Lean And Agile Outcome 3 Essay

Submitted By Adele021
Words: 518
Pages: 3

Lean and Agile
Outcome 3

There can be many economic benefits gained through the implementation of Lean and Agile within a supply chain. This approach is combined with the long term supply chain strategy where the main focus is placed upon flexibility and responsiveness. There is greater improved visual management within the organisation as any areas of defect can be identified quickly which allows for increased manufacturing support on supply chain management decisions. A culture of adaptiveness and reliability is created as we can aim to streamline the amount of people needed to complete standardised work. Which can further increase efficiencies by enhancing the skill set of these freed up people and using them to maintain the implementation of lean and agile. These will bring about a growth in market share as processes are redefined to deliver better value to customers. Lean production requires keeping far less than half the needed inventory on site, resulting in fewer defects, while being able to produce a greater and ever-growing variety of product. http://www.pomsmeetings.org/ConfProceedings/002/POMS_CD/Browse%20This%20CD/PAPERS/002-0046.pdf (Comparing Lean and Agile logistics Strategies, Thammasat Business School, Thammasat University) http://smallbusiness.chron.com/similarities-between-lean-agile-manufacturing-70619.html (The Similarities between Lean and Agile Manufacturing, David Ingram, Demand Media)
Within the Agile environment huge importance is placed on quality and cost control. Products are rigorously tested throughout all stages of the life cycle to detect and adjust early issues in production. Controlling the cost of manufacturing encourages active involvement with all components of the supply chain and can help towards improving the overall production process. To ensure there is high visibility present of products and production process, all aspects of the supply chain collaborate and become actively involved in creating and maintaining positive working relationships. Therefore, it is essential to use continuous improvement to change and improve working methods. As it makes it easier for organisations to effectively manage expectations and respond appropriately to change. This creates a culture of flexibility as customer demand is more likely