Agile Manufacturing

Agile Manufacturing
What will be covered
What will be covered
Introduction Introduction
What is Agile Manufacturing What is Agile Manufacturing
Why do we need to be agile Why do we need to be agile
Key to Agility and Flexibility Key to Agility and Flexibility
Agile Manufacturing in our company Agile Manufacturing in our company
Four Core Concepts Four Core Concepts
Nuts and Bolts Nuts and Bolts
Interdisciplinary Design Interdisciplinary Design
How can we make the transition How can we make the transition
Real world example Real world example
Exercise Exercise
Summary Summary
Bibliography Bibliography
Introduction
Introduction
Manufacturing industry is on the Manufacturing industry is on the
verge of a major paradigm shift. verge of a major paradigm shift.
This shift will take us away from This shift will take us away from
mass production, way beyond mass production, way beyond
lean manufacturing, into a world lean manufacturing, into a world
of Agile Manufacturing. of Agile Manufacturing.
What is Agile
What is Agile
Manufacturing?
Manufacturing?
Agile manufacturing is a method Agile manufacturing is a method
for manufacturing which for manufacturing which
combine our organization, combine our organization,
people and technology into an people and technology into an
integrated and coordinated integrated and coordinated
whole. whole.
Why do we need to be
Why do we need to be
agile
agile
Global Competition is intensifying. Global Competition is intensifying.
Mass markets are fragmenting into Mass markets are fragmenting into
niche markets. niche markets.
Cooperation among companies is Cooperation among companies is
becoming necessary, including becoming necessary, including
companies who are in direct companies who are in direct
competition with each other. competition with each other.
Why do we need to be
Why do we need to be
agile cont:
agile cont:
Customers are expecting: Customers are expecting:
1. 1. Low volume products Low volume products
2. 2. High quality products High quality products
3. 3. Custom products Custom products
Very short product life-cycles, Very short product life-cycles,
development time, and production development time, and production
lead times are required. lead times are required.
Customers want to treated and Customers want to treated and
individuals. individuals.
Keys to agility and
Keys to agility and
flexibility
flexibility
To determine customer needs quickly and To determine customer needs quickly and
continuously reposition the company continuously reposition the company
against its competitors. against its competitors.
To design things quickly based on those To design things quickly based on those
individual needs. individual needs.
To put them into full scale, quality, To put them into full scale, quality,
production quickly. production quickly.
To respond to changing volumes and mix To respond to changing volumes and mix
quickly. quickly.
To respond to a crisis quickly. To respond to a crisis quickly.
Agile manufacturing in
Agile manufacturing in
our company
our company
Customer-integrated process for Customer-integrated process for
designing, manufacturing, marketing, designing, manufacturing, marketing,
and supporting all products and and supporting all products and
services. services.
Decision making at functional Decision making at functional
knowledge points not in centralized knowledge points not in centralized
management silos. management silos.
Stable unit costs, no matter what the Stable unit costs, no matter what the
volume. volume.
Flexible Manufacturing-ability to Flexible Manufacturing-ability to
increase or decrease production increase or decrease production
volumes at will. volumes at will.
Agile manufacturing in
Agile manufacturing in
our company cont.
our company cont.
Easy access to integrated data whether it Easy access to integrated data whether it
is customer-driven, supplier-driven, or is customer-driven, supplier-driven, or
product and process-driven. product and process-driven.
Modular production facilities that can be Modular production facilities that can be
organized into ever changing organized into ever changing
manufacturing nodes. manufacturing nodes.
Data that is rapidly changed into Data that is rapidly changed into
information that is used to expand information that is used to expand
knowledge. knowledge.
Mass customized product verses mass Mass customized product verses mass
produced product. produced product.
Four core concepts
Four core concepts
1. 1. A strategy to become an Agile A strategy to become an Agile
Manufacturing enterprise. Manufacturing enterprise.
2. 2. A strategy to exploit agility to achieve A strategy to exploit agility to achieve
competitive advantage. competitive advantage.
