Agile Manufacturing

Jimeel Ferris OperMngt. 345 Sec. 001 May 7, 2002

What will be covered
• • • • • • • • • • • • • Introduction What is Agile Manufacturing Why do we need to be agile Key to Agility and Flexibility Agile Manufacturing in our company Four Core Concepts Nuts and Bolts Interdisciplinary Design How can we make the transition Real world example Exercise Summary Bibliography

Introduction • Manufacturing industry is on the verge of a major paradigm shift. into a world of Agile Manufacturing (5) . way beyond lean manufacturing. This shift will take us away from mass production.

(5) .What is Agile Manufacturing? • Agile manufacturing is a method for manufacturing which combine our organization. people and technology into an integrated and coordinated whole.

. including companies who are in direct competition with each other. • Mass markets are fragmenting into niche markets. • Cooperation among companies is becoming necessary.Why do we need to be agile • Global Competition is intensifying.

High quality products 3. Custom products • • Very short product life-cycles. Low volume products 2.Why do we need to be agile cont: • Customers are expecting: 1. Customers want to treated and individuals (4) . and production lead times are required. development time.

• To design things quickly based on those individual needs. production quickly. • To respond to a crisis quickly. quality . • To respond to changing volumes and mix quickly.Keys to agility and flexibility • To determine customer needs quickly and continuously reposition the company against it’s competitors. (1) . • To put them into full scale.

• Decision making at functional knowledge points not in centralized management “silos” • Stable unit costs. manufacturing. marketing. . and supporting all products and services.Agile manufacturing in our company • Customer-integrated process for designing. no matter what the volume • Flexible Manufacturing-ability to increase or decrease production volumes at will.

(1) . • Easy access to integrated data whether it is customer-driven. or product and process-driven • Modular production facilities that can be organized into ever changing manufacturing nodes. • Mass customized product verses mass produced product. supplier-driven. • Data that is rapidly changed into information that is used to expand knowledge.Agile manufacturing in our company cont.

people and technology into a coordinated interdependent system which is our competitive advantage. 3. people and technology. 2. A strategy to exploit agility to achieve competitive advantage.Four core concepts 1. A strategy to become an Agile Manufacturing enterprise. (5) . An interdisciplinary design methodology to achieve the integration of Organization. Integration of organization. 4.

Internal—cross-functional teams. empowerment. 1. • Cooperating to enhance competition.Nuts and Bolts • Enriching the customer 1. External—managing the supply chain. 2. . Replace large centralized with distributed clusters of mini-assembly plants located near customers.

Rapid reconfiguration of plant and facilities. 1. Distribution of authority. Rapid decision making-shallow empowered. 2. and rewards. resources. • Leveraging people and information.Nuts and Bolts • Organizing to manage change and uncertainty 1. (1) .

it leads us to new approaches and new ways of working and of thinking. (5) . Interdisciplinary design is one of the most important challenges to that managers and systems designers and integrators will face in the years ahead.Interdisciplinary Design Interdisciplinary design will form the basis of designing Agile Manufacturing systems in the new knowledge intensive era.

• Question our established and cherished beliefs and theories. we need to: • Challenge our accepted design strategies and develop new and better approaches. and develop new ones to replace those that know longer have any validity.Interdisciplinary Design To successfully adopt an interdisciplinary design method. (5) .

and better for the people . better for the environment. knowledge. people and technology. • Go beyond the automation paradigm of the industrial era. so we can have systems that are better for performance. and intelligence more effective and productive.Interdisciplinary Design • Consider how we address organization. and other issues in the design of manufacturing systems. and that allows us to tap into the creativity and talent of all our people. to use technology in a way that makes human skill. (5) .

• Examine and define the underlying conceptual framework on which Agile Manufacturing enterprises will be built.transition to Agile manufacturing? • Make the break with the things that are wrong with the way we do things today. .

Making the transition cont.(3) . • Define a methodology for designing a 21st century manufacturing enterprise. • Explore and understand the nature of the mass production paradigm and the nature of the cultural and methodological difficulties involved in the transition to Agile Manufacturing.

Real world example: • The Industry: Japanese car makers • The goal: To produce the three day car. (three days from customer order for a customized car to dealer delivery) .

4. Replace large centralized with distributed clusters of mini-assembly plants located near customers. Break dependency on scale and economies of scale (reducing setup costs in key). Be able to reconfigure components in many different ways.Real world ex. 2. 5. Produce vehicles in low volumes at a reasonable cost. 3. The Challenges: • 1. The challenges: . Cont. Guarantee the three day car.

3. Cont. Streamline ordering systems and establish close relationships with suppliers. Manage the massive volumes of data generated by the production system so as to be able to analyze that data quickly and agilely (3) . 4. Make work stimulating.Real world ex. Turn the customer into a “prosumer. 2. the idea is that the customer will take an active role in the product design by. configuring options at a computer in a dealer showroom.” an ugly neologism that means proactive something. The Challenges: 1. for example.

all branches of our armed forces need more conventional munitions-and they need them immediately. How can suppliers meet this kind of unpredictable demand? (2) . Suddenly.Exercise War has broken out somewhere in the world. and the US becomes involved.

(5) . so enabling them to use these competencies to achieve the things that they are seeking. With Agile Manufacturing we will be able to develop new ways of interacting with our customers and suppliers. Our customers will not only be able to gain access to our products and services. but will also be able to easily assess and exploit our competencies. They will be able to take advantage of the windows of opportunities that appear in the market place.Summery Agile Manufacturing enterprises will be capable of rapidly responding to changes in customer demand.

llnl. http://www. 5. T. Abair. Bob. 3. http://www. Linkages http://www. Pacific Northwest National Laboratory. Agile Manufacturing: Not Just Another Buzzword.com/95art3. Paul.Bibliography 1.htm D&ME. Agile Manufacturing: Forging New Frontiers. Linkages http://www.html “Agile Manufacturing” linkages http://www.cheshirehenvury. .html.gov/dme/agile/index. 2. 4.gov/str/Burleson.pnl.htm Agile Manufacturing: Gearing to meet demand.peterkeen.com/engbp003.com/publications/am material.stm Kidd.partnersforexcellence.technet.