot per shipping. 9 Keeping safety stocks for overseas orders in advance based on differences in individual

national holidays of respective nations 10 Flexibility for mid-month order changes ( when new models are introduced) 11 Use of kanbans for in-house part orders. 12 RFID techniques to notify parts makers in sequence production

1 Assisting suppliers to take up and implement TPS practices 2 Assisting suppliers in working on TQM implementation procedures 3 Choosing fewer suppliers through a rigorous , multi-tiered process that judges how thoroughly

established the suppliers’ production capabilities , principles and commitments are. 4 Tired supplier organization – Tiers 1,2,3 through to 4 usually present 5 Appointing family businesses with specialization in a single sub-component as lower tier

supplier. 6 Maintaining pressure on suppliers to perform at the best level to retain their contracts for a

subsequent model 7 Staggered contractual links across vehicle models permitting secondary source of parts for

most models 8 8 different elementary models in supplier-OEM relationships 9 Implementation of pervasive, compatible collaboration tools between OEM and supplier 10 Visibility and visualization tools not fogged by analysis 11 High enough trust to share intellectual property without fear of abuse 12 Use of cross-functional teams involving members of both supply and OEM to solve problems 13

Use of Jishuken – technological gatherings of middle level production technologists from a stable group of supplier companies to improve capabilities of applying TPS

14 Choosing suppliers who are located reasonably close to the OEM.

Elements in Logistics 1-10 – inbound logistics ; 11-15 – outbound logistics

1 Establishing relationships with Third Party Logistic Providers ( 3PL’s) for logistic support 2 Use of a Milk Route network model ( Trucks pick up parts from multiple suppliers on route,

deliver them to multiple cross docks and other trucks pick up parts for multiple OEM destin- -ations from these docks.

3 Analyzing supplier locations and identifying closely located clusters so that the same truck canpick up parts from them

4 Route planning using variables such as distances to be covered , average speed of trucks , no. ofavailable trucks and drivers , road conditions and potential risks on the roads with the help of a computer software

5 Getting computer generated route optimization results verified by logistics experts. 6 Usage of Electronic Data Exchange techniques such as Radio Frequency Identifiable (RFID)

Advanced Shipping Notices ( ASN’s) and kanbans to keep track of incoming parts in pipeline. 7 Capacity planning in order to avoid “ air-shipping” ( low utilization of package space) or

“blowout” ( shortage of shipping space) 8 Packaging of parts into modules comprising similar part types prior to shipping ; ie unitizing

of parts via modules ( in overseas inbound logistics) 9 Development of separate , dedicated long leadtime pipeline management system for tracking

and conveying last minute specification changes to parts that are imported from overseas. 10 Maintaining air shipment back-up logistics for long distance emergency deliveries. 11 Marshalling yards for staging vehicles according to destination. 12 Providing trucking and railway partners with weekly forecast of vehicles provided by dealers

(to ensure a sufficient supply of trucks , drivers and railway carriages ) 13 Arranging of railcars according in order of destination ( further destination cars closer to

engine and vice versa) 14 Tracking of the status of outbound shipments by RFID techniques. 15 Calculation of Expected Time of Arrival ( ETA) by adding of time of completion of quality

check to the expected time required for shipments.

Dealer Share Allocation and Demand Fulfillment Elements 1-8 – Vehicle allocation , 9-14 & 18-Order fulfillment , 15-17-Dealer Operations ( 7- for Scion model only , 8- for Lexus model only , 13- exclusive to Europe Order Fulfillment Model)

1 Vehicle allocation to each dealer based on vehicle type sold in the region. 2 Share allocation based on performance of dealer in previous year .( Turn and Earn) 3 Maintenance of allocation preference database by dealers. 4 Offer of financial incentives to dealers to sell off low selling models. 5 Maintenance of separate supplementary pool where a vehicle refused by a dealer can

be put temporarily and then sold off to another dealer 6 Making the inventory pipeline visible to the dealer so that he can view the stages of

development and ask for changes if required 7 Holding vehicles in port and releasing a vehicle only after another has been sold. 8 Allocation of vehicles to dealers based on sales forecasts in quarterly sales plan.

9 Fulfillment of customer order from dealer stock. 10 Fulfillment from dealer trade , ie ; by transferring the vehicle from another dealer in

the region who has it. 11 Provision for change in order of specifications if customer asks for new set of

features. 12 Provision of shifting an order to the next production month if requests for specifi-

-cation change cannot be fulfilled. 13 Sourcing of vehicle from the hub by dealer and also communication of accessory

change requests to the hub. 14 Using metrics such as sales , daily selling rate , dealer’s stock , company’s stock

and days’ supply remaining as parameters to monitor order fulfillment. 15 Dealers providing after sales services to customers. 16 Maintaining a strong parts and spares network which dealers can access to provide

after-sales services 17 Train and support dealer personnel so that they can continue and sustain kaizen 18 Implementation of P.D.C.A cycles to determine the success and weaknesses of

various order-fulfillment policies

Crisis Management

Thus , as we can see through the elements of the Toyota system , a lean organization has detailed and well defined systems in place for carrying out any operation in any stage of the supply chain. Also , the true meaning of supply chains in a lean organization is the all round concurrent involvement of everybody, and by everybody I mean suppliers , logistics partners , dealers ,customers and the actual assembler or OEM. Also the needs of each of these members are of equal importance and must be kept in mind at all times while designing the supply chain.

1 Crisis identification 2 Open and effective communications between various departments of Toyota as well

as with suppliers , logistics and dealers 3 Assessment of the crisis. 4 Appointment of “crisis owner” for coordinating all countermeasures. 5 Assembling of crisis management teams both on-site ( on ground teams ) and off. 6 Measures for short term and long term crisis mitigation 7 Maintaining good corporate practices and integrity in the face of crisis

FRAMEWORK DEVELOPMENT FOR LEAN SUPPLY CHAIN Through our study of the Toyota’s Supply Chain , we already have a fundamental idea of the operational facets of a lean supply network and the principles that help to guide it . Now , we would like to expand on our knowledge base by developing a more general framework which covers a much broader spectrum of journal review to come up with a general framework of lean supply chain design. Being more general , this framework will focus on general principles as well as operational practices that prominent journal authors have focused on as being key to lean supply. Method of Journal Review – Author selection Thirty authors who had written on lean supply chain were reviewed for the final literature survey out of over sixty papers which were initially downloaded. Since for a comparative analysis of the supply chain strategies that modern , sustainable organizations pursue , I had also developed frameworks for agile and le-agile supply chain , papers not considered for the survey were based on recurrence in the agile or leagile category. Also certain other papers , though they mentioned one or two facets of lean supply chain here and there , were not proposing any framework or analyzing any case strictly in the domain of lean supply. Such papers were also eliminated. Finally once the authors were selected , each was given a code for easy reference later. The authors considered have been listed as follows:-

Mollenkopf ,Stolze et al 2009 MS Wee , Wu 2009 WW David L Levy 1997 DL Lamming 1996 LAM Mistry 2005 MIS Wilson, Roy 2009 WRO Liqun Du 2007 LI-DU Hong , Dobrzykowski et al 2010 HD Bhattacharya, Coleman et al 1996 BK Alan Harrison 1996 HARR Naim , Towill 1994 NATW Othman , Ghani 2008 OGH Simpson , Power 2005 SP Michaels 1999 MIC Cagliano , Caniato et al 2006 CC Emiliani 2000 EMIL Perez , Castro et al 2010 PECA Fearne, Fowler 2006 FE-FO Fynes , Ainamo 1998 FYAI Lee , Oakes 1996 LEOA Taylor 2006 TAY Winfield , Kerin 1996 WIKE Agbejule , Burrowes 2007 ABB Huallachain ,Wasserman 1999 HW Wright , Lund 2006 WL Kleindorfer,Singhal et al 2005 KS

Gold , Seurig et al 2010 GS Smith , Tranfield 2005 ST Reichart , Holweg 2007 RH Adamides et al 2008 AK

Element Identification Matrix The elements identified and listed in the form of a matrix. Whenever an element was detected in the matrix , it was marked with a star (*). The elements were represented row-wise and the authors were listed in the columns to create the matrix. The number of occurrences of the elements were then counted. A representative part of the table has been shown :- ( The column on the extreme right denotes the number of authors who have identified / discussed the particular element )

Overall , 86 elements had been identified which had been listed or discussed by at least one of the authors. All elements which had been listed by a 2 authors or more ( ie. , which have an occurrence percentage of 6.67% or more) have been considered for developing the framework. The elements which have occurred only once in the matrix were reviewed based on domain knowledge and based on the author’s claim whether it was uniquely a lean element or not. If it was indeed identified as lean , it was considered for the framework. The rest of the elements were rejected.

SERIAL NO.

