Evaluation of Leanness, Agility and Leagility Extent in Industrial Supply Chain

Abstract

The focus of Lean Manufacturing (LM) is the cost reduction by eliminating non value added activities (waste i.e. muda) and enabling continuous improvement; whereas, Agile Manufacturing (AM) is an approach which is mainly focused on satisfying the needs of customers while maintaining high standards of quality and controlling the overall costs involved in the production of a particular product. This approach has geared towards companies working in a highly turbulent as well as competitive business environment, where small variations in performance and product delivery can make a huge difference in the long term to a company’s survival and reputation amongst the customers. Leagility is basically the aggregation of lean and agile principles within a total supply chain strategy by effectively positioning the decoupling point, consequently to best suit
the need for quick responding to a volatile demand downstream yet providing a level scheduling upstream from the marketplace. A leagile system adapts the characteristics of both lean and agile systems, acting together in order to exploit market opportunities in
a cost-efficient way. The present research aims to highlight how these lean, agile as well as leagile
paradigms may be adapted according to particular marketplace requirements. Obviously, these strategies are distinctly different, since in the first case, the market
winner is cost; whereas, in the second case, the market winner is the availability. Agile supply chains are required to be market sensitive and hence nimble. This means that the definition of waste is different from that appropriate to lean supply. The proper location of
decoupling point for material flow and information flow enables a hybrid supply chain to be better engineered. This encourages lean (efficient) supply upstream and agile (effective) supply downstream, thus bringing together the best of both paradigms. While implementing leanness/agility/leagility philosophy in industrial supply chain in appropriate situations, estimation of a unique quantitative performance metric (evaluation index) is felt indeed necessary. Such an index can help the industries to examine existing performance level of leanness/agility/leagility driven supply chain; to
compare ongoing performance extent to thedesired/expected one and to benchmark best practices of lean/agile/leagile manufacturing/supply chain, wherever applicable.
The present research attempts to assess the extent of leanness, agility as well as leagility, respectively, for an organizational supply chain using fuzzy/grey based Multi- Criteria Decision Making (MCDM) approaches. During this research, different.