Skip to main content
SpringerLink
Log in

The Behavior of Lean and the Theory of Constraints in the Wider Supply Chain: A Simulation-Based Comparative Study Delving Deeper into the Impact of Noise

  • Conference paper
  • First Online:
Organizational Engineering in Industry 4.0 (ICIEOM 2018)

Part of the book series: Lecture Notes in Management and Industrial Engineering ((LNMIE))

  • 379 Accesses

Abstract

The design and implementation of systems thinking strategies for supply chains, based on collaboration among partners, is gaining ground as a key source of competitive advantages. Therefore, a growing number of companies is moving the scope of their lean management (LM) and theory of constraints (TOC) solutions from the production system to the wider supply chain. Building on prior research studies, we explore their robustness against noise in a supply chain setting. To this end, we consider the Kanban and drum-buffer-rope (DBR) control systems, respectively, from the LM and TOC paradigms; we model a four-echelon supply chain by means of an agent-based approach; and we measure the net profit of the supply chain under six scenarios with increasing level of noise. As can be expected, we observe that the net profit decreases significantly as the severity of the noise grows. This happens both for the LM- and TOC-based supply chains. However, it is relevant to note that the gradient of the curve is stronger for the Kanban system. This means that DBR makes the supply chain more robust against noise. As a result, we conclude that the benefits derived from implementing DBR, in comparison with Kanban, increase significantly as the noise becomes more demanding.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 189.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 249.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 249.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    This perspective highlights the need to understand systems as a whole rather than a collection of parts, plunging actors into a global optimisation environment, where they care about interrelationships among processes, interdependencies among decisions, patterns instead of snapshots, and root causes of the inefficiencies rather than their symptoms [36].

  2. 2.

    Although less common, LM also employs CONWIP (the acronym of ‘CONstant Work-In-Progress) as an alternative to Kanban. Interested readers are referred to Takahashi and Nakamura [40] for a comparison between them.

  3. 3.

    A role-playing exercise, developed by the MIT more than half a century ago, that continuous to be a powerful tool to explore dynamics of supply chains, as discussed by Macdonald et al. [26].

  4. 4.

    NetLogo is a programmable modeling environment for agent-based modelling and simulation developed at Northwestern's Center for Connected Learning and Computer-Based Modeling. Please visit https://ccl.northwestern.edu/netlogo/ for more information.

  5. 5.

    We checked the stability of the response of the agent-based supply chain and the repetitiveness of the results for our (30 +)200-day approach according to common practices.

References

  1. Cannella S, Ciancimino E (2010) On the bullwhip avoidance phase: supply chain collaboration and order smoothing. Int J Prod Res 48(22):6739–6776

    Google Scholar 

  2. Chatfield DC, Pritchard AM (2013) Returns and the bullwhip effect. Transp Res Part E: Log Transp Rev 49(1):159–175

    Google Scholar 

  3. Costas J, Ponte B, de la Fuente D, Pino R, Puche J (2015) Applying Goldratt’s theory of constraints to reduce the bullwhip effect through agent-based modeling. Exp Syst Appl 42(4):2049–2060

    Google Scholar 

  4. Costas J, Ponte B, de la Fuente D, Lozano J, Parreño J (2017) Agents playing the beer distribution game: solving the dilemma through the drum-buffer-rope methodology. Springer, In Engineering Systems and Networks, pp 337–345

    Google Scholar 

  5. Dominguez R, Framinan J M, Cannella S. (2014) Serial vs. divergent supply chain networks: a comparative analysis of the bullwhip effect. Int J Prod Res 52(7):2194–2210

    Google Scholar 

  6. Gardiner SC, Blackstone JH Jr, Gardiner LR (1993) Drum-buffer-rope and buffer management: Impact on production management study and practices. Int J Oper Prod Manag 13(6):68–78

    Google Scholar 

  7. Ghadimi P, Toosi FG, Heavey C (2018) A multi-agent systems approach for sustainable supplier selection and order allocation in a partnership supply chain. Eur J Oper Res 269(1):286–301

    Google Scholar 

  8. Goldratt EM (1990) Theory of constraints. North River, Croton-on-Hudson, NY

    Google Scholar 

  9. Goltsos TE, Ponte B, Wang S, Liu Y, Naim MM, Syntetos AA (2018) The boomerang returns? Accounting for the impact of uncertainties on the dynamics of remanufacturing systems. Int J Prod Res, in press

