Agile or lean? High “Lean” works best in high volume, low

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Presentation transcript:

Agile or lean? High “Lean” works best in high volume, low variety and predictable environments. “Agility” is needed in less predictable environments where the demand for variety is high. AGILE Variety/Variability LEAN Low Low High Volume per variant

Generic supply chain strategies Supply characteristics Long lead times Hybrid De-couple through postponement Lean Plan and optimise Short lead times Kanban Continuous replenishment Agile Quick Response Predictable Unpredictable Demand characteristics

Lean Agile The decoupling point Forecast at generic level Economic batch quantities Maximise efficiencies Demand driven Localised Configuration Maximise effectiveness Strategic Inventory

Route map to the responsive business Economies of scale Waste reduction Quick response Agile supply Vendor managed inventory Synchronized production Lean production De-couple the supply chain Flexible response Visibility of real demand Demand driven The Responsive Business Organisational agility Process management Cross-functional teams Continuous replenishment programmes Non-value-adding time reduction Setup time reduction Standardization/ modularization Capacity management Process re-engineering