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Technical paper
Design of agile supply chain assessment model and its case study in an Indian
automotive components manufacturing organization
S. Vinodh a,∗ , S.R. Devadasan b , K.E.K. Vimal a , Deepak Kumar a
a
Department of Production Engineering, National Institute of Technology, Tiruchirappalli, Tamilnadu, India
b
Department of Production Engineering, PSG College of Technology, Coimbatore, Tamilnadu, India
a r t i c l e i n f o a b s t r a c t
Article history: Agile Manufacturing (AM) paradigm is fast instilled in modern organizations. AM enables an organi-
Received 21 March 2010 zation to evolve products and services quickly and economically in response to the customers’ dynamic
Received in revised form 23 March 2013 demands. The effectiveness of AM is largely determined by the performance of Agile Supply Chains (ASC).
Accepted 1 April 2013
In order to assess their performance, an ASC assessment model was reported in this research paper. This
Available online 3 May 2013
model is encompassed with agile supply chain attributes whose performance levels need to be deter-
mined for assessing the overall ASC performance of the organization. The computation was performed
Keywords:
using fuzzy logic approach. The working of this model was examined by conducting a case study in
Agile manufacturing
Supply chain management
an Indian automotive components manufacturing organization. The experience gained by conducting
Fuzzy logic this case study favored the use of a computerized system which will ensure accuracy of computations
Manufacturing systems involving fuzzy logic.
© 2013 The Society of Manufacturing Engineers. Published by Elsevier Ltd. All rights reserved.
0278-6125/$ – see front matter © 2013 The Society of Manufacturing Engineers. Published by Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.jmsy.2013.04.001
S. Vinodh et al. / Journal of Manufacturing Systems 32 (2013) 620–631 621
the paper as ‘XYZ’. The steps involved in using the fuzzy logic sup-
Nomenclature ported ASC assessment model developed during this research are
elaborately presented while describing this case study.
Rj average fuzzy ratings
Rji fuzzy performance ratings
Wji performance weights 2. Literature review
Wj average performance weights
FPIIj FPII for jth attribute An overview of literature indicated that a considerable number
Wj complement of jth attribute’s importance weight of researchers have deliberated about the meaning and character-
D(FASCI, ALi ) Euclidean distance between FASCI and ALi istics of ASC management.
AL agility level
ALi corresponding Fuzzy number for natural-language 2.1. Assessment models in AM, fuzzy logic applications in AM and
expression SCM arenas
FPIIijk FPII for ijkth attribute
fFASCI (x) triangular fuzzy number of FASCI Few researchers have developed models for measuring agility
fALi (x) triangular fuzzy number of ALi index. They have deliberated the methods for measuring agility
index by computing and combining the intensity levels of agility
enabled-attributes. Other decision making methods were devel-
oped by Ren et al. [11] based on the logical concept of Analytic
marketing/customer sensitivity, cooperative relationships, pro- Hierarchical Process (AHP). Yang and Li [12] have proposed a
cess integration, and information integration are the attributes of procedure to assess agility using fuzzy logic approach for mass cus-
ASC. Iskanius [7] enumerated virtual enterprise/organization, out- tomized product manufacturing. They have identified the ranges
sourcing, collaborative relationships, production planning, product in a scale of 2–10 to indicate whether the company is agile or
design and service, customer focus, customer and market sensitiv- not. Yu et al. [13] used fuzzy multi-objective vendor selection pro-
ity as the characteristics of ASC. In this study, the case network gram for lean procurement based on cost minimization, delivery
was undergoing a shift toward paper-oriented business, where schedule violation minimization, and maximizing the quality level
quick response was the priority and agility was recognized as of the purchased quantity. They developed a solution algorithm
the facilitating factor. Using a constructive approach, an ASC for using fuzzy AHP. But performance measurement and identification
a steel product network was developed. In this study, qualitative of drag factors and improvement proposals may be difficult with
methods such as interviews, observations, questionnaires and doc- the method. Using the numerical problem, they proved fuzzy logic
uments were used as data collection methods. Chopra et al. [8] approach is suitable for vendor selection problem. Lin et al. [10]
explained aspects related to inventory management, supplier rela- have developed a fuzzy logic based assessment methodology for
tionship management, enterprise wide relationship management, agility evaluation. The evaluation procedure includes identifying
supply chain partner selection and internal SCM as the characteris- agility capabilities, selecting linguistic variables sets and interpre-
tics of ASC. Paneerselvam [9] mentioned that time management ting the values of the fuzzy rating and fuzzy weights integration,
and nature of management are the characteristics of ASC. Few fuzzy index labeling, and defuzzification. The authors have men-