ELEMENTS / AUTHORS (BELOW) / ( SIDEWAYS)

LAM MIS WRO LI-DU

HD BK TOTAL(IN 30)

1 PROCESS INTERCONNECTIVITY & INTEGRATION BETWEEN SUPPLY CHAIN MEMBERS (HIGH LEVEL OF ORGANISATION) * * * *

19

2 USE OF JIT & PULL ACROSS THE SUPPLY CHAIN * * * *

19

3 ENHANCED AND LONG-TERM RELATIONSHIPS WITH SUPPLIERS * * * *

18

4 PRIORITY OF CUSTOMER WHILE DECIDING ANY SUPPLY CHAIN STRATEGY * * * * *

17

5 COST REDUCTION ACROSS ALL SUPPLY CHAIN STAGES * * * * *

17

6 WASTE REDUCTION * * * * 17 7 QUALITY IMPROVEMENT MEASURE

IMPLEMENTATION IN SUPPLY CHAIN * * * 15

8 VIRTUAL SHARING OF INFO. ACROSS SUPPLY CHAIN VIA E-BUSINESS & IT ACCESSORIES * * * * *

14

9 REDUCE INVENTORY @ ALL STAGES TO LOWER COST & WASTAGE * * * *

14

10 REDUCTION OF LEAD TIME ACROSS THE CHAIN * * * *

14

11 FOCUS ON TECHNOLOGY & INNOVATION * * * 11 12 SETTING UP OF HORIZONTAL CROSS

FUNCTIONAL TEAMS * 10

Final Elements Selected Based on the aforementioned criteria , finally 72 elements were identified for the framework . They are as listed below:-

SERIAL ELEMENT COUNT

1 PROCESS INTERCONNECTIVITY & INTEGRATION BETWEEN SUPPLY CHAIN MEMBERS (HIGH LEVEL OF ORGANISATION) 19

2 USE OF JIT & PULL ACROSS THE SUPPLY CHAIN 193 ENHANCED AND LONG-TERM RELATIONSHIPS WITH SUPPLIERS 184 PRIORITY OF CUSTOMER WHILE DECIDING ANY SUPPLY CHAIN STRATEGY 175 COST REDUCTION ACROSS ALL SUPPLY CHAIN STAGES 176 WASTE REDUCTION 177 QUALITY IMPROVEMENT MEASURE IMPLEMENTATION IN SUPPLY CHAIN 15

8 VIRTUAL SHARING OF INFO. ACROSS SUPPLY CHAIN VIA E-BUSINESS & IT ACCESSORIES 14

9 REDUCE INVENTORY @ ALL STAGES TO LOWER COST & WASTAGE 1410 REDUCTION OF LEAD TIME ACROSS THE CHAIN 1411 FOCUS ON TECHNOLOGY & INNOVATION 1112 SETTING UP OF HORIZONTAL CROSS FUNCTIONAL TEAMS 1013 KAIZEN 1014 FLEXIBILITY IN ALL SUPPLY CHAIN OPERATIONS 815 LEVEL PRODUCTION (HEIJUNKA) 816 FORECAST BASED APPROACH (DEMAND FORECAST) 717 FOCUS ON PRODUCT DESIGN AND EXPANSION OF EXISTING PRODUCTS 7

18 RE-INFORCING PERFORMANCE MEASUREMENT SYSTEMS FOR SUPPLY CHAINS 7

19 PRODUCTION SCHEDULING AND BUILDING TO SCHEDULE 720 CAPACITY REQUIREMENT PLANNING 721 SUPPLIER EXPANSION IN PRODUCT DESIGN 622 USE OF VALUE STREAM MAPPING AS AN EVALUATION TOOL FOR CHAIN 623 TAKT TIME CONTROL ( CONTROL OF MANUFACTURING SPEED) 624 TIER SYSTEM OF SUPPLIERS 625 IMPROVEMENT OF DEGREE OF PLANT UTILISATION 6

26 PIPELINE VISIBILITY THROUGH BARCODE READING , EDI & DATABASE VISIBILITY 6

27 USING FEW SUPPLIERS WHO ARE DEDICATED 628 OUTSOURCING OF PARTS 529 FOCUS ON COMPETITION ADVANTAGE 530 USE OF KANBAN 531 MANUFACTURING RESOURCE PLANNING 532 USE OF MATERIAL REQUIREMENT PLAN 533 INCREASED EMPLOYEE EMPOWERMENT 5

34 GROUPING OF SUPPLIERS INTO MUTUAL NETWORKS BASED ON FUNTIONALITY 5

35 GRADUALLY REDUCING NO. OF SUPPLIERS 536 PIPELINE LEAD TIME COMMUNICATION TO ALL MEMBERS OF CHAIN 437 BENCHMARKING & STANDARDISATION 4

38 DETERMINATION & CONTROL OF MODEL-MIX / FINAL DISTRIBUTED PRODUCT MIX 4

39 COACHING FOR EMPLOYEE IMPROVEMENT ALL ACROSS CHAIN 440 SHARED AND OPEN INVENTORY MGT SYSTEMS 441 SUPPLIER APPRAISAL SYSTEMS 442 NON-HEIRARCHICAL DISTRIBUTED CONTROL 4

43 STRUCTURED APPROACH TO KNOWLEDGE MANAGEMENT & CATRALOGUING IN SUPPLY CHAIN 4

44 CONTINUOUS REPLENISHMENT FOR PRODUCTS WITH PREDICTABLE DEMAND 345 NETWORK BASED USE OF STRENGHTS OF SPECIALIST PLAYERS 346 FEATURE ALIGNMENT TO INTERNAL AND SUPPLIER CAPABILITIES 347 RISK MANAGEMENT 348 CONTROL OF DOCK TO DOCK TIME 3

49 HIGH AVAILABILITY & PERFORMANCE EFFICIENCY OF EQUIPMENT ( HIGH OVERALL EQUIPMENT EFFECTIVENESS) 3

50 TEAM VISITS BY MANUFACTURER MEMBERS TO THE SUPPLIER TO RESOLVE ISSUES 3

51 SHARING AND COOPERATION OF TECHNOLOGY AMONG COMPETITORS 352 ON-SITE SUPPLIER 353 CELLULAR MFG. STRATEGIES 354 SPC 355 MAINTAIN SAFETY STOCK TO FULFIL SUDDEN DEMANDS 256 LOGISTICS SPEED AND RELIABILITY 257 CROSS DOCKING OF INCOMING PARTS 258 COMPLEXITY REDUCTION THROUGH RESTRUCTURING 259 BATCH SIZE REDUCTION 260 INTERNAL & EXTERNAL COMBINED MIX IN SUPPLIER APPOINTMENT 261 USE OF DEMAND SEASONALITY IN MIX PLANNING 262 INVOLVING CUSTOMERS IN PRODUCT AND MERCHANDISE PLANNING 2

63 DIFFERENT PARTS/COMPONENTS SOURCED TO SAME SUPPLIER FOR GOOD LOAD MIX & FLEXIBILITY 2

64 USE OF CONSOLIDATION POINTS AND MARSHALLING AREAS IN LOGISTICS / TEMPORARY WAREHOUSE FLEXIBILITY 2

65 CUSTOMER AUDIT 266 MULTI LEVEL ROLLING SCHEDULES 2

67 CONVERGENCE OF SOCIO-ENVIRONMENTAL OBLIGATIONS & COMPETITIVE GOALS ACROSS CHAIN 2

68 DOUBLE FREIGHT CONSOLIDATION FOR OVERSEAS SUPPLIERS 169 GREEN ENVIRONMENT FRIENDLY SUPPLY 170 JOINT VENTURES OF OEM & SUPPLIERS IN R&D 1

71 USE OF MAS ( MANAGEMENT ACCOUNTING SYSTEMS) 172 APPLICATION OF TRANSACTION COST THEORY IN SUPPLY CHAIN CONTRACTS 1

As we can see the most emphatically focused elements in the framework are with regards to high levels of integration in the chain , efficient best practices that induce leanness and efficiency in the chain like JIT , cost reduction , waste reduction and so on and also high levels of customer focus. Identifying the Pillars of Lean Supply Chain Based on the elements that I had identified in the papers , I have recognized 13 distinctive pillars which support a lean supply network. These pillars are the broad spectrum aims which must be fundamentally fulfilled to successfully design a lean supply chain.

1 FOCUS ON BEST PRACTICES THAT REDUCE WASTE AND INTRODUCE LEANNESS AND EFFICIENCY TO THE SUPPLY CHAIN

2 HIGH DEGREE OF INTERCONNECTIVITY AND ACTIVE INFORMATION SHARING ALL ACROSS THE CHAIN

3 HIGH DEGREE OF CUSTOMER ORIENTATION ACROSS THE CHAIN

4 FOCUS ON MEASURES OF LEAD TIME AND OPERATIONS SPEED CONTROL ALL ACROSS THE CHAIN

5 FOCUS ON FORECASTING AND CONTINUOUS REPLENISHMENT

6 IMPORTANCE OF STRONG MUTUAL RELATIONS WITH CAPABLE AND ORGANISED SUPPLIERS AND PROPER SUPPLIER MANAGEMENT

7 FOCUS ON QUALITY AND PERFORMANCE CONTROL MEASURES ACROSS THE SUPPLY CHAIN

8 ACTIVE PLANNING AND CONTROL OF OPERATIONAL PRODUCTION PARAMETERS ALL ACROSS CHAIN

9 FOCUS ON MANAGEMENT OF RISK 10 FOCUS ON LOGISTICS EFFICIENCY

11 FOCUS ON BETTER TECHNOLOGY AND GLOBAL COMPETITIVE ADVANTAGE ACROSS CHAIN

12 FOCUS ON EMPLOYEE IMPROVEMENT AND EFFECTIVE KNOWLEDGE MANAGEMENT

13 FOCUS ON SOCIAL AND ENVIRONMENTAL IMPACT OF SUPPLY CHAIN ACTIVITIES

Classification of the Elements under the Pillars In this segment I have classified all the constituent elements under the pillars. The elements under each pillar contributes to fulfilling the ultimate goal of the particular aspect of the supply chain the pillar represents. PILLAR :-FOCUS ON BEST PRACTICES THAT REDUCE WASTE AND INTRODUCE LEANNESS & EFFICIENCY TO THE SUPPLY CHAIN 1 USE OF JIT & PULL ACROSS THE SUPPLY CHAIN

