Decoupling the value chain

Olhager, Jan; Selldin, Erik; Wikner, Joakim

doi:10.1504/ijvcm.2006.009021

Cited by 27 publications

(20 citation statements)

References 14 publications

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“…The simultaneous work of lean and agile principles can support the effective and efficient management (Olhager, 2003;Narasimhan, Swink & Kim, 2006) and relationships within a supply chain (Wikner & Tang 2008), balancing efficiency and responsiveness (Olhager, Selldin & Wikner, 2006). Researchers have addressed differently the links between agility and leanness.…”

Section: Literature Reviewmentioning

confidence: 99%

Implications of digitalization for value chains

Wyciślak

2017

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Abstract:The primary goal of the article is to cover the implications of digital technologies for value chains. The hypothesis of the article is as follow digital technologies driving exponential growth translate into companies' efforts to be both lean and agile. The problem raised in the study is of being both lean and agile facing the digital disruption. The topic of the impact of digital technologies on value chains has gained an increasing attention from business practitioners. Scholars also have heavily discussed capabilities required for adaptation to technologies driving nonlinear growth. The applied methods encompasses the literature review combined with diagnostic participant action research. The understanding of lean and agile practices was a starting point to build a tool for covering impact of digital technologies on value chains. The literature review allows us to explain reasons for the fast progress in digitalization, defining the digital technologies driving the exponential growth, providing explanation of what is lean, agile and leagile supply chain. Building on the literature review the diagnostic participant action research was applied. The latter allows to verify the assumed hypothesis. While technology and the digital world grow exponentially, the manner in which we operate and organize ourselves is still based on linear models, hierarchical structures and bureaucratic processes. For a reason of this, the deployment of the lean and agile practices would be of benefit to build customer centric solutions. The article provides contribution to models of adaptation of multinationals supply chains towards digital technologies. Whilst the practical study proved that absorption of digital technology is in its infancy, the built diagnostic tool allows us to map the absorption of digital technologies with regards to logistics needs of customers. The conducted study proved existing more than two practices defined by covering logistics customers' requirements. As a recommendation for the further work would be covering transformation from linear to exponential organization.

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Section: Literature Reviewmentioning

confidence: 99%

Implications of digitalization for value chains

Wyciślak

2017

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“…Hence, they follow the chase S&OP strategy (Olhager, 2003), which implies keeping free capacity and consequently lower utilization of equipment. Based on the expected delivery lead-time from the market, and in order to keep utilization at an accepted level, these companies usually focus on the backlog level instead of the inventory level (Olhager, Rudberg, & Wikner, 2001;Olhager, Selldin, & Wikner, 2006). The production and backlog levels are the focus of S&OP in these types of companies (Soman et al, 2004;Wallace & Stahl, 2008).…”

Section: Sandop and Flow Drivermentioning

confidence: 99%

“…While the lean approach is focused on efficiency and a low inventory level, the agile approach values flexibility and responsiveness in planning (Maskell & Baggaley, 2004;Naylor, Naim, & Berry, 1999;Sabri & Shaikh, 2013). A level S&OP strategy is therefore suitable before the CODP, and a chase strategy after this point (Olhager et al, 2006). The objective here is to integrate the SD-based part and CD-based part into a framework.…”

Section: Sandop and Flow Drivermentioning

confidence: 99%

A modularized framework for sales and operations planning with focus on process industries

Noroozi

Wikner

2016

Production & Manufacturing Research

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This paper suggests a modularized sales and operations planning (S&OP) framework, consisting of content and process. The framework's content is based on a typology of decoupling points in which the effect of decoupling points on the decision variables in S&OP is studied. The framework's process takes a step back and addresses the need for a more elaborate design to precede the operational use of S&OP content for different production contexts. The framework supports both process industries (PIs) and discrete manufacturing industries (DIs), and recognizes their specific requirements and reflects them in their S&OP. The differentiating characteristics of PIs and DIs are emphasized through three different decoupling points, namely: discretization decoupling point, control mode decoupling point, and customer order decoupling point. The suggested framework aims to fill the gap in the literature regarding the lack of aggregate planning processes that match the PIs' specific requirements by reflecting the differentiating characteristics of PIs in S&OP.

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“…The CODP can be seen as the incarnation of the delivery strategy since the position of the CODP is based on the delivery lead time. The positioning of the CODP has been identified as a key strategic decision, for example, in terms of the CODP itself (Olhager, 2003), as a consequence of balancing efficiency and responsiveness (Chopra & Meindl, 2007), as the point where lean meets agile (leagility) (Mason-Jones, Naylor, & Towill, 2000), or where the physical and innovative parts of the supply chain meet (Olhager, Selldin, & Wikner, 2006). The positioning of the PODP is also strategic in the sense that it represents the selected level of vertical integration, i.e.…”

Section: Strategic Process-based Decoupling Pointsmentioning

confidence: 99%

Inventory classification based on decoupling points

Wikner

Johansson

2015

Production & Manufacturing Research

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The ideal state of continuous one-piece flow may never be achieved. Still the logistics manager can improve the flow by carefully positioning inventory to buffer against variations. Strategies such as lean, postponement, mass customization, and outsourcing all rely on strategic positioning of decoupling points to separate forecastdriven from customer-order-driven flows. Planning and scheduling of the flow are also based on classification of decoupling points as master scheduled or not. A comprehensive classification scheme for these types of decoupling points is introduced. The approach rests on identification of flows as being either demand based or supply based. The demand or supply is then combined with exogenous factors, classified as independent, or endogenous factors, classified as dependent. As a result, eight types of strategic as well as tactical decoupling points are identified resulting in a processbased framework for inventory classification that can be used for flow design.

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Decoupling the value chain

Cited by 27 publications

References 14 publications

Implications of digitalization for value chains

Implications of digitalization for value chains

A modularized framework for sales and operations planning with focus on process industries

Inventory classification based on decoupling points

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