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Modeling Lean and Agile Approaches: A Western Canadian Forest Company Case Study

Appendix B

Table of Results

Table A8. Summary of economics by lumber demand scenario (LDS) and manufacturing environment (ME) (in millions of CAD).

LDS Base Large Batches Low Variation Large Batches High Variation Small Batches Low Variation Small Batches High Variation
ME Agile Hybrid Lean Agile Hybrid Lean Agile Hybrid Lean Agile Hybrid Lean Agile Hybrid Lean
Profit 19,671 20,402 18,869 21,084 18,736 20,921 17,976 17,857 17,505 13,550 11,904 12,721 13,562 11,465 12,471
Incomes 34,264 34,443 33,454 42,977 43,155 42,184 29,763 29,949 29,013 18,368 18,635 18,437 17,842 18,074 17,961
Procurement cost 10,643 11,821 10,326 14,879 18,993 15,291 8938 8577 7920 3080 5999 4743 2607 5983 4864
Manufacturing cost 2226 2574 2187 2899 3205 2902 2035 2357 1826 1299 1717 1340 1181 1573 1323
Over-below cap. Cost 15 14 11 28 21 11 11 15 11 4 8 13 5 11 13
Penalized incomes 121 1068 0 468 798 915 311 1189 70 210 1147 897 182 1186 1090
Penalty cost 1830 1034 2061 4555 2903 3975 1114 316 1821 644 0 516 671 0 380
All cost 14,714 15,442 14,585 22,361 25,122 22,179 12,098 11,265 11,578 5028 7724 6613 4463 7566 6579
Variation (%) 0% −5% 1% 0% −11% −1% 0% −1% −3% 0% −12% −6% 0% −15% −8%

Table A9. Supply chain performance metrics by lumber demand scenario (LDS) and manufacturing environment (ME).

SC Performance Indicator Flow Time (Periods) Orders Fulfillment (%) Over-Under Lumber Production (m3)
ME/LDS Agile Hybrid Lean Agile Hybrid Lean Agile Hybrid Lean
Large batches low variation 5.26 7.19 7.53 89% 96% 91% (18,393) (7184) (15,417)
Large batches high variation 6.98 8.28 8.98 99% 108% 92% (1253) 9100 (9073)
Small batches low variation 14.28 15.75 15.95 99% 114% 107% (1756) 9744 3515
Small batches high variation 15.14 15.45 16.28 98% 115% 111% (1534) 10,258 6222
Base lumber demand 5.73 6.19 8.14 94% 103% 91% (7409) 3993 (11,170)