2 COST REDUCTION ACROSS ALL SUPPLY CHAIN STAGES

3 WASTE REDUCTION

4 REDUCE INVENTORY @ ALL STAGES TO LOWER COST & WASTAGE

5 REDUCTION OF LEAD TIME ACROSS THE CHAIN

6 KAIZEN

7 FLEXIBILITY IN ALL SUPPLY CHAIN OPERATIONS

8 LEVEL PRODUCTION (HEIJUNKA)

9 NON-HEIRARCHICAL DISTRIBUTED CONTROL

10 COMPLEXITY REDUCTION THROUGH RESTRUCTURING OF CHAIN

PILLAR : HIGH DEGREE OF INTERCONNECTIVITY AND ACTIVE INFORMATION SHARING ALL ACROSS THE CHAIN 1 PROCESS INTERCONNECTIVITY & INTEGRATION BETWEEN SUPPLY CHAIN

MEMBERS (HIGH LEVEL OF ORGANISATION)

2

VIRTUAL SHARING OF INFO. ACROSS SUPPLY CHAIN VIA E-BUSINESS & IT ACCESSORIES

3 SETTING UP OF HORIZONTAL CROSS FUNCTIONAL TEAMS

4 PIPELINE VISIBILITY THROUGH BARCODE READING , EDI & DATABASE VISIBILITY

5 SHARED AND OPEN INVENTORY MGT SYSTEMS

6 NETWORK BASED USE OF STRENGHTS OF SPECIALIST PLAYERS

7 SHARING AND COOPERATION OF TECHNOLOGY AMONG COMPETITORS

PILLAR:HIGH DEGREE OF CUSTOMER ORIENTATION ACROSS THE CHAIN 1 PRIORITY OF CUSTOMER WHILE DECIDING ANY SUPPLY CHAIN STRATEGY

2 INVOLVING CUSTOMERS IN PRODUCT AND MERCHANDISE PLANNING

PILLAR:FOCUS ON MEASURES OF LEAD TIME AND OPERATIONS SPEED CONTROL ALL ACROSS THE CHAIN 1 PRODUCTION SCHEDULING AND BUILDING TO SCHEDULE

2 TAKT TIME CONTROL ( CONTROL OF MANUFACTURING SPEED)

3 USE OF KANBAN

4 PIPELINE LEAD TIME COMMUNICATION TO ALL MEMBERS OF CHAIN

5 CONTROL OF DOCK TO DOCK TIME

PILLAR:FOCUS ON FORECASTING AND CONTINUOUS REPLENISHMENT 1 FORECAST BASED APPROACH (DEMAND FORECAST)

2 CONTINUOUS REPLENISHMENT FOR PRODUCTS WITH PREDICTABLE DEMAND

PILLAR:IMPORTANCE OF STRONG MUTUAL RELATIONS WITH CAPABLE AND ORGANISED SUPPLIERS & PROPER SUPPLIER MANAGEMENT 1 ENHANCED AND LONG-TERM RELATIONSHIPS WITH SUPPLIERS

2 SUPPLIER EXPANSION IN PRODUCT DESIGN

3 TIER SYSTEM OF SUPPLIERS

4 USING FEW SUPPLIERS WHO ARE DEDICATED

5 GROUPING OF SUPPLIERS INTO MUTUAL NETWORKS BASED ON FUNTIONALITY

6 GRADUALLY REDUCING NO. OF SUPPLIERS BASED ON SUITABILITY &

COMPATIBILITY CRITERIA

7 FEATURE ALIGNMENT TO INTERNAL AND SUPPLIER CAPABILITIES

8 TEAM VISITS BY MANUFACTURER MEMBERS TO THE SUPPLIER TO RESOLVE ISSUES

9 USING ON-SITE SUPPLIER FOR GOODS WITH HIGH DEMAND VARIABILITY

10 INTERNAL & EXTERNAL COMBINED MIX IN SUPPLIER APPOINTMENT

11 JOINT VENTURES OF OEM & SUPPLIERS IN R&D

PILLAR:FOCUS ON QUALITY AND PERFORMANCE CONTROL MEASURES ACROSS THE SUPPLY CHAIN 1 QUALITY IMPROVEMENT MEASURE IMPLEMENTATION IN SUPPLY CHAIN

2 RE-INFORCING PERFORMANCE MEASUREMENT SYSTEMS FOR SUPPLY CHAINS

3 USE OF VALUE STREAM MAPPING AS AN EVALUATION TOOL FOR CHAIN

4 BENCHMARKING & STANDARDISATION

5 SUPPLIER APPRAISAL SYSTEMS

6 SPC

7 CUSTOMER AUDIT

PILLAR : ACTIVE PLANNING AND CONTROL OF OPERATIONAL PRODUCTION PARAMETERS AT ALL LEVELS OF CHAIN 1 FOCUS ON NEW PRODUCT DESIGN AND EXPANSION OF EXISTING PRODUCTS

2 IMPROVEMENT OF DEGREE OF PLANT UTILISATION

3 MANUFACTURING RESOURCE PLANNING

4 USE OF MATERIAL REQUIREMENT PLAN

5 DETERMINATION & CONTROL OF MODEL-MIX / FINAL DISTRIBUTED PRODUCT MIX

6 HIGH AVAILABILITY & PERFORMANCE EFFICIENCY OF EQUIPMENT ( HIGH

OVERALL EQUIPMENT EFFECTIVENESS)

7 CELLULAR MFG. STRATEGIES

8 BATCH SIZE REDUCTION

9 USE OF DEMAND SEASONALITY IN MIX PLANNING

10 DIFFERENT PARTS/COMPONENTS SOURCED TO SAME SUPPLIER FOR GOOD LOAD MIX & FLEXIBILITY

11 MULTI LEVEL ROLLING SCHEDULES

12 CAPACITY REQUIREMENT PLANNING

13 USE OF MAS ( MANAGEMENT ACCOUNTING SYSTEMS)

PILLAR:FOCUS ON MANAGEMENT OF RISK 1 RISK MANAGEMENT

2 MAINTAIN SAFETY STOCK TO FULFIL SUDDEN DEMANDS

3 APPLICATION OF TRANSACTION COST THEORY IN SUPPLY CHAIN CONTRACTS

PILLAR:FOCUS ON LOGISTICS EFFICIENCY 1 LOGISTICS SPEED AND RELIABILITY

2 CROSS DOCKING OF INCOMING PARTS

3 USE OF CONSOLIDATION POINTS AND MARSHALLING AREAS IN LOGISTICS /

TEMPORARY WAREHOUSE FLEXIBILITY

4 DOUBLE FREIGHT CONSOLIDATION FOR OVERSEAS SUPPLIERS

PILLAR:FOCUS ON BETTER TECHNOLOGY AND GLOBAL COMPERTITIVE ADVANTAGE ACROSS THE CHAIN 1 FOCUS ON TECHNOLOGY & INNOVATION

2 OUTSOURCING OF PARTS

3 FOCUS ON COMPETITION STRATEGIES

PILLAR:FOCUS ON EMPLOYEE IMPROVEMENT AND EFFECTIVE KNOWLEDGE MANAGEMENT 1 INCREASED EMPLOYEE EMPOWERMENT

2 COACHING FOR EMPLOYEE IMPROVEMENT ALL ACROSS CHAIN

3 STRUCTURED APPROACH TO KNOWLEDGE MANAGEMENT & CATALOGUING IN

SUPPLY CHAIN

PILLAR : FOCUS ON SOCIAL AND ENVIRONMENTAL IMPACT OF SUPPLY CHAIN ACTIVITIES 1 CONVERGENCE OF SOCIO-ENVIRONMENTAL OBLIGATIONS & COMPETITIVE

GOALS ACROSS CHAIN

2 GREEN ENVIRONMENT FRIENDLY SUPPLY

Thus , through a simultaneous look at the at the pillars and the elements under it , we can verify our claim of the fact the fact that to establish a successful supply network in a lean manufacturing organization there has to be a very high level of organization combined with a concurrent and equal focus on all aspects of the chain.