    Google Scholar 

  10. Govindan K, Soleimani H, Kannan D (2015) Reverse logistics and closed-loop supply chain: a comprehensive review to explore the future. Eur J Oper Res 240(3):603–626

    Google Scholar 

  11. Grünwald H, Striekwold PET, Weeda PJ (1989) A framework for quantitative comparison of production control concepts. Int J Prod Res 27(2):281–292

    Google Scholar 

  12. Guide VDR, Harrison TP, van Wassenhove LN (2003) The challenge of closed-loop supply chains. Interfaces 33(6):3–6

    Google Scholar 

  13. Gupta MC, Boyd LH (2008) Theory of Constraints: a theory for operations management. Int J Oper Prod Manag 28(10):991–1012

    Google Scholar 

  14. Hines P, Holweg M, Rich N (2004) Learning to evolve: A review of contemporary lean thinking. International Journal of Operations & Production Management 24(10):994–1011

    Google Scholar 

  15. Hilmola OP, Gupta M (2015) Throughput accounting and performance of a manufacturing company under stochastic demand and scrap rates. Exp Syst Appl 42(22):8423–8431

    Google Scholar 

  16. Holweg M, Bicheno J (2002) Supply chain simulation–a tool for education, enhancement and endeavour. Int J Prod Econ 78(2):163–175

    Google Scholar 

  17. Ikeziri LM, Souza FBD, Gupta MC, de Camargo Fiorini P (2018) Theory of constraints: review and bibliometric analysis. International Journal of Production Research, in press

    Google Scholar 

  18. Jairman WE (1963) Problems in industrial dynamics. MIT Press, Cambridge, MA

    Google Scholar 

  19. Jensen K, Kristensen LM, Wells L (2007) Coloured Petri Nets and CPN Tools for modelling and validation of concurrent systems. Int J Softw Tools Technol Transfer 9(3–4):213–254

    Google Scholar 

  20. Jodlbauer H, Huber A (2008) Service-level performance of MRP, kanban, CONWIP and DBR due to parameter stability and environmental robustness. Int J Prod Res 46(8):2179–2195

    Google Scholar 

  21. Junior ML, Godinho Filho M (2010) Variations of the kanban system: literature review and classification. Int J Prod Econ 125(1):13–21

    Google Scholar 

  22. Koh SG, Bulfin RL (2004) Comparison of DBR with CONWIP in an unbalanced production line with three stations. Int J Prod Res 42(2):391–404

    Google Scholar 

  23. Liker JK (1997) Becoming lean: inside stories of US manufacturers. CRC Press, New York, NY

    Google Scholar 

  24. Mabin VJ, Balderstone SJ (2003) The performance of the theory of constraints methodology: analysis and discussion of successful TOC applications. Int J Oper Prod Manag 23(6):568–595

    Google Scholar 

  25. MacArthur JB (1996) From activity-based costing to throughput accounting. Strategic Finance 77(10):30

    Google Scholar 

  26. Macdonald JR, Frommer ID, Karaesmen IZ (2013) Decision making in the beer game and supply chain performance. Oper Manag Res 6(3–4):119–126

    Google Scholar 

  27. Martínez-Jurado PJ, Moyano-Fuentes J (2014) Lean management, supply chain management and sustainability: a literature review. J Cleaner Prod 85:134–150

    Google Scholar 

  28. Moore R, Schinkopf L (1998) Theory of constraints and lean manufacturing: friends or foes?. Chesapeake Consulting. www.tocca.com.au/uploaded/documents/lean%20and%20toc.pdf

  29. Naylor JB, Naim MM, Berry D (1999) Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain. Int J Prod Econ 62(1–2):107–118

    Google Scholar 

  30. Ohno T (1988) Toyota production system: beyond large scale production. Productivity Press, Cambridge, MA

    Google Scholar 

  31. Ponte B, Costas J, Puche J, de la Fuente D, Pino R (2016) Holism versus reductionism in supply chain management: an economic analysis. Decis Support Syst 86:83–94

    Google Scholar 

  32. Ponte B, Costas J, Puche J, Pino R, de la Fuente D (2018) The value of lead time reduction and stabilization: a comparison between traditional and collaborative supply chains. Transp Res Part E 111:165–185

