GCC Milling Industry: Leadership, Sustainability, Lean, Agile, Leagile

This dissertation investigates the synergies between lean manufacturing practices, agile organizations, and their impact on sustainability, specifically within the milling industry in the GCC region. The research explores the challenges faced by contemporary organizations, including economic instability and the need for rapid adaptation to changing customer demands. The study examines the implementation of lean and agile methodologies, including the concept of 'Leagile' organizing, to determine their effectiveness in achieving both productivity and sustainability. The dissertation includes an overview of lean manufacturing, agile manufacturing, and Leagile manufacturing, along with their enablers and capabilities. The research also addresses the importance of organizational culture and adaptability in the adoption of agile methods. The study aims to determine whether Leagile is the most strategic way forward for companies in the milling industry, with a focus on immediate and sustainable impact, and recommendations for future research.

Leadership and Sustainability
An investigation into how Lean, Agile and Leagile impacts sustainability in an Organization. A
study in the Milling industry, GCC
**********
30/06/2019
Masters of Business Administration, Leadership and Sustainability
Student ID number:
1

Abstract
There are distinct research approaches and studies done on lean manufacturing and on the
agile organization. The purpose of this Dissertation will be to determine whether synergies exist
between lean manufacturing practices, methods and an agile organization; and how will it be
possible to sustain these productive synergies if they exist.
The two systems of lean and agile will be the main focus. Some organizations assert that lean
manufacturing is to focus particularly on the following:
 Less Waste
 Just in Time working
 Elimination of non-value-added activities
 Focusing on core competencies
 Minimizing costs through outsourcing
 Cost saving in keeping relatively small inventories
Conversely, agility is:
 Quick response to customer needs
 Rapidly changing production processes using existing equipment, labor and designs
to create new products in a short timespan
 Robust IT systems with the ability to give updated information in near real-time on
all relevant aspects of the organization
If any similarities exist between agile and lean approaches, what would they be? This issue will
be looked at specifically with regard to the milling industry in the GCC., where the specific steps
required to implement a creative reconciliation between lean and agile will be explored.
Therefore, this Dissertation will look at the synergies of the two methods and likely benefits for
the milling industry in GCC. (In your dissertation proper conrad, you may need formally to define
synergy and its management, if you go down this road)
Keywords are: Agile Manufacturing, Lean Manufacturing, Leagile Manufacturing, Sustainability
and Company Culture
2

Table of Contents
CHAPTER 1 INTRODUCTION..........................................................................................5
Background............................................................................................................................5
History of the Topic...............................................................................................................5
Brief Overview of the Topic....................................................................................................6
Research Problem................................................................................................................10
Research Aim.......................................................................................................................10
Research Question...............................................................................................................10
Research Objectives.............................................................................................................10
Delimitations........................................................................................................................11
CHAPTER 2 LITERATURE REVIEW............................................................................12
Introduction..........................................................................................................................12
Overview of the manufacturing context............................................................................12
Lean manufacturing............................................................................................................12
Lean Manufacturing Enablers...........................................................................................14
Lean Manufacturing Capabilities......................................................................................15
Agile Manufacturing...........................................................................................................16
Agile Enablers......................................................................................................................17
3

Agile Capabilities.................................................................................................................18
Leagile manufacturing........................................................................................................19
Benefits of Leagile manufacturing.....................................................................................20
Application of Leagile manufacturing...............................................................................21
Research gap........................................................................................................................22
Conclusion............................................................................................................................22
CHAPTER 3 RECEARCH METHODOLOGY............................................................................24
Research Philosophy......................................................................................................................24
Research Approach........................................................................................................................24
Research Strategy..........................................................................................................................24
Time Horizon.................................................................................................................................24
Ethical Issues of Data Collection/Confidentiality.........................................................................24
Validity and Reliability of Data.....................................................................................................24
CHAPTER 4 DATA COLLECTION METHOD..........................................................................24
Secondary Data Presentation.........................................................................................................24
Primary Data Presentation.............................................................................................................24
Summary of Data and Analysis.....................................................................................................24
CHAPTER 5 CONCLUSION.......................................................................................................24
Discussion of Results.....................................................................................................................24
Generate Immediate Impact...........................................................................................................24
4

Generate Sustainable Impact.........................................................................................................24
Summary of Conclusion................................................................................................................24
Limitations of the Research and Recommendations for further Research....................................25
CHAPTER 6 RECOMMENDATIONS........................................................................................25
Immediate Impact..........................................................................................................................25
Sustainable Impact.........................................................................................................................25
References......................................................................................................................................25
CHAPTER 1 INTRODUCTION
Background
The following research is based on the study of the sustainability of the lean and agile process
combined with the different kinds of environmental changes that need to be implemented in the
milling industries. The research starts with a brief history and overview of the topic.
History of the Topic
The terms, agile and lean management refer to the segregation of a number of large works into
different kinds of small increments. This minimizes the amount of front planning and design.
Instead of aiming for a moving target that is months or years in the future, Agile project
managers work with teams to break work into small, manageable pieces (Mittal, et al., 2017).
These changes may take a few days or a few weeks to complete, depending on the amount and
type of work. This iterative form of development good minimizes risk and allows for flexibility
in the development process. The goal for each of these iterations is to create a piece of value,
with minimal bugs, at the end of each iteration. In this method, working software is the primary
measure of progress. Apart from this, the presence of agile combined with lean management
5