FRAMEWORK DEVELOPMENT FOR AGILE SUPPLY CHAIN We have already explored all the elements that go into designing a lean supply chain in the previous framework. We have seen that the primary focus of lean is to minimize cost and wastage in all processes through instilling the best practices in the chain. However , it is recently being discovered that in today’s market of high rate of demand variability and short product life cycles, the focus of supply chain design has shifted from a lean paradigm to an agile one. In the agile paradigm , the primary focus is on ensuring quick and real time response to the immediate market conditions. Flexibility in the supply system , rather than cost and waste reduction becomes the driving force behind the supply network. In this section of the report , I shall iterate what are the elements that are required to successfully construct an agile supply chain. Method of Journal Review – Author Selection This framework was created based on articles by 30 authors . The procedure of selecting the authors was reasonably similar to the one followed while developing the lean framework . Here too , articles by around 60 authors were downloaded and the ones recurring under searches for lean and le-agile were first judged to determine their real category and accordingly included. Next , the articles which had mentioned a few elements of agile supply though in totality , they did not really deal with agile supply chains , were eliminated. Through this review , the thirty best papers which discussed agility to the most wholesome extent were selected. The authors are as followed :-

Ismail , Sharifi 2006 IS1 Li , Chung ,Goldby et al 2008 LCG Prater , Beihel et al 2001 PB Van Hoek , Harrisson et al 2001 VHH Christopher,Towill 2001 CRIS Baramichai , Zimmers et al 2007 BZ Kumar,Shankar,Yadav 2008 KSHY Collin , Lorenzin 2006 COLO Weber 2002 WEB Defee , Fugate 2010 DEFU Rich , Hines 1997 RH Ma , Davidrajuh 2005 MDA Raisinghani , Meade 2005 RME Holweg 2005 HOL Liu, Lin et al 2010 LL Power ,Sohal ,Rahman 2001 PS Van Hoek 2001 VH Hyland,Soosay,Sloan 2001 HS Christopher ,Lowson,Peck 2004 CL Barnes , Greenwood 2006 BG Evers , Loeve et al 2000 EL Mason, Cole et al 2002 MC Masson , Iosif et al 2007 MI Wu , Barnes et al 2009 WB

Vickery,Dorge et al 2010 VD Smith , Lockamy 2000 SL Srinivasan 2007 SRI Khan , Creazza 2009 KC Perry ,Sohal 2001 PERS Sharifi ,Ismail et al 2005 SI

Element Identification by the Matrix Method The procedure followed for identifying the elements in the agile framework was the same as that used while developing the lean framework. A similar matrix was created and elements were listed top to bottom whereas individual columns represented the authors. Each element, if it was mentioned by a particular author, was marked with a “*” in the column corresponding to that author. A small portion of the same is shown :-

SERIAL

ELEMENTS(BELOW) / AUTHOR / NAMES /(TO RIGHT) VHH CRIS BZ KSHY COLO WEB

TOTAL COUNT

1

MARKET SENSITIVE APPROACH IN AGILE / QUICK RESPONSE TO DEMAND (FULFIL MODEL) * * * * * *

29

2 FLEXIBILITY IN ALL SUPPLY CHAIN OPERATIONS * * * * * *

23

3

PRIORITY OF CUSTOMER WHILE DECIDING ANY SUPPLY CHAIN STRATEGY * * * *

21

4

VIRTUAL SHARING OF INFO. ACROSS SUPPLY CHAIN VIA E-BUSINESS & IT ACCESSORIES * * * * * *

18

5

PROCESS INTERCONNECTIVITY & INTEGRATION BETWEEN SUPPLY CHAIN MEMBERS (HIGH LEVEL OF ORGANISATION) * * * * *

18

6

FIRM'S ABILITY TO THRIVE ON CHANGE / UNCERTAINTY IN MARKET CHOICE & DEMAND * * * * *

17

7

ENHANCED AND LONG-TERM RELATIONSHIPS WITH SUPPLIERS * * *

17

8 FOCUS ON TECHNOLOGY & INNOVATION *

14

9

ADJUSTMENT TO SPECIFIC BUSINESS ENVIRONMENT (INCLUDES CROSS BORDER VARIATION) * * * * *

14

10

FOCUS ON PRODUCT DESIGN AND EXPANSION OF EXISTING PRODUCTS * *

13

11

USING PRODUCT BASED APPROACH FOR SUPPLY CHAIN STRATEGY DETERMINATION * * *

12

12 OUTSOURCING OF PARTS * * * * 11 Overall , 97 elements were identified which had been cited by at least one author . Once again we selected all the elements which had been cited by two authors or more ( ie. at least 6.67% of the authors). Those elements which had occurred only once in the matrix were reviewed base don domain knowledge and based on the author’s claim on them being uniquely agile elements. Those which were deemed to be agile elements indeed were included. All the rest of the elements were discarded. Final Elements Selected Finally , based on the aforesaid criteria, 76 elements were selected as essential features in developing an agile supply chain. They are as follows :-

1 MARKET SENSITIVE APPROACH IN AGILE / QUICK RESPONSE TO DEMAND (FULFIL MODEL) 29

2 FLEXIBILITY IN ALL SUPPLY CHAIN OPERATIONS 233 PRIORITY OF CUSTOMER WHILE DECIDING ANY SUPPLY CHAIN STRATEGY 21



6 FIRM'S ABILITY TO THRIVE ON CHANGE / UNCERTAINTY IN MARKET CHOICE & DEMAND 17

7 ENHANCED AND LONG-TERM RELATIONSHIPS WITH SUPPLIERS 178 FOCUS ON TECHNOLOGY & INNOVATION 14

9 ADJUSTMENT TO SPECIFIC BUSINESS ENVIRONMENT (INCLUDES CROSS BORDER VARIATION) 14

10 FOCUS ON PRODUCT DESIGN AND EXPANSION OF EXISTING PRODUCTS 13

11 USING PRODUCT BASED APPROACH FOR SUPPLY CHAIN STRATEGY DETERMINATION 12

12 OUTSOURCING OF PARTS 11


14 LOGISTICS SPEED AND RELIABILITY 1115 UNCERTAINTY IN FORECASTING 1116 FOCUS ON COMPETITION ADVANTAGE 1017 REDUCTION OF LEAD TIME ACROSS THE CHAIN 1018 USE OF JIT & PULL ACROSS THE SUPPLY CHAIN 1019 SEPARATE CUSTOMISED AGILE PIPELINE FOR SPECIALISED GOODS 920 SUPPLIER EXPANSION IN PRODUCT DESIGN 9

21 EXTENT OF GEOGRAPHIC COVERAGE OF SUPPLY CHAIN & DEGREE OF EXPOSURE 9

22 POSTPONEMENT/DECOUPLING 723 NETWORK BASED USE OF STRENGHTS OF SPECIALIST PLAYERS 724 CAPACITY REQUIREMENT PLANNING 725 SETTING UP OF HORIZONTAL CROSS FUNCTIONAL TEAMS 7

26 MARKET ANALYSIS AND CLASSIFICATION 6

27 HIGH LOGISTICS RANGE (IN TERMS OF TRANSPORTATION MODES AND SPEEDS) 6

28 COST REDUCTION ACROSS ALL SUPPLY CHAIN STAGES 629 QUALITY IMPROVEMENT MEASURE IMPLEMENTATION IN SUPPLY CHAIN 630 NON-HEIRARCHICAL DISTRIBUTED CONTROL 631 LARGE NO. OF SUPPLIERS USED FOR ALTERNATIVES IN CRISIS 532 COMPLEXITY REDUCTION THROUGH RESTRUCTURING 5


34 SHARED AND OPEN INVENTORY MGT SYSTEMS 535 SUPPLIER APPRAISAL SYSTEMS 536 KAIZEN 5

37 STRUCTURED APPROACH TO KNOWLEDGE MANAGEMENT & CATRALOGUING IN SUPPLY CHAIN 5

38 REDUCE INVENTORY @ ALL STAGES TO LOWER COST & WASTAGE 439 USE OF VALUE STREAM MAPPING AS AN EVALUATION TOOL FOR CHAIN 440 USE OF MATERIAL REQUIREMENT PLAN 441 COACHING FOR EMPLOYEE IMPROVEMENT ALL ACROSS CHAIN 4

42 DISTRIBUTION & DEALER ALLOCATION CONTROL ( BASED ON TARGET MIX & VOLUME AS PER LOCATION) 4

43 CUSTOMER AUDIT 444 DIFFERENTIATION BETWEEN CUSTOMER SEGMENTS 445 FEATURE ALIGNMENT TO INTERNAL AND SUPPLIER CAPABILITIES 346 MAINTAIN SAFETY STOCK TO FULFIL SUDDEN DEMANDS 347 RISK MANAGEMENT 348 PRODUCTION SCHEDULING AND BUILDING TO SCHEDULE 3

49 TEAM VISITS BY MANUFACTURER MEMBERS TO THE SUPPLIER TO RESOLVE ISSUES 3

50 MANUFACTURING RESOURCE PLANNING 351 BATCH SIZE REDUCTION 352 INCREASED EMPLOYEE EMPOWERMENT 353 INVOLVING CUSTOMERS IN PRODUCT AND MERCHANDISE PLANNING 3

54 USE OF CONSOLIDATION POINTS AND MARSHALLING AREAS IN LOGISTICS / TEMPORARY WAREHOUSE FLEXIBILITY 3

55 PARTNER INTEGRATION INTO OEM SYSTEMS FOR CRISIS MGT. 3

56 REDUNDANCY IN SUPPLY CHAIN TO COVER FOR FAILURE OF COMPONENT/SYSTEM 3

57 MASS CUSTOMIZATION 3


59 OPTIMALLY AND QUICK TRANSITION BETWEEN TWO PRODUCTS 360 PIPELINE LEAD TIME COMMUNICATION TO ALL MEMBERS OF CHAIN 261 BENCHMARKING & STANDARDISATION 262 CONTROL OF DOCK TO DOCK TIME 263 TIER SYSTEM OF SUPPLIERS 264 USE OF UNITIZATION AND PACKAGING TO REDUCE LOGISTIC COMPLEXITY 2

