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Developing Lean and Agile Supply Chains in the UK Housebuilding Industry

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The paper presents the concept of 'leagility'. Building on lean and agile literature, the paper describes the similarities and differences between these concepts and the application of each paradigm within the context of the total supply chain. Particular attention is paid to the notion of the 'decoupling point', which determines the location within the supply chain at which a product is customised. Using examples from various industries, the potential for the application of 'leagility' in housebuilding is described, as well as the barriers to its introduction in the UK.
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Developing Lean and Agile Supply Chains in the UK Housebuilding Industry
Proceedings IGLC-7 159
DEVELOPING LEAN AND AGILE SUPPLY CHAINS IN
THE UK HOUSEBUILDING INDUSTRY
M. Naim1, J. Naylor2, and J. Barlow3
ABSTRACT
The paper presents the concept of leagility. Building on lean and agile literature, the paper
describes the similarities and differences between these concepts and the application of each
paradigm within the context of the total supply chain. Particular attention is paid to the notion
of the decoupling point, which determines the location within the supply chain at which a
product is customised. Using examples from various industries, the potential for the
application of leagilityin housebuilding is described, as well as the barriers to its
introduction in the UK.
KEY WORDS
Supply chain, process orientation, lean thinking, agile construction, housebuilding.
1 Corresponding author: NaimMM@cardiff.ac.ukTel: +44 (0)1222-874271 Fax: +44
(0)1222-874301Logistics Systems Dynamics Group, Department of Maritime Studies
and International Transport, Cardiff University, P.O. Box 907, Cardiff, CF1 3YP.
2 Formally LSDG, Cardiff, now Unipart UK.
3 SPRU, University of Sussex, Brighton, BN1 9RF, j.g.barlow@sussex.ac.ukTel: +44
(0)1273-877166 Fax: +44 (0)1273 685865.
Naim, Naylor, and Barlow
160 26-28 July 1999, University of California, Berkeley, CA, USA
INTRODUCTION
There has been considerable interest in the construction industry in the concepts associated
with lean thinking(Womack and Jones 1996). As a paradigm, and with its associated tools,
methods and techniques, this has generated a wake up callto an industry famous for its lack
of innovation and poor performance. More recently, notions of agilityhave developed in
both manufacturing and construction. A number of authors have noted that agility supersedes
leanness, as the latter is either insufficient to meet the ever changing requirements of a
dynamic market place (Booth 1996, Ward 1994) or is merely just a characteristic of agility
(Christopher 1999).
It is often presumed that the introduction of a new paradigm means that previous ones are
superseded. The danger with this attitude is that without careful consideration of the benefits
of each paradigm, important lessons regarding their successes and failures will be lost. In
particular it is important to consider which paradigm is best for a particular business in terms
of its supply chain characteristics.
Drawing on research carried out for a major project which is developing and
demonstrating customer focused approaches to housing supply4, and work on lean and agile
thinking that originally appeared as separate articles (Naylor et al. 1997, 1999, Barlow 1998,
1999), the paper describes the notion of leagilityand the potential for its application in the
UK housebuilding industry.
LEAN AND AGILE PARADIGMS
When discussing newparadigms it is important to examine the concepts as given by the
definitions and subsequent explanations, rather than the terms themselves. Naylor et al.
(1997, 1999) discuss the commonalties and differences between leanness and agility within a
supply chain context from a generic perspective and give the following definitions:
Agility means using market knowledge and a virtual corporation to exploit
profitable opportunities in a volatile market place.
Leanness means developing a value stream to eliminate waste, including time,
and to ensure a level schedule.
These definitions were developed from close scrutiny of the literature and must also be read
within the context of the total supply chain. Only in this way will it be possible not only to
differentiate between the two paradigms but also to examine their complementary nature. We
therefore need an adequate definition of a supply chain. One that the authors has found most
fitting is that by Stevens (1989) as it adopts a systems approach. This implies gestalt– the
idea that the whole is greater than the sum of the individual parts as advocated by one of the
great UK pioneers in material flow management (Burbidge 1983).