reduces needed time, while it increases communication and productivity for the organization
which helps the industry to gain a competitive advantage in the market.
Brief Overview of the Topic
The challenges facing contemporary organizations are: increasing cost savings combined with
instability of economic factors which increase the difficulty in attaining and upholding
sustainability. Especially in the milling industry, factors such as commodity volatility, customer
needs for rapidly changing products that will serve their needs and the challenges of competition
have meant that organizations need to rethink the way they tackle and respond to changes in the
commercial sectors of their business. The volatile environment has forced many organizations to
look at other methods and ways to cope with it (Goodrich, 2015) Hence, there are a number of
different challenges that are being faced by the modern organizations.
Apart from these challenges, general economic instability increases the difficulty to maintain
sustainability. The milling industries especially are affected by the internal interactions between
different factors like commodity volatility, changing needs of the customer for the different types
of the products, the demand of the customer for customized products that match the trends and
their specific choices and many moiré as such (Bazigos, et al., 2015). Apart from this the
challenges offered by the competition have meant to change the way the organization performs
in the market. The management of the business organizations must rethink on the way they
tackle and respond to the changes in the different sectors of the commercial market where the
business operates (Mittal, et al., 2017). The contemporary market environment has changed its
traditional nature and fundamentally quickened. This change has persuaded some organizations
to look beyond normal market conditions and engage in novel ways to ensure success for the
business market.
A potential solution to the challenges facing companies trying to adopt a more sustainable
culture could be the agile option combined with lean manufacturing methods – so-called Leagile
organizing. Therefore, the goal of this research is to determine whether Leagile is indeed the
most plausible strategic way forward for companies in the milling industry.
The implementation of lean manufacturing methods in this regard can help the business to be
successful and more productive. The combination of the agile option along with lean
6

manufacturing methods can act as one of the best options for the company to ensure success and
be productive in nature. Therefore, the goal of the research is to evaluate whether the
implementation of lean manufacturing methods is the best possible strategy and strategic way
forward for the milling industries, especially for attaining productivity and sustainability in the
market.
Agility is defined as the systematic and self-conscious identification of transformation activities.
However, there needs to be a strong willingness and commitment to implementing the following.
The implementation of a large-scale change is difficult in itself especially where the culture of
the company restricts the transformation accordingly. The presence of the restriction due to
company culture can be a constraint for many businesses. The management of the companies
must therefore learn to exist in the competitive market by the application of other successful
strategies that may be in line with the culture of the organization as well as lead the company to a
proper and successful path.
Agility is the result of identifying the need for transformation, and then it must gather the
willingness to implement and let it happen. To change is difficult, especially where company
cultures does not allow for transformation to happen. For future existence companies must learn
how to create a quick responsive culture which improves results. Customer driven market has
become the norm recently, posing challenges to organizations. They have to respond rapidly, in a
way which is sustainable and adaptive to market wants and needs. In the context of the GCC
region, this provides the link to the major commodity that is produced here: Oil. This combined
with the already mentioned challenges makes it even more difficult for Milling Companies to
have the advantage and the edge over competitors
This research looks at the differences between Agility and being lean, and can these methods be
combined to ensure that companies attain an edge in a changing economic environment. This
Dissertation describes companies that combine speed and stability as agile (Bazigos, et al.,
2015); thus, the new word is Leagile to ensure optimal organization performance. It combines
the lean approach with the agile methodology. Different concepts from different eras which are
now combined to tackle contemporary challenges. All of this will be of no use if it is not
sustainable, so how can this new approach to adapting to challenges be sustained? Being an
organization who wants to grow and be a good performing company the only way forward is to
7

be able to engage in becoming greener on all fronts. (Acquaye, 2017) stated that across different
sectors, businesses have been able to engage in related sustainability activities and derived some
value directly or indirectly.
Different stakeholders demand that companies engage in green matters. These demands for green
solutions could stem from the shareholders, the company employees, the community, the media
and the local government. This include the Shareholders, the company employees, the
community, the media and the local government to mention a few. (Larson & Larson, 2011)
argues that organizational culture has a strong influence on change; however, as agile methods
introduce a great deal of changes within organizations, the tendency to remain true to existing
cultures definitely makes Agile adoption harder.
When organizational structures are set in stone and are difficult to change, it stops any speedy
delivery of innovation. Red tape and bureaucracy, the silo effect, company cultures of fear to
change and resistance is other factors that prohibit companies to progress into the agile
environment. (Rudd, 2006) suggests that organizational adaptability refers to the continuous
evolutions of processes, culture, structures and management models. Smaller, highly flexible
firms in the market place grab throughout share away from the organization which is slow in
implementing the agile culture. Organizations in adapting an agile learning culture to act fast and
counter losing market share. (Rudd, 2006) are saying that organizations that are able to
continuously learn and evolve epitomize the principle of business agility.
The present study attempts to progress the discussion of how to link lean and green and extend it
towards a sustainable production approach by incorporating not only recent advances in lean
thinking, particularly its embracing of ‘agility’ as a concept, but also the recognition of the
limitations inherent in an eco-efficiency approach. In the process, an attempt will be made to
summarise developments in lean and agile thinking and then extend this to apply it to a model of
potentially more sustainable production of automobiles at lower volumes. (Nieuwenhuis &
Katsifou, 2015).
The presence of different kinds of customer driven markets is one of the most important trends in
the modern markets. According to, (Sindhwani & Malhotra, 2018) the presence of the customer
driven markets has rather became a norm. This norm generally produces a large number of
8

