Integration of Lean Six Sigma with Multi Agent Systems in the Food Distribution Industry in Small to

291 Pages·2016·7.76 MB·English

Integration of Lean Six Sigma with Multi Agent Systems
in the Food Distribution Industry in Small to Medium
Enterprises (SMEs)

A thesis submitted for the Degree of Doctor of Philosophy

By
Fahed Suliman Algassem

College of Engineering, Design and Physical Sciences

Brunel University London

March, 2016

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ABSTRACT
The service industry worldwide continues to face unprecedented challenges in decision-making
and in managing the operations involved in delivering products at low cost and ever-faster
delivery speeds. These pressures exert an even greater impact upon small- and medium-sized
enterprises (SMEs) involved in this industry who, influenced by globalisation, have to respond
by handling the dynamic complexity within their operational supply chain. Many larger firms
have implemented Lean and Six Sigma (LSS) and end-to-end integrated real-time information
systems (RTI) that provide the information and the mechanisms needed to support flexibility
and prompt decision-making. The recent emergence of new technologies such as multi-agent
systems (MAS) provides enhanced capability to address complexity and decision-making with
greater ease of use at a reduced cost.
Whilst the application of Lean and Six Sigma are supported by significant published research,
the application of integrated LSS and MAS in food distribution, especially in SMEs, is not.
This study seeks to provide research to address this shortcoming for SMEs within the food
distribution sector within Saudi Arabia, how this integrated approach can offer considerable
performance improvement in SMEs and provide a base for further contributions in this field.
This research undertook an empirical case study in Saudi Arabia to test the application of LSS
in a food distribution SME. This approach demonstrated a significant improvement in the Six
Sigma for late delivery. A single-stage MAS application extended this improvement,
demonstrating that there is value in its application. The study conducted a survey of 39 firms
in this sector to gain an insight into their current practices and challenges.
The findings indicated there was a lack of Lean and Six Sigma principles adopted and that a
lack of use of interconnected real-time systems to support decision-making and complex
operational SCs. These findings identified the opportunity to design a conceptual framework
with a stepped approach that integrated LSS with MAS, which was then developed on a Java-
Assisted DEvelopment Framework (JADE) platform and tested using real-world data in an
SME empirical case study. The results of the sequence of applications and the final simulations
proved that this integrated Lean multi-agent system (LMAS) solution offered such substantial
improvements in quality, time and costs that the SME considered that those factors justified
making its implementation a priority.
1
Declaration
I, Fahed Algassem, confirm that this is my own work and the use of all material from other
sources has been properly and fully acknowledged.

I
ACKNOWLEDGMENTS
This section is always difficult, as so many people have helped me in different ways.
Nonetheless, there are some people who simply must be thanked and all the special help they
have provided should be documented. First of all, all praises and glory to God Almighty for
His blessings which made this work possible.
My deep appreciation and gratitude go to my supervisor, Dr QingPing Yang, for his constant
help, excellent supervision and valuable advice during every stage of this work. His knowledge,
kindness, wisdom and priceless suggestions made working on this dissertation interesting and
appealing for me. I would not have been able to complete this work without his nonstop
encouragement and wise guidance. I am especially grateful to Dr Yuen Au for his cooperation
and useful advice.
I would also like to thank all members, staff and colleagues at Brunel University, especially in
the College of Engineering, Design and Physical Sciences, for their support and friendship.
Acknowledgment also goes to the Technical and Vocational Training Corporation for their
moral support. Without the opportunity that they gave me, I would not have been able to reach
this advanced stage.
I would like to express my sense of heartfelt gratitude to the memory of my parents for all their
encouragement and support while they were alive. Their sincere prayers and determination
were my strongest motivation to achieve this goal. Thanks are also due to my brothers and
sisters, who have made many efforts and provided substantial assistance. I would also like to
thank my wife. I am sure that no words can express my gratitude for her patience and
determination. I would also like to thank my friend Khaled Aldhwaihi for his support and
advice.

