Agile Manufacturing

Agile ManufacturingAgile Manufacturing By Anand KumarBy Anand Kumar

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

IntroductionIntroduction

• Manufacturing industry is on the Manufacturing industry is on the verge of a major paradigm shift. verge of a major paradigm shift. This shift will take us away from This shift will take us away from mass production, way beyond lean mass production, way beyond lean manufacturing, into a world of Agile manufacturing, into a world of Agile Manufacturing (5)Manufacturing (5)

What is Agile What is Agile Manufacturing?Manufacturing?

• Agile manufacturing is a method Agile manufacturing is a method for manufacturing which combine for manufacturing which combine our organization, people and our organization, people and technology into an integrated and technology into an integrated and coordinated whole. (5)coordinated whole. (5)

Why do we need to be Why do we need to be agileagile

• Global Competition is intensifying.Global Competition is intensifying.• Mass markets are fragmenting into Mass markets are fragmenting into

niche markets.niche markets.• Cooperation among companies is Cooperation among companies is

becoming necessary, including becoming necessary, including companies who are in direct competition companies who are in direct competition with each other.with each other.

Why do we need to be Why 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 production lead development time, and production lead times are required.times are required.

• Customers want to treated and Customers want to treated and individuals (4)individuals (4)

Keys to agility and Keys to agility and flexibilityflexibility

• To determine customer needs quickly and To determine customer needs quickly and continuously reposition the company against continuously reposition the company against it’s competitors.it’s competitors.

• To design things quickly based on those To design things quickly based on those individual needs.individual needs.

• To put them into full scale, quality , production To put them into full scale, quality , production quickly.quickly.

• To respond to changing volumes and mix To respond to changing volumes and mix quickly.quickly.

• To respond to a crisis quickly. (1)To respond to a crisis quickly. (1)

Agile manufacturing in our Agile manufacturing in our companycompany

• Customer-integrated process for designing, Customer-integrated process for designing, manufacturing, marketing, and supporting all manufacturing, marketing, and supporting all products and services.products and services.

• Decision making at functional knowledge Decision making at functional knowledge points not in centralized management “silos”points not in centralized management “silos”

• Stable unit costs, no matter what the volumeStable unit costs, no matter what the volume• Flexible Manufacturing-ability to increase or Flexible Manufacturing-ability to increase or

decrease production volumes at will.decrease production volumes at will.

Agile manufacturing in our Agile manufacturing in our company cont.company cont.

• Easy access to integrated data whether it is Easy access to integrated data whether it is customer-driven, supplier-driven, or product customer-driven, supplier-driven, or product and process-drivenand process-driven

• Modular production facilities that can be Modular production facilities that can be organized into ever changing manufacturing organized into ever changing manufacturing nodes.nodes.

• Data that is rapidly changed into information Data that is rapidly changed into information that is used to expand knowledge.that is used to expand knowledge.

• Mass customized product verses mass Mass customized product verses mass produced product. (1)produced product. (1)

Four core conceptsFour core concepts

1.1. A strategy to become an Agile Manufacturing A strategy to become an Agile Manufacturing enterprise.enterprise.

2.2. A strategy to exploit agility to achieve A strategy to exploit agility to achieve competitive advantage.competitive advantage.

3.3. Integration of organization, people and Integration of organization, people and technology into a coordinated interdependent technology into a coordinated interdependent system which is our competitive advantage.system which is our competitive advantage.

4.4. An interdisciplinary design methodology to An interdisciplinary design methodology to achieve the integration of Organization, achieve the integration of Organization, people and technology. (5)people and technology. (5)

Nuts and Bolts Nuts and Bolts

• Enriching the customerEnriching the customer1.1. Replace large centralized with distributed Replace large centralized with distributed

clusters of mini-assembly plants located clusters of mini-assembly plants located near customers.near customers.

• Cooperating to enhance competition. Cooperating to enhance 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.

Nuts and Bolts Nuts and Bolts

• Organizing to manage change and Organizing to manage change and uncertaintyuncertainty

1.1. Rapid reconfiguration of plant and Rapid reconfiguration of plant and facilities. facilities.

2.2. Rapid decision making-shallow Rapid decision making-shallow empowered.empowered.

• Leveraging people and information. Leveraging people and information. 1.1. Distribution of authority, resources, and Distribution of authority, resources, and

rewards. (1)rewards. (1)

Interdisciplinary DesignInterdisciplinary Design

Interdisciplinary design will form Interdisciplinary design will form the basis of designing Agile the basis of designing Agile Manufacturing systems in the new Manufacturing systems in the new knowledge intensive era. knowledge intensive era. Interdisciplinary design is one of the Interdisciplinary design is one of the most important challenges to that most important challenges to that managers and systems designers and managers and systems designers and integrators will face in the years ahead, integrators will face in the years ahead, it leads us to new approaches and new it leads us to new approaches and new ways of working and of thinking. (5)ways of working and of thinking. (5)

Interdisciplinary DesignInterdisciplinary Design

To successfully adopt an interdisciplinary To successfully adopt an interdisciplinary design method, we need to:design method, we need to:

• Challenge our accepted design Challenge our accepted design strategies and develop new and better strategies and develop new and better approaches.approaches.

