The document discusses agile manufacturing, which aims to rapidly respond to changing customer demand through organizational flexibility. It defines agile manufacturing and why it is needed given globalization and customization trends. The key is determining customer needs quickly and responding rapidly through design, production, and volume/mix changes. Transitioning requires new conceptual frameworks and overcoming dependencies on economies of scale. Real-world examples show how companies like automakers implemented agile practices like distributed mini-plants and customizable production.

1. Agile ManufacturingAgile Manufacturing

2. What will be coveredWhat will be covered
• IntroductionIntroduction
• What is Agile ManufacturingWhat is Agile Manufacturing
• Why do we need to be agileWhy do we need to be agile
• Key to Agility and FlexibilityKey to Agility and Flexibility
• Agile Manufacturing in our companyAgile Manufacturing in our company
• Four Core ConceptsFour Core Concepts
• Nuts and BoltsNuts and Bolts
• Interdisciplinary DesignInterdisciplinary Design
• How can we make the transitionHow can we make the transition
• Real world exampleReal world example
• ExerciseExercise
• SummarySummary
• BibliographyBibliography

3. IntroductionIntroduction
• Manufacturing industry is on theManufacturing industry is on the
verge of a major paradigm shift.verge of a major paradigm shift.
This shift will take us away fromThis shift will take us away from
mass production, way beyondmass production, way beyond
lean manufacturing, into a worldlean manufacturing, into a world
of Agile Manufacturing.of Agile Manufacturing.

4. What is AgileWhat is Agile
Manufacturing?Manufacturing?
• Agile manufacturing is a methodAgile manufacturing is a method
for manufacturing whichfor manufacturing which
combine our organization,combine our organization,
people and technology into anpeople and technology into an
integrated and coordinatedintegrated and coordinated
whole.whole.

5. Why do we need to beWhy do we need to be
agileagile
• Global Competition is intensifying.Global Competition is intensifying.
• Mass markets are fragmenting intoMass markets are fragmenting into
niche markets.niche markets.
• Cooperation among companies isCooperation among companies is
becoming necessary, includingbecoming necessary, including
companies who are in directcompanies who are in direct
competition with each other.competition with each other.

6. Why do we need to beWhy do we need to be
agile cont:agile cont:
• Customers are expecting:Customers are expecting:
1.1. Low volume productsLow volume products
2.2. High quality productsHigh quality products
3.3. Custom productsCustom products
• Very short product life-cycles,Very short product life-cycles,
development time, and productiondevelopment time, and production
lead times are required.lead times are required.
• Customers want to treated andCustomers want to treated and
individuals.individuals.

7. Keys to agility andKeys to agility and
flexibilityflexibility
• To determine customer needs quickly andTo determine customer needs quickly and
continuously reposition the companycontinuously reposition the company
against it’s competitors.against it’s competitors.
• To design things quickly based on thoseTo design things quickly based on those
individual needs.individual needs.
• To put them into full scale, quality,To put them into full scale, quality,
production quickly.production quickly.
• To respond to changing volumes and mixTo respond to changing volumes and mix
quickly.quickly.
• To respond to a crisis quickly.To respond to a crisis quickly.

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

9. Agile manufacturing inAgile manufacturing in
our company cont.our company cont.
• Easy access to integrated data whether itEasy access to integrated data whether it
is customer-driven, supplier-driven, oris customer-driven, supplier-driven, or
product and process-driven.product and process-driven.
• Modular production facilities that can beModular production facilities that can be
organized into ever changingorganized into ever changing
manufacturing nodes.manufacturing nodes.
• Data that is rapidly changed intoData that is rapidly changed into
information that is used to expandinformation that is used to expand
knowledge.knowledge.
• Mass customized product verses massMass customized product verses mass
produced product.produced product.