4 Meeting Customer Needs Through Standardisation. The sponsorship of the EPSRC and
DETR, and the time and effort made available by the industrial partners is gratefully
acknowledged. Thanks are also due to our are research colleagues on the project, David
Gann, Severine Hong-Minh, Ralph Barker and Ritsuko Ozaki.
Developing Lean and Agile Supply Chains in the UK Housebuilding Industry
Proceedings IGLC-7 161
A supply chain is a system whose constituent parts include material suppliers,
production facilities, distribution services and customers linked together via a
feedforward flow of materials, a feedback flow of information and flows of cash
and resources (Stevens 1987)
The definitions may be expanded to include other constituent flows such as the feedback
flow of cash and the two-way flow (in theory) of resources, including human resource and
equipment (Naim 1997). To close the loop from the supply chain definition back to the lean
and agile paradigm definitions we also need to consider the decouplingpoint.
The decoupling point separates the part of the supply chain oriented towards
customer orders from the part of the supply chain based on planning (Hoekstra
and Romme 1992)
As we will see, the decoupling point is the strategic stock that separates the demand side of
the supply chain (focused on delivery to the end customer) from the supply side (based on
logistics planning). The decoupling point is an important element in designing the supply
chain so that we may ensure total valueis delivered to the end customer. Total value may
be defined as delivering a product of the highest possible quality, with the best possible
service, in the shortest possible time and the lowest possible cost (Johansson et al. 1993).
Total value may be expanded to include health, safety and the environment (Evans et al.
1997).
Both Naylor et al. (1997, 1999) and Barlow (1998) have indicated the similarities
between the lean and agile paradigms. A useful way to relate the lean and agile paradigms is
to consider their delivery of total value. Table 1 highlights the difference in relative emphasis
of each paradigm. This view of value delivery by Naylor et al. concurs with that of Barlow
who states that agile production introduces an added degree of customer focus.
A number of key characteristics of the two paradigms have also been identified by Naylor
et al. based on a comprehensive review of the available literature5. These characteristics are
listed in Table 2 and have again been rated according to the emphasis placed on them by each
paradigm. The first three characteristics are the cornerstones for both paradigms while the
latter four are those that differentiate the two paradigms. Both paradigms pay particular
attention to the need to develop an integrated, seamless supply chain, where players act as a
virtual enterprise. Thus, the seamless supply chain is focused on delivering value to the end-
customer so there is the need to obtain accurate market knowledge and transfer that
information to all supply chain members, who are synchronised to meet the customers
needs.
5 Steven (1989), Womack et al. (1990), Grunwald and Fortuin (1992), Stalk and Weber
(1993), Goldman et al. (1994), Hayes and Pisano (1994), Harrison (1995), Kidd (1995),
Womack and Jones (1996), Anon (1997), Evans et al. (1997), Mason-Jones and Towill
(1997), Towill (1997).
Naim, Naylor, and Barlow
162 26-28 July 1999, University of California, Berkeley, CA, USA
Table 1: Rating the importance of the different metrics for leanness and agility
(Naylor et al. 1997, 1999)
mmm = Key metric, mm = Secondary metric, m = Arbitrary metric
Metric Agile Lean
Lead Time mmm mmm
Service mmm mm
Costs mm mmm
Quality mmm mmm
Table 2: Rating the importance of different characteristics of leanness and agility
(Naylor et al. 1997, 1999)
mmm = Key metric, mm = Secondary metric, m = Arbitrary metric
Keyword Lean Agile
Use of market knowledge mmm mmm
Visual Corporation / Value Stream//
Integrated Supply Chain mmm mmm
Lead Time Compression mmm mmm
Eliminate Muda mmm mm
Rapid Reconfiguration mm mmm
Robustness m mmm
Smooth Demand / Level Scheduling mmm m
Developing Lean and Agile Supply Chains in the UK Housebuilding Industry
Proceedings IGLC-7 163
Another important element for both paradigms is time compression, although the motivation
behind this differs slightly. Lean production emphasises the need for waste elimination, or
muda to use the Japanese term. Thus, all activities that do not add value to a product or
service are eliminated and even those that do add value are compressed or undertaken in
parallel. Agility also calls for time compression in material and information flows, but with
the focus on improving the responsiveness (and rapid reconfiguration) of a business process.
