LFA Quick Scan

 What is LFA Quick Scan?
LFA Quick Scan is a methodology for the immediate diagnosis of a company's supply chain, which has been specifically adapted for the Russian market. The original methodology was devised by The Logistics Systems Dynamics Group (LDSA), Cardiff University, UK in the context of the project «Supply Chain 2001+».

LFA Quick Scan enables key factors that influence the effectiveness of the Supply Chain to be defined by means of investigation and documention of business processes. Following an LFA Quick Scan, a customer will have a general evaluation of his Supply Chain structure as well as a list of optimisation opportunities. LFA Quick Scan commercial proposals are delivered in a format and terms, familiar to senior business executives.

 LFA Quick Scan Process
A typical LFA Quick Scan process employs a project team of three to four people, consisting of a senior logistics expert, one or two logistics auditors, and an assistant.

The process usually lasts for twelve working days, four of which are spent on-site conducting investigations and interviews and six analysing the findings with two more days for both the preliminary and feedback presentations.

The preliminary presentation consists of an explanation of the purpose of the LFA Quick Scan, the introduction of the project team, confirmation of the timings of the project and initial requests for data requirements. The completion of questionnaires, interviews and collection of data are conducted in two stages; during which the project team makes a preliminary analysis of the situation and prepares a model of the customer's Supply Chain. The team prepares the final documents describing the present logistics processes and the experts' evaluations and recommendations, which are then presented to the client.

 The Achievement of Transparency in the Supply Chain
The LFA Quick Scan process studies the four major sources of uncertainty in the Supply Chain and allows for the determination of the optimisation process of the logistics functions.

Supply uncertainty. This could result from poorly performing suppliers or an inability of a company to `order` raw materials efficiently. This can be evaluated by looking at supplier delivery performance, time series of orders placed, call offs, deliveries from customers, lead-times, supplier quality reports and raw material stock time series.
Demand uncertainty. This type of uncertainty is associated with a specific customer in relation to schedule variability. It is an indication of how well the company meets its customers' requirements. Developing a time series of customer orders, call-offs, deliveries and forecasts identifies this uncertainty.
Process uncertainty. The LFA Quick Scan project team analyses the internal procedures of the company as a system that regulates the material flow, inbound or outbound. Manufacturing cycles are determinant when elaborating the effective internal procedures and the planning system.
Control uncertainty. This affects the company's ability to manage its activities and to transform customer orders into production targets and supplier raw material requests. It can be investigated via the time series of customer requirements and supplier requests to deliver. Additionally, a time series of production targets will be required and a thorough understanding of the decisions or control systems that are used to transfer the customer orders into production targets and supplier raw material requests.

 The achievement of the effectiveness in the Supply Chain structure
As a result of an LFA Quick Scan the customer will receive one of three evaluation results:

• the Supply Chain is organised and no changes are required, or
• rapid and short-term changes could essentially optimise the Supply Chain, or
• fundamental re-engineering of the Supply Chain is required.

The feedback presentation is followed by a Final Report, which includes an elaborated strategy and an agreed plan of action for the implementation of recommendations.

The implementation of the LFA Quick Scan recommendations will result in increased effectiveness of the logistics functions:

Benchmark Improvement Direct logistics costs Down to 10%-20% Demand satisfaction Up 20%-60% Suppliers efficiency Up 20%-60% Obsolescence costs Down to 90% Stock turnover Up 30%-75% Lead Time Down to 25%-50%