researchers working on ASC have been deliberating useful hints [5]. tioned the need for computerization of assessment. In order to
Yet the success of these researches will be ensured only if a model overcome the vagueness of the agility assessment and to include
is offered to researching and practicing communities to measure the human knowledge, Tsourveloudis and Valavanis [14] proposed
the agility level of supply chains. However this task has to be tact- IF – THEN rules for measuring enterprise agility based on fuzzy
fully handled as assessment of agility in supply chains is largely logic. The disadvantage of this approach is its inflexibility since
dependent on the experts’ estimation of ASC activities [10]. This IF– THEN rules must be redesigned to fit the new situation as it
estimation is largely available in the form of linguistic expressions involves several levels of linguistic terms or different member-
like ‘very good’ and ‘satisfactory’. These linguistic expressions are ship functions usage. IF – THEN method based assessment requires
so vague that converting them into numerical values may prove a prior mathematical knowledge to convert IF-THEN rules into
to be difficult. Not only that, ensuring consistency and reliabil- mathematical model. The industrial experts find difficult while
ity of these numerical values also impose a challenge. The field of solving the complex mathematical equations. Jain et al. [15] devel-
Artificial Intelligence offers a solution to face these challenges by oped a new approach based on Fuzzy Association Rules Mining to
offering ‘fuzzy logic’ methodology. Hence, it is a prudent propo- support the decision makers by enhancing flexibility in making
sition to incorporate fuzzy logic methodology into the model for decisions for evaluating agility with both tangible and intangible
assessing agility level of supply chains. On realizing the need of attributes/criteria such as flexibility, profitability, quality, innova-
such a model, the research reported in this paper was carried out. tiveness, proactivity, speed of response, cost and robustness. The
This research was begun by studying the literature on assessment model could still take into account other advanced features of agile
of ASC. This study resulted in the identification of ASC enablers and system characteristics. Ganguly et al. [16] proposed three tech-
their supporting criteria and attributes. This study also revealed niques and associated metrics for determining enterprise agility.
that few researchers have contributed ASC assessment models. They presented a case study involving Apple’s digital media to
Subsequently an ASC assessment model incorporated with five demonstrate the utility of methodology and associated metrics.
agile enablers, 20 criteria and 86 attributes were discussed. These Lin et al. [10] utilized fuzzy logic approach for assessing sup-
drivers of ASC were derived from the earlier researches reported ply chain agility of manufacturing organization. They mentioned
in the literature. The framework of this model facilitates the sur- that a supply chain must possess a number of distinguishing
mounting of deploying fuzzy logic methodology. This methodology attributes such as distribution networks, manufacturing capabil-
facilitates the assessment of agility in the supply chain network of ities, interchange-ability of personnel and learning organization
the organization. After designing this model, a case study was car- [17]. Due to qualitative and ambiguous attributes linked to agility
ried out in an automotive manufacturing company situated in India. assessment, most measures are described subjectively using lin-
Since the management of the company does not prefer to reveal guistic terms, and cannot be handled effectively using conventional
its identity, this company is designated in the remaining part of assessment approaches. Fuzzy logic provides an effective means
622 S. Vinodh et al. / Journal of Manufacturing Systems 32 (2013) 620–631
Table 1
Comparison of different assessment techniques.
Multi grade fuzzy Vinodh and Chintha Assessment of leanness Leanness Application of scientific • Comprehensiveness of
approach [33] index = 8:07725 approach to assess the model needs to be
leanness improved
• Management • Advanced methods of
responsibility fuzzy logic were not
attempted
• Manufacturing
management leanness
• Work force leanness
• Technology leanness
• Manufacturing strategy
leanness
Multi grade fuzzy Vinodh and Prasanna Assessment of agility index Agility index in the Comprehensive model • Fuzziness associated with
approach [18] in the supply chain supply chain = 6.198 to assess agility level of the agility assessment was
supply chain not considered.
• Virtual Enterprise • Advanced methods of
organization fuzzy logic were not
attempted
• Collaborative relationship
• Strategic management
• Knowledge and
information technology
management
• Customer and market
sensitivity
If then approach Tsourveloudis and Assessment of agility level Overall agility Advanced model of Model is not
Valavanis [14] level = {(0.15, 0) (0.25, fuzzy logic was used to comprehensive enough for
0.5) (0.35, 0.5) assess agility dynamic market scenario.
• Production (0.45,0)} = almost low Difficulty in understanding
by industrial users.
• People Advanced methods of
• Information fuzzy logic need to be
• Market tested.