The main difference between the two paradigms is the ability to cope with uncertainty,
including variations in production volume and the degree of product variety required. Figure
1 indicates the suitability of each paradigm to cope with such uncertainty. The lighter areas
indicate that agile production is more suitable as a solution, while the darker areas indicate
that lean production is more suitable.
Agile businesses may be seen as more robust, and hence flexible, than lean ones. Such
businesses are able to respond to variations and disturbances. This is in direct contrast to the
requirements of a lean business for stability. Moreover, by its very nature a lean business
ensures that stability is attained by implementing suitably simple and optimum process and
procedures (Naim 1997). Stability is achieved by making use of market knowledge and
information and long term forward planning.
Demand for Variety
of Products
Demand for Variability
in Production
High
Low
Low High
Agility
Leanness
Figure 1: Applications of leanness and agility (Naylor et al. 1997, 1999)
HOUSEBUILDING, LEANNESS, AND AGILITY
The UK suffers from both a quantitative and qualitative gap in new housing supply. Not only
is insufficient new housing built annually for current and future housing needs, but there is
widespread public dissatisfaction with the performance of housebuilders in providing
products which customers want to buy (Barlow and Gann 1999).
Most house builders have a keen sense of costs but an under-developed understanding of
value. In speculative housing development, the selling price is derived from what the market
Naim, Naylor, and Barlow
164 26-28 July 1999, University of California, Berkeley, CA, USA
will bear, based on the cost of production and land, together with expected profits. In
contrast, producers in other highly competitive consumer goods industries are forced to
innovate to reduce production costs below selling prices in order to achieve profitability.
They also develop new products in order to differentiate themselves in the market place.
Speculative housebuilders usually build to stock, designing properties before customers are
found. They generally use standard housing types which can be modified to provide cosmetic
choices for customers. There is little differentiation between these producers other than their
ability to access land more effectively than their competitors. Nevertheless, research suggests
that more than 83% of homebuyers would like to be offered greater choice over the initial
design of their homes6.
Unlike other sectors of the construction industry which have sought to capture customer
requirements more effectively (Anumba et al. 1996, Dulami et al. 1996), housebuilders have
made little effort in this direction. One view commonly expressed by housebuilders is that
customers do not necessarily know what they want. Their perception is that the majority of
customers prefer to purchase new housing which they believe will be easy to sell later, rather
than making customised choices which may detract from the perceived value of their
investment.
Another problem is that in the case of social housing provision, the immediate customer
– the social housing landlord – is not the same as the end-user, the tenant. Social housing
landlords may aim to fulfil the functional needs of tenants as closely as possible, if only to
minimise complaints. However, as the provider and owner of the dwelling they also have
requirements, which may be at variance to their tenantsimmediate needs. Concern over the
immediate cost of production, given the limited availability of government funding for this
type of housing, may impact on building and space standards. Increasingly, though, social
housing landlords are considering the lifetime costs of the dwelling when preparing a new
project, which implies a different set of construction criteria primarily relating to
maintenance and energy costs.
Despite these genericproblems, to some extent faced by housebuilding industries in all
countries, there have been a number of attempts to introduce lessons from lean production.
Generally, business process modelling has been a precursor to the elimination of non-value
added activities and supply chain management programmes which are designed to lead to
time compression and reduced total costs (Evans et al. 1997, Melles and Welling 1996,
Horman et al 1997, Birke 1998). The Japanese approach has been extensively documented
(Gann 1996). An oft-cited example from the USA is that of Doyle Wilson (Womack and
Jones 1996).
SUPPLY CHAINS AND THE DECOUPLING POINT
The potential for applying lean and agile production in housebuilding should not involve the
implementation of one approach at the expense of the other. There is a need for a careful
consideration and application of both paradigms within the total housebuilding supply chain.
