Agile manufacturing is an operational strategy focused on inducing velocity and flexibility in make-to-order or configure-to-order production with minimal changeover time and interruptions. It differs from lean manufacturing in that lean is for high-volume/low-mix production while agile is for low-volume/high-mix. Agile manufacturing applies to environments where customized orders provide a competitive advantage. The main characteristics of agile manufacturing are short time-to-market, modular design/assembly, and configurable components. A major challenge is the high capital required for production/assembly flexibility, but payback periods are often less than two years.

1. Agile Manufacturing is an operational strategy focused on inducing velocity and flexibility in a make-to-
order or configure-to-order production process with minimal changeover time and interruptions.
Agile Manufacturing differs with Lean Manufacturing in the sense that lean manufacturing is oriented
toward a repetitive manufacturing environment with order characteristics of high-volume/low-mix, and
Agile Manufacturing applies to low-volume/high mix.
Agile Manufacturing is oriented toward low-volume/high mix, adding velocity and flexibility in the
production process. It applies to environments where customized, configurable, or specialized orders,
offer a competitive advantage.
he benefits generally are specialization, customization, flexibility, lower costs, higher quality, lower
inventory, and shorter lead times. The characteristics of Agile Manufacturing are:
i Short time-to-market
i Fast new product development
i Modular design
i Modular assembly
i Short/fast order processing>/li>
i Configure to order
i Make-to-Order
i Low volumes
i Low quantities
i High product mix
i Configurable components
i Fast supplier deliveries
i Short lead times
i Short cycle times
i Highly flexible and responsive processes
i Highly flexible machines and equipment
i Deployment of Group Technology principles
i Use of Solids Modeling
i Use of advanced CAD/CAM
i Quick changeover
i Collocated machines, equipment, tools and people
i Compressed space
i Multi-skilled employees
i Empowered employees
i High first-pass yields with major reductions in defects
The Issues
Agile Manufacturing is in direct opposition with traditional manufacturing approaches characterized by use
of economic order quantities, high capacity utilization, and high inventory. It requires radical change.
Excess capacity is welcome instead of taboo. Make-to-order capability replaces mass production and lot
sizes based on EOQ's.
A major issue with Agile Manufacturing is the high capitalization often required for flexibility in the
production and assembly areas. However payback periods of 2 years or less are common.
However, just like anything else, Agile Manufacturing is no panacea, nor should it be embraced as a
religion. It is an operational strategy that, if implemented properly, will provide a new dimension to

2. competing: quickly introducing new configurable and specialized high quality products, and delivering
them with unprecedented lead times.