65 VULNERABILITY REDUCTION BY AGILITY CONTROL & LIMITATION 266 INTERNAL & EXTERNAL COMBINED MIX IN SUPPLIER APPOINTMENT 267 ON-SITE SUPPLIER 268 INTELLIGENT AND FAST REORER SYSTEMS 2

69 DIFFERENT PARTS/COMPONENTS SOURCED TO SAME SUPPLIER FOR GOOD LOAD MIX & FLEXIBILITY 2

70 JOB ROTATION / WORKFORCE ASSIGNMENT FLEXIBILITY OF EMPLOYEES BETWEEN DEPARTMRNTS 2

71 USE OF SEPARATE AGILE INTERACTIVE AI MODULES ALONGSIDE THE PRODUCTION CHAIN 2

72 SEPARATE STRATEGIES FOR BASE AND SURGE DEMAND 173 BREAKING UP ORGANISATION INTO SELF SUSTAINING MODULES 174 REVERSE LOGISTICS 175 USE OF AGILE SCALABLE SYSTEMS 176 ACTIVITY BASED COST MANAGEMENT ( ABM) 1

Here , we can distinctly see that the prime focus of the agile elements are rapid acclimatization to changing market conditions , flexibility , ability to thrive in uncertain conditions , customer focus and high degree of interconnectivity between the various levels of the supply chain. Identifying the Pillars in the Agile supply framework Based on the elements I have studied in the papers , I have identified 14 distinct pillars which support the agile supply chain. These pillars are the broad spectrum aims which must be fundamentally fulfilled for successfully designing an agile supply chain :-

1 ABILITY TO ADAPT RAPIDLY TO MARKET CHANGES 2 SUPPLY CHAIN CUSTOMIZATION ACCORDING TO PRODUCT TYPE

3 HIGH DEGREE OF TECHNOLOGICAL AND VIRTUAL SUPPORT FOR SUSTAINING MATERIAL AND INFORMATION FLOW IN SUPPLY CHAIN

4 HIGH LEVEL OF INTERCONNECTIVITY BETWEEN ALL SUPPLY CHAIN MEMBERS 5 HIGHEST ESTEEM FOR CUSTOMER REQUIREMENTS

6 HIGH DEGREE OF RELIANCE ON SUPPLIER CAPABILITY, FLEXIBILITY, ORGANISATION AND RANGE

7 FOCUS ON EFFICIENCY AND EXTENT OF LOGISTICS NETWORK

8 FOLLOWING PRINCIPLES THAT INDUCE A HIGH LEVEL OF SUPPLY CHAIN ECONOMY,BALANCE AND SPEED

9 PERFORMANCE MAPPING AND QUALITY MANAGEMENT FOCUS 10 FOCUS ON RISK AND CRISIS MANAGEMENT 11 FOCUS ON OPERATIONAL ASPECTS OF SUPPLY CHAIN 12 FOCUS ON EMPLOYEE IMPROVEMENT AND KNOWLEDGE MANAGEMENT 13 GLOBAL REACH AND CAPABILITY OF GLOBAL EXPLOITATION OF THE CHAIN 14 STAGED TRANSITION INTO AN AGILE POLICY

Classification of the Elements under the Pillars In this segment I have classified all the constituent elements under the pillars. The elements under each pillar contributes to fulfilling the ultimate goal of the particular aspect of the supply chain the pillar represents. PILLAR: ABILITY TO ADAPT RAPIDLY TO MARKET CHANGES 1 MARKET SENSITIVE APPROACH IN AGILE / QUICK RESPONSE TO DEMAND

(FULFIL MODEL)

2 FLEXIBILITY IN ALL SUPPLY CHAIN OPERATIONS

3 FIRM'S ABILITY TO THRIVE ON CHANGE / UNCERTAINTY IN MARKET CHOICE & DEMAND

4 ADJUSTMENT TO SPECIFIC BUSINESS ENVIRONMENT (INCLUDES CROSS BORDER VARIATION)

5 UNCERTAINTY IN FORECASTING

6 OPTIMALLY AND QUICK TRANSITION BETWEEN TWO PRODUCTS

7 MAINTAIN SAFETY STOCK TO FULFIL SUDDEN DEMANDS

8 MARKET ANALYSIS AND CLASSIFICATION

9 DIFFERENTIATION BETWEEN CUSTOMER SEGMENTS

10 USE OF AGILE SCALABLE SYSTEMS

PILLAR:SUPPLY CHAIN CUSTOMIZATION ACCORDING TO PRODUCT TYPE 1 USING PRODUCT BASED APPROACH FOR SUPPLY CHAIN STRATEGY

DETERMINATION

2 SEPARATE CUSTOMISED AGILE PIPELINE FOR SPECIALISED GOODS

3 MASS CUSTOMIZATION

PILLAR:HIGH DEGREE OF TECHNOLOGICAL AND VIRTUAL SUPPORT FOR SUSTAINING MATERIAL AND INFORMATION FLOW IN SUPPLY CHAIN 1 VIRTUAL SHARING OF INFO. ACROSS SUPPLY CHAIN VIA E-BUSINESS & IT

ACCESSORIES

2 FOCUS ON TECHNOLOGY & INNOVATION


4 INTELLIGENT AND FAST REORER SYSTEMS

5 USE OF SEPARATE AGILE INTERACTIVE AI MODULES ALONGSIDE THE PRODUCTION CHAIN

PILLAR:HIGH LEVEL OF INTERCONNECTIVITY BETWEEN ALL SUPPLY CHAIN MEMBERS 1 PROCESS INTERCONNECTIVITY & INTEGRATION BETWEEN SUPPLY CHAIN

MEMBERS (HIGH LEVEL OF ORGANISATION)





PILLAR:HIGH ESTEEM FOR CUSTOMER REQUIREMENTS 1 PRIORITY OF CUSTOMER WHILE DECIDING ANY SUPPLY CHAIN STRATEGY


3 CUSTOMER AUDIT

PILLAR:HIGH DEGREE OF RELIANCE ON SUPPLIER CAPABILITY , FLEXIBILITY , ORGANISATION AND RANGE 1 ENHANCED AND LONG-TERM RELATIONSHIPS WITH SUPPLIERS

2 SUPPLIER EXPANSION IN PRODUCT DESIGN

3 FEATURE ALIGNMENT TO INTERNAL AND SUPPLIER CAPABILITIES

4 TEAM VISITS BY MANUFACTURER MEMBERS TO THE SUPPLIER TO RESOLVE

ISSUES



7 TIER SYSTEM OF SUPPLIERS

8 ON-SITE SUPPLIER

PILLAR:FOCUS ON EFFICIENCY AND EXTENT OF LOGISTICS NETWORK 1 LOGISTICS SPEED AND RELIABILITY

2 HIGH LOGISTICS RANGE (IN TERMS OF TRANSPORTATION MODES AND SPEEDS)

3 USE OF CONSOLIDATION POINTS AND MARSHALLING AREAS IN LOGISTICS /

TEMPORARY WAREHOUSE FLEXIBILITY

4 CONTROL OF DOCK TO DOCK TIME

5

USE OF UNITIZATION AND PACKAGING TO REDUCE LOGISTIC COMPLEXITY

PILLAR: FOLLOWING PRINCIPLES THAT INDUCE HIGH LEVELS OF SUPPLY CHAIN ECONOMY , BALANCE AND SPEED 1 FOCUS ON COMPETITION ADVANTAGE


3 USE OF JIT & PULL ACROSS THE SUPPLY CHAIN

4 COST REDUCTION ACROSS ALL SUPPLY CHAIN STAGES

5 NON-HEIRARCHICAL DISTRIBUTED CONTROL

6 COMPLEXITY REDUCTION THROUGH RESTRUCTURING

7 KAIZEN / CONTINUOUS IMPROVEMENT


9 BREAKING UP ORGANISATION INTO SELF SUSTAINING MODULES

PILLAR:PERFORMANCE MAPPING AND QUALITY MANAGEMENT FOCUS 1 RE-INFORCING PERFORMANCE MEASUREMENT SYSTEMS FOR SUPPLY CHAINS

2 QUALITY IMPROVEMENT MEASURE IMPLEMENTATION IN SUPPLY CHAIN

3 SUPPLIER APPRAISAL SYSTEMS

4 USE OF VALUE STREAM MAPPING AS AN EVALUATION TOOL FOR CHAIN


PILLAR:FOCUS ON RISK AND CRISIS MANAGEMENT 1 LARGE NO. OF SUPPLIERS USED FOR ALTERNATIVES IN CRISIS

2 STANDARDISED RISK MANAGEMENT MEASURES ACROSS CHAIN

3 PARTNER INTEGRATION INTO OEM SYSTEMS FOR CRISIS MGT.

4 REDUNDANCY IN ALL SYSTEMS ALONG THE CHAIN TO COVER FOR FAILURE OF

COMPONENT/SYSTEM

5 VULNERABILITY REDUCTION BY AGILITY CONTROL & LIMITATION

PILLAR:FOCUS ON PERFECTING OPERATIONAL ASPECTS OF A SUPPLY CHAIN 1 FOCUS ON NEW PRODUCT DESIGNS AND EXPANSION OF EXISTING PRODUCTS



4 DISTRIBUTION & DEALER ALLOCATION CONTROL ( BASED ON TARGET MIX &

VOLUME AS PER LOCATION)