Figure 2 shows various potential strategies that may be applied to the supply chain. By
6 The survey of 1000 people was carried out by 2000 Homes at the 1998 Evening Standard
Home Buyers Show.
Developing Lean and Agile Supply Chains in the UK Housebuilding Industry
Proceedings IGLC-7 165
viewing the supply chain as a whole it is possible to determine the most suitable paradigm for
a particular business and to develop a leagilesupply chain (Naylor et al. 1997, 1999).
The decoupling point plays an important role in defining the leagile supply chain. In
manufacturing it is commonly associated with the strategic stock that buffers the supply
chain from changes in customer demand, in terms of both volume and variety. Associated
with the decoupling point is the issue of postponement and late configuration. As seen in
Figure 2, there are two extreme positions. The first is the buy to ordersupply chain in
which the product is configured from the outset, that is, from raw materials. In this supply
chain all businesses are agile and all respond to changing customer requirements. This supply
chain works well as long as the customer is willing to accept long lead-times. The other
extreme is the ship to stockstructure in which a standard product is provided from a
defined range. Although lead-times are very short (or off the shelf), the danger of
obsolescence has to be considered.
Pull Buy to order
Pull Make to Stock
Pull Assemble to order
Pull Make to order
Pull Ship to stock
Raw Material
Supplier Manufacturers/
Assemblers Retailer End-Users
MATERIAL MATERIAL MATERIAL
A Stockholding Decoupling Point
Figure 2: Family of supply chain structures (Hoekstra and Romme 1992)
The issue then arises as to whether or not it is possible to have the best of both worlds
short customer delivery lead-times and low obsolescence risk. The aim is to configure the
product as late as possible to allow a considerable element of flexibility and hence customer
choice (or customisation) while making the best use of standardised components. As may be
seen in Figure 3, on the downstream side of the decoupling point the supply chain copes with
both variability in demand volume and high product variety. Upstream from the decoupling
point the supply chain is working to a stable demand with relatively low variety.
From Figure 3 it is possible to determine which paradigm is most appropriate by
considering where in relation to the decoupling point a business is situated. Downstream
from the decoupling point a business needs to be agile. Each value stream has a number of
different products flowing through it. The lean paradigm is applied to upstream businesses
that push planand pull executestandardised products down a number of different value
streams.
Naim, Naylor, and Barlow
166 26-28 July 1999, University of California, Berkeley, CA, USA
Flow Of Material
Push Plan
Pull Execution Pull
N
u
m
b
e
r
o
f
M
a
t
e
r
i
a
l
F
l
o
w
s
Demand Downstream from
the Decoupling Point
Demand Upstream from
the Decoupling Point
Stock Levels at
the Decoupling Point
The Decoupling Point
Figure 3: The role of the decoupling point in the supply chain
APPLICATIONS OF LEAGILITY AND IMPLICATIONS FOR HOUSEBUILDING
There are a number of well-documented examples of the leagileconcept in industry:
Benetton, who delay the dyeing of their jumpers until the very end of the supply
process. Thus, with standardised jumpers, customised as late as possible, a degree
of customer choice is achieved without long lead-times and the risk of
obsolescence (Gattorna and Walters 1996).
Originally Hewlett-Packard produced printers for a global aggregate demand and
customised them for local markets prior to their shipment to regional distribution
centres. Unfortunately, demand forecasts were seldom accurate, so obsolescence
risks were high. The solution was to postpone the decoupling point as late as
possible and customise the printers in the regional distribution centres when the
order was pulledby the customers (Davies 1993, Lee and Billington 1992).
A European personal computer (PC) producer has moved from a mass production
system to a leagile one (Berry et al. 1995, Berry and Naim 1996). This involved
the implementation of just-in-time (JIT) systems that reduced total lead-times by
46%, the development of a holistic approach to supply chain management via the
utilisation of a global material logistics systems and finally the integration of its
suppliers into its total supply chain concept. The final supply chain structure
adopted an assemble to orderstructure and a leagile strategy as shown in Figure
3.