different challenges to the business organizations. The main task of the management of the
business is thus to ensure a rapid response in a certain way that is sustainable enough to adapt to
the different needs and the decisions of the business market.
The combination of this particular item with the business organization thus provides a deadly
combination no especially in the GCC region in order to produce the main commodity that is Oil.
The combination of these challenges for milling companies makes it even more difficult for these
organizations to gain a competitive edge over other competitors in the business market.
The following research has also put extra effort in order to give focus on the differences that
exists in between the organizations on being agile and on being lean in nature. The research has
also discussed on whether the combination of the following methods has the ability to combine
together in a business organization in order to ensure that they edge over the other similar rivals
in the business market and create a competitive advantage of their own. As mentioned earlier, an
agile company can be best described as the Company that has the capability to combine the
factors of speed along with that of stability in an effective and perfect manner.
According to (Aydınoğlu, et al., 2017), the new term used to describe this combination is
Leagile, which thus qualifies Companies that have the capability to combine both lean
manufacturing along with an agile set up to increase their productivity and enjoy a superior
competitive advantage in the business market. The Leagile organization combines all kind of
challenges and is always equipped to face different types of business challenges that are trendy
as well as highly complex in nature. However, the absence of promoting sustainability by the
Leagile strategies will lead to automatic discontinuation of such strategies (Mittal, et al., 2017).
The management of the business organizations especially the milling industries must need to
ensure a proficient Leagile strategy in order to promote success for the business organization
There has been a steady rise in the demand for green solutions and the organizations has to be
extra careful in the modern days to ensure the implementation of the green laws in order to
ensure a green and safe future. According to, (Sindhwani & Malhotra, 2018) the green laws must
be implemented in a scientific way by involving all the stakeholders, employees, the top-level
management. Apart from the above-mentioned parties, the organization needs to involve the
local governments as well as the different sources of local media to promote a safe and green
9

environment. Thus, change must not be limited to only physical transformation, but must be
responsive in adoption of agile culture can thus contribute to success and prepare the business for
the future (Nieuwenhuis & Katsifou, 2015). The following study is aimed at the development of
a scientific highlight into lean manufacturing and agile manufacturing. Though, the main theme
of the study is based on the above said manufacturing process, the study is aimed at the
discussion of the ways to link the green manufacturing processes along with lean and agile
manufacturing processes.
Research Problem
The problem to be addressed in the Dissertation will explore whether lean and agile management
philosophies, when combined with a green manufacturing strategy, is sustainable for the future
or not. The increasing addiction of the management meaning of the milling industries and the
presence of tough industry regulation have persuaded management of many organizations to
apply lean and agile to promote commercial success.
Research Aim
The aim of the research is to identify and specify selected inputs for GCC milling firms in order
to gain an agility that permits lean, while also supporting green manufacturing processes and
financial stability.
Research Question
The research question that has been addressed in the literary review part of the following study
are as follows;
1. What would the internal and external challenges be for an organization that strive to
become Agile with lean practices methodology already in place?
Research Objectives
The objectives of the research are as follows;
1. To determine the most volatile challenges that milling industries encounter.
2. To determine how internal and external challenges if dealt with correctly can lead to
sustainability in the milling industries
10

3. To determine how Leagile Manufacturing may improve the overall productivity of the
milling organizations (these are okay conrad but there is nothing theretical in here so
what differentiates this from a piece of consultancy?)
Delimitations
The research has been based on one of the most interesting as well as important parts of the
industrial base of the GCC. The discussion on lean manufacturing and agile manufacturing can
provide important and quality information for future research. It will be important to ensure
that this research might assist the industry taking into account that there will be some
limitations to the research - especially primary research might be a challenge.
11

CHAPTER 2 LITERATURE REVIEW
Introduction
The following chapter is briefing about Lean and Agile impact on the company’s sustainability
by reviewing the definitions and views provided by different authors. Here, the concept is
evaluated, as it could be the key challenge a company can face during its transformation into a
Leagile corporation. The crux of this chapter lies in reviewing the arguments for and against the
proposed concepts by distinct authors.
Overview of the manufacturing context
Since the first paper published by (Skinner, 1969) on manufacturing strategy, the field has itself
established as a well-defined area of research. From that period, manufacturing strategy has
received great attention in the academic communities and practitioners have also engaged in the
manufacturing operations management. The key purpose of studying the manufacturing strategy
is the identification of high-performance drivers and more recently the competitive advantage of
sustainability (Ketokivi & Schroeder, 2004). In simple terms, manufacturing can be defined as
value addition procedures by which raw materials of low value and utility due to its improper
material properties and irregular or poor shape, finish and size are converted into valued and high
utility products with definite forms, finish and dimensions imparting some functional ability.
According to (Hallgren, 2007), manufacturing is referred to as a tool for effective utilization of
manufacturing strengths as a competitive weapon which helps in accomplishing corporate goals
and objectives. Thus, manufacturing involves a range of decisions that determine the
manufacturing system capability and specify how it will operate to meet a set of production goals
which are linked with business objectives.
Lean manufacturing
The approach of lean management was developed by Taiichi Ohno in the year 1998 at Toyota
Motor Company in Japan. It forms the basis for TPS (Toyota Production System) through two
key pillars, i.e. just-in-time (JIT) and automation production. The lean approach focus has been
essentially on the reduction of the waste to enhance value-addition features in order to maintain
profits and meet customers’ needs (Carvalho & Cruz-Machado, 2011). According to
(Punnakitikashem & Buavaraporn, 2018), the lean is an important attribute to execute
12

