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Leagile manufacturing: a proposed corporate infrastructure

Rajesh Krishnamurthy (School of Industrial Engineering and Management, Oklahoma State University, Stillwater, Oklahoma, USA)
Charlene A. Yauch (Milwaukee School of Engineering, Milwaukee, Wisconsin, USA)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 29 May 2007

8764

Abstract

Purpose

To propose a theoretical model of leagile manufacturing as it applies to a single corporate enterprise with multiple business units and to generate research questions stemming from the model that should be addressed in the future.

Design/methodology/approach

A case study company was analyzed to determine whether the concept of leagility could be applied to a single corporation with multiple business units and whether a decoupling point would be necessary to distinguish the lean and agile portions of the enterprise. The case study findings are used as the basis for describing a theoretical corporate leagile infrastructure and for stimulating new research questions.

Findings

It is possible for a corporation to simultaneously pursue both lean and agile manufacturing strategies by adopting a leagile infrastructure. The organizational structure consists of three main levels: a corporate headquarters, a sales and service group, and multiple lean production units. There is a decoupling point that separates the lean and agile portions of the enterprise. This organizational structure matches the front‐back approach, one of the large/small strategies defined by Lawler in 1997.

Research limitations/implications

A single company was examined. Studying a broader range of companies would make the described theoretical leagile corporate infrastructure more robust.

Practical implications

Manufacturing corporations might find the infrastructure described to be a beneficial way to structure their own organizations in order to capitalize on the benefits of both the lean and agile manufacturing strategies.

Originality/value

This paper expands on the concept of leagility, previously discussed in the literature with respect to supply chains and individual manufacturing plants, by applying it to a single corporation with multiple business units. Similar to other characterizations of leagile manufacturing, it was found that the corporation operates with a decoupling point between the agile and lean portions of the business. Several new avenues for further research are outlined.

Keywords

Citation

Krishnamurthy, R. and Yauch, C.A. (2007), "Leagile manufacturing: a proposed corporate infrastructure", International Journal of Operations & Production Management, Vol. 27 No. 6, pp. 588-604. https://doi.org/10.1108/01443570710750277

Publisher

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Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited

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