Developing Lean and Agile Supply Chains in the UK Housebuilding Industry
Proceedings IGLC-7 167
There are a number of potential similarities between housebuilding and PC production. In its
simplest terms a house may be decomposed into four main elements: the foundations, the
shell, the roof, and the fit-out. Each of these elements may be made up of one or more
components. The house is thus a system consisting of elements and the components that
interconnect to create the whole. Housebuilding requires the integration of a number of
different players in the supply chain, including the developer, the builder, contractors, sub-
contractors, and suppliers.
At the most basic level the PC may also be broken down into simple elements: the
keyboard, the screen, the box, and the internal sub-systems. All PCs are practically the same
and there is very little to differentiate products, but it is still necessary to customise the
product to meet particular customer needs. In well-engineered supply chains this will be
achieved by delivering standardised components up to the decoupling point and then
assembling the relevant components to deliver the customised product. This may be in terms
of the right hard-disk size, the right screen size, the right processor types, and so on.
How far can this approach be applied to housebuilding? While there is a perception that
customer demands have grown, there have been few attempts in the UK to introduce lean and
agile production processes which aim to improve the level of customer focus (Barlow 1998,
1999). The response to more demanding customers has been limited to offering slightly
greater choice over fixtures and fittings, and better systems for dealing with complaints.
Housebuilders have also been updating their product ranges faster and more frequently. In
addition, supply chain reorganisationas a tool for reducing input costshas been practiced
for several years. Firms have sought to establish longer-term relationships with smaller
numbers of preferred suppliers, but this cannot be seen as holistic supply chain
reorganisation. In general housebuilders simply aim to exert pressure on suppliers to reduce
their prices by using bulk buying power. There have been fewif anyattempts to
encourage local distribution merchants to kittogether all the components and materials for
a specific building site as and when requiredi.e., the right amount, at the right time, at the
right place, of the right quality, and at the right cost.
What are the barriers that prevent the introduction of a leagile approach to housebuilding
in the UK? Increasing the level of customisation is felt by housebuilders to be constrained by
institutional factors, notably a perception that planning authorities will not allow house types
that vary from those that have already been approved, as well as a feeling that there is no real
demand from customers. There is also concern about the implications of increased
customisation for internal business processes, supply chain management, and logistics.
There are also a number of structural barriers to change. First, housebuilding is generally
organised in sequential stages, bringing together a large number of firms that rely heavily on
subcontractors. This means that the various interests in the industry operate disjointedly and
have different economic characteristics and capacities to innovate. It is potentially difficult to
keep any innovation proprietary and make early monopoly returns. Furthermore, the amount
of feedback from the industrys workforce and markets is lowered, and the industrys
organisational learning capacity reduced. Second, there is arguably an undersupply of new
housing. This means that speculative housebuilders face limited competition, as there are few
alternative sources of new supplythe social housing sector is targeted at specific population
groups and self-build sector is hardly a viable alternative because of problems in obtaining
Naim, Naylor, and Barlow
168 26-28 July 1999, University of California, Berkeley, CA, USA
suitable land. Third, because housebuilders perceive they face an environment of constant
feast or famine(cf. Ball 1999), their approach emphasises the achievement of short-term
financial results. Houses are therefore completed to suit the requirements of the financial
period rather than customersneeds. Finally, previous attempts at production process
innovation, notably the introduction of standardised systems building during the 1960s and
timber frame housing in the 1980s, have left a perception that the publicdoes not want new
approaches to housebuilding. This has been reinforced by the fact that traditional competitive
strategies served housebuilders well for much of the past three decades.
CONCLUSION
The concept of leagilityis well established, although the terminology practitioners and
academics have used in the past has differed. Examples of its successful application may be
seen in different market sectors, most notably in clothing and electronics manufacture. By
drawing the analogy between housebuilding and PC production we wish to highlight the
potential for a standardised component approach that not only requires a careful
consideration of the technology but also an assessment of the best supply chain strategy. The
challenge is to determine the practical requirements that distinguish different housebuilding
supply chain structures.