5 PRODUCTION SCHEDULING AND BUILDING TO SCHEDULE



8 DIFFERENT PARTS/COMPONENTS SOURCED TO SAME SUPPLIER FOR GOOD LOAD MIX & FLEXIBILITY

9 SEPARATE STRATEGIES FOR BASE AND SURGE DEMAND

10 REVERSE LOGISTICS

11 ACTIVITY BASED COST MANAGEMENT ( ABM)

PILLAR:FOCUS ON EMPLOYEE IMPROVEMENT AND KNOWLEDGE MANAGEMENT 1 STRUCTURED APPROACH TO KNOWLEDGE MANAGEMENT & CATRALOGUING IN

SUPPLY CHAIN

2 COACHING FOR EMPLOYEE IMPROVEMENT ALL ACROSS CHAIN

3 INCREASED EMPLOYEE EMPOWERMENT

4 JOB ROTATION / WORKFORCE ASSIGNMENT FLEXIBILITY OF EMPLOYEES BETWEEN DEPARTMRNTS

PILLAR:GLOBAL REACH AND CAPABILITY OF GLOBAL EXPLOITATION OF THE CHAIN 1 OUTSOURCING OF PARTS

2 EXTENT OF GEOGRAPHIC COVERAGE OF SUPPLY CHAIN & DEGREE OF

EXPOSURE

PILLAR:STAGED TRANSITION INTO AN AGILE SUPPLY CHAIN POLICY 1 POSTPONEMENT/DECOUPLING

Thus in spite of the prime focus being on supply chain customization according to rapid market changes and changes in product types , even an agile supply chain cannot ignore the importance of high levels of integration among the various members of the chain and the importance of instilling the best operational practices throughout the chain.

FRAMEWORK DEVELOPMENT FOR LEAGILE SUPPLY CHAIN Often in their quest to turn agile from lean and adjust continuously to changing market conditions , organizations trade off process stability for flexibility . This can have serious consequences as such organizations tend to become vulnerable to the same changes in the market they were seeking to exploit. Hence the change to agile supply should be a gradual one for a lean manufacturing organization and process stability must not be sacrificed. This philosophy has led to a new form of supply chain – the le-agile chain , where elements of both lean and agile supply are used . Author Selection Fifteen authors who distinctly mentioned their articles to be le-agile or who dealt with both the lean and agile paradigms simultaneously and tried to strike a compromise between them were considered. The authors selected and their codes are as follows :-

Mohammed ,Shanker et al 2008 MDS Mason-Jones , Naylor et al 2000 MN Christopher ,Towill 2000 CT Mistry 2005 MIST Chris Morgan 2007 MOR Childerhouse , Towil 2000 CTO Van Hoek 2000 VAN Towill,Cristopher 2010 TOC Wee , Yang 2006 WY Sanderson , Cox 2008 SC Christopher, Peck et al 2006 CP1 Wikner , Tang 2008 WT Chan , Burns 2002 CB Lowson 2001 LOW Huang , Uppal et al 2002 HUU

Element Identification by Matrix Method Like in the previous two frameworks the elements and authors were listed in a matrix , and when an element was mentioned by an author , the respective element was marked with a “*” against the author code.

NO. ELEMENTS / AUTHORS -> MDS MN CT MIST TOTAL1 MARKET SENSITIVE APPROACH IN AGILE / QUICK

RESPONSE TO DEMAND (FULFIL MODEL) * * * * 12

2 VIRTUAL SHARING OF INFO. ACROSS SUPPLY CHAIN VIA E-BUSINESS & IT ACCESSORIES * * * *

11

3 POSTPONEMENT/DECOUPLING * * * 10 4 PRIORITY OF CUSTOMER WHILE DECIDING ANY

SUPPLY CHAIN STRATEGY * * * 10

5 FLEXIBILITY IN ALL SUPPLY CHAIN OPERATIONS * * * 10 6 PROCESS INTERCONNECTIVITY & INTEGRATION

BETWEEN SUPPLY CHAIN MEMBERS (HIGH LEVEL OF ORGANISATION) * * *

9

Final Element Selection All elements with 2 or more occurrences ( ie cited by 13.34 % of the authors or more) have been considered in making the framework . There were 59 elements which were judged crucial to the framework . All of the elements along with the number of authors who have cited them are listed below :-

1 MARKET SENSITIVE APPROACH IN AGILE / QUICK RESPONSE TO DEMAND (FULFIL MODEL) 12


3 POSTPONEMENT/DECOUPLING 104 PRIORITY OF CUSTOMER WHILE DECIDING ANY SUPPLY CHAIN STRATEGY 105 FLEXIBILITY IN ALL SUPPLY CHAIN OPERATIONS 10


7 COST REDUCTION ACROSS ALL SUPPLY CHAIN STAGES 98 REDUCTION OF LEAD TIME ACROSS THE CHAIN 99 QUALITY IMPROVEMENT MEASURE IMPLEMENTATION IN SUPPLY CHAIN 9

10 WASTE REDUCTION 911 MARKET ANALYSIS AND CLASSIFICATION 812 REDUCE INVENTORY @ ALL STAGES TO LOWER COST & WASTAGE 8

13 USING PRODUCT BASED APPROACH FOR SUPPLY CHAIN STRATEGY DETERMINATION 7


15 CONTINUOUS REPLENISHMENT FOR PRODUCTS WITH PREDICTABLE DEMAND 616 MAINTAIN SAFETY STOCK TO FULFIL SUDDEN DEMANDS 617 USE OF JIT & PULL ACROSS THE SUPPLY CHAIN 618 MASS CUSTOMIZATION 619 FORECAST BASED APPROACH (DEMAND FORECAST) 520 FOCUS ON PRODUCT DESIGN AND EXPANSION OF EXISTING PRODUCTS 521 FOCUS ON TECHNOLOGY & INNOVATION 522 FOCUS ON COMPETITION ADVANTAGE 523 ENHANCED AND LONG-TERM RELATIONSHIPS WITH SUPPLIERS 5

24 HIGH LOGISTICS RANGE (IN TERMS OF TRANSPORTATION MODES AND SPEEDS) 5

25 IMPROVEMENT OF DEGREE OF PLANT UTILISATION 526 ASSEMBLE TO ORDER MIXED FORECAST-DEMAND APPROACH 4

27 FIRM'S ABILITY TO THRIVE ON CHANGE / UNCERTAINTY IN MARKET CHOICE & DEMAND 4

28 USE OF VALUE STREAM MAPPING AS AN EVALUATION TOOL FOR CHAIN 429 CAPACITY REQUIREMENT PLANNING 430 MANUFACTURING RESOURCE PLANNING 431 USE OF MATERIAL REQUIREMENT PLAN 432 KAIZEN 433 OUTSOURCING OF PARTS 334 PIPELINE LEAD TIME COMMUNICATION TO ALL MEMBERS OF CHAIN 335 HIGH VOLUME PIPELINE MAINTENANCE FOR PRODUCTS WITH STABLE 3

DEMAND

36 ADJUSTMENT TO SPECIFIC BUSINESS ENVIRONMENT (INCLUDES CROSS BORDER VARIATION) 3

37 MAKE TO STOCK FORECAST APPROACH 338 MAKE TO ORDER FORECAST APPROACH 339 LOGISTICS SPEED AND RELIABILITY 340 BENCHMARKING & STANDARDISATION 341 PRODUCTION SCHEDULING AND BUILDING TO SCHEDULE 342 USE OF KANBAN 343 BATCH SIZE REDUCTION 344 INTERNAL & EXTERNAL COMBINED MIX IN SUPPLIER APPOINTMENT 345 SEPARATE CUSTOMISED AGILE PIPELINE FOR SPECIALISED GOODS 246 NETWORK BASED USE OF STRENGHTS OF SPECIALIST PLAYERS 2


48 USING SUITABLE COMBINATIONS OF TRANSFORM /RETRANSFORM TO FORECAST/ DEMAND(TTF/RTTF/TTD/RTTD) 2

49 HIGH AVAILABILITY & PERFORMANCE EFFICIENCY OF EQUIPMENT ( HIGH OVERALL EQUIPMENT EFFECTIVENESS) 2

50 LEVEL PRODUCTION (HEIJUNKA) 251 UNCERTAINTY IN FORECASTING 2

52 EXTENT OF GEOGRAPHIC COVERAGE OF SUPPLY CHAIN & DEGREE OF EXPOSURE 2

53 INCREASED EMPLOYEE EMPOWERMENT 254 SHARED AND OPEN INVENTORY MGT SYSTEMS 255 INVOLVING CUSTOMERS IN PRODUCT AND MERCHANDISE PLANNING 256 SETTING UP OF HORIZONTAL CROSS FUNCTIONAL TEAMS 257 ENCAPSULATING STANDARD OPTIONS INTO RE-USABLE MODULES 2


59 USE OF COMMON PARTS IN MULTIPLE DESIGNS 2 Thus , we can see that elements dealing with process stability and best practices as well as ones dealing with agile response to changing market conditions have been focused on . Quick response to market demand which is the true essence of agility has been cited as a constituent elements by the largest number of authors. This has been rightly done keeping in mind the fact that the ultimate goal of a le-agile chain is indeed to attain agility ( but not at the cost of lean practices). There are also unique elements in this framework which stress on the transformation point from lean to agile and also focus on various degrees of forecast techniques which can be used in the chain. Pillars of the Leagile Framework Based on the elements I have studied in the papers , I have identified 13 distinct pillars which support the leagile supply chain. These pillars are the broad spectrum aims which must be fundamentally fulfilled for successfully designing a leagile supply chain :-

