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Achieving lean supply through agile manufacturing

Achieving lean supply through agile manufacturing Drawing on results from supply chain modelling and dynamic simulation, presents four material flow principles which can be employed to reduce the bullwhip effect. A case study from the precision mechanical engineering sector is employed to illustrate the effect of rapid response manufacturing and supply chain integration. Analysis of six years of time-series data indicates bullwhip reduction of up to 58 per cent. These results serve to validate the four material flow principles of selecting appropriate control systems, time-compression, information transparency, and echelon elimination. They also raise interesting questions concerning the relationship between manufacturing agility and lean supply. For, by attenuating bullwhip the studied company was able to reduce their global inventory by 45 per cent. Thus, by viewing manufacturing in the context of the supply chain as a whole, it is possible to see how agile manufacturing can eliminate sources of variability induced waste; particularly inventory. In this way it is argued that agile manufacturing can subsume the paradigm of lean production. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Integrated Manufacturing Systems Emerald Publishing

Achieving lean supply through agile manufacturing

Integrated Manufacturing Systems , Volume 12 (7): 10 – Dec 1, 2001

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References (23)

Publisher
Emerald Publishing
Copyright
Copyright © 2001 MCB UP Ltd. All rights reserved.
ISSN
0957-6061
DOI
10.1108/EUM0000000006232
Publisher site
See Article on Publisher Site

Abstract

Drawing on results from supply chain modelling and dynamic simulation, presents four material flow principles which can be employed to reduce the bullwhip effect. A case study from the precision mechanical engineering sector is employed to illustrate the effect of rapid response manufacturing and supply chain integration. Analysis of six years of time-series data indicates bullwhip reduction of up to 58 per cent. These results serve to validate the four material flow principles of selecting appropriate control systems, time-compression, information transparency, and echelon elimination. They also raise interesting questions concerning the relationship between manufacturing agility and lean supply. For, by attenuating bullwhip the studied company was able to reduce their global inventory by 45 per cent. Thus, by viewing manufacturing in the context of the supply chain as a whole, it is possible to see how agile manufacturing can eliminate sources of variability induced waste; particularly inventory. In this way it is argued that agile manufacturing can subsume the paradigm of lean production.

Journal

Integrated Manufacturing SystemsEmerald Publishing

Published: Dec 1, 2001

Keywords: Supply chain; Integration; Globalization; Engineering

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