AGILE

MANUFACTURING
A BRIEF

WHAT IS AGILE?
ABLE TO MOVE EASILY AND QUICKLY

WHAT IS AGILE IN TODAYS

SCENARIO?
The markets and their products
For example cell phones, automobiles
and other electronic goods.
The world is now agile on accord of this.

AGILE MANUFACTURING
DEFINITION:
Enterprise level manufacturing strategy of
introducing new products into rapidly changing
market and hence thrive in todays competitive
Market characterised by continuous and
unforeseen changes.

PRINCIPLES OF AGILE MFG

1.Organize to master change organised to
adapt to change and uncertainty through rapid
reconfiguration of
Physical resources
Human resources

PRINCIPLES OF AGILE MFG

2.Leverage the impact of people and
information
Knowledge valued
Innovation rewarded
Authority distributed
Provide resources needed

PRINCIPLES OF AGILE MFG

3.Cooperate to increase competitiveness
Cooperation Internal

Among employees and

employer.
Cooperation External

Among companies.

Find resources and competencies

use them.

Partnering and virtual enterprise formation.

PRINCIPLES OF AGILE MFG

4.Customers delight
Solutions to issues faced by customer
Pricing based on value of the solution than
manufacturing cost.

What are the market forces

driving Agile Manufacturing?

MARKET FORCES DRIVING

AGILITY
Intensifying competition
Fragmentation of markets
Cooperative business relationships
Changing customer expectations
Increased societal pressures
next

INTENSIFYING COMPETITION
Signs of intensifying competition
Global competition
Decreasing cost of information
Growth in communication technology
Pressure to reduce time to market
Short products lives
Increasing pressures on cost and profits

back

FRAGMENTATION OF MASS
MARKETS
Signs towards fragmented markets
Emergence of niche markets- example types of
bat depending on the batting style.
High rate of model changes
Declining barriers to market entry from global
competition
Shrinking windows of market opportunity

COOPERATIVE BUSINESS
RELATIONSHIP
Forms cooperation:
Increased inter enterprise cooperation
Increased outsourcing
Global sourcing
Improved labour management relationships
Formation of virtual enterprise among companies
Mergers

back

CHANGING CUSTOMER
EXPECTATIONS
High Quality and low cost were the only criteria
Now in addition to quality the expectations include
Rapid product delivery eg FEDEX
Support through the product life servicing and maintenance
works from the firm that manufactured the product.
back

INCREASING SOCIETAL
PRESSURES
Organisation are to be responsive to
Social issues
Workforce training and Education
Legal pressures law, writ, petitions.
Environmental impact ISO 14000.
back

What are the approaches to

Agility?

APPROACHES TO AGILITY
Reorganising production system
Manage relationships differently
Value the knowledge.

REORGANISING PRODUCTION
SYSTEM
Changes in 3 basic areas
Product design- 70 % of mfg cost - important
Marketing- linked with p.d if flawed products goes waste
Production operations reorganise factory operations, systems
and procedures to support operations

PRODUCT DESIGN
Characteristics of a agile products :
Customizable
Upgradeable
Reconfigurable
Design modularity
Frequent model changes
Platform for info and services

MARKETING
Aggressive and proactive marketing
Cannibalize successful products
Frequent new product introductions
Life cycle product support
Pricing by customer value
Effective niche market competitor

PRODUCTION OPERATIONS
Objectives consistent with agility:
Cost effectiveness
Produce to customer order
Master mass customization
Use reconfigurable and reusable processes, tooling and
resources
Customization
Integrate B.F with production and system within system.

MANAGING RELATIONSHIPS
Motivation among employees
Trust based relationships
Empowered workforce
Share responsibility for success and failure
Pervasive entrepreneurial spirit
Relationships internal , external.

back

VALUING KNOWLEDGE
OBJECTIVES
Open communication and info access
Basic attribute to adapt to change
Encourage continuous training
Effective management of competency inventory

AGILE VS MASS
PRODUCTION
AGILE

MASS

Customized products

Standardized products

Short market life

Long market life

Make to order

Market to forecast

High info content

Lower info content

Continuing relationship

Single time sales

Pricing by customer value

Pricing by production cost

LEAN VS AGILE
LEAN

AGILE

Minimize waste

Enrich customer

Perfect first time quality

Cooperate to enhance competitiveness

Flexible production lines

Continuous improvement
Enhance mass production

Organize to master change

Leverage the impact of people and info
Mass customization

Flexible production of product variety

Greater flexibility for customized products

Focus on factory operations
Emphasises on Supplier mgmt
Smooth production schedule

Wide scope
Virtual enterprise

INSTANCES OF AGILE MFG

Nokia attempting to get back the market lost
before the Apple- Samsung suite.
Laptop companies like Sony , Hp, Lenovo,
Acer, Dell introducing their products in the
market every 3-5 months