Leagile manufacturing: a proposed corporate infrastructure

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.

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