International Review of Business and Finance

ISSN 0976-5891 Volume 9, Number 1 (2017), pp. 7-10

© Research India Publications
http://www.ripublication.com

Analysis of the Barriers of Organizational Agility

1 Jai Prakash 2 Dr. Rajesh Attri

1
M.Tech Scholar, YMCA University of Science and Technology, Faridabad,
Haryana, India.

2
Assistant Professor, Mechanical Engineering Department, YMCA University of
Science and Technology, Faridabad, Haryana, India

Abstract
In this paper an effort has been made to find out the various barriers which
hold back an organization from becoming agile. These barriers have been
found out with the help of expert guidance, analysis of various research works
and the interaction with the industry personnel. These barriers include
Management related barriers, Technology related barriers,
Collaboration/Partnership related barriers, Finance related barriers etc. These
barriers have a negative impact on the development of the organization. Thus
the intensity of these barriers should be reduced to a minimum. These barriers
are divided into sub barriers. During analysis, it has been found out that the
technological and management related barriers are the biggest roadblocks on
the part of moving towards agility. These barriers are further related to
financial strength and the will power of the management. If the management
decides to take up agility measures in the organization then it is possible with
minimum efforts.
Keyword: Agile Manufacturing, Agility Barriers.

INTRODUCTION TO AGILE MANUFACTURING

Agility is a scientific term which means responsiveness. Thus agility is the term used
in an organization that has developed the parameters and the tools to make it respond
quickly and effectively to customer hassle and market changes while still being cost
effective and quality viable. It is the ability to manage an ongoing, rapid and
8 Jai Prakash and Dr. Rajesh Attri

sustainable change so that the organization can respond to fast moving environment
changes. It is helpful so that the business can thrive in the odd times. In 1990s a new
exemplar was formulated by a team of experts which could assist US in achieving top
position in manufacturing. A two volume report was published titled ‘21st century
manufacturing enterprise strategy’. As a result agile manufacturing enterprise forum
(AMEF) affiliated with Iacocca Institute was created and the concept of agile
manufacturing was originated (Nagel and Dove 1991). The changes needed for agile
manufacturers to thrive in a face of continuous change can occur in markets, in
technologies, in business relations and in all facets of the business enterprise (Devor
et al, 1997). The drivers of agile manufacturing include customer, economy of
diversity, unpredictable markets and make to order (Sharp et al, 1999).

BARRIERS IN THE IMPLEMENTATION OF AGILE MANUFACTURING

Agile manufacturing is very helpful in maintaining organizational competitive
advantage as customers requirements evolve vigorously in the era of globalization.
The most important issue which the organizations are facing is the lack of proper
knowledge for adoption and implementation of agile manufacturing. As with the path
to organizational changes is implemented, a large number of barriers are evolved
causing the roadmap to become a vicious cycle. Adoption and implementation of
agile manufacturing principles in organizations require a systematic study of
procedures and processes and the paths to be taken along with the various barriers that
exist in its path allowing for efficient and effective use of such practices. The various
barriers found in the implementation procedure of agile manufacturing are:
1) MANAGEMENT RELATED BARRIERS
These barriers are related to the top management which is reluctant to play a
participative role in decision making process. The lack of commitment and support of
top management is an inhibiting factor which is a roadblock to any new innovation
(Ngai and Cheng1997). The management resistance to change and following the
conventional methods for manufacturing is leading to decrease in their competitive
advantage in comparison to their counterpart (Yusuf, Sarhidi and Gunasekaran 1999;
Ngai and Cheng 1997 ). Lack of implementation of flexibility measures into
management is the constraint which leads to improper implementation of agility
practices in an organization. Support and commitment is necessary from
organizational, technical and financial support point of view (Gunasekaran 1999).

2) TECHNOLOGY RELATED BARRIERS

Manufacturing technology provides the tools that facilitate production of all
manufactured goods. Lack of value addition technology to justify the high investment
Analysis of the Barriers of Organizational Agility 9

in manufacturing technology (Gunasekaran 1999;). Methodologies and framework to

help agile manufacturing are lacking in the organizations (Yusuf et al 1999). For
agility to be taken as a serious pattern, practitioners and technicians should agree on a
structured building block to achieve identical and repeatable results. Poor design to
manufacturing interface is a barrier in agile manufacturing adoption .

3) COLLABORATION AND PARTNERSHIP RELATED BARRIERS

The importance of forming rapid partnership to address the dynamic market
opportunities through the formation of virtual enterprise is an important aspect of
agile manufacturing. Therefore supply chain network needs to be managed
professionally and effectively for rapid response and flexibility. Lack of eagerness to
form virtual enterprises is barrier in agility implementation. Lack of capability of the
partners is a constrained in productive manufacturing (Kwam 1999).

4) EMPLOYEES AWARENESS AND TRAINING RELATED BARRIERS

Awareness is a motivating factor which is very important for productive enhancement
and it creates well reputable standards among the employees. Lack of training,
education and reward system is an awareness related barrier prevalent in most of the
organizations (Gunasekaran 1999). Lack of trust, commitment and standardization in
practices are not followed in most of the SMEs (Cox 1999).

CONCLUSION
The various barriers which prevent an organization from becoming agile are
Management related Barriers, Technology related Barriers, Collaboration/Partnership
related Barriers and Employee awareness and Training related Barriers. These barriers
are to be identified and worked upon to increase the responsiveness of the
organization which will thus help in increasing the productivity of the firm.

REFERENCES
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[2] Ngai, E.W.T. and Cheng, T.C.E. (1997) ‘Identifying potential barriers to total
quality management using principal component analysis and correspondence
analysis’, Int. J. Quality and Reliability Management, Vol. 14, pp.391–408.
10 Jai Prakash and Dr. Rajesh Attri

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