manufacturing practices successfully in the organization. The underlying principle to enhance
productivity by minimizing waste has become intensely influential from being developed into the
construct of lean production. As the lean system has matured, it has been applied wider than ever
(Bhamu and Singh, 2014). It comprises industries other than manufacturing that are not early
adopters naturally.
According to (Womack, et al., 1991), a lean supply chain strategy grounds upon the flexibility
and cost reduction. It also concentrates on process’s enhancements through eliminating non-
valuable activities and minimizing other wastages. It embraces each and every process of the
product life cycle which begins with the design phase, goes through the production and finally
selling to customers and delivery. Furthermore, (Reichhart & Holweg, 2007) stretched the lean
production concept to the level of distribution and further downstream levels. The authors stated
that lean distribution refers to reducing wastes in the supply chain at the downstream level while
making available the right product to the final consumers at the right location and on the right
time.
As per (Vonderembse, et al., 2006), continuous efforts of improvements are required for waste
elimination by focusing on non-valuable activities in order to employ an effective lean supply
chain. The lean supply chain not only helps in improving the internal efficiency of production
chain but also reduces the setup time. Consequently, it results in several benefits for the
manufacturing firms such as economy of scales, profitability, production flexibility and cost
reduction. However, the lean manufacturing is subject to various drawbacks also. The short setup
time offers internal flexibility to the supply chain system of a company but it lacks external
responsiveness to the flexible demands of customers regarding planning, scheduling, product
design and product delivery. Moreover, (Reichhart & Holweg, 2007) criticized the extension of
lean beyond the production to the distribution activities. They claimed that it will need Kanban
systems and production smoothing which are not compatible with high variability.
In the above context, (Melton, 2005) claimed that lean paradigm at an operational level is
executed by utilizing a range of techniques. For example, 5S (a visual technique of housekeeping
that transfers controlling of operational activities to the factory shop floor), Kanban (visual signal
for supporting flow of products pulling through the process of manufacturing as needed by the
customers), visual control (performance measurement method), Poke yoke (a technique of error-
13

proofing), takt time (production rate equals to sales rate) and SMED (a technique of changeover
reduction). In this context, (Martínez-Jurado & Moyano-Fuentes , 2014) upholds the application
of lean techniques in the supply chain network of firms that reduces redundancy in
manufacturing operations, procuring materials and transportation activities.
According to (Tao, et al., 2017), the lean manufacturing process is considered to work well in
case the demand is predictable and low. It is because, in volatile supply chains and high variety,
where the requirements of customers are often unpredictable, there is more requirement of
adopting a high level of agility. As per (Hines, et al., 2004), the lean approach attempts to
determine methods of managing variability and creating capability by more effectively utilizing
assets than in traditional systems, in order to add customer value. (Martin & Towill, 2000)
claimed that leanness might be an agility element in several circumstances but it is not a
sufficient condition for the company to meet the customers’ precise needs more rapidly. Thus,
lean manufacturing allows developing a systematic continuous improvement based culture of
waste elimination in the organization.
Lean Manufacturing Enablers
Management and leadership – According to Anchanga et al. (2006), excellent management and
leadership are important to successfully implement a lean manufacturing system in the
organization. In support of this, (Kumar, et al., 2014) stated that management needs to
communicate the change and give proper understanding to employees regarding the benefits of
adopting improved production technology. It can support in motivating and inspiring employees
to engage in the lean implementation. In this context, (Fadly Habidin & Mohd Yusof, 2013) also
claimed that the effectiveness of management and leadership allows the engagement of
employees in regular improvement activities of the company. Overall, the construct of leadership
and management addresses imperative factors of communication, support, involvement and
leadership commitment.
Employee relations – As per (Abu Bakar, et al., 2015) the high skilled employees of the
company are essential to ensure the success and growth of an organization. By considering the
view of OD (organizational development) techniques to facilitate corporate changes, employee
relations are believed to be imperative in enabling the successful implementation of quality
14

management (Kaynak, 2003). In this regard, (Malmbrandt & Åhlström, 2013) claimed that
employees play a significant role in the adaptation of lean manufacturing. Therefore, employees’
proper training, understanding and commitment towards lean adoption effort are considered as
significant enablers in driving successful implementation of lean manufacturing in the
organization.
Organizational culture – The corporate culture is referred to another essential aspect that enables
a company in successfully implementing lean manufacturing practices (Kujala & Ullrank, 2004).
In this regard, (Punnakitikashem & Buavaraporn, 2018) asserted that lean production initiatives
require more than technical practice execution as it needs a basic change in existing culture and
attitude of employees in the company. (Jinhui Wu, et al., 2011) further claimed that the
implementation of lean manufacturing is more likely to succeed, if the corporate culture is
compatible with basic assumptions and value proposed by the lean production practices. Thus, it
is essential that lean manufacturing needs to be embedded in a supportive corporate culture to
generate positive influences on business.
Customer focus – Customer focus aspect of lean manufacturing concerns with supporting
practices which enable the lean implementation by taking into consideration customers (Antony
et al. 2005). The rising significance of personalized services and mass customization drives
companies to concentrate in consumer to survive in highly competitive situation. Having a
complete understanding about buyers supports company to differentiate its services and products
from rivals, deliver high customers value and sustain loyalty (Fadly Habidin & Mohd Yusof,
2013). Thus, it can be assumed that focusing on the satisfaction and needs of customers are
essential practices in executing lean manufacturing process at the workplace.
Lean Manufacturing Capabilities
Lean manufacturing lessens overall lead times and creates quality at the sources that ultimately
allow organizations to manufacture high-quality products at most competitive rates. Lean
manufacturing tools support the company in simplifying and organizing its working
environment, in order to lessen waste, produce quality at the source, lessen lead times and keep
equipment, workspace and employees responsible of what is required at present to meet the
customers quickly changing demands (Punnakitikashem & Buavaraporn, 2018). According to
15

