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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.
AGILE
MANUFACTURING
INFORMATION SYSTEM
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
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].
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
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]
Conceptual model of Agility
The Conceptual model of Agility showing three main elements explained by
Zhang and Sharifi, in the year 2000 [3]
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.
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
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
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
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)
Case study (Contd.)
Evolution of Samsung Televisions (Source: Samsung.com)
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.
Agile Manufacturing
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
Agile Manufacturing
Fundamental Values of Agile Manufacturing
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
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
Six Sigma Phases
They Need to be Treated Equal: Lean and Six Sigma
3 Benefits of Lean Six Sigma
The Basics of Lean Six Sigma
Lean Six Sigma Methodology Flow Chart Template
Value Engineering
What is Value?
Value Engineering
On Time, On Budget, On Value
On Time, On Budget, On Value
Value Engineering Approach
Just In Time [JIT] Manufacturing
JIT
Just In Time [JIT] Manufacturing
What is JIT Inventory?
Benefits of JIT
Quality
Quality Control
Factors influencing Quality
Total Quality Management
Elements of TQM
Implementing TQM
Definition: TQM
TQM
TQM Six basic Concepts
Elements of TQM
Benefits of TQM
Enterprise Resource Planning (ERP) System
ERP Benefits
Difference between LM and SCM
Supply Chain Management -Benefits
Goal of SCM
Inefficiencies in the supply Chain
Drivers of Supply Chain Performance
What is Logistics Management?
Logistics in Supply Chain Management

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Unit 6.pdf

  • 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)
  • 13. Case study (Contd.) 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.
  • 15.
  • 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
  • 19. Fundamental Values of Agile Manufacturing
  • 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
  • 23. They Need to be Treated Equal: Lean and Six Sigma
  • 24. 3 Benefits of Lean Six Sigma
  • 25. The Basics of Lean Six Sigma
  • 26. Lean Six Sigma Methodology Flow Chart Template
  • 30. On Time, On Budget, On Value
  • 31. On Time, On Budget, On Value
  • 33. Just In Time [JIT] Manufacturing
  • 34. JIT
  • 35. Just In Time [JIT] Manufacturing
  • 36. What is JIT Inventory?
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  • 46. TQM
  • 47. TQM Six basic Concepts
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  • 61. Inefficiencies in the supply Chain
  • 62. Drivers of Supply Chain Performance
  • 63. What is Logistics Management?
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  • 65. Logistics in Supply Chain Management