Fuzzy logic Lin et al. [29] Assessment of agility Agility level = very agile Advanced method of Comprehensiveness of
• MC enterprise fuzzy logic has been the model needs
management organization attempted improvement
agility
• MC enterprise
management Product
design agility
• MC enterprise
management Processing
manufacture agility
of dealing with problems involving impreciseness and vagueness in overall performance as a result of integration and coordination of
phenomena. Assessment in ASC is frequently measured linguisti- the internal functions within the firm and effectively linking them
cally rather than numerically. Many methods can be adopted to with their external suppliers. The results also support the claims
aggregate assessments of multiple decision-makers, such as arith- that an integrated supply chain involves aligning outsourcing activ-
metic mean, median, and mode. Since the average operation is the ities to achieve organizational goal of responding positively to the
most widespread aggregation method, it is preferable to use arith- needs of consumers. The comparison of the assessment models is
metic mean to pool the opinions of experts. Vinodh and Prasanna presented in Table 1. The literature review shows the advantages
[18] have developed a conceptual model for evaluation of agility in and disadvantages associated with various assessment techniques.
supply chain. They used multi-grade fuzzy approach for evaluating But compared to other techniques, Fuzzy logic approach was highly
agility of supply chain. They identified weaker areas and imple- preferred because of its capability to handle vague and uncertainty
mented improvement proposals. But partial subjectivity exists with situations.
assessment. Devo et al. [21] proposed a supply chain performance
model based on fuzzy logic to predict performance based on causal 2.2. Drivers of agility and supply chain performance
relationships between metrics of the Supply Chain Operations Ref-
erence (SCOR) model. Fuzzy logic is a technique suitable for dealing Gunasekaran [23] proposed Virtual enterprise formation
with uncertainty and subjectivity, which becomes an interesting tools, physically distributed teams, rapid partnership forma-
auxiliary approach to manage the performance of supply chains. tion tools/metrics, concurrent engineering, integrated prod-
Elmuti et al. [22] posited the longitudinal approach for assessment uct/production/business information system, rapid prototyping
of supply chain agility. The purpose of this article is to investigate tools and electronic commerce as enablers of AM. Sherehiy et al.
the impact of integrated SCM on productivity, efficiency, and per- [24] identified following global characteristics of agility which can
formance of participants in the system, in an industrial field. Actual be applied to all aspects of enterprise: flexibility, responsiveness,
organizational data from the survey firm was used. Follow-up inter- speed, culture of change, integration and low complexity, high
views were conducted with key managers in the manufacturing quality and customized products, and mobilization of core com-
facility. The results showed positive and substantial improvements petencies. Tseng and Lin [25] developed a new agility development
S. Vinodh et al. / Journal of Manufacturing Systems 32 (2013) 620–631 623
method for dealing with the interface and alignment issues among methods that are able to meet the combination of qualitative and
the agility drivers, capabilities and providers using the Quality quantitative objectives in ASC.
Functional Deployment relationship matrix and fuzzy logic. A fuzzy The highlights of the reviews reported in the previous three sub-
agility index (FAI) for an enterprise composed of agile capability sections would indicate that few researchers have deliberated the
ratings and a total relation-weight with agility drivers was devel- characteristics of ASC. However, few researchers have contributed
oped to measure the agility level of an enterprise. With a study, they models for measuring agility and supply chain agility. More closely,
revealed that the proposed framework and procedures can enhance Lin et al. [10] contributed supply chain agility model which makes
agility of an enterprise as well as ensure a competitive edge. Viharos use of fuzzy logic approach and Vinodh and Prasanna [18] con-
et al. [26] discussed about the integration of production, quality tributed a model for the assessment of ASC using Multi Grade
and process monitoring for enabling AM. In this article, a paramet- Fuzzy approach. An overall review of these papers indicated that
ric manufacturing knowledge representation model was proposed the drivers of ASC management have to be encapsulated as a mod-
to address the issue of product configuration variation and man- ule. Furthermore, a segment of researchers favored the use of fuzzy
ufacturing agility to facilitate AM. Variation Product Configuration approach for measuring agility and supply chain performance. In
(VPC) model was proposed for modeling the manufacturing facility this context, during this research, it was inferred that a model
and process, respectively. The concepts of manufacturing capability incorporated with ASC characteristics and fuzzy approach to mea-
for facility and process as well as the mechanism for matching them, sure their collective performance was the need of the hour. In the
were also introduced in the proposed model. With these models, present study, the comprehensiveness of agile supply chain assess-
the knowledge of manufacturing facility and process for products ment model was better when compared to Lin et al. [10] model. In
with wide variations can be concisely represented in AM. Bottani the present study, fuzzy logic approach was used in order to over-
[27] proposed the application of fuzzy QFD approach for achieving come vagueness and preciseness. The application of fuzzy logic for
agility. They exploited fuzzy logic to translate linguistics judgments ASC assessment in a comprehensive manner is the problem being
required for relationships and correlation matrices into numerical addressed in this study.
values. Elmuti et al. [22] identified several factors as key contribu-
tors to supply chain program success in this firm. These included
sharing information through new technologies, established part- 3. Conceptual features of ASC assessment model
nerships with key suppliers, and constant communication with
employees. This exploratory empirical study provided insight into The conceptual features of ASC assessment model are depicted
the effectiveness of implementing an integrated SCM approach in Fig. 1.