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List of Research Outputs
Algassem, F., Yang, Q. (2016). Integration of Lean with Multi Agent Systems in Food
Distribution SMEs in Saudi Arabia: A Conceptual Model.” (The 11th World Congress on
Engineering Asset Management WCEAM 2016).
Algassem, F., Yang, Q., and Au. Y. (2016). Reducing the Delivery Time in Food Distribution
SMEs Using a Multi-Agent System.” (The 10th World Congress on Engineering Asset
Management WCEAM 2015). Springer.
“A Synergistic Integration of Six Sigma and Lean Principles for Food Distribution SMEs: A
Case Study in Saudi Arabia.” The Annual School Conference ResCan2014 (oral presentation).
Algassem, F., Yang, Q., and Au, Y. (2014). “Application of Lean Six Sigma Principles to Food
Distribution SMEs.” American Academic & Scholarly Research Journal, 6(4), p.251.
Algassem, F., Yang, Q. and Au, Y. (2014). “Application of Lean Six Sigma Principles to Food
Distribution SMEs.” Innovative Trends in Management, Information, Technologies,
Computing and Engineering to Tackle A Competitive Global Environment. ITMITCE 2014.
Integration of Six Sigma and Lean Manufacturing Principles into FSC SMEs. The Annual
Research Student Conference. (Poster)
Integration of Six Sigma and Lean Manufacturing Principles into FSC SMEs. The Annual
School Conference ResCan2013. (Poster).
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Contents
ABSTRACT ........................................................................................................................................... 1
ACKNOWLEDGMENTS ................................................................................................................... II
List of Research Outputs ................................................................................................................... III
Contents ...............................................................................................................................................IV
List of Figures .................................................................................................................................. VIII
List of Tables ........................................................................................................................................ X
List of Nomenclature ..........................................................................................................................XI
1. INTRODUCTION ......................................................................................................................... 1
1.1 Introduction ............................................................................................................................. 1
1.1.1 Background ..................................................................................................................... 1
1.2 Problem Statement .................................................................................................................. 2
1.3 Aim and Objectives ................................................................................................................. 3
1.4 Research Questions ................................................................................................................. 3
1.5 Scope ....................................................................................................................................... 3
1.6 Structure of the thesis .............................................................................................................. 4
1.7 Summary ................................................................................................................................. 5
2. LITERATURE REVIEW............................................................................................................. 6
2.1 Introduction ................................................................................................................................... 6
2.2 Small- and Medium-Sized Enterprises Background ............................................................... 6
2.2.2 Small- and medium-sized enterprises in Saudi Arabia ................................................... 8
2.2.3 The current state of quality in the Saudi food industry ................................................... 9
2.3 Supply Chain Management Background .............................................................................. 11
2.3.2 Supply chain management ............................................................................................ 11
2.3.3 Benefits of supply chain management .......................................................................... 15
2.3.4 Barriers faced by small- and medium-sized enterprises in supply chain management . 17
2.3.5 Food supply chains........................................................................................................ 18
2.3.6 Developing the Initial Framework ....................................................................................... 21
2.4 Lean and Six Sigma Background .......................................................................................... 22
2.4.2 Lean ............................................................................................................................... 22
2.4.3 Six Sigma ...................................................................................................................... 26
2.4.4 Comparing Lean and Six Sigma ................................................................................... 30
2.4.5 Lean Six Sigma .................................................................................................................... 33
2.4.6 The need to integrate Lean and Six Sigma .................................................................... 34
2.4.7 Benefits of integrating Lean and Six Sigma ................................................................. 37
IV
2.4.8 Supply chain management and Lean Six Sigma ........................................................... 39
2.4.9 Principles of the Kanban Systems ........................................................................................ 42
2.4.10 Integration of Lean with the Kanban Systems ................................................................... 42
2.4.11 The Proposed Kanban Cycle .............................................................................................. 43
2.5 Multi-Agent System Background ......................................................................................... 45
2.5.2 Agent ............................................................................................................................. 46
2.5.3 Multi-agent system ........................................................................................................ 48
2.5.4 Java-assisted development framework .......................................................................... 49
2.5.5 Multi-agent systems in the supply chain ....................................................................... 51
2.5.6 Modelling food supply chains with multi-agents systems ............................................ 53
2.5.7 Multi-Agent System Parameters .......................................................................................... 55
2.5.8 Conceptual Framework for Integrating LSS with MAS ...................................................... 56
2.6 Pilot Study ............................................................................................................................. 57
2.7 Research Gaps ....................................................................................................................... 60
2.7 Summary ............................................................................................................................... 61
3. METHODOLOGY ..................................................................................................................... 62
3.1 Introduction ........................................................................................................................... 62
3.2 Research Methodology Overview ......................................................................................... 62
3.3 Research Philosophy ............................................................................................................. 63
3.4 Research Family .................................................................................................................... 64
3.4.1 Quantitative approach ................................................................................................... 64
3.4.2 Qualitative approach ..................................................................................................... 64
3.4.3 Mixed method ............................................................................................................... 65
3.5 Research Approach ............................................................................................................... 66
3.5.1 Research Methodology Overview ................................................................................. 66
3.5.2 Empirical data collection .............................................................................................. 68
