Lean and agile metrics. Literature review and framework for measuring leagile supply chain

Wojciech Domink Piotrowicz,Maciej Szymczak,Urszula Ryciuk

doi:10.1108/ijppm-10-2020-0560

Abstract

PurposeThe aim of this paper is to review metrics and develop a framework for measuring leagile supply chain. Metrics that are applicable in the lean, agile and leagile strategies are identified in the literature and are then combined into a framework that can reflect both agile and lean strategies – the leagile supply strategy.Design/methodology/approachThis work is based on the systematic literature review. Literature was collected, then lean and agile metrics were extracted, analysed, counted and grouped into the framework. Findings are compared against literature on leagile supply chain.FindingsFindings indicate that there are sets of metrics specific to lean strategy, such as are process-focused, cost, productivity, inventory and delivery-based metrics, and specific to agile such as flexibility, responsiveness, information sharing and cooperation. There are also metrics common for both strategies; they are related to time, quality and customer satisfaction. Lean measures are tangible and focused on internal processes and products, while agile measures are targeted at external environment.Practical implicationsThe framework could be used by practitioners as a starting point for performance system design.Originality/valueThere is a need to stop looking at lean and agile as separate and distinct supply strategies. Results of this research indicate that lean and agile are interlinked, both are focusing on customer satisfaction and quality. Applying a proposed set of metrics enables to design supply chain measurement system that reflects both strategies to measure leagile supply chain. The framework could be used by practitioners as a starting point for performance system design.

Highlights

Measuring supply chain performance is of growing importance as companies could not stay an isolated island, but they are part of supply chain that frequently compete against other chains. Simatupang and Sridharan (2008) define supply chain performance as the development and implementation of indicators for the overall assessment and the individual performance of each© Wojciech Domink Piotrowicz, Urszula Ryciuk and Maciej Szymczak
The selection of metrics to measure, monitor and assess supply chain performance is determined by strategy, processes and external environment, which is summarized in the framework that illustrates links between, lean, agile and leagile (Figure 3)
The most meaningful and associated with lean strategy is set of metrics related to cost and inventory management and further linked to the assessment of profitability, productivity, efficiency and delivery

Summary

Introduction

Measuring supply chain performance is of growing importance as companies could not stay an isolated island, but they are part of supply chain that frequently compete against other chains. Simatupang and Sridharan (2008) define supply chain performance as the development and implementation of indicators for the overall assessment and the individual performance of each© Wojciech Domink Piotrowicz, Urszula Ryciuk and Maciej Szymczak. The lean concept is introduced when customer requirements exceed those of “traditional” cost, quality and speed, so the companies need to produce both low and high volume products at the same time (Yusuf et al, 2003). Hines et al (2004) reviewed contemporary lean thinking since 1980 and noted that in the 1990s concepts such as lean enterprise and lean supply chain were introduced. Development of lean thinking, with focus on measuring automotive production was traced by Holweg (2007), and lean concept emerged in the service sector (Arlbjørn et al, 2013). As the main principles of lean SCM Jasti and Kodali (2015) identify: the information technology management, supplier management, elimination of waste, leagile supply chain just in time production, customer relationship management, logistics management, top management commitment and continuous improvement

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