1 PRODUCT AND DEMAND BASED SUPPLY STRATEGY DETERMINATION - LEAN OR AGILE

2 LEAN PRACTICES DRIVEN BY REDUCTION OF COST , WASTE AND LEAD TIME AS DRIVING FACTORS IN EARLY PHASE OF CHAIN

3 TAKING UP AGILE PRACTICES TO RESPOND TO MARKET DEMAND ONCE LEANNESS IS ESTABLISHED

4 FOCUS ON HIGH LEVELS OF ORGANISATION AND INFORMATION SHARING AMONG SUPPLY CHAIN MEMBERS

5 FOCUS ON EFFICIENT DISSEMINATION OF PRODUCTION PLANNING AND CONTROL ACTIVITIES

6 BALANCE BETWEEN VARYING DEGREES OF DEPENDANCY ON FORECAST 7 PRIME IMPORTANCE OF CUSTOMER

8 FOCUS ON SUITABLE SUPPLIER ORGANISATION AND EFFICIENT SUPPLIER RELATIONS

9 FOCUS ON LOGISTICS EFFICIENCY 10 FOCUS ON CRISIS MANAGEMENT 11 FOCUS ON INNOVATION AND COPMPETITIVE ADVANTAGE ACROSS THE GLOBE 12 FOCUS ON QUALITY AND PERFORMANCE MEASUREMENT 13 FOCUS ON EMPLOYEE CARE

Classification of the Elements Under the Pillars In this segment I have classified all the constituent elements under the pillars. The elements under each pillar contributes to fulfilling the ultimate goal of the particular aspect of the supply chain the pillar represents. PILLAR : PRODUCT AND DEMAND BASED SUPPLY STRATEGY DETERMINATION – AGILE OR LEAN 1 MARKET SENSITIVE APPROACH IN AGILE / QUICK RESPONSE TO DEMAND (FULFIL

MODEL)

2 POSTPONEMENT/DECOUPLING

3 MARKET ANALYSIS AND CLASSIFICATION

4 USING PRODUCT BASED APPROACH FOR SUPPLY CHAIN STRATEGY DETERMINATION

5 CONTINUOUS REPLENISHMENT FOR PRODUCTS WITH PREDICTABLE DEMAND

6 HIGH VOLUME PIPELINE MAINTENANCE FOR PRODUCTS WITH STABLE DEMAND

7 SEPARATE CUSTOMISED AGILE PIPELINE FOR SPECIALISED GOODS

PILLAR: LEAN PRATICES DRIVEN BY REDUCTION OF COST , WASTE ,LEAD TIME AS DRIVING FACTORS IN FIRST PHASE OF CHAIN 1 COST REDUCTION ACROSS ALL SUPPLY CHAIN STAGES


3 WASTE REDUCTION


5 USE OF JIT & PULL ACROSS THE SUPPLY CHAIN

6 KAIZEN

7 LEVEL PRODUCTION (HEIJUNKA)

PILLAR : TAKING UP OF AGILE PRACTICES TO RESPOND TO MARKET DEMAND ONCE LEANNESS IS ESTABLISHED 1 FLEXIBILITY IN ALL SUPPLY CHAIN OPERATIONS

2 MASS CUSTOMIZATION

3 HIGH LOGISTICS RANGE (IN TERMS OF TRANSPORTATION MODES AND SPEEDS)

4 FIRM'S ABILITY TO THRIVE ON CHANGE / UNCERTAINTY IN MARKET CHOICE &

DEMAND

5 ADJUSTMENT TO SPECIFIC BUSINESS ENVIRONMENT (INCLUDES CROSS BORDER VARIATION)

PILLAR : FOCUS ON HIGH LEVELS OF ORGANISATION AND INFORMATION SHARING AMONG THE SUPPLY CHAIN MEMBERS 1 VIRTUAL SHARING OF INFO. ACROSS SUPPLY CHAIN VIA E-BUSINESS & IT

ACCESSORIES

2 PROCESS INTERCONNECTIVITY & INTEGRATION BETWEEN SUPPLY CHAIN MEMBERS (HIGH LEVEL OF ORGANISATION)



5 USE OF KANBAN




PILLAR: FOCUS OF EFFICIENT DISSEMINATION OF PRODUCTION PLANNING AND CONTROL ACTIVITIES 1 FOCUS ON PRODUCT DESIGN AND EXPANSION OF EXISTING PRODUCTS

2 IMPROVEMENT OF DEGREE OF PLANT UTILISATION




6 PRODUCTION SCHEDULING AND BUILDING TO SCHEDULE


8 HIGH AVAILABILITY & PERFORMANCE EFFICIENCY OF EQUIPMENT ( HIGH OVERALL EQUIPMENT EFFECTIVENESS)

9 ENCAPSULATING STANDARD OPTIONS INTO RE-USABLE MODULES

10 USE OF COMMON PARTS IN MULTIPLE DESIGNS

PILLAR : BALANCE BETWEEN VARYING DEGREES OF DEPENDANCY ON FORECAST 1 FORECAST BASED APPROACH (DEMAND FORECAST)

2 ASSEMBLE TO ORDER MIXED FORECAST-DEMAND APPROACH

3 MAKE TO STOCK FORECAST APPROACH

4 MAKE TO ORDER FORECAST APPROACH

5 USING SUITABLE COMBINATIONS OF TRANSFORM /RETRANSFORM TO

FORECAST/ DEMAND(TTF/RTTF/TTD/RTTD)

6 UNCERTAINTY IN FORECASTING

PILLAR : PRIME IMPORTANCE OF CUSTOMER 1 PRIORITY OF CUSTOMER WHILE DECIDING ANY SUPPLY CHAIN STRATEGY


PILLAR : FOCUS ON SUITABLE SUPPLIER ORGANISATION AND ENHANCED SUPPLIER RELATIONS 1 ENHANCED AND LONG-TERM RELATIONSHIPS WITH SUPPLIERS



PILLAR: FOCUS ON LOGISTICS EFFICIENCY 1 LOGISTICS SPEED AND RELIABILITY

PILLAR: FOCUS ON CRISIS MANAGEMENT 1 MAINTAIN SAFETY STOCK TO FULFIL SUDDEN DEMANDS

PILLAR: FOCUS ON INNOVATION AND COMPETITIVE ADVANTAGE ACROSS THE GLOBE 1 FOCUS ON TECHNOLOGY & INNOVATION

2 FOCUS ON COMPETITION ADVANTAGE

3 OUTSOURCING OF PARTS

4 EXTENT OF GEOGRAPHIC COVERAGE OF SUPPLY CHAIN & DEGREE OF

EXPOSURE

PILLAR: FOCUS ON QUALITY AND PERFORMANCE MEASUREMENT 1 USE OF VALUE STREAM MAPPING AS AN EVALUATION TOOL FOR CHAIN


3 RE-INFORCING PERFORMANCE MEASUREMENT SYSTEMS FOR SUPPLY CHAINS

PILLARS : FOCUS ON EMPLOYEE CARE 1 INCREASED EMPLOYEE EMPOWERMENT

Thus even a leagile chain has to focus on the crucial aspects of high degree of chain integration and process improvement as it slowly tries to shift from a forecast based approach to a more demand based approach while maintaining process stability.

CONCLUSION Thus through this report , we have not only studied in detail all aspects of lean supply chain through both the case study of Toyota as well as the framework developed based on the journal review , but we also have developed frameworks for the more modern concepts in the domain of supply chain management – agile and le-agile. The importance of the latter two supply chain models cannot be underestimated from the context of organizations who are indulging in lean manufacturing. The most significant proof of the above claim can be found in the Toyota Supply Chain itself , where we find that the flexibility to deviate from certain dictates of the Toyota Way , if the market condition in the particular part of the globe demands so, without losing stability and efficiency is an important pillar in itself. And with increasing changes in the market and ever-shortening product life cycles , the prerogative is bound to change from cost being the market driver to product availability being the market driving agent. However, if one’s processes are not lean , if process stability and quality standards are not maintained and if costs are not competitive, even the first mover in the market cannot hold on to customer support for long after he has captured it. Hence , the thirty year-old concept of lean supply still forms the fundamental basis of supply chain management in lean manufacturing . Agile features can only be added as a fringe benefit which gives the supply network the competitive onus it needs.