3.5.3 Literature review ........................................................................................................... 68
3.5.4 Pilot study interview ..................................................................................................... 68
3.5.5 The questionnaire .......................................................................................................... 70
3.6 Tools ..................................................................................................................................... 75
3.6.1 Multi-agent system ........................................................................................................ 75
3.7 Summary ............................................................................................................................... 75
4. EMPIRICAL CASE STUDY TO ASSESS THE BENEFIT OF LEAN SIX SIGMA IN AN
SME ...................................................................................................................................................... 76
4.1 Introduction ........................................................................................................................... 76
4.1.1 Case study overview ..................................................................................................... 76
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4.2 Implementing the Lean Six Sigma Methodology ................................................................. 76
4.2.1 Phase 1: Define ............................................................................................................. 77
4.2.2 Phase 2: Measure .......................................................................................................... 80
4.2.3 Phase 3: Analyse ........................................................................................................... 82
4.2.4 Phase 4: Improve ........................................................................................................... 85
4.2.5 Phase 5: Control ............................................................................................................ 86
4.3 Results ................................................................................................................................... 87
4.4 Summary ............................................................................................................................... 88
5. ANALYSIS OF THE QUESTIONNAIRE ............................................................................... 89
5.1 Introduction ........................................................................................................................... 89
5.2 Survey Approach .................................................................................................................. 89
5.3 Results Analysis, Findings and Discussion ........................................................................... 89
5.3.1 Respondent demographic .............................................................................................. 89
5.3.2 Operations value stream (Supply chain management and goods flow path) ................ 95
5.3.3 Quality control assurance .............................................................................................. 99
5.3.4 Information sharing ..................................................................................................... 102
5.3.5 Managing performance indicators............................................................................... 106
5.4 Overview of the Survey Findings ............................................................................................. 109
5.5 Recommendations ............................................................................................................... 110
5.5.1 Recommended Framework ................................................................................................ 111
5.5.2 Proposed conceptual framework ................................................................................. 111
5.6 Summary ............................................................................................................................. 117
6. DEVELOPMENT OF THE LEAN MULTI-AGENT SYSTEM .......................................... 119
6.1 Introduction ......................................................................................................................... 119
6.2 Conceptual Lean Multi-Agent System Model .................................................................... 119
6.3 Planning .............................................................................................................................. 126
6.4 Analysis............................................................................................................................... 127
6.5 Design ................................................................................................................................. 130
6.6 Implementation ................................................................................................................... 130
6.6.1 Definition of agent responsibilities ............................................................................. 131
6.7 Lean Multi-Agent System Verification ............................................................................... 145
6.8 Summary ............................................................................................................................. 148
7. RESULTS AND DISCUSSION ............................................................................................... 149
7.1 Introduction ......................................................................................................................... 149
7.2 Industrial Case .................................................................................................................... 149
7.3 Late Delivery Improvement ................................................................................................ 149
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7.4 Quality Improvement .......................................................................................................... 154
7.5 Inventory Improvement....................................................................................................... 157
7.6 Cost Improvement ............................................................................................................... 162
7.6.1 Cost of quality defects ................................................................................................. 162
7.6.2 Cost of damaged inventory ......................................................................................... 163
7.6.3 Cost of time wasted ..................................................................................................... 163
7.7 Case Study Evaluation ........................................................................................................ 163
7.7.1 Customer feedback ...................................................................................................... 165
7.7.2 Sales manager feedback .............................................................................................. 166
7.7.3 The employee’s feedback ............................................................................................ 166
7.8 Final Discussion and Summary ........................................................................................... 167
8. CONCLUSION AND FURTHER WORK ............................................................................. 171
8.1 Introduction ......................................................................................................................... 171
8.2 Conclusion .......................................................................................................................... 171
8.3 Contribution to Knowledge ................................................................................................. 173
8.4 Limitations and Recommendations for Further Work ........................................................ 174
References .......................................................................................................................................... 176
Appendixes ........................................................................................................................................ 186
Appendix A: Questionnaire Form in English.............................................................................. 187
Appendix B: Questionnaire Form in Arabic ............................................................................... 194
Appendix C: Ethics Approval ..................................................................................................... 201
Appendix D: Results and Analysis Tables .................................................................................. 202
Appendix E: Examples of Configurations .................................................................................. 236
Appendix F: Procedure ............................................................................................................... 274