Although there is a conservative mind set in the housebuilding industry, as highlighted
above, it should be remembered that many UK industries have gone through the same
hurdles. It was not uncommon for many practitioners in the UK motorcycle industry to
underestimate the potential of foreign competition. The UK housebuilding industry at the
moment has a major advantage. It can learn from the mistakes and the successes of other
industries that have had to go through the trauma of playing catch-up. But it is important to
realise that time is running out already a major US player is busy acquiring British
housebuilders.
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... En revanche, c'est l'inverse pour la satisfaction des clients. Il est également essentiel de souligner que le niveau de satisfaction des employés n'existe guère lorsqu'ils sont placés dans une situation inconfortable qui les persuade d'être agiles, agiles et adroits plutôt que stables, rigides et lents (Naim et al., 1999). L'objectif de l'agilité est largement motivé par la rapidité de la réponse qui profite aux clients plutôt qu'aux employés eux-mêmes. ...
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Date de soumission : 23/11/2022 Date d'acceptation : 15/01/2023 Résumé : L'intérêt pour l'agilité s'est fortement accru ces dernières années, engendrant de multiples théories, études et pratiques qui visent à créer des organisations plus agiles, capables d'être plus compétitifs dans l'environnement concurrentiel et changeant d'aujourd'hui. Or peu de recherches ont analysé les incidences de ses interventions en matière d'agilité sur la Performance organisationnelle. L'objectif de cette recherche est de répondre à la problématique suivante : dans quelle mesure l'agilité organisationnelle (AO) contribue-t-elle à la performance organisationnelle (PO) des petites et moyennes entreprises (PME) ? Pour atteindre cet objectif, la méthodologie mobilisée s'est fondée sur une revue de littérature systématique (RLS) suivent le protocole PRISMA statement. Nous respectons la séquence de processus spécifique selon Fink, (2014) afin de garantir exhaustivité et transparence (Heward et al., 2019). 89 articles qui ont traité cette prolèmatique, publiés entre 1991 et 2021 ont été retenus. Les indicateurs bibliométriques présentent la manière dont le domaine s'est développé et quels acteurs (auteurs, institutions, pays, revues) sont les plus pertinents. En ce qui concerne les aspects conceptuels, les résultats nous ont permis de repérer une relation significative entre l'AO et la PO. Cet article contribue à promouvoir un débat sur un sujet encore peu abordé dans la littérature. Abstract : Interest in agility has grown considerably in recent years, giving rise to multiple theories, studies, and practices that aim to build more agile organizations that can compete more successfully in today's competitive environment. Few studies have examined the effects of agility interventions on organizational performance. This study aims to provide an answer to the following problem: "To what extent does organizational agility contribute to organizational performance of small and medium-sized enterprises?" The methodology used to achieve this objective is based on the PRISMA protocol. We adhere to the procedural sequence recommended by Fink (2014) to ensure completeness and transparency (Heward et al., 2019). 89 publications published between 1991 and 2021 and addressing the topic of organizational agility's (OA) contribution to SME organizational performance (OP) were selected. Bibliometric indicators show how the field has developed and which actors (authors, institutions, countries and journals) are most relevant. In terms of conceptual characteristics, the results allowed us to detect a significant relationship between OA and OP. This paper aims to encourage discussion on a topic that is still rarely addressed in the literature.
... [63] combine the concepts of agility and lean to present a new framework, called "AgiLean PM", which illustrates how a project can respond to change through agile management, agility and lean have many similarities, but also differences, lean focuses on reducing waste, agile focuses on being attentive to opportunities to make changes quickly [64]. In the construction literature, agility was generally mentioned along with lean, as lean-agile paradigms [65]. [66] explained that agile project management may be provisionally appropriate for the design phase of construction, which involves greater client involvement, conflicting requirements and constant trade-offs, as the approach allows for the adoption of change for continuous improvement and the provision of creative solutions, particularly for complex requirements. ...