(Pearce & Pons, 2013), lean manufacturing also creates regular improvement of the product
quality and processes by reducing waste, improving flow and offering exceptional customers
value. Thus, lean is considered as an important attribute of a successful attempt of manufacturing
in the company, as waste reduction and flow in improvement increases efficiency of the
production system.
Agile Manufacturing
From the year 1990, the world has started experiencing globalization and this has resulted in the
entry of products being manufactured by the various nations into the local markets. Pertaining to
this, there has been an increase in the level of competition in the market. The global competition
has thus enabled customers to demand more innovative products and features at decrease prices
and high quality. Thus, to meet this dynamic demand, some of the firms have acquired agile
capabilities to produce innovative products within a short span of time and this was the origin of
agile manufacturing. As per (Gupta & Mittal, 1996), agile manufacturing is nothing but a
business concept which assimilates firms, people as well as technology into an evocative unit by
making arrangement of advanced information technologies, nimble and flexible firm structure
for supporting highly motivated, well-informed and skilled people. On the other hand, according
to (Gunasekaran, et al., 2002), the word agile pays attention to the significance of being highly
responsive for meeting out all the needs of the customers, though concurrently determined to be
a lean manufacturer which has the main aim to be lean concessions receptiveness over cost-
efficiencies.
As per (Devor & Mills, 1995), agile manufacturing is the ability to prosper in the environment
which is full of competition and unanticipated modifications taking place continuously. It helps
in responding quickly towards the changing markets being driven by customer-based valuing of
goods as well as services. However, (De Smet, 2015) argues that agility is not incompatible with
stability; however, ability is rather the ability of an organization to renew itself, adapt, change
quickly, and succeed in a rapidly changing, ambiguous, turbulent environment. Furthermore,
agility requires stability for most companies. On the other hand, (Aghina, et al., 2015) asserts
that the ability to be dynamic and stable is simply grasped through product analogies. Hence,
speed and stability are part of the backbone of an agile company and this coupled with lean
manufacturing assures the continuous growth and survival of an organization.
16

As per (Denning , 2012), agile manufacturing system is only for the stars. This system is being
designed for smart, experienced as well as high achieving people such as stars and creators. Any
type of product and project can be given to these people and they would definitely succeed.
Furthermore, it also makes the conflicting assumption i.e. competence. This type of
manufacturing system demands high level of performance as well as forced action if it does not
take place. In this system, an assumption is being made that the employees within the firm are
well aware about things that they are doing and offers a transparent agenda for them to depict the
things that they can perform. Consequently, it can be said that agile manufacturing is way of
compelling either change or high level of performance.
Agile Enablers
Speaking in relation with enablers, they are being referred as the tools, technologies and
methodologies that help agile manufacturing. According to (Gunasekaran & Yusuf, 2002),
enablers are important technologies, strategies, people as well as systems. All these factors
provide ability to the firm to respond towards the altering conditions of the market. Numerous
studies have been undertaken to identify the enablers that support the firm in executing agile
manufacturing principles. Further, all these researchers have reported in the arena of literatures
repeatedly. Moreover, an overview of the literatures shows that rapid prototyping technology as
well as virtual manufacturing are found to be one of the essential enablers of agile
manufacturing. Rapid prototyping technology helps in fast manufacturing of prototypes that
allows the firms to re-arrange their products and services according to the needs of the customers
prior the products and services are being produced in the shop floor. In addition to this, virtual
production allows the firms to view procedure of the production in the computer screens before
the product is being produced. Because of such type of abilities of virtual manufacturing, the
reconfiguration of production facilities has been enabled to get up the products as per the taste
and preferences of the customers (Vyshnavi & Chetan, 2016). In addition to this, there are many
enablers as well of agile manufacturing and these are:
 Innovativeness – Promotion of invention as well as innovation within the firm for the
purpose of grasping the benefits off competitive market.
 Team working and concurrent engineering – Cross functional teams as well as concurrent
execution of activities are considered as an enabler of agile manufacturing. In other
17

words, performing and organizing tasks as coexisting teams for the purpose of
compressing the time of each and every duty and at the same time increasing the pace of
activities.
 Knowledge management – It also helps in enabling agile manufacturing within the firm.
It is being referred as the method for obtaining, transforming, improving and applying
knowledge within the business corporation (Putnik & Putnik, 2012).
 Core competence management – Recognition as well as cultivating the special abilities
within the firm that supports the firm to develop agility.
 Computer aided design – Other than the above CAD i.e. computer aided design is another
frequent agile enabler being referred by many researchers these days. Critical thinking in
this regards, specifies that without the help of computer aided design, it is merely
impossible to produce prototypes quickly by utilizing Rapid prototyping technology and
reconfiguring the manufacturing facilities by utilizing virtual manufacturing. Therefore, it
can be said that computer aided design supports in reconfiguration of products as well as
production of facilities. Consequently, the introductory enabler in regards with the agile
manufacturing is nothing but the use of CAD in the case of production of products.
 Cloud manufacturing model – In recent years, researchers is continuously evaluating the
power of cloud manufacturing model towards augmenting the virtual production as well
as reconfigurable abilities of the firm to acquire agility features. The cloud manufacturing
model possess the capabilities to support the firms in accumulating essential information
for becoming agile firms at lower prices by utilizing IT resources (Zhang, et al., 2014).
Agile Capabilities
Facing the competitive market, agile manufacturing is being referred as the ability of the firm to
survive and flourish in the market full of competition and random changes through responding
rapidly as well as effectively. There are many capabilities of this manufacturing method. The
very first is, it helps in building best customer-oriented products by keeping in intellect the
changing demands of the market. In today’s scenario, people search for the products which are of
best quality and thus, this system can offer the same. Secondly, because of the use of integrated
system, agile manufacturing system is proficient enough in staying efficient. The system is able
to make quick decision without wasting time and helps in maintaining the flow of production.
18