for increasing the probability of success in the SCM approach and As shown, this model consists of three modules: In the first mod-
identified areas that need further investigation. Yusuf et al. [1] pre- ule ASC attributes are encompassed. These attributes are derived
sented a survey of 600 companies as a part of large study of AM. from ASC enablers and criteria. The logic behind this research is
Their study was driven by a conceptual model, which relates sup- described by selecting sample criteria presented in Table 2. The
ply chain practices to competitive objectives and involves the use logic behind the classification scheme of various ASC attributes,
of factor analysis to reduce research variables to a few principal criteria and enablers is that: enablers represent the pillars of ASC;
components. They proved that supply chain integration is a vital criteria represent the factors and attributes represent the sub fac-
tool for achieving competitive advantage. tors of ASC.
As the sample, first three attributes pertaining to ASC crite-
rion ‘Organizational structure’ is explained as follows: Number of
2.3. Review of ASC and Need of ASC assessment model levels in the hierarchy has been reduced to form a Flattened Orga-
nizational structure. A cross functional team has been formed at
Sukati et al. [28] investigated the relationship between organi- organization and department levels to discuss various issues and
zational practices and supply chain agility. Using Data collection facilitate team oriented decision making. The employees of the
instrument, questionnaire was administered to 150 executive offi- organization are trained in various departments to enable inter-
cers, directors, presidents, vice presidents, managers, and senior changeability of personnel. Both the culture of team formation and
staff among 40 manufacturing firms in Malaysia. The finding organizational management has been followed. These above men-
showed that supply organizational practices have a significant rela- tioned activities have been followed to enable learning culture of
tionship with supply chain agility. Baker [29] explored the precise the organization.
role of distribution centers within ASC using nine case studies. These drivers of ASC management are to be derived by refer-
The author examined how individual business units design and ring to research findings. During the research, as many as 86 ASC
operate distribution centers to provide a rapid response to their attributes were derived by referring to the appropriate literature.
markets. The solutions used by these companies are categorized In the second module of ASC assessment model, the steps adopted
to form a framework for addressing this subject and as a basis for in fuzzy approach which are presented in literature [31,32] have
further research into the practical application of agility at the dis- been encompassed. In the third module of ASC assessment model,
tribution center level. Luo et al. [30] developed a model that helps the results were computed and inferences were derived. This mod-
to overcome the information-processing difficulties in screening ule consists of two stages. In the first stage, the performance of
a large number of potential suppliers during the early stages of ASC prevailing in the organization is assessed using linguistic terms
the selection process in ASC. With an example, the potential of such as ‘extremely agile’ and ‘very agile’. In the second stage of
radial basis function artificial neural network was illustrated to this module, importance indices of ASC attributes are to be calcu-
assess suppliers against multiple criteria using both quantitative lated. Then the experts have to indicate the maximum importance
and qualitative measures. Wu and Barnes [4] reviewed the litera- index up to which they can consider the performance improve-
ture on supply partner decision-making published between 2001 ment of ASC of the organization. This importance index is fixed by
and 2011, a period that has seen a significant increase in work pub- the experts of the organization known as management threshold
lished in this field. Particular attention was given to those methods value. The application of ASC assessment model has to end by sug-
that are especially relevant for use in ASC. Using a classification gesting the measures to improve the performance of ASC attributes
framework, the authors compared and tracked work published on whose importance indices are less than the threshold value as fixed
similar purpose. The findings highlight an on-going need to develop by the experts of the organization. The detailed information about
624 S. Vinodh et al. / Journal of Manufacturing Systems 32 (2013) 620–631
Table 2
Supply chain agility evaluation model.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Table 2 (Continued )
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
1. Lin et al. [10]; 2. Zarandi et al. [34]; 3. Iskanius [7]; 4. Yusuf [17]; 5. Chopra et al. [8]; 6. Paneerselvam [9]; 7. Mahajan, [35]; 8. Denis and Wadhwa, [36]; 9. Gunasekaran, [23];
10. Eshlaghy et al. [5]; 11. Chen et al. [37]; 12. Nagesh and Kerry, [38]; 13. Christopher and Towill, [39]; 14. David et al. [40]; 15. Chwen and Barutcu, [41]; 16. Gunasekaran
et al. [2]; 17. Avoine, [42].
Module 3: Results
During the initial phase, the manufacturing processes and
the products manufactured by XYZ were studied. Then a cross-
Computation of fuzzy agile supply chain index functional team with seven experts was formed at XYZ. Those
experts are the heads of various departments possessing rich
Determination of Euclidean distance knowledge about the working culture of XYZ. These experts were
shown as 86 ASC attributes along with their enablers and criteria
Assessment of agile supply chain performance for the purpose of gathering ratings and weights from them.