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The commonly adopted project management approach is the traditional plan-driven model, which sometimes is not the most appropriate approach to complex construction projects subject to successive changes, where more agile approaches might be more adequate. The objective of this paper is to provide a hybrid project management approach that not only draws on traditional project management approaches, but also on agile and lean ones, and that seeks to promote change, boost interaction with the client and increase project value, by using the agile approach component to increase the probability of success of construction projects; and to eliminate waste by embodying the lean approach component. The paper thoroughly reviews the available literature on different project management approaches and proposes a hybrid project management model for construction projects, presenting and discussing key traditional, agile and lean practices.
... He found that the Agile system can react faster to changing customer requirements than the traditional approaches for project management. In a similar context, Naim et al. (1999) explored the Agile and Lean systems by using the "leagility" concept in the UK housebuilding industry. Lessing et al. (2005) also reported a case study in the housebuilding industry. ...
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This study provides a critical review of the concepts of Agile, Lean, Scrum, and Last Planner System ® (LPS). A comparative analysis is conducted between LPS and Scrum to expand LPS by considering Scrum's best practices. Eight dimensions, namely, 1) origins, 2) main purpose, 3) overall system/framework process, 4) tools or artifacts maintained by the team, 5) team composition and main roles, 6) regular events or team meetings, 7) metrics/dashboards, and 8) approach to learning, are evaluated. After analyzing side by side the eight dimensions, it was found that many aspects from Scrum already exist in LPS in the same or similar form. However, the authors identify four main elements from Scrum that can be leveraged to improve the LPS benchmark, such as considering the Scrum "Increment" concept into LPS, having a clear definition of roles and responsibilities, or adding an equivalent to a Scrum Master to have a designated "rule keeper" in LPS. These opportunities to be considered in new LPS benchmarks need to be tested and validated with real applications. To the best of the authors' knowledge, this work is the first to comprehensively compare Scrum (Agile) and LPS (Lean) and could be seen as a contribution toward the evolution of the Last Planner System for the academic and industrial environments.
... The process of addressing organisational vulnerabilities and overcoming the challenges that uncertainty brings with it has taken on several different forms from the perspectives of quality (e.g., Deming 1986), outsourcing (Platts and Song 2010) and lean production principles (Lucio 2013). Each of these models provides advantages, but they tend to be most effective in times of stable demand and continuous production (Naim, Naylor, and Barlow 1999). This is the opposite of the unstable market demand predicted in the future. ...
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Even though supply chain agility (SCA) has been considered an essential concept in supply chain management (SCM) research, the way it is experienced and manifested, especially by small and medium-sized enterprises (SMEs), has received much less attention. Our purpose is to focus on SME organisational vulnerabilities in the context of increased environmental uncertainty, and explore how SCA is developed and applied by SMEs amid their vulnerabilities. By relying on insights from comparative case studies of three British SMEs, we examine SME SCA as an acclimatisation process and delve into SMEs' experiences of facing environmental uncertainty while developing and applying SCA. Our findings highlight that organisational attitudes underlie how SMEs perceive environmental uncertainty, tackle organisational vulnerabilities and develop SCA as an acclimatisation process. Our findings also reveal that resource constraints, supply chain relationships, interorganisational power dynamics, and access to information play important roles in developing SCA.
... ASCS should own responsive and flexible competences in terms of their networks, processes and how they are integrated across other organizations (Mohammed et al., 2008). Naim et al. (1999) stated that both lean and agile paradigms should be mixed with a total SCS in view of positioning the decoupling point and market knowledge. Li and O'Brien (2001) discussed some measureable relations between the performance of the SCS. ...
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Purpose The purpose of this paper is to propose a framework to assess the agility of manufacturing companies. Design/methodology/approach Particularly, three supply chain logistic drivers (facility, transportation and inventory) along with three cross-functional drivers (information, sourcing and pricing) are selected as the main sets to classify all required activities of agility. In addition, supply chain contracts, as an important indicator of supply chain agility, is also considered to categorize the activities. These activities are ranked using an (AHP) and then categorized based on the major perspectives of agility. Finally, using a cycle view of supply chain, the developed activities are categorized as the major policies of supply chain’s echelons. Findings This study developed a framework to evaluate the agility of manufacturing companies. Operational activities of agile supply chain strategy (ASCS) in addition to supply chain contracts are determined and categorized with regard to supply chain drivers. Originality/value This study contributes to recognizing, ranking and classifying the operational activities of ASCS with regard to logistics and cross-functional drivers of supply chain. In addition, this study considers the supply chain contracts in conjunction with supply chain drivers. From the theoretic and methodological features, to the best of authors’ knowledge, this study contributes to offer new insights to this area as no similar research has been conducted before.