Thirdly, this system also possesses capabilities to keep the flow of data steady all across the
supply chain and thus, in turn makes sure full potential production. This is being carried out by
sharing information about the consumers with different external areas of the supply chain like
suppliers (Kidd, 1995).
Pertaining to this, the entire supply chain becomes capable of aligning the demands of the
customers. Thus, it can be attributed that those firms who implements agile manufacturing
system are capable enough to quickly revert back to the alterations in the demand of the
customers. In addition to this, they will also be in a position to avail the benefits of the windows
of opportunities being appearing in the market place with the passage of time. Moreover, with
this system, it is also conceivable to cultivate new habits of interaction with the suppliers as well
as customers. Through this model, people will not only able to gain admittance to the products
and services however they will be in a position to evaluate and exploit the abilities and thereby
helping them to achieve things that are being looking for (Yang, 2014).
Leagile manufacturing
The word “Leagile” has been around for quite long time. (Christopher, et al., 2006) are not the
first who have used this term rather in the year 1999, (Naylor, et al., 1999) published article
related to Leagile manufacturing and soon many other authors have also started picking this area
as their subject of research. It basically comes from an amalgamation Lean manufacturing and
agile manufacturing (Stratton & Warburton, 2003). The former one has a long history and the
later one is noticeably younger. Speaking in volume about Leagile manufacturing system, it
includes qualities of both lean and agile manufacturing system. Both these systems are being
detached through a de-coupling point. According to (Mason-Jones, et al., 2000), Leagile
manufacturing is being referred as a system which is a combination of lean as well as agile
prototypes within a strategy of supply chain through locating the decoupling point. It helps in
exploiting the market opportunities in a cost-effective manner. As per (Krishnamoorthy &
Kamath, 2000), Leagile manufacturing system carries out its operation at various points in a
production supply chain. The main component is the de-coupling point. The lean process exist at
the upstream side of the point and agile processes takes place at the downstream side of the
point.
19

(Prince & Kay, 2003) came up with a model that is applicable to single plant of manufacturing
which is similar to above one. The model suggested the various application of both lean and
agile at numerous stages of manufacturing process. The proposed model help in increasing the
manufacturing flow with the help of technique of virtual groups. These are the machine and the
part families that is used in the manufacturing process and all called as virtual groups. Another
concept of decoupling point exist which maintain the minimum stock needed between the two
virtual groups (Naylor, et al., 1999).
Benefits of Leagile manufacturing
 Information sharing – With the major development in the electronic transfer and data
sharing platform, the chief producers uses the technique of data sharing in the monitoring
of suppliers, design of the product and material sales and various procurement activities.
This is the basis in the Leagile technique of manufacturing. The importance of sharing
data help in reducing data inaccuracy and redundancy, and which will help in improving
trade relation between enterprises and improving response to the market. Enterprise
existing in supply of Leagile which will no longer managing of inventory with the help of
forecasting the direct demand, and which will further help in reducing stock.
 Helps in shortening the length of supply chain – In the Leagile supply chain method
production generally starts with the client request, and all the things like production,
procurement is dependent on the client ends. Consequently, in this production model
immediate selling is generally embraced. In this model distributors and retailers can be
eliminated and direct customer selling model is applicable. In this way, the method will
always have the advantage of very less effort and higher effectiveness (Chan, et al.,
2017)).
 Order Guidance – The method incorporates the central role of a customer’s request and
works accordingly. The same functional units are isolated from the lean supply chain
manufacturing process. Moreover, on the final client’s requests, the core production
produces the specific and standardized modules as novel items. Such type of approach
can lessen several production complexities, increase the manufacturing proficiency, meet
the end clients’ requirements and shorten the lead time.
20

 Close cooperation between Enterprises – Leagile supply chain needs warehouse of
providers or providers to locate around the key producer to lessen the logistics
transportation time. With the assessment of cost, benefit, quality, supply limit,
mechanical development and service, the key manufacturer selects some particular
suppliers to maintain close collaboration (Melton, 2005).
Application of Leagile manufacturing
Lean production has the major purpose of reducing waste and is linked with “zero inventory”
and Just in Time approach. But lean supply chain is endangered on its accessibility routine. Agile
manufacturing helping to deal with the dynamic demands by the clients. The major question in
the mind of manufacturer is that which type of supply chain need to be used. (Christopher &
Towill, 2000) supposed that agile manufacturing is effective where the need of the client is less
predictable. For goods having less cost, if clients ask developed custom-made and precise
demands, Leagile supply chain is the finest option for manufacturers. Jointly the benefits of less
cost and faster response to consumer, Leagile supply chain outfits to industrial enterprises whose
goods are advanced innovative demands and the updating of the product is quick (Van Hoek,
2000).
In case, high volume and high variety, a collaborative approach is needed to develop an optimal
solution and supply chain management. The involvement of supplier and buyer will be combined
with other main stakeholders in the supply chain to develop a leagile supply chain by using ESCI
(Early Supply Chain Involvement) bringing together the expertise of suppliers, buyers and other
stakeholders to achieve an agile and lean environment. Behind this, the philosophy would be to
have Just In Progress inventory by utilizing postponement opportunities to reduce on waste and
respond to changing demand (Cagliano, et al., 2004).
For Leagile supply chain, it is necessary to give details of information about the order on the
entire supply chain and in the course of various role of the firm like production, sales,
distribution, procurement .Many a time the central manufacturer doesn’t have the components or
parts stock neither do they hold, so the major requirement of this supply chain is the supplier’s
workshop or store to be constructed around the central manufacturers, for example the Toyota
industry park (Naylor, et al., 1999). For the fast response to customer demands, information
21

among enterprises need to be shared in the agile supply chain on the whole supply chain, but this
doesn’t require the enterprises or firms to be located near to each other.
Research gap
By reviewing the existing literature on the lean, agile and leagile manufacturing impact on
organization sustainability, it has been determined that many scholars have focused the concept
in their work but no evidence found on impact of these manufacturing system on the mining
industry. Due to this, the following study is aimed to fill the research gap by investigating
relationship between lean, agile and leagile production activities and corporate sustainable
performance. Therefore, throughout this study, an attempt will be made to present agile, lean and
leagile paradigms and the association between sustainable development and mining business
supply chain.
Conclusion
The above literature summarizes that agile organization and lean production creates impact on
the company’s supply chain management and conversely. It means that only way in which
organizations can identify and navigate conflicts or trade-offs in their supply chain is to consider
sustainability as important to operations. Also, the authors views suggest that implementation of
lean manufacturing system requires complete transformation at the workplace and needs to
support with business development along with process improvement.
22

