Abstract
The integration of just-in-time and lean principles in agile manufacturing plays an important role in enhancing the operational performance of manufacturing systems. In this paper, we address this issue by (i) building a set of performance criteria for a typical manufacturing system, (ii) developing a system dynamics model for the system, and (iii) performing experimental “what-if” simulation analyses. Using a system dynamics simulation methodology, the impact of the application of lean and just-in-time policies on a traditional inventory-focused manufacturing system is investigated. System dynamics modelling is used to capture the dynamic causal linkages between different components of the manufacturing system. Different scenarios are generated in order to investigate the dynamics of the system under assumed demand scenarios. The results of the simulation study reveal that manufacturing systems can benefit from the introduction of lean and just-in-time principles, depending on the extent to which the necessary structural changes are implemented. The paper concludes by providing useful managerial insights for effective implementation of lean and agile manufacturing concepts.