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This research aims to contribute to the development of knowledge in project management, by searching for management approaches that can be useful in construction projects. A bibliometric approach based on quantitative analysis methods was applied to investigate the synergy between Traditional, Agile, and Lean management approaches. This study also evaluates the status of the three different approaches using a visualization analysis of journal articles. The bibliometric study was developed with a portfolio of 200 papers around "synergy between Traditional, Agile and Lean approaches" collected at the Web of Science database, covering the evolution of this topic over the last ten years (from 2011 to 2020). The retrieved records were analyzed in terms of year of publication, country, subject, and keywords. The analysis of the original articles revealed that the total number of publications has continuously increased over the last few years. The country producing more papers on this theme was the United States followed by England and Germany. Few studies in the literature have discussed this theme in the construction industry, which means that the concept of combining Traditional, Agile, and Lean approaches is a new concept in construction projects.
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In the modern world, it is imperative to apply the concepts of Lean, Agile, Resilient and Green, collectively known as LARG Manufacturing to achieve business excellence. The objective of this study is to explore the possibility of collaboration between constituents of LARG Manufacturing with the facets of Industry-4.0. In this context, a thorough systematic literature review has been conducted to validate the research gap regarding integration of LARG Manufacturing with Industry 4.0. The study revealed that LARG constituent practices can be amalgamated with various facets of Industry-4.0 to provide operational, economic and environmental benefits. The increased process visibility, elimination of wastes, fast processes, high level of responsiveness to disruptions and eco-friendly manufacturing are the salient features of the LARG Manufacturing & Industry-4.0 synergy, fuelled by automation and BigData. In future, a comprehensive technology integrated implementation framework can be developed that employs LARG constituents with Industry-4.0 or Artificial Intelligence to achieve sustainability.
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This article proposes a multiobjective mathematical model to optimize the multiperiod aggregate production planning (APP) of multiproduct companies. Although there are many studies of lean manufacturing (LM), its integration with APP has not been studied. The present article is intended to integrate APP and LM, including an analysis of market winners, market qualifiers, and waste. The model's objective functions include the cost, lead time, and waste minimization in addition to maximizing the product quality. A solution procedure is suggested to solve the model using IBM CPLEX 12.4 software. The model is investigated in three different case studies to check its applicability and generalizability. According to the obtained results, the proposed model provides an optimized APP with regard to the major concerns of LM, including waste, overproduction, time, and sourcing. In addition, according to the sensitivity analysis, lean weighting of the objective functions provides a better output than using equal weighting.
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Improving the efficiency of housebuilding is essential if the challenge of meeting future UK housing needs is to be me t. The degree to which speculative housebuilders are prepared to adopt construction product and process innovations is central to this task. Historically, housebuilders have been notoriously slow to innovate. However, current housing market and regulatory trends suggest firms will have to reassess their strategies to ensure future success. The paper explores the extent to which new methods for improving the housing `product’ and reducing construction costs may be taken up by housebuilders. We then consider what can be done to overcome the barriers which have so far inhibited a more innovative housebuilding industry.
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British housebuilding has an exceptionally poor record at introducing innovations in design and production methods. Recent government concern about the poor innovation and productivity performance of the construction industry has focused almost entirely on changing the strategies of firms. In the context of housebuilding, this focus seems insufficient. Instead, it is argued here that housebuilders face particular market constraints on innovation in both their output and input markets. These constraints are investigated and proposals to limit them are suggested, which, if introduced, should make new firm strategies toward innovation more likely to be successful.
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