AGILE MANUFACTURING
Agile manufacturing is a term applied to an organization that has created the processes, tools, and
training to enable it to respond quickly to customer needs and market changes while still controlling
costs and quality. An enabling factor in becoming an agile manufacturer has been the development of
manufacturing support technology that allows the marketers, the designers and the production
personnel to share a common database of parts and products, to share data on production capacities
and problems—particularly where small initial problems may have larger downstream effects. It is a
general proposition of manufacturing that the cost of correcting quality issues increases as the problem
moves downstream, so that it is cheaper to correct quality problems at the earliest possible point in the
process. Agile manufacturing is seen as the next step after lean manufacturing in the evolution of
production methodology.[citation needed] The key difference between the two is like between a thin and
an athletic person, agile being the latter. One can be neither, one or both. In manufacturing theory,
being both is often referred to as leagile. According to Martin Christopher, when companies have to
decide what to be, they have to look at the customer order cycle (COC) (the time the customers are
willing to wait) and the leadtime for getting supplies. If the supplier has a short lead time, lean
production is possible. If the COC is short, agile production is beneficial. Agile manufacturing is an
approach to manufacturing which is focused on meeting the needs of customers while maintaining high
standards of quality and controlling the overall costs involved in the production of a particular product.
This approach is geared towards companies working in a highly competitive environment, where small
variations in performance and product delivery can make a huge difference in the long term to a
company's survival and reputation among consumers
4 Principles Within Agile Manufacturing (((((((AGILE MANUFACTURING 2))))))))))))))))
Consumer Enrichment
While lean is more waste oriented, agile is more customer oriented. One of the most important
principles within agile is enriching the customer through various factors such as identification,
monitoring, and understanding factors such as Quality Function Deployment. Satisfying consumer
demands is a key component within agile manufacturing.
Competitive Enhancement Having all departments on board for agile methodology can ensure for a
much more efficient and competitive atmosphere. This is by partnering with firms that have the same
ideas and mindset about the production. This is how you can set yourself a step above competitors and
adopt a much more flexible and adaptable supply chain.
Organization Proper organization within the operation is one of the most important aspect of an agile
manufacturing operation. This is due to swift changes in circumstances such as consumer preference,
demand, and production. This allows production to be flexible and be prepared for a change at a
moment’s notice.
Leveraging Impact People are essential within agile operations, which is why it is important to
constantly monitor the impact of human capital. This is because humans possess skill, information, and
the drive to enhance productivity and improve the manufacturing process. Locating potential leaders
that can take production in the right direction can bring extreme benefit to an agile operation. It is also
extremely important to keep up with current manufacturing trends and advancements in technology,
which can improve your manufacturing operation tremendously.
Advanced Planning and Scheduling Software (APS) Advanced planning and scheduling software
(APS) can enhance agile manufacturing operations with ease. As the software is able to be easily
integrated with ERP or MRP operations, it offers various benefits and capabilities that can optimize
ix Month ROI
KEY ELEMENTS
(designing products in a modular fashion that enables them to serve as platforms for fast and easy
apid dissemination of information throughout the
-term
alliances with other companies that enable improved time-to-
Knowledge Culture (investing in employee training to achieve a culture that supports rapid change and
ongoing adaptation)
WHY IS IT EFFECTIVE? Why is agile manufacturing an effective strategy? Consumers love instant
gratification. They are increasingly getting used to it and they are often willing to pay for it. For example,
have you ever ordered a product with overnight shipping…waiting in eager anticipation? Consumers
love choice. They prefer to get a product exactly as they want it…without compromise. Consumers are
fickle. Their interests shift and move in unpredictable ways. Agile is effective because it directly
addresses these issues. It acknowledges the realities of the modern marketplace and transforms them
into a competitive advantage. Agile is of particular value for manufacturers in countries with large, well-
developed local markets and high labor costs (e.g. the United States). It leverages proximity to the
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market by delivering products with an unprecedented level of speed and personalization, which simply
cannot be matched by offshore competitors. It turns local manufacturing into a competitive advantage