3. 3. Integration of organization, people and Integration of organization, people and
technology into a coordinated technology into a coordinated
interdependent system which is our interdependent system which is our
competitive advantage. competitive advantage.
4. 4. An interdisciplinary design methodology An interdisciplinary design methodology
to achieve the integration of to achieve the integration of
Organization, people and technology. Organization, people and technology.
Nuts and Bolts
Nuts and Bolts
Enriching the customer Enriching the customer
1. 1. Replace large centralized with Replace large centralized with
distributed clusters of mini-assembly distributed clusters of mini-assembly
plants located near customers. plants located near customers.
Cooperating to enhance Cooperating to enhance
competition. competition.
1. 1. Internalcross-functional teams, Internalcross-functional teams,
empowerment. empowerment.
2. 2. Externalmanaging the supply chain. Externalmanaging the supply chain.
Nuts and Bolts
Nuts and Bolts
Organizing to manage change and Organizing to manage change and
uncertainty uncertainty
1. 1. Rapid reconfiguration of plant and Rapid reconfiguration of plant and
facilities. facilities.
2. 2. Rapid decision making-shallow Rapid decision making-shallow
empowered. empowered.
Leveraging people and information. Leveraging people and information.
1. 1. Distribution of authority, resources, Distribution of authority, resources,
and rewards. and rewards.
Interdisciplinary Design
Interdisciplinary Design
Interdisciplinary design will form Interdisciplinary design will form
the basis of designing Agile the basis of designing Agile
Manufacturing systems in the new Manufacturing systems in the new
knowledge intensive era. knowledge intensive era.
Interdisciplinary design is one of Interdisciplinary design is one of
the most important challenges to the most important challenges to
that managers and systems that managers and systems
designers and integrators will face in designers and integrators will face in
the years ahead, it leads us to new the years ahead, it leads us to new
approaches and new ways of working approaches and new ways of working
and of thinking. and of thinking.
Interdisciplinary Design
Interdisciplinary Design
To successfully adopt an To successfully adopt an
interdisciplinary design method, we interdisciplinary design method, we
need to: need to:
Challenge our accepted design Challenge our accepted design
strategies and develop new and strategies and develop new and
better approaches. better approaches.
Question our established and Question our established and
cherished beliefs and theories, and cherished beliefs and theories, and
develop new ones to replace those develop new ones to replace those
that know longer have any validity. that know longer have any validity.
Interdisciplinary Design
Interdisciplinary Design
Consider how we address organization, Consider how we address organization,
people and technology, and other issues in people and technology, and other issues in
the design of manufacturing systems, so the design of manufacturing systems, so
we can have systems that are better for we can have systems that are better for
performance, better for the environment, performance, better for the environment,
and better for the people. and better for the people.
Go beyond the automation paradigm of the Go beyond the automation paradigm of the
industrial era, to use technology in a way industrial era, to use technology in a way
that makes human skill, knowledge, and that makes human skill, knowledge, and
intelligence more effective and productive, intelligence more effective and productive,
and that allows us to tap into the creativity and that allows us to tap into the creativity
and talent of all our people. and talent of all our people.
Tansition to Agile
Tansition to Agile
manufacturing?
manufacturing?
Make the break with the things Make the break with the things
that are wrong with the way we do that are wrong with the way we do
things today. things today.
Examine and define the underlying Examine and define the underlying
conceptual framework on which conceptual framework on which
Agile Manufacturing enterprises Agile Manufacturing enterprises
will be built. will be built.
Making the transition
Making the transition
cont.
cont.
Explore and understand the nature of Explore and understand the nature of
the mass production paradigm and the the mass production paradigm and the
nature of the cultural and nature of the cultural and
methodological difficulties involved in methodological difficulties involved in
the transition to Agile Manufacturing. the transition to Agile Manufacturing.
Define a methodology for designing a Define a methodology for designing a
21 21
st st
century manufacturing enterprise. century manufacturing enterprise.
Real world example:
Real world example:
The Industry The Industry: Japanese car : Japanese car
makers makers
The goal The goal: To produce the three : To produce the three
day car, (three days from day car, (three days from
customer order for a customized customer order for a customized
car to dealer delivery). car to dealer delivery).

