Industrial evaluation of a toolkit for improving material flow in supply chains
Abstract
Streamlined material flow within supply chains has been shown to be a highly desirable objective in the engineering of both lean, and agile systems. In this paper we shall review the application of twelve Simplicity Rules which have been proposed for achieving this smooth material flow objective. These form a Toolkit and are based on our previous research into material flow control in the automotive and other market sectors. In turn, the Rules build on and considerably extends the fundamental contribution made to supply chain dynamics by Jay Forrester, and to shop floor planning and decision making by Jack Burbidge. To test the effectiveness of the Simplicity Rules, field research has been undertaken on 32 real world supply chains. This established the extent to which the rules are presently used within each Value Stream. Their effectiveness was then estimated via quantification of the four sources of system volatility classified according to the Uncertainty Circle. Statistical analysis has then been used to test the effectiveness of the rules. Two of the Value Chains studied have recently undertaken major Business Process Re-Engineering Programs based on the application of these 12 Simplicity Rules. The consequential improvements in performance are evaluated to further substantiate the use of the Toolkit for engineering smooth material flow. Finally, a conceptual model is presented that illustrates how practitioners can apply the 12 Rules in order to move towards a Seamless Supply Chain.