    Google Scholar 

  33. Puche J, Costas J, Ponte B, Pino R, de la Fuente D (2019) The effect of supply chain noise on the financial performance of Kanban and Drum-Buffer-Rope: An agent-based perspective. Exp Syst Appl 120:87–102

    Google Scholar 

  34. Puche J, Ponte B, Costas J, Pino R, de la Fuente D (2016) Systemic approach to supply chain management through the viable system model and the theory of constraints. Prod Plann Control 27(5):421–430

    Google Scholar 

  35. Pujari S, Mukhopadhyay S (2012) Petri net: a tool for modeling and analyze multi-agent oriented systems. Int J Intell Syst Appl 10:103–112

    Google Scholar 

  36. Senge P (1990) The fifth discipline: the art and practice of the learning organization. Currency/Doubleday, New York

    Google Scholar 

  37. Simatupang TM, Sridharan R (2002) The collaborative supply chain. Int J Log Manag 13(1):15–30

    Google Scholar 

  38. Simatupang TM, Wright AC, Sridharan R (2004) Applying the theory of constraints to supply chain collaboration. Supply Chain Manag Int J 9(1):57–70

    Google Scholar 

  39. Takahashi K, Morikawa K, Chen YC (2007) Comparing kanban control with the theory of constraints using Markov chains. Int J Prod Res 45(16):3599–3617

    Google Scholar 

  40. Takahashi K, Nakamura N (2002) Comparing reactive Kanban and reactive CONWIP. Prod Plann Control 13(8):702–714

    Google Scholar 

  41. Watson KJ, Blackstone JH, Gardiner SC (2007) The evolution of a management philosophy: The theory of constraints. J Oper Manag 25(2):387–402

    Google Scholar 

  42. Watson KJ, Patti A (2008) A comparison of JIT and TOC buffering philosophies on system performance with unplanned machine downtime. Int J Prod Res 46(7):1869–1885

    Google Scholar 

  43. Wilensky U (1999) NetLogo. The Center for Connected Learning and Computer-nased Modeling. Northwetern University. https://ccl.northwetern.edu/netlogo/

  44. Womack JP, Jones DT, Roos D (1990) The machine that changed the world: the story of lean production. Macmillan/Rawson Associates, New York, NY

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Applied Economics, Faculty of Economics and Business, University of Burgos, Infanta Doña Elena Square, Infanta Doña Elena Square, S/N, 09001, Burgos, Spain

    J. C. Puche-Regaliza

  2. Department of Business Administration, Polytechnic School of Engineering, University of Oviedo, Campus of Viesques, S/N, 33204, Gijón, Spain

    B. Ponte, R. Pino & D. de la Fuente

  3. Department of Engineering, Florida Centre de Formació, Florida Universitária, Rei en Jaume I, nº 2, 46470, 46470, Catarroja, Valencia, Spain

    J. Costas

Authors
  1. J. C. Puche-Regaliza
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. B. Ponte
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. J. Costas
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. R. Pino
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. D. de la Fuente
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to J. C. Puche-Regaliza .

Editor information

Editors and Affiliations

  1. Department of Business Administration, Polytechnic School of Engineering, University of Oviedo, Gijón, Spain

    David De la Fuente

  2. Department of Business Administration, Polytechnic School of Engineering, University of Oviedo, Gijón, Spain

    Raúl Pino

  3. Department of Business Administration, Polytechnic School of Engineering, University of Oviedo, Gijón, Spain

    Borja Ponte

  4. Department of Business Administration, Polytechnic School of Engineering, University of Oviedo, Gijón, Spain

    Rafael Rosillo

Rights and permissions

Reprints and permissions

Copyright information

© 2021 Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Puche-Regaliza, J.C., Ponte, B., Costas, J., Pino, R., de la Fuente, D. (2021). The Behavior of Lean and the Theory of Constraints in the Wider Supply Chain: A Simulation-Based Comparative Study Delving Deeper into the Impact of Noise. In: De la Fuente, D., Pino, R., Ponte, B., Rosillo, R. (eds) Organizational Engineering in Industry 4.0. ICIEOM 2018. Lecture Notes in Management and Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-030-67708-4_16

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-67708-4_16

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-67707-7

  • Online ISBN: 978-3-030-67708-4

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation