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Copy of Lean and Agile Supply Chain

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Angel Garrorena

on 11 May 2013

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Transcript of Copy of Lean and Agile Supply Chain

Lean and Agile Supply Chain
Wings & Legs The Poultry Supply Chain PRESENTING THE PROBLEM The Company Wings & Legs is a poultry processor in the Netherlands The Production Process Current situation:

Type of products increased: 100 to 450 products.

Poultry -commodity product -low profit margins.

Recent animal disease - quality -a winning factor. The Problem Delivery performance has decreased.
Retailers dissatisfied with the quality of products they receive.
Freshness and weight are many times do not comply with the specifications. The Actors The Company: Sales Manager, Operations and Purchase Manager, General manager.
The Retailers
The Customers
The Broilers
Other process companies.
The Hatcheries. THE SUPPLY CHAIN CHARACTERISTICS Current issue:
Demand is unpredictable .
The product is perishable.
Low turnaround and long lead times. Strongly interconnected processes. Minimal buffering possibilities. High quality specifications (Food Safety) Other suppliers can be found. Buying from other processors. Going Further High Demand uncertainty. Low flexibility Big upstream lead times. Limited buffering. The need of responsiveness. Quality standards. THE QUESTION The Market “The endless transformation of waste into value from the customer’s perspective” (Christopher,M. 2011)

“The term lean thinking refers to the elimination of waste in all aspects of a business” (Harrison, A. and van Hoek, R. 2011) "The ability to respond rapidly to unpredictable changes in demand." (Christopher,M. 2011)

"Agility is all about flexibility, response time, small production runs, minimum order quantities and the ability to shift direction as the trends move" (Harrison, A. and van Hoek, R. 2011) Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000) Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000) Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000)
Source: (ABKL Design)
Source: (Illustrations Of) Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000) Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000) Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000)
Source: (Google images) Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000) Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000) LEAN -Christopher, M. (2011) Logistics & Supply Chain Management, FT Prentice Hall, Harlow, UK. -Harrison, A. and van Hoek, R. (2011), Logistics Management and Strategy: Competing through the Supply Chain, 4th edition, Harlow, FT Prentice Hall. REFERENCES AGILE -Van Dijk, S. van der Vorst, J. and Beulens, A. (2000) Case Study: Chicken Run - The Poultry Supply Chain. OR ? Let's see what's the experts opinion... Source: (Christopher,M. 2011) 1. Specify what creates value from the customer perspective.
2. Identify all the steps across the whole value stream.
3. Makes those actions that create value flow eliminate the root causes of waste.
4. Go to the pace of customer demand – create pull where flow is difficult.
5. Strive for perfection by continually removing successive layers of waste.

Source:(Christopher,M. 2011) LEAN OR AGILE? Source: (YouTube, John Gattorna) "You need both for a well working supply chain" 1. Synchronize activities through shared information.
2. Work smarter, nor harder.
3. Partner with suppliers to reduce in-bound lead times.
4. Seek to reduce complexity.
5. Postpone the final configuration/assembly/distribution of products.
6. Manage processes not just functions
7. Utilise appropriate performance metrics.

Source:(Christopher,M. 2011) "The goal of a Hybrid (or Leagile) strategy should be to build an agile response upon a lean platform by seeking to follow lean principles up to the de-coupling point and agile practices after that point" (Christopher, M. 2011)

"Hybrid solutions require the supply chain to be ‘de-coupled’ through holding strategic inventory in some generic or unfinished form, with final configuration being completed rapidly once the real demand is known." (Christopher, M. 2011) HYBRID LEAGILE Five Lean Principles Seven Agile Principles: Source: (Christopher,M. 2011) Source: (Christopher,M. 2011) "The decoupling point is a standard term given to the position in the material pipeline where the product flow changes from “push” to “pull”." -Rachel Mason-Jones and Denis R. Towill, Using the Information Decoupling Point to Improve Supply Chain Performance, , Cardiff University, Volume 10, Number 2 1999 Source: (Mason-Jones and Denis R. 1999) -Naylor et al. (1999), Mason-Jones et al. (200a), Ohanger (2003), Bruce et al. (2004) -Professor Denis R. Towill, FREng, Decoupling for supply chain competitiveness, IEE Manufacturing Engineer, February/March 2005 Source: (Denis R. 2005) THE ANSWER THE STARTING POINT Focus on Leanness and Efficiency to respond to the need of low Costs (low profit margin) and Quality. Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000) THE NEED Responsiveness based on the requisite of product availability (smaller relative shelf-space) and the large product assortment. Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000) HYBRID (LEAGILE) Source: (Clip Art Today. Unknown & Garden Services. Unknown) Clip Art Today, different clip art pictures, viewed the 18 of february, <http://www.clipartoday.com/_thumbs/016/chicken_tnb.png>

Garden Services, different clip art pictures, viewed the 18 of february,
<http://www.garden-services.com/gallery/garden_clipart/images/chicken_eggs.jpg> "The furthest point to which information on real final demand penetrates the supply chain." INFORMATION DE-COUPLING POINT Images: Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000) Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000) Texts: Flexibility in responding to demand change. BENEFITS Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000) Common platforms, components and modules are needed. Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000) Source: (Stephan van Dijk, Jack van der Vorst and Adrie Beulens, 2000) CONCLUSION Source: (Christopher, 2011) Lean or Agile? WHY NOT BOTH? But How do we achieve this? Relationships Information Understanding Risks Techniques and Tools THANK YOUR FOR YOUR TIME MATERIAL DE-COUPLING POINT "Point up to which strategic inventory is held in as generic as possible." Logistics
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