Real world ex. Cont.
Real world ex. Cont.
The Challenges:
The Challenges:
The challenges: The challenges:
1. 1. Break dependency on scale and Break dependency on scale and
economies of scale (reducing setup economies of scale (reducing setup
costs in key). costs in key).
2. 2. Produce vehicles in low volumes at a Produce vehicles in low volumes at a
reasonable cost. reasonable cost.
3. 3. Guarantee the three day car. Guarantee the three day car.
4. 4. Replace large centralized with Replace large centralized with
distributed clusters of mini-assembly distributed clusters of mini-assembly
plants located near customers. plants located near customers.
5. 5. Be able to reconfigure components in Be able to reconfigure components in
many different ways. many different ways.
Real world ex. Cont.
Real world ex. Cont.
The Challenges:
The Challenges:
1. 1. Make work stimulating. Make work stimulating.
2. 2. Turn the customer into a prosumer, an ugly Turn the customer into a prosumer, an ugly
neologism that means proactive something; neologism that means proactive something;
the idea is that the customer will take an the idea is that the customer will take an
active role in the product design by, for active role in the product design by, for
example, configuring options at a computer example, configuring options at a computer
in a dealer showroom. in a dealer showroom.
3. 3. Streamline ordering systems and establish Streamline ordering systems and establish
close relationships with suppliers. close relationships with suppliers.
4. 4. Manage the massive volumes of data Manage the massive volumes of data
generated by the production system so as to generated by the production system so as to
be able to analyze that data quickly and be able to analyze that data quickly and
agilely. agilely.
Exercise
Exercise
War has broken out somewhere in War has broken out somewhere in
the world, and the US becomes the world, and the US becomes
involved. Suddenly, all branches of involved. Suddenly, all branches of
our armed forces need more our armed forces need more
conventional munitions-and they conventional munitions-and they
need them immediately. How can need them immediately. How can
suppliers meet this kind of suppliers meet this kind of
unpredictable demand? unpredictable demand?
Summery
Summery
Agile Manufacturing enterprises will be Agile Manufacturing enterprises will be
capable of rapidly responding to changes in capable of rapidly responding to changes in
customer demand. They will be able to take customer demand. They will be able to take
advantage of the windows of opportunities that advantage of the windows of opportunities that
appear in the market place. With Agile appear in the market place. With Agile
Manufacturing we will be able to develop new Manufacturing we will be able to develop new
ways of interacting with our customers and ways of interacting with our customers and
suppliers. Our customers will not only be able suppliers. Our customers will not only be able
to gain access to our products and services, to gain access to our products and services,
but will also be able to easily assess and but will also be able to easily assess and
exploit our competencies, so enabling them to exploit our competencies, so enabling them to
use these competencies to achieve the things use these competencies to achieve the things
that they are seeking. that they are seeking.
Bibliography
Bibliography
1. 1. Abair, Bob. Abair, Bob. Agile Manufacturing: Not Just Another Agile Manufacturing: Not Just Another
Buzzword Buzzword. . http://www.partnersforexcellence.
com/95art3.htm
2. 2. Agile Manufacturing: Gearing to meet demand. Agile Manufacturing: Gearing to meet demand.
Linkages Linkages http://www.llnl.gov/str/Burleson.html
3. 3. Agile Manufacturing Agile Manufacturing linkages linkages http://www. http://www.
peterkeen.com/engbp003.htm peterkeen.com/engbp003.htm
4. 4. D&ME. Pacific Northwest National Laboratory. D&ME. Pacific Northwest National Laboratory.
Linkages Linkages http://www.technet.pnl. http://www.technet.pnl.
gov/dme/agile/index.stm gov/dme/agile/index.stm
5. 5. Kidd, T. Paul. Kidd, T. Paul. Agile Manufacturing: Forging New Agile Manufacturing: Forging New
Frontiers. Frontiers. http://www.cheshirehenvury.
com/publications/ammaterial.html. .