Table 3 study, the average fuzzy ratings and average performance weights
Linguistic terms and fuzzy numbers used.
were denoted respectively by Rj and Wj.
Linguistic variable Fuzzy number Linguistic variable Fuzzy number The computation of Rj and Wj were carried using Eqs. (1) and (2)
Worst (W) (0,0.5, 1.5) Very low(VL) (0,0.05, 0.15) which are given below.
Very poor (VP) (1,2,3) Low (L) (0.1,0.2, 0.3) (Rj1 (+)Rj2 (+) . . . . . . Rjm )
Poor (P) (2,3.5, 5) Fairly low (FL) (0.2,0.35, 0.5) Rj = (aj , bj , cj ) = (1)
Fair (F) (3,5,7) Medium (M) (0.3,0.5, 0.7) m
Good (G) (5,6.5, 8) Fairly high (FH) (0.5,0.65, 0.8)
Very good (VG) (7,8,9) High (H) (0.7,0.8, 0.9) (wj1 (+)wj2 (+) . . . . . . wjm )
Excellent (E) (8.5,9.5, 10) Very high (VH) (0.85, 0.95, 1.0) Wj (xj , yj , zj ) = (2)
m
Consolidated fuzzy ratings and fuzzy weights were used to
determine the fuzzy ASC index. Eq. (3) used for this purpose is
corresponding fuzzy numbers were adopted from previous studies shown below;
on performance measurement studies related to agility and lean- Fuzzy ASC Index (FASCI)
ness assessment which were later approved by the experts for their n
usage. [19,20,31]. j=1
(Wj × Rj )
FASCI = n (3)
j=1
Wj
4.3. Measurement of performance ratings and importance
As a sample, the computation of ‘average fuzzy rating’ and
weights of agile supply chain attributes using linguistic terms
‘average fuzzy weight’ of agile supply chain attribute titled “Incor-
poration of IT utilities in SCM” are shown as follows. Average fuzzy
In order to assess the performance ratings and importance
rating of ASC attribute ‘Incorporation of IT utilities in SCM’ is shown
weights of ASC attributes, the experts were approached with data
below.
sheets. An excerpt of the ASC assessment data sheet used during
this exercise at XYZ is shown in Table 4. As a sample, the linguis- Average fuzzy rating
tic terms for assessing the performance ratings and importance = [G + F + VG + F + G + G + E]/7 from Eq. (1)
weights of ASC attribute titled ‘Virtual Enterprise/Organization’ are [(5, 6.5, 8) + (3, 5, 7) + (7, 8, 9) + (3, 5, 7) + (5, 6.5, 8) + (5, 6.5, 8)
shown in Tables 5 and 6. +(8.5, 9.5, 10)]/7
Similarly, the linguistic variables for assessing the performance = (5.21, 6.71, 8.14)
ratings, importance weights of other ASC enablers also have been
Average fuzzy weight of ASC attribute ‘Incorporation of IT utili-
gathered.
ties in SCM’ is shown below:
Average fuzzy weight
4.4. Aggregation of fuzzy ratings and weights of ASC
= [H + M + H + VH + H + M + FH]/7 from Eq. (2)
= (0.58, 0.714, 0.843)
Arithmetic mean, median, and mode are some methods that are
being adopted to aggregate the assessments of multiple decision- The ‘average fuzzy ratings’ and ‘average fuzzy weights’ of ASC
makers inputs. The average operation is the most widespread attributes grouped under agile supply chain enabler ‘Virtual enter-
aggregation method. During this case study, arithmetic mean was prise/organization’ are presented in Table 6. These values were used
used to pool the opinions of experts. Because of its widespread to aggregate fuzzy ratings and average fuzzy weights of criteria. As
usage, ‘average’ operation was adopted during this case study to a sample, the method of calculating aggregated fuzzy rating of ASC
aggregate fuzzy rating and weights of ASC [10]. During this case criterion ‘Outsourcing’ is shown in Table 7.
Table 4
Excerpt of ASC assessment data sheet.
Name:
Designation:
Company:
Date:
S.no Enablers Criteria Attributes Performance Rating Importance
Table 5
Performance rating furnished by experts using linguistic terms pertaining to agile supply chain enabler ‘Virtual Enterprise/Organization’.
E1 E2 E3 E4 E5 E6 E7
E1, E2, E3, E4, E5, E6 and E7 are the identification numbers assigned to the experts.
= [(5.21, 6.71, 8.14)(∗)(0.58, 0.714, 0.843) + (4.42, 6.07, 7.71)(∗)(0.56, 0.693, 0.829) + (4.79, 6.29,
7.71)(∗)(0.54, 0.671, 0.800)]/[(0.58, 0.714, 0.843) + (0.56, 0.693, 0.829) + (0.54, 0.671, 0.800)] =
(4.81, 6.36, 7.86) from Eq. (3)
(FASCI). FASCI has to be calculated by aggregating the ratings of
The same method was followed to compute the aggregated ASC criteria. Equation 3 is used to calculate FASCI by utilizing the
fuzzy ratings of other ASC criteria. aggregated fuzzy ratings as shown below.
