1. Unit 6 - CURRENT TRENDS: Introduction to Agile
manufacturing, Lean and Six Sigma, Value Engineering,
Just in time, Total quality management, Enterprise
resource planning, Supply chain and logistics
management.
3. INTRODUCTION
❑ Lean manufacturing enables high degree of quality and
productivity through elimination of waste and it provided services
at low price to the customers till yesteryears.
❑ The modern customers not only demand high degree of quality but
also new innovative varieties to suit different tastes
❑ This situation calls for producing quickly innovative products to
meet customers’ dynamic demands
4. EMERGENCE OF AGILE MANUFACTURING
❑ On realising the requirement, in the year 1991, a
group of researchers at the Iococca University introduced a new
system called Agile manufacturing
❑ These researchers started a facility at their university for agility
and marked the beginning of research works on agile
manufacturing [1].
5. AGILE MANUFACTURING
❑ Agile manufacturing is the advanced version of Lean
manufacturing
❑ Agile Manufacturing : A paradigm that enables an organisation to
quickly react in accordance with the dynamic demands of the
customers by making use of appropriate technologies and
management models
6. Difference between Agile Manufacturing and Traditional Manufacturing
S.
No.
Criterion Traditional Manufacturing Company Agile Manufacturing Company
1.
Status of
Quality
Customer satisfaction is the target Customer delight is the target
2.
Employee’s
status
Employees are inflexible and ignorant to
changes
Learning, multi-skilled, multi-functional,
self-committed employees
3.
Design
Improvement
Adopted very rarely
Adopted very frequently and
systematically by conducting experiments
4. Outsourcing Adopted by subcontractors only Majority of the activities are outsourced
5.
Customer
response
adoption
It takes place very slowly Very fast and 100% response is achieved
Difference between Agile and Traditional Manufacturing explained using Twenty Criterion Agile manufacturing
model by Jung et al., 1996 [2]
7. Conceptual model of Agility
The Conceptual model of Agility showing three main elements explained by
Zhang and Sharifi, in the year 2000 [3]
8. Conceptual model of Agility (Contd.)
1. Agility Drivers - changes/pressures from the business
environment that necessitate a company to search for new ways of
running its business in order to maintain its competitive advantage.
9. Conceptual model of Agility (Contd.)
President
Manufacturing
Cell 1
Product 1
DE,ME,FE,PE
Manufacturing
Cell 3
Product 3
DE,ME,FE,PE
Manufacturing
Cell 4
Product 3
DE,ME,FE,PE
Manufacturing
Cell 2
Product 2
DE,ME,FE,PE
President
Vice-
President
GM
(Production
)
Deputy GM
Engineer
Engineer
GM (R & D)
Deputy GM
Engineer
Engineer
GM
(Finance)
Deputy GM
Accountant
Accountant
DE – Design
Engineer
ME – Marketing
Engineer
FE – Financial
Engineer
PE – Production
Engineer
Traditional Vertical Line Organisation Flattened Organisation
10. Conceptual model of Agility (Contd.)
2. Agility capabilities - Essential capabilities that the company needs
in order to positively respond to and take advantage of the changes
3. Agility providers - Business practices, methods, tools, and
techniques, by which the so-called capabilities could be obtained.
According to this conceptual model, Changes/ pressures in the business environment
drives the enterprise to identify agility capabilities that need to be acquired or
enhanced in order to take advantage of the changes. This in turn forces the enterprise
to search for ways and tools to obtain/enhance the required capabilities
11. Methodology to achieve agility
1. Determination of a company’s agility needs and its current agility level
2. Determination of agility capabilities required in order for the company to become agile
3. Identification of agility providers or business practices and tools which could bring about the
recognised capabilities for the company
12. Case Study
▪Samsung is a South-Korean
multinational company founded in
1938.
▪The research and development wing of
this company is involved in applying
innovative technologies and
management principles for evolving
products to suit customer’s dynamic
demands.
▪Here, Samsung television is taken as
case study and the agility of its
manufacturing is studied.
Year TV Variant
2007 10mm thick LCD TV
2008 7.9mm thick LCD TV
2009 3.5mm thick LED TV
2010 3D LED TV
2011 Smart TV
2013 Curved LED TV
2013 UHD TV
2014 CURVED UHD TV
Evolution of Samsung Televisions (Source: Samsung.com)
14. Conclusion
❑ Agility in practice may be achieved in a manufacturing organisation
through the strategic utilisation of best practices and tools.
❑ Agile manufacturing is an inevitable condition for survival and
prosperity in the increasingly changing business environment
❑ The severity of need for becoming agile is deepening, and the
spectrum of organisations that need this characteristic is widening.
17. Principles of Agile
1. Highest priority is customer satisfaction
2. Welcome changing requirements
3. Frequent delivery of software
4. Business people & developers cooperating daily
5. Build projects around motivated people
6. Face-to-face conversation is best
7. Progress measured by working software
8. Sustainable development pace
9. Continuous attention to technical excellence
10. Regular reflection & adaptation
20. Lean is defined as a set of management
practices to improve efficiency and
effectiveness by eliminating waste. The core
principle of lean is to reduce and eliminate
non-value adding activities and waste.
Agile Vs Lean
21. Six Sigma
Definition:
Six Sigma is a statistical-
and data-driven process
that works by reviewing
limit mistakes or defects.
It emphasizes cycle-time
improvements while
reducing manufacturing
defects