10. Four core conceptsFour core concepts
1.1. A strategy to become an AgileA strategy to become an Agile
Manufacturing enterprise.Manufacturing enterprise.
2.2. A strategy to exploit agility to achieveA strategy to exploit agility to achieve
competitive advantage.competitive advantage.
3.3. Integration of organization, people andIntegration of organization, people and
technology into a coordinatedtechnology into a coordinated
interdependent system which is ourinterdependent system which is our
competitive advantage.competitive advantage.
4.4. An interdisciplinary design methodologyAn interdisciplinary design methodology
to achieve the integration ofto achieve the integration of
Organization, people and technology.Organization, people and technology.

11. Nuts and BoltsNuts and Bolts
• Enriching the customerEnriching the customer
1.1. Replace large centralized withReplace large centralized with
distributed clusters of mini-assemblydistributed clusters of mini-assembly
plants located near customers.plants located near customers.
• Cooperating to enhanceCooperating to enhance
competition.competition.
1.1. Internal—cross-functional teams,Internal—cross-functional teams,
empowerment.empowerment.
2.2. External—managing the supply chain.External—managing the supply chain.

12. Nuts and BoltsNuts and Bolts
• Organizing to manage change andOrganizing to manage change and
uncertaintyuncertainty
1.1. Rapid reconfiguration of plant andRapid reconfiguration of plant and
facilities.facilities.
2.2. Rapid decision making-shallowRapid decision making-shallow
empowered.empowered.
• Leveraging people and information.Leveraging people and information.
1.1. Distribution of authority, resources,Distribution of authority, resources,
and rewards.and rewards.

13. Interdisciplinary DesignInterdisciplinary Design
Interdisciplinary design will formInterdisciplinary design will form
the basis of designing Agilethe basis of designing Agile
Manufacturing systems in the newManufacturing systems in the new
knowledge intensive era.knowledge intensive era.
Interdisciplinary design is one ofInterdisciplinary design is one of
the most important challenges tothe most important challenges to
that managers and systemsthat managers and systems
designers and integrators will face indesigners and integrators will face in
the years ahead, it leads us to newthe years ahead, it leads us to new
approaches and new ways of workingapproaches and new ways of working
and of thinking.and of thinking.

14. Interdisciplinary DesignInterdisciplinary Design
To successfully adopt anTo successfully adopt an
interdisciplinary design method, weinterdisciplinary design method, we
need to:need to:
• Challenge our accepted designChallenge our accepted design
strategies and develop new andstrategies and develop new and
better approaches.better approaches.
• Question our established andQuestion our established and
cherished beliefs and theories, andcherished beliefs and theories, and
develop new ones to replace thosedevelop new ones to replace those
that know longer have any validity.that know longer have any validity.

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

16. Tansition to AgileTansition to Agile
manufacturing?manufacturing?
• Make the break with the thingsMake the break with the things
that are wrong with the way we dothat are wrong with the way we do
things today.things today.
• Examine and define the underlyingExamine and define the underlying
conceptual framework on whichconceptual framework on which
Agile Manufacturing enterprisesAgile Manufacturing enterprises
will be built.will be built.

17. Making the transitionMaking the transition
cont.cont.
• Explore and understand the nature ofExplore and understand the nature of
the mass production paradigm and thethe mass production paradigm and the
nature of the cultural andnature of the cultural and
methodological difficulties involved inmethodological difficulties involved in
the transition to Agile Manufacturing.the transition to Agile Manufacturing.
• Define a methodology for designing aDefine a methodology for designing a
2121stst
century manufacturing enterprise.century manufacturing enterprise.

18. Real world example:Real world example:
• The IndustryThe Industry: Japanese car: Japanese car
makersmakers
• The goalThe goal: To produce the three: To produce the three
day car, (three days fromday car, (three days from
customer order for a customizedcustomer order for a customized
car to dealer delivery).car to dealer delivery).