DISSERTATION
CHAPTER 3 RECEARCH METHODOLOGY
Research Philosophy

DISSERTATION
Research Approach
Research Strategy
Time Horizon
Ethical Issues of Data Collection/Confidentiality
Validity and Reliability of Data
CHAPTER 4 DATA COLLECTION METHOD
Secondary Data Presentation
Primary Data Presentation
Summary of Data and Analysis
CHAPTER 5 CONCLUSION
Discussion of Results
Generate Immediate Impact
Generate Sustainable Impact
Summary of Conclusion
Limitations of the Research and Recommendations for further Research
CHAPTER 6 RECOMMENDATIONS
Immediate Impact
24

DISSERTATION
Sustainable Impact
References
Abu Bakar, F. A., Subari, K. & Mohd Daril, M. A., 2015. Critical success factors of Lean Six Sigma
deployment: a current review.. International Journal of Lean Six Sigma, 6(4), pp. 339-348.
Acquaye, D. A., 2017. Kent Business Matters. [Online]
Available at: https://blogs.kent.ac.uk/kent-business-matters/2017/05/22/why-sustainability-is-
important-in-business/#
[Accessed 25 11 2018].
Aghina, W., De Smet, A. & Kirsten , W., 2015. McKinsey Quarterly. Agility: It rhymes with stability, 1 12.
Aydınoğlu, N., Hatipoğlu, T., Esen, H. & Fığlalı, N., 2017. Application of lean production techniques in the
manufacturing industry. International Journal of Services and Operations Management, pp. 324-344.
Bazigos, M., De Smet , A. & Gagnon, C., 2015. Why agility pays. Mckinsey Quarterly, 1(4), p. 28.
Cagliano, R., Caniato, F. & Spina, G., 2004. Lean, agile and traditional supply: how do they impact
manufacturing performance?. Journal of Purchasing & Supply Management, 10(4/5), pp. 151-64.
Carvalho, H. & Cruz-Machado, V., 2011. Integrating lean, agile, resilience and green paradigms in supply
chain management (LARG_SCM).. [Online]
Available at: https://www.pfri.uniri.hr/knjiznica/documents/Supply_Chain_Management.pdf
[Accessed 25 April 2019].
Chan, A. T., Ngai, E. W. & Moon, K. K., 2017. The effects of strategic and manufacturing flexibilities and
supply chain agility on firm performance in the fashion industry.. European Journal of Operational
Research, 259(2), pp. 486-499.
Christopher, M., Peck, H. & Towill, D., 2006. A Taxonomy for Selecting Global Supply Chain Strategies.
The International Journal of Logistics Management , 17(2), pp. 277-287.
Christopher, M. & Towill, D. R., 2000. Supply chain migration from lean and functional to agile and
customised.. Supply Chain Management: An International Journal., 5(4), pp. 206-213.
De Smet, A., 2015. Defining organizational agility [Interview] (1 12 2015).
Denning , S., 2012. Forbes. [Online]
Available at: https://www.forbes.com/sites/stevedenning/2012/04/17/the-case-against-agile-ten-
perennial-management-objections/#413d3a2c3a95
[Accessed 2 12 2018].
25

DISSERTATION
Devor, R. & Mills, J., 1995. Agile Manufacturing, American Society of Mechanical Engineers..
Manufacturing Engineering Division, 2(2), p. 977.
Fadly Habidin, N. & Mohd Yusof, S. R., 2013. Critical success factors of Lean Six Sigma for the Malaysian
automotive industry.. International Journal of Lean Six Sigma., 4(1), pp. 60-82.
Goodrich, L., 2015. GWTNEXT. [Online]
Available at: http://www.gwtnext.com/fundamentals-of-business-agility/
[Accessed 2 12 2018].
Gunasekaran, A., Tirtiroglu, E. & Wolstencroft, V., 2002. An investigation into the application of agile
manufacturing in an aerospace company.. Technovation, 22(7), pp. 405-415.
Gunasekaran, A. & Yusuf, Y. Y., 2002. Agile manufacturing: a taxonomy of strategic and technological
imperatives.. International journal of production research., 40(6), pp. 1357-1385.
Gupta, U. G. & Mittal, R. O., 1996. Quality, time, and innovation based performance measurement
system for agile manufacturing.. Proceedings - Annual Meeting of the Decision Sciences Institute.,
Volume 3, pp. 1511-1513.
Hallgren, M., 2007. Manufacturing strategy, capabilities and performance, Linköpings universitet:
(Doctoral dissertation, Institutionen för ekonomisk och industriell utveckling).
Hines, P., Holweg, M. & Rich, N., 2004. Learning to evolve: a review of contemporary lean thinking..
International journal of operations & production management., 24(10), pp. 994-1011.
Jinhui Wu, S., Zhang, D. & Schroeder, R. G., 2011. Customization of quality practices: the impact of
quality culture.. International Journal of Quality & Reliability Management., 28(3), pp. 263-279.
Kaynak, H., 2003. The relationship between total quality management practices and their effects on firm
performance.. Journal of operations management., 21(4), pp. 405-435.
Ketokivi, M. & Schroeder, R., 2004. Manufacturing practices, strategic fit and performance: a routine-
based view.. International Journal of Operations & Production Management., 24(2), pp. 171-191.
Kidd, P. T., 1995. Agile Manufacturing: A strategy for the 21st century.. London, Sage.
Krishnamoorthy, B. & Kamath, M., 2000. Scheduling in a cellular manufacturing environment: a review
of recent research.. Engineering Valuation and Cost Analysis, Volume 2, pp. 409-423.
Kujala, J. & Ullrank, P., 2004. Total quality mamnagement as a cultural phenomenon. Quality
management journal, 11(4), pp. 43-55.
Kumar, S., Luthra, S., Garg, D. & Haleem, A., 2014. Lean six sigma implementation: An analytic hierarchy
process approach. In NITIE-POMS Conference.. Manufacturing Excellence: Imperatives for Emerging
Economies at National Institute of Industrial Engineering, pp. 18-21.
26

