Supply Chain Management - Lean and Agile Manufacturing - Collaborative Commerce

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Supply Chain Management- Lean and Agile
Manufacturing- Collaborative Commerce

• Seoul National University
• Manufacturing Automation Integration Lab.
• 2001.2.2
• Bumsoo Kim

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Contents

• Introduction
• Supply chain dynamics and optimization
• Bullwhip effect
• Lean and agile manufacturing
• Integrating the lean and agile manufacturing
  paradigms in the total supply chain
• Agile supply chain
• Total cycle time compression and the agile supply
  chain

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Contents
Supply chain dynamics Bullwhip Effect
Material delay Information delay
Linear nonlinear supply chain
Lean and agile manufacturing
ERP II
Agile Supply Chain
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IntroductionSupply chain dynamics and
optimization

• Integrated Manufacturing Systems 11/5 2000
  348-364
• Robert de Souza, Song Zice, Liu Chaoyang
• Nanyang Technological University Singapore
• Contents
• Simulation model
• Performance indicator
• Echelon cost, total cost, dynamics of inventory,
  dynamics of order
• Analysis of the supply chain dynamics
• Coordination in supply chain management
• Decentralized coordination model

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IntroductionBullwhip Effect

• Dynamics of order
• Dynamics of inventory

• Reorder
• Capacity constraint
• Information delay
• Material delay
• Poor coordination
• Forecast
• Batching

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Leagility Integrating the lean and agile
manufacturing paradigms in the total supply chain

• Int. J. Production Economics 62 (1999) 107-118
• J. Ben Naylora,, Mohamed M Naima, Danny Berryb
• a Logistics Systems Dynamics Group, Department of
  Maritime Studies and International transport,
  University of Wales Cardiff
• B Formerly Logistics Systems Dynamics Group, now
  Hewlett Packard

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Paradigm definitions

• Agility
• Agility means using market knowledge and a
  virtual corporation to exploit profitable
  opportunities in a volatile market.
• Leanness
• Leanness means developing a value stream to
  eliminate all waste, including time, and to
  ensure a level schedule.
• Decoupling point
• Decoupling point separates the part of the
  organization oriented towards customer orders
  from the part of the organization based on
  planning
• Buffer stock, stock holding point
• It depends on longest lead time an end-user is
  prepared to tolerate and the point at which
  variability in product demand dominates.

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Characteristics of paradigms

• Use of market knowledge
• All business in any supply chain must focus on
  the end-user.
• Integrated supply chain
• The coal of an integrated supply chin is to
  remove all boundaries to ease the flow of
  material, cash, resources and information
• Lead time compression
• muda

Eliminate Information Delay
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Positioning of decoupling point

Forecasting ? Kanban
V
I
T
I
A
Agile Manufacturing Robustness/ Satisfying a
Fluctuating Demand
Decoupling Point Postponement
Lean Manufacturing Smooth Demand/ Level
Scheduling
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PC Supply chain case

Assemble to Order
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Total cycle time compressionand the agile supply
chain

• Int. J. Production Economics 62 (1999) 61-73
• Rachel Mason-Jones, Denis R. Towill
• LSDG, MASTS Cardiff University

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Paradigm definitions

• TCT(Total Cycle Time) Compression
• Definition
• The elapsed time between customer enquiry and
  customer need being met. (Philip Thomas)
• TBM(Time Based Management. BCG)
• Reducing TCT
• Slashing material flow lead time
• Slashing information flow lead time
• Pursuit of the Zeros
• Zero Waste Time, materials, labor, capacity,
  computing power, management effort, total cycle
  time, information flow
• BSE(Business Systems Engineering. Watson)
• Understand ? Document ? Simplify ? Optimize

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Paradigm definitions

• Information enriched supply chain

Information is power
Electronic Point of Sales Link
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References

• Quantitative models for supply chain management,
  edited by Sridhar Tayur, Ram Ganeshan and Michael
  Magazine., Kluwer Academic Publishers, 1999
• Robert de Souza et al. Supply chain dynamics and
  optimization. Integrated Manufacturing Systems
  200011/5348-364
• J. Ben Naylor, Mohamed M. Naim, Danny Berry.
  Leagility Integrating the lean and agile
  manufacturing paradigms in the total supply
  chain. Int. J. Production Economics 62 (1999)
  107-118
• Rachel Mason-Jones, Denis R. Towill. Total cycle
  time compressionand the agile supply chain. Int.
  J. Production Economics 62 (1999) 61-73