Modeling Lean and Agile Approaches: A Western Canadian Forest Company Case Study
Read this article. Both lean and agile principles were tested to determine if they improved performance in the coastal forest industry. While both agile and lean methodologies have obvious differences, in your analysis what are some similarities?
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) |