DISSERTATION
Larson, E. & Larson, R., 2011. Seven questions to ask to determine if your organization is agile ready.
Paper presented at PMI® Global Congress 2011—North America, Dallas, TX. Newtown Square,. North
America, Dallas, TX. Newtown Square, PA: Project Management Institute..
Malmbrandt, M. & Åhlström, P., 2013. An instrument for assessing lean service adoption.. International
Journal of Operations & Production Management., 33(9), pp. 1131-1165.
Martin, C. & Towill, D. R., 2000. Supply chain migration from lean and functional to agile and
customised.. Supply Chain Management: an international journal., 55(4), pp. 206-213.
Martínez-Jurado, P. J. & Moyano-Fuentes , J., 2014. Lean management, supply chain management and
sustainability: a literature review.. Journal of Cleaner Production., Volume 85, pp. 134-150.
Mason-Jones, R., Naylor, B. & Towill, D., 2000. Engineering the leagile supply chain.. International
Journal of Agile Management System., Volume 2, pp. 54-61.
Melton, T., 2005. The benefits of lean manufacturing: what lean thinking has to offer the process
industries.. Chemical engineering research and design., 86(6), pp. 662-673.
Mittal, V. K. et al., 2017. Adoption of Integrated Lean-Green-Agile strategies for modern manufacturing
systems. Procedia CIRP, Volume 61, pp. 463-468.
Naylor, J. B., Nainm, M. M. & Berry, D., 1999. Leagility: Integrating the Lean and Agile Manufacturing
Paradigms in the Total Supply Chain.. International Journal of Production Economics., Volume 35, pp.
107-118.
Nieuwenhuis, P. & Katsifou, E., 2015. More sustainable automotive production through understanding
decoupling points in leagile manufacturing. Journal of Cleaner Production, Volume 95, pp. 232-241.
Pearce, A. & Pons, D., 2013. Implementing lean practices: managing the transformation risks.. Journal of
industrial engineering., Issue 2013.
Prince, J. & Kay, J. M., 2003. Combining lean and agile characteristics: creation of virtual groups by
enhanced production flow analysis. International Journal of Production Economics., 85(3), pp. 305-318.
Punnakitikashem, P. & Buavaraporn, N., 2018. The important enablers of lean implementation towards
organizational performance in financial services.. The Business & Management Review, 9(4), pp. 241-
248.
Putnik, G. D. & Putnik, Z., 2012. Lean vs agile in the context of complexity management in organizations..
The Learning Organization., 19(3), pp. 248-266.
Reichhart, A. & Holweg, M., 2007. Lean distribution: concepts, contributions, conflicts.. International
journal of production research., 45(16), pp. 3699-3722.
Rudd, C., 2006. SolutionsIQ. [Online]
Available at: https://www.solutionsiq.com/wp-content/uploads/2017/09/Unlocking-Business-Agility.pdf
27

DISSERTATION
[Accessed 25 11 2018].
Sindhwani, R. & Malhotra, V., 2018. An integrated approach for implementation of agile manufacturing
system in an Indian manufacturing industry.. Benchmarking: An International Journal, 25(4), pp. 1106-
1120.
Skinner, W., 1969. Manufacturing-missing link in corporate strategy..
Stratton, R. & Warburton, R. D., 2003. The Strategic Integration of Agile and Lean Supply Chain..
International Journal Production Economics., Volume 15, pp. 183-198.
Tao, F., Cheng, Y., Zhang, L. & Nee, A. Y., 2017. Advanced manufacturing systems: socialization
characteristics and trends.. Journal of Intelligent Manufacturing,, 28(5), pp. 1079-1094.
Van Hoek, R. I., 2000. The thesis of leagility revisited.. International Journal of Agile Manufacturing
Systems., 2(3), pp. 196-201.
Vonderembse, M. A., Uppal, M., Huang, S. H. & Dismukes, J. P., 2006. Designing supply chains: Towards
theory development.. International Journal of production economics., 100(2), pp. 223-238.
Vyshnavi, T. S. & Chetan, N., 2016. A Review on Implementation of agile in manufacturing industries
using key enablers. .. IRJET, 3(3), pp. 1929-1933.
Womack, J. P., Jones, D. T. & Roos, D., 1991. The machine that changed the world: The story of lean
production.. New York: 1st Harper Perennial Ed..
Yang, J., 2014. Supply chain agility: Securing performance for Chinese manufacturers.. International
Journal of Production Economics., Volume 150, pp. 104-113.
Zhang, L., Luo, Y. & Tao, F., 2014. Cloud manufacturing: a new manufacturing paradigm.. Enterprise
Information Systems., 8(2), pp. 167-187.
28