Lean Vs Agile
One of the hot topics we have been coming across nowadays is the resilience of supply chains- specifically Pharma and Automobiles supply chains. Intertwined in these discussions are 2 words which are (incorrectly) being used almost interchangeably – Lean and Agile.
If you have a hammer, everything looks like a nail.
In some cases Agile is the much better solution and in some others, its Lean. We should learn to understand the boundary conditions for each of these methodologies and which environment suits which methodology.
Lean is about doing more with less.
Paradoxically, many companies that have adopted lean as a business practice are anything but agile in their supply chain.
Eg. Vehicle manufacturing is extremely efficient with throughput time in the factory typically down to twelve hours or less, yet inventory of finished vehicles can be as high as two months of sales – and still the customer has to wait for weeks or even months to get the car of their choice!
If demand is predictable and the requirement for variety is low and volume is high – go for LEAN.
But, if the requirement for variety is high and volume at the individual stock keeping unit (SKU) level is low – go for AGILE.