ACKNOWLEDGEMENTS Foremost of all , I would like to extend my heartfelt gratitude to my project guide , Prof. Rambabu Kodali , for his continuous inspiration and guidance and valuable suggestions. I would also like to thank the Instruction Division and Mechanical Engineering Group of BITS , Pilani , for letting me work on this highly interesting project. Also , I would like to thank our library authorities for subscribing to and making available to our students such a fantastic collection of journals of varied spectra , without which this project would not have been possible. BIBLIOGRAPHY 1 > Toyota Supply Chain Management – by Ananth V. Iyer , Sridhar Seshadri and Roy Vasher. ( Mc. Graw Hill publications ) 2>Also the following journals were reviewed and studied during the framework development:- For development of lean framework :-

TITLE PUBLISHER AUTHORS YEARGREEN , LEAN AND GLOBAL SUPPLY CHAINS EMERALD Mollenkopf ,Stolze et al 2009LEAN SUPPLY CHAIN - FORD MOTOR CO. EMERALD Wee , Wu 2009LEAN PRODUCTION IN INTERNATIONAL SUPPLY CHAIN EMERALD David L Levy 1997SQUARING LEAN SUPPLY WITH SCM EMERALD Lamming 1996ORIGINS OF PROFITABILITY THROUGH JIT IN S.C EMERALD Mistry 2005LEAN PROCUREMENT- MODEL FOR SMALL & MEDIUM IND. EMERALD Wilson, Roy 2009ACQUIRING COMPETITIVE ADV BY SC INTEGRATION ( CHINA) EMERALD Liqun Du 2007INTEGRATION OF SC IT AND LEAN PRACTICES (BM OF PROD MFG.) EMERALD

Hong , Dobrzykowski et al 2010

STRUCTURE CONONDRUM IN SCM EMERALD Bhattacharya, Coleman et al 1996

IMPACT OF SCHEDULE STABILITY ON SC RESPONSIVENESS EMERALD Alan Harrison 1996ESTABLISHING FRAMEWORK FOR EFFECTIVE MAT. LOGISTICS MGT. EMERALD Naim , Towill 1994SCM AND SUPPLIERS' HRM PRACTICE EMERALD Othman , Ghani 2008USE SUPPLY RELATIONSHIPS TO DEVELOP LEAN,GREEN SUPPLIER EMERALD Simpson , Power 2005

MAKING OF LEAN AEROSPACE SUPPLY CHAINS EMERALD Michaels 1999LINKAGE BETWEEN SC INTEGRATION & MFG. IMPROVEM. EMERALD Cagliano , Caniato et al 2006BUSINESS TO BUSINESS ONLINE AUCTION (PURCHASING) EMERALD Emiliani 2000DEVELOPMENT OF LEAN SC - CATALAN PORK SECTOR EMERALD Perez , Castro et al 2010EFFICI VS. EFFECTIVENESS- CONSTRUCTION SC EMERALD Fearne, Fowler 2006ORG. LEARNING AND LEAN SUPPLY RELATIONS EMERALD Fynes , Ainamo 1998TEMPLATES OF CHANGE THROUGH SC RATIONALIZATION EMERALD Lee , Oakes 1996STRATEGIC DEV. OF LEAN AGRI-FOOD SC (US PORK SECT.) EMERALD Taylor 2006TOYOTA MOTOR MFG. IN EUROPE-LESSONS IN MGT. DEV EMERALD Winfield , Kerin 1996PERCEIVED ENVIRON. UNCERTAINTY & SC PURCHASE - FIN EMERALD Agbejule , Burrowes 2007VERTICAL INTEGRATION IN LEAN SC- BRAZIL AUTO INDUST. WILEY

Huallachain ,Wasserman 1999

VARIATIONS OF A LEAN THEME-WORK RESTRUCT. IN RETAIL DISTR. WILEY Wright , Lund 2006SUSTAINABLE OPERATIONS MGT. WILEY Kleindorfer,Singhal et al 2005SUSTAINABLE SUPPLY CHAIN MGT. & INTERORG. RESOURCES WILEY Gold , Seurig et al 2010TALENTED SUPPLIERS-STRAT. CHANGE & INNOV. - UK AERO IND. WILEY Smith , Tranfield 2005LEAN DISTRIBUTION-CONCEPTS,CONTRIBUTIONS,CONFLICTS TAYLOR Reichart , Holweg 2007SUPPORTING COLLABORATION IN DEV. OF LEAN SUPPLY TAYLOR Adamides et al 2008

For the development of the Agile framework :-

TITLE PUBLISHERS AUTHORS YEARA BALANCED APPROACH TO BUIDING AGILE SUPPLY CHAINS EMERALD Ismail , Sharifi 2006UNIFIED MODEL OF SC AGILITY- WORK DESIGN PERSPECTIVE EMERALD Li , Chung ,Goldby et al 2008INTERNATIONAL SC AGILITY-FLEXIBILITY AND UNCERTAINTY EMERALD Prater , Beihel et al 2001MEASURING AGILE CAPABILITIES OF SC - EUROPE INDUST. EMERALD

Van Hoek , Harrisson et al 2001

INTEGRATED MODEL FOR DESIGN OF AGILE SC EMERALD Christopher,Towill 2001AGILE SUPPLY CHAIN DESIGN THROUGH TRANSFORMATION MATRIX EMERALD

Baramichai , Zimmers et al 2007

FLEXIBILTY IN GLOBAL SC -MODELLING EMERALD Kumar,Shankar,Yadav 2008

THE ENABLERS PLAN OF SUPPLY CHAIN AGILITY AT NOKIA EMERALD Collin , Lorenzin 2006MEASURING SC AGILITY IN VIRTUAL ORGANIZATIONS EMERALD Weber 2002CHANGING PERSPECTIVE OF CAPABILITIES IN DYNAMIC SC ERA EMERALD Defee , Fugate 2010SCM-ROLE OF SUPPLIER ASSOCIATION EMERALD Rich , Hines 1997ITERATIVE APPROACH FOR DIST. CHAIN DES. IN AGILE ENVIROM. EMERALD Ma , Davidrajuh 2005STRATEG. DECISIONS IN SC INTELLIGENCE BY KNOWLEDGE MGT. EMERALD Raisinghani , Meade 2005THREE DIMENSIONS OF SUPPLY CHAIN RESPONSIVENESS EMERALD Holweg 2005AGILE AND DIVERSIFIED CHAIN- REDUCING OP. RISKS EMERALD Liu, Lin et al 2010CRITICAL SUCCESS FACTORS IN AGILE SCM EMERALD Power ,Sohal ,Rahman 2001EPILOGUE - MOVING FORWARD WITH AGILITY EMERALD Van Hoek 2001CONTINUOUS INPROVEMENT AND LEARNING IN SC EMERALD Hyland,Soosay,Sloan 2001CREATING AGILE SUPPLY CHAINS IN FASHION INDUSTRY EMERALD

Christopher ,Lowson,Peck 2004

FAST FASHIONING THE SUPPLY CHAIN - RESEARCH AGEN. EMERALD Barnes , Greenwood 2006SERVICE ORIENTED AGILE LOGISTIC CONTROL EMERALD Evers , Loeve et al 2000IMPROVING ELECTRONICS MFG. SC AGILITY BY OUTSOURC. EMERALD Mason, Cole et al 2002MANAGING COMPLEXITY IN AGILE GLOBAL FASHION IND. SC EMERALD Masson , Iosif et al 2007ANALYTIC PROCESS FOR PARTNER SELECTION -AGILE SC. TAYLOR Wu , Barnes et al 2009SUPPLY CHAIN IT AND ORGANISATIONAL INITIATIVES TAYLOR Vickery,Dorge et al 2010TARGET COSTING FOR SCM- ECONOMIC FRAMEWORK WILEY Smith , Lockamy 2000AI METHODS IN AGILE REFINING SPRINGER Srinivasan 2007MANAGING THE PRODUCT DESIGN-SUPPLY CHAIN INT'FACE EMERALD Khan , Creazza 2009EFFECTIVE QUICK RESPONSE PRAC. IN SC - AUS INDUSTRY EMERALD Perry ,Sohal 2001ACHIEVING AGILITY IN SC THROUGH SIMUL. DESIGN OF AND FOR EMERALD Sharifi ,Ismail et al 2005

For the development of the Le-agile framework :

TITLE PUBLISHER AUTHOR YEARCREATING FLEX. LE-AGILE VALUE CHAIN BY OUTSOURCING EMERALD

Mohammed ,Shanker et al 2008

ENGINEERING THE LE-AGILE SUPPLY CHAIN EMERALD

Mason-Jones , Naylor et al 2000

SC MIGRATION FROM LEAN AND FUNC. TO AGILE & CUSTOMISED EMERALD Christopher ,Towill 2000SCM - CASE STUDY OF LEAN AND AGILE MODELS EMERALD Mistry 2005SUPPLY NETWORK PERFORMANCE MEASURES- FUTURE CHALLENGE EMERALD Chris Morgan 2007ENGINEERING SC TO MATCH CUSTOMER DEMANDS EMERALD Childerhouse , Towil 2000THESIS OF LE-AGILITY RE-VISITED EMERALD Van Hoek 2000SUPPLY CHAIN CONONDRUM - LEAN OR AGILE TAYLOR Towill,Cristopher 2010MUTUAL PRICING STRATEGY OF INTEGRATED VENDOR-BUYER SYS. SPRING.. Wee , Yang 2006CHALLENGES OF SC SELECTION IN PROJECT ENVIRONMENT EMERALD Sanderson , Cox 2008TAXONOMY FOR SELECT. GLOBAL SUPPLY CHAIN STRA. EMERALD Christopher, Peck et al 2006STRUCTURAL FRAMEWORK FOR CLOSE-LOOP SUPPLY CHAINS EMERALD Wikner , Tang 2008BENCHMARKING MPC - HONG KONG SUPPLY CHAINS EMERALD Chan , Burns 2002RETAIL OPERATIONAL STRATEGIES IN COMPLEX SUPPLY CHAINS EMERALD Lowson 2001A PRODUCT DRIVEN APPROACH TO MFG. SC SELECTION EMERALD Huang , Uppal et al 2002

Final Report - ME C491

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