• Question our established and cherished Question our established and cherished beliefs and theories, and develop new beliefs and theories, and develop new ones to replace those that know longer ones to replace those that know longer have any validity. (5)have any validity. (5)

Interdisciplinary DesignInterdisciplinary Design

• Consider how we address organization, people Consider how we address organization, people and technology, and other issues in the design and technology, and other issues in the design of manufacturing systems, so we can have of manufacturing systems, so we can have systems that are better for performance, better systems that are better for performance, better for the environment, and better for the for the environment, and better for the people . people .

• Go beyond the automation paradigm of the Go beyond the automation paradigm of the industrial era, to use technology in a way that industrial era, to use technology in a way that makes human skill, knowledge, and makes human skill, knowledge, and intelligence more effective and productive, and intelligence more effective and productive, and that allows us to tap into the creativity and that allows us to tap into the creativity and talent of all our people. (5)talent of all our people. (5)

transition to Agile transition to Agile manufacturing?manufacturing?

• Make the break with the things that Make the break with the things that are wrong with the way we do are wrong with the way we do things today.things today.

• Examine and define the underlying Examine and define the underlying conceptual framework on which conceptual framework on which Agile Manufacturing enterprises will Agile Manufacturing enterprises will be built. be built.

Making the transition cont.Making the transition cont.

• Explore and understand the nature of Explore and understand the nature of the mass production paradigm and the the mass production paradigm and the nature of the cultural and nature of the cultural and methodological difficulties involved in methodological difficulties involved in the transition to Agile Manufacturing.the transition to Agile Manufacturing.

• Define a methodology for designing a Define a methodology for designing a 2121stst century manufacturing enterprise. century manufacturing enterprise.(3) (3)

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 from day car, (three days from customer order for a customized customer order for a customized car to dealer delivery)car to dealer delivery)

Real world ex. Cont. Real world ex. Cont. The Challenges:The Challenges:

• The challenges:The challenges:1.1. Break dependency on scale and economies Break dependency on scale and economies

of scale (reducing setup costs in key).of scale (reducing setup costs in key).2.2. Produce vehicles in low volumes at a Produce 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 with distributed Replace large centralized with distributed

clusters of mini-assembly plants located clusters of mini-assembly plants located near customers.near customers.

5.5. Be able to reconfigure components in Be able to reconfigure components in many different ways.many different ways.

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 ugly Turn the customer into a “prosumer,” an ugly

neologism that means proactive something; the neologism that means proactive something; the idea is that the customer will take an active role in idea is that the customer will take an active role in the product design by, for example, configuring the product design by, for example, configuring options at a computer in a dealer showroom.options at a computer in a dealer showroom.

3.3. Streamline ordering systems and establish close Streamline ordering systems and establish close relationships with suppliers.relationships with suppliers.

4.4. Manage the massive volumes of data generated by Manage the massive volumes of data generated by the production system so as to be able to analyze the production system so as to be able to analyze that data quickly and agilely (3)that data quickly and agilely (3)

Exercise Exercise

War has broken out somewhere War has broken out somewhere in in

the world, and the US becomes the world, and the US becomes involved. Suddenly, all branches of involved. Suddenly, all branches of our armed forces need more our armed forces need more conventional munitions-and they need conventional munitions-and they need them immediately. How can suppliers them immediately. How can suppliers meet this kind of unpredictable meet this kind of unpredictable demand? (2)demand? (2)

Summery Summery

Agile Manufacturing enterprises will be Agile Manufacturing enterprises will be capable of rapidly responding to changes in capable of rapidly responding to changes in customer demand. They will be able to take customer demand. They will be able to take advantage of the windows of opportunities that advantage of the windows of opportunities that appear in the market place. With Agile appear in the market place. With Agile Manufacturing we will be able to develop new ways Manufacturing we will be able to develop new ways of interacting with our customers and suppliers. of interacting with our customers and suppliers. Our customers will not only be able to gain access Our customers will not only be able to gain access to our products and services, but will also be able to to our products and services, but will also be able to easily assess and exploit our competencies, so easily assess and exploit our competencies, so enabling them to use these competencies to enabling them to use these competencies to achieve the things that they are seeking. (5)achieve the things that they are seeking. (5)

BibliographyBibliography

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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 New Agile Manufacturing: Forging New Frontiers. Frontiers. http://www.cheshirehenvury.com/publications/ammatehttp://www.cheshirehenvury.com/publications/ammaterial.htmlrial.html..