19. Real world ex. Cont.Real world ex. Cont.
The Challenges:The Challenges:
• The challenges:The challenges:
1.1. Break dependency on scale andBreak dependency on scale and
economies of scale (reducing setupeconomies of scale (reducing setup
costs in key).costs in key).
2.2. Produce vehicles in low volumes at aProduce vehicles in low volumes at a
reasonable cost.reasonable cost.
3.3. Guarantee the three day car.Guarantee the three day car.
4.4. Replace large centralized withReplace large centralized with
distributed clusters of mini-assemblydistributed clusters of mini-assembly
plants located near customers.plants located near customers.
5.5. Be able to reconfigure components inBe able to reconfigure components in
many different ways.many different ways.

20. Real world ex. Cont.Real world ex. Cont.
The Challenges:The Challenges:
1.1. Make work stimulating.Make work stimulating.
2.2. Turn the customer into a “prosumer,” an uglyTurn the customer into a “prosumer,” an ugly
neologism that means proactive something;neologism that means proactive something;
the idea is that the customer will take anthe idea is that the customer will take an
active role in the product design by, foractive role in the product design by, for
example, configuring options at a computerexample, configuring options at a computer
in a dealer showroom.in a dealer showroom.
3.3. Streamline ordering systems and establishStreamline ordering systems and establish
close relationships with suppliers.close relationships with suppliers.
4.4. Manage the massive volumes of dataManage the massive volumes of data
generated by the production system so as togenerated by the production system so as to
be able to analyze that data quickly andbe able to analyze that data quickly and
agilely.agilely.

21. ExerciseExercise
War has broken out somewhere inWar has broken out somewhere in
the world, and the US becomesthe world, and the US becomes
involved. Suddenly, all branches ofinvolved. Suddenly, all branches of
our armed forces need moreour armed forces need more
conventional munitions-and theyconventional munitions-and they
need them immediately. How canneed them immediately. How can
suppliers meet this kind ofsuppliers meet this kind of
unpredictable demand?unpredictable demand?

22. SummerySummery
Agile Manufacturing enterprises will beAgile Manufacturing enterprises will be
capable of rapidly responding to changes incapable of rapidly responding to changes in
customer demand. They will be able to takecustomer demand. They will be able to take
advantage of the windows of opportunities thatadvantage of the windows of opportunities that
appear in the market place. With Agileappear in the market place. With Agile
Manufacturing we will be able to develop newManufacturing we will be able to develop new
ways of interacting with our customers andways of interacting with our customers and
suppliers. Our customers will not only be ablesuppliers. Our customers will not only be able
to gain access to our products and services,to gain access to our products and services,
but will also be able to easily assess andbut will also be able to easily assess and
exploit our competencies, so enabling them toexploit our competencies, so enabling them to
use these competencies to achieve the thingsuse these competencies to achieve the things
that they are seeking.that they are seeking.

23. BibliographyBibliography
1.1. Abair, Bob.Abair, Bob. Agile Manufacturing: Not Just AnotherAgile Manufacturing: Not Just Another
BuzzwordBuzzword..
http://www.partnersforexcellence.com/95art3.htmhttp://www.partnersforexcellence.com/95art3.htm
2.2. Agile Manufacturing: Gearing to meet demand.Agile Manufacturing: Gearing to meet demand.
LinkagesLinkages http://www.llnl.gov/str/Burleson.htmlhttp://www.llnl.gov/str/Burleson.html
3.3. ““Agile Manufacturing”Agile Manufacturing” linkageslinkages
http://www.peterkeen.com/engbp003.htmhttp://www.peterkeen.com/engbp003.htm
4.4. D&ME. Pacific Northwest National Laboratory.D&ME. Pacific Northwest National Laboratory.
LinkagesLinkages
http://www.technet.pnl.gov/dme/agile/index.stmhttp://www.technet.pnl.gov/dme/agile/index.stm
5.5. Kidd, T. Paul.Kidd, T. Paul. Agile Manufacturing: Forging NewAgile Manufacturing: Forging New
Frontiers.Frontiers.
http://www.cheshirehenvury.com/publications/ammathttp://www.cheshirehenvury.com/publications/ammat
..