⎡ ⎤ ⎡ ⎤
(3.44, 5.15, 7.11) × (0.67, 0.77, 0.88)+ (0.67, 0.77, 0.88)+
(3.6, 5.39, 7.34) × (0.68, 0.8, 0.9)+
4.5. Computation of fuzzy ASC index ⎢
FASCI = ⎣ (3.55, 5.3, 7.26) × (0.68, 0.8, 0.9)+
⎥ ⎢ (0.68, 0.8, 0.9)+
⎥
⎦ / ⎣ (0.68, 0.8, 0.9)+ ⎦
(3.24, 5.04, 7.07) × (0.65, 0.77, 0.88)+ (0.65, 0.77, 0.88)+
As shown in Fig. 1, the beginning of module three of ASC assess- (4.05, 5.86, 7.74) × (0.75, 0.86, 0.95) (0.75, 0.86, 0.95)
ment model is marked by the computation of fuzzy ASC index FASCI = (5.2, 6.66, 8.09)
Table 6
Importance weights furnished by experts using linguistic terms pertaining to agile supply chain enabler ‘Virtual Enterprise/Organization’.
E1 E2 E3 E4 E5 E6 E7
E1, E2, E3, E4, E5, E6 and E7arethe identification numbers assigned to the experts.
628 S. Vinodh et al. / Journal of Manufacturing Systems 32 (2013) 620–631
Table 7
‘Average fuzzy rating’ and ‘average fuzzy weights’ pertaining to agile supply chain enabler ‘Virtual Enterprise/Organization’.
4.6. Determination of Euclidean distance to match FAI with 4.7. Identification of importance indices of ASC attributes
approximate ASC level
The second stage of module three of ASC assessment facilitates
Once FAI was obtained, it can be matched with linguistic terms. the calculation of Fuzzy Performance Improvement index (FPII) of
During this study, Euclidean distance method was adopted for this ASC attributes. Then these indices are to be ranked. As mentioned
purpose since it is the most intuitive method for humans to use earlier, the experts will decide a minimum rank which is regarded
in perceiving proximity [31]. In this study, the linguistic terms as as threshold value. The ASC attributes whose ranks less than man-
(Extremely Agile (EA), Very Agile (VA), Agile (A), Fairly (F), and agement threshold value is examined for its potential performance
Slowly (S)) [19,20,31] were chosen for labeling to determine the improvement.
ASC level (ASCL). The linguistic terms and fuzzy numbers used are The mathematical equations and procedure adopted from fuzzy
shown below. logic literature for calculating
FPII and ranking them are presented here. FPII is calculated is
• Extremely Agile [EA] = (7, 8.5, 10). calculated using the equation given below.
• Very Agile [VA] = (5.5,7,8.5).
• Satisfactorily AGILE [A] = (3.5,5,6.5). FPIIi = Wi ⊗ Ri
• Fairly Agile [F] = (1.5,3,4.5).
• Slowly Becoming Agile [S] = (0,1.5,3). FPIIj = FPII for jth attribute
Wj = complement ofjth attribute s importance weightwhere
After this exercise the Euclidean distance between FASCI and
Wj = [(1, 1, 1) − Wj ], Wj is the fuzzy importance weight of the ASC
ASCL was calculated. The steps followed to perform this calculation capability j. Then, using Eq. (5), the FPIIs of each ASC capability are
are presented below: calculated.
The Euclidean distance was calculated using Eq. (4). A sample calculation of FPII of ASC Attribute ‘Incorporation of IT
1/2 utilities in SCM’ using Eq. (6) is shown below.
2
D(FASCI, ALi ) = (fFASCI (x) − fALi (x)) (4)
FPII = (5.21, 6.71, 8.14) ⊗ (0.15, 0.28, 0.4)
x∈p
FPII = (1.2, 1.91, 2.19)
As a sample, the Euclidean distance calculation pertaining to the
linguistic term ‘Extremely Agile’ is shown below. Similarly, the FPII of all 86 ASC attributes have been computed.
FPII of ASC attributes must be ranked. Here, the ranking of the fuzzy
2 2 2 1/2
D(FASCI, EA) = {(5.2 − 7) + (6.66 − 8.5) + (8.09 − 10) } number is based on centroid method for membership function (a,
D(FASCI, EA) = 3.19 b, c) as given in Eq. (6) [19], where a, b and c are the lower, middle
and upper values of triangular fuzzy number.