VII
List of Figures
Figure 2.1: Integrated SC entities and stages (Antony et al., 2006) ...................................................................... 12
Figure 2.2: A simplified SC according to Fawcett and Magnan (2001................................................................. 13
Figure 2.3: The complexity of the flow of information and goods in the food chain ( Nabhani and Shokri, 2007)
.............................................................................................................................................................................. 20
Figure 2.4: The initial framework integrating the flow of goods and information in the supply chain ................ 22
Figure 2.5: Summary of the nature of improvements (Source: Arnheiter and Maleyeff, 2005) ........................... 36
Figure 2.6: Improvement objectives and needs of an organisation, (Snee, 2010) ................................................ 38
Figure 2.7: The conceptual development of the LSS framework (Source: Thomas et al., 2008) ......................... 39
Figure 2.8: The adapted basis of the proposed Kanban system ............................................................................ 42
Figure 2.9: The propose Kanban approach ........................................................................................................... 43
Figure 2.10: The integration of the Kanban cycle in the flow of goods and information ..................................... 44
Figure 2.11: The integration of the pull and push of Kanban into the goods and information flow. .................... 45
Figure 2.12: Agent ................................................................................................................................................ 46
Figure 2.13: FIPA reference model of an agent platform (Bellifemine et al., 2001). ........................................... 49
Figure 2.14: The conceptual integrated framework .............................................................................................. 57
Figure 4.1: SIPOC diagram .................................................................................................................................. 78
Figure 4.2: Pareto chart based on defects ............................................................................................................. 79
Figure 4.3: Pareto chart based on possibility of losing the customer costs ........................................................... 79
Figure 4.4: Pareto chart showing the accumulative total cost of defects .............................................................. 80
Figure 4.5: Pareto chart based on delivery-related variables ................................................................................ 81
Figure 4.6: A current-state value stream map ....................................................................................................... 82
Figure 4.7: A future-state value stream map ......................................................................................................... 82
Figure 4.8: Fishbone diagram ............................................................................................................................... 83
Figure 4.9: Pareto chart based the six key sources of the defect .......................................................................... 84
Figure 4.10: Distribution graphs after LSS improvement ..................................................................................... 87
Figure 5.1: Critical factors of the value stream in food distribution ................................................................... 112
Figure 5.2: Using the DMAIC process to identify the influencing variable that impact on the supply chain
critical factors ..................................................................................................................................................... 113
Figure 5.3: The main issues (influencing variables) and obstacles that limit the operational effectiveness of SME
supply chains ...................................................................................................................................................... 113
Figure 5.4: The integration of Phase 1) LSS and Phase 2) RTI into the framework .......................................... 114
Figure 5.5: MAS integrated in LSS conceptual framework - final framework ................................................... 115
Figure 6.1: Depicts the flow and connectivity between the functions of the SME supply chain ........................ 120
Figure 6.2: Intelligent agents map the physical functions flow and decision points in the SME SC .................. 121
Figure 6.3: Indicates the communication and connectivity integration of the users, intelligent agents and the
control centre and system information provider ................................................................................................. 122
Figure 6.4: Part 1 – Indicates the integration of 7W and Kanban-related rules in agents’ responsibilities from the
order to inventory part of supply chain. .............................................................................................................. 123
Figure 6.5: Part 2 – Indicates the integration of the rest of 7W- / 5S-related rules into the application of the
agents’ responsibilities from inventory to delivery part of supply chain ............................................................ 125
Figure 6.6: The procedural design of the integrated LMAS conceptual model with 7W, 5S and Kanban ......... 127
Figure 6.7: Use case diagram for food distribution case study (current scenario). ............................................. 128
Figure 6.8: The two groups in the proposed improved scenario ......................................................................... 128
Figure 6.9: A refined and updated agent diagram ............................................................................................... 129
Figure 6.10: The sequence diagram of the first group ........................................................................................ 129
Figure 6.11: State transition diagrams ................................................................................................................ 130
Figure 6.12: Constraints within the application and simulation ......................................................................... 131
Figure 6.13: Customer/sales agent places the initial sales order ......................................................................... 133
Figure 6.14: Manager agent receives notifications of the approved order .......................................................... 134
Figure 6.15: Inventory agent receives notifications to check stock availability and generates a stores pick list 135
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