The Euclidean distance between FASCI and all linguistic terms
used during this case study are shown below.
a + 4b + c
Ranking score = (6)
D(FASCI, EA) = 3.19 6
D(FASCI, VA) = 0.6
D(FASCI, F) = 2.6 The centroid method has been used because the decision mak-
D(FASCI, S) = 6.36 ers felt that this method is simple and easily understandable by
D(FASCI, A) = 8.936 practitioners. Also, centroid method was used in performance mea-
surement researches [19,20].
By matching linguistic label with minimum D, the ASC perfor-
mance level of XYZ was assessed as ‘Very Agile’. This assessment 1.2 + 4 × 1.91 + 2.19
Ranking score =
marked the completion of first stage of module three of ASC assess- 6
ment model. Ranking score = 1.85
S. Vinodh et al. / Journal of Manufacturing Systems 32 (2013) 620–631 629
Table 8
Current characteristics of ASC attributes prevailing at XYZ pertaining to ASC enabler “Virtual enterprise/Organization”.
1. Incorporation of IT utilities in SCM Intranet facility has been used to generate the production
plan from the marketing plan which indicates the
in-house capacity as well as quantity to be outsourced
2. Supplier involvement in product development Suppliers of critical components are called for discussion
during design stage so as to incorporate the required
features. Drawings of non0critical components are sent
to suppliers so as to finalize the changes in product
design
3. SCM concepts for enhancing the outsourcing Efficiency of outsourcing has been enhanced by
efficiency providing technical support to the suppliers so as to
reduce their bottleneck operations
4. Distribution networks Distribution network has been recently designed in such
a way that logistics system has been used effectively in a
regular schedule for transporting the goods. Distribution
centers are also located in nearby cities
5. Transportation models The current transportation model and their logic are
reviewed to improve its effectiveness using advanced
model
6. Warehousing and procurement function Warehouses are being located in nearby cities by the
suppliers to improve the delivery speed
7. Order processing An executive has been employed exclusively for
monitoring the transactions on regular basis
8. Material planning Planning for materials has been done in line with the
production planning and discussed during daily
production meeting
9. IT/IS on reverse logistics The concepts of reverse logistics are not applicable to
XYZ
10. Strategic logistic network The performance of logistic providers were reviewed
periodically to maintain strategic relationship
11. Virtual logistics The logistic function has been executed manually at XYZ
12. Demand supply planning Synchronization and micro-level planning have been
done to balance demand and supply
13. Order fulfillment Order fulfillment is reviewed every day in the daily
production meeting about the order fulfillment so as to
fill the gaps
14. Continuous structure The suppliers performance are periodically audited so as
to facilitate continuous improvement in supply chain
structure
15. Process and technological capabilities It has been included as one of the criteria in supplier
evaluation
16. Long-term relationship potential Dependency matrix has been constructed to identify the
dedicated suppliers on the basis of business values so as
to ensure long term relationship
17. Flattened organizational structure Number of levels in the hierarchy has been reduced to
form a flattened structure
18. Team oriented decision making A cross functional team has been formed at organization
and department levels to discuss various issues and
facilitate better decision making
19. Interchangeability of personnel Interchangeability of personnel between departments
exists
20. Team formation and management Both team formation and organizational management
exist
21. Learning organization Different forms of training are conducted at various
levels to ensure the learning culture
The ranking score of ASC attribute ‘Incorporation of IT utilities in done using scoring approach. The sores were distributed among
SCM’ is found as 1.85. The same procedure was followed to calculate ASC criteria and attributes. Due to the drawbacks associated with
the ranking scores of all 86 ASC attributes (see Table 7). scoring approach, fuzzy logic approach was used in the present
study.
4.7.1. Results and discussion After determining the ranking scores of ASC attributes, the
The computation of FAI and Euclidean Distance indicated that experts were requested to fix the management threshold value. The
the performance of ASC prevailing at XYZ as ‘Very Agile’. This result management threshold will be fixed by management representa-
generated by the ASC assessment model very much coincided with tive in consultation with the executives. It acts as a minimum value;
the practical culture prevailing in the organization. This is indi- attributes have ranking score less than management threshold
cated by the results of a preliminary study conducted to view the will be weaker; otherwise stronger. The concept of management
overall performance of ASC at XYZ. The results of this study indi- threshold was followed in line with performance assessment stud-
cated that some of the ASC attributes are already prevailing at XYZ. ies [19]. The management threshold value thus fixed was 1.3.
These results are presented in Table 8. These results lead to an Subsequently, seven experts were further consulted to suggest
impression that the performance of ASC at XYZ is ‘Very agile’. This proposals for improving the performance of ASC attributes whose
impression coincides with the results generated by the ASC assess- ranking scores were found to be less than the management thresh-
ment model. The preliminary study on evaluating ASC index was old value 1.3. The weaker areas after fixing the management
630 S. Vinodh et al. / Journal of Manufacturing Systems 32 (2013) 620–631
Table 9
Proposals for agile supply chain performance improvement.
S.no ASC attributes Ranking score Proposals for improving the performance of ASC at XYZ
1. Material planning 1.05 Suitable planning methods and advanced planning techniques like SAP will be
used for resource management
2. Long term relationship 1.03 Optimal dependence of suppliers on OEMs and financial stability could be
potential included as criteria in supply chain partner selection
3. Learning organization 1.13 Advanced principles and concepts of supply chain management are to be
employed. Develop a supply chain-wide technology strategy that supports
multiple levels of decision making Customize the logistics network to the
service Segment customers based on the service needs of distinct groups
4. Elimination of paper work by IT 1.24 Paper work should be eliminated in a structured manner with IT utilities
5. Defined management goal 1.10 Meeting will be conducted to define the goal to be achieved
6. Transparent information 1.26 Hierarchy will modified such that to enable transparency in decision making
sharing
7. Corporate and business 1.00 Supply chain management issues could be added as an agenda in management
strategies meetings
8. Coordination and Cooperation 1.22 Training would be provided for the work force on team management
principles to facilitate coordination and cooperation
9. Adoption of time compression 1.22 Advanced technologies such as CAD, Cam CAE and ERP are being implemented
technologies for enabling time compression technologies
10. Product development methods 1.03 Advanced computer aided engineering analysis and simulation technologies
could be implemented for enabling robustness in product development
11. Flexible software for agility 1.00 Networking software currently used in the organization could be provided
with various structured mechanisms including MRP, advanced data sharing
and IT utilities
12. Data management framework 1.10 Advanced data analytic technique could be deployed
13. Product/process/service design 1.15 Pilot studies on advanced TPM concepts for quality in product and process
for quality design needs to be conducted
14. Customer delight 1.03 Proactive interactions with customers at plant level to collect customer
feedback and improve their abilities
15. Easy maintainability and 0.83 Soon pilot TPM studies will be carried out in the production line. Based on the
serviceability result in the near future, TPM will be implemented in full-fledged
16. Response time to customer 1.09 IT utilizes can be strengthened for facilitating electronic transaction there by
reducing the response time to customer
17. Enterprise resource Planning 1.20 Enterprise Resource Planning software will be purchased to enable decision
making in the resource management
18. Intelligent decision making 1.18 Decision support system will be used to utilize the past knowledge in decision
making
19. Customer driven products, 1.10 Suitable techniques will be adopted to convert voice of the customer into
processes and service products
20. Streamlining of process 1.25 Value stream mapping technique could be employed to streamline the
manufacturing processes
21. Scope for increasing customer 1.15 Feed backs will be collected from the customers to increase the customer value
value
22. Effective forecasting method 0.97 Training could be provided on advances in forecasting by means of case study
presentation by experts
threshold have been identified and the proposals are shown in linguistic terms to assess the performance of ASC attributes. The
Table 9. This marked the end of applying ASC assessment model ASC assessment model enables the computation of ranking score of
at XYZ. ASC attributes. This ranking score enables an organization to realize
the priorities to be considered in improving the ASC attributes.
5. Conclusions
5.1. Limitations and future scope
The manufacturing organizations are facing the pressure to
transform their manufacturing paradigm. Agile manufacturing is Due to the time constraint, supply chain agility assessment was
a 21st century modern manufacturing paradigm which enables the carried out in a single manufacturing organization. However the
organizations to survive in the competitive dynamic environment results of this research can reasonably represent the situation pre-
[3]. An organization incorporated with AM paradigm is capable vailing in companies implementing world class strategies. This is
of evolving quickly the products and services in accordance with due to the reason that, the automotive manufacturing company
the dynamic demands of the customers in an economical manner. in which the case study on ASC assessment model was conducted,
However, such models and services will fail to reach the customers’ implements world class manufacturing strategies such as TQM, ISO
unless the AM paradigm of the organization is supported by ASC. 9001:2008 and TPM. Also, this organization was awarded Deming
Hence assessing the performance of ASC gains importance in the prize in the year 2005 for excellence in manufacturing quality. Yet,
AM research [17]. In this context, this paper has contributed a fuzzy in future, numerous case studies could be carried out in different
logic approach supported ASC assessment model. After design- organizations across varied sectors to further enhance and refine
ing, a case study was conducted in an automotive manufacturing the developed supply chain agility assessment model. During these
company. The smooth application of this model in the company future endeavors, the researchers and practitioners may develop
and the theoretical coincidence of ASC performance assessment and use a computerized system to carry out the computations
with that observed indicated its practical compatibility and valid- required for applying ASC assessment model. The construction of
ity. An unique feature of this ASC assessment model is that it is ASC assessment model in three modules facilitates easy computer-
incorporated with fuzzy logic approach which enables the use of ization.
S. Vinodh et al. / Journal of Manufacturing Systems 32 (2013) 620–631 631