Agile manufacturing

Agile ManufacturingAgile Manufacturing

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 mass production, way beyond lean manufacturing, into a world lean manufacturing, into a world of Agile Manufacturing.of Agile Manufacturing.

What is Agile What is Agile Manufacturing?Manufacturing?

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

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 companies who are in direct competition with each other.competition 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 products2.2. High quality productsHigh quality products3.3. Custom productsCustom products

• Very short product life-cycles, Very short product life-cycles, development time, and production development time, and production lead times are required.lead times are required.

• Customers want to treated and Customers want to treated and individuals.individuals.

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 continuously reposition the company against it’s competitors.against 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, To put them into full scale, quality, production quickly.production quickly.

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

• To respond to a crisis quickly.To respond to a crisis quickly.

Agile manufacturing in Agile manufacturing in our companyour company• Customer-integrated process for Customer-integrated process for

designing, manufacturing, marketing, designing, manufacturing, marketing, and supporting all products and and supporting all products and services.services.

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

• Stable unit costs, no matter what the Stable unit costs, no matter what the volume.volume.

• Flexible Manufacturing-ability to Flexible Manufacturing-ability to increase or decrease production increase or decrease production volumes at will.volumes at will.

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

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

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

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

• Mass customized product verses mass Mass customized product verses mass produced product. produced product.

Four core conceptsFour core concepts1.1. A strategy to become an Agile A strategy to become an Agile

Manufacturing enterprise.Manufacturing 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 technology into a coordinated interdependent system which is our interdependent system which is our competitive advantage.competitive advantage.

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

Nuts and Bolts Nuts and Bolts • Enriching the customerEnriching the customer

1.1. Replace large centralized with Replace large centralized with distributed clusters of mini-assembly distributed clusters of mini-assembly plants located near customers.plants located near customers.

• Cooperating to enhance Cooperating 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.

Nuts and Bolts Nuts and Bolts • Organizing to manage change and Organizing to manage change and

uncertaintyuncertainty1.1. 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, Distribution of authority, resources, and rewards. and rewards.

Interdisciplinary DesignInterdisciplinary DesignInterdisciplinary 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 Interdisciplinary design is one of the most important challenges to the most important challenges to that managers and systems that managers and systems designers and integrators will face in designers and integrators will face in the years ahead, it leads us to new the years ahead, it leads us to new approaches and new ways of working approaches and new ways of working and of thinking. and of thinking.

Interdisciplinary DesignInterdisciplinary Design To successfully adopt an To successfully adopt an

interdisciplinary design method, we interdisciplinary design method, we need to:need to:

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

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

Interdisciplinary DesignInterdisciplinary Design• Consider how we address organization, Consider how we address organization,

people and technology, and other issues in people and technology, and other issues in the design of manufacturing systems, so the design of manufacturing systems, so we can have systems that are better for we 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 the Go beyond the automation paradigm of the industrial era, to use technology in a way industrial era, to use technology in a way that makes human skill, knowledge, and that makes human skill, knowledge, and intelligence more effective and productive, 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. and talent of all our people.

Tansition to Agile Tansition to Agile manufacturing?manufacturing?

• Make the break with the things Make the break with the things that are wrong with the way we do that 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 Agile Manufacturing enterprises will be built. will be built.

Making the transition Making the transition cont.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.

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 Break dependency on scale and economies of scale (reducing setup economies of scale (reducing setup costs in key).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 Replace large centralized with

distributed clusters of mini-assembly distributed clusters of mini-assembly plants located near customers.plants located 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; neologism that means proactive something; the idea is that the customer will take an the idea is that the customer will take an active role in the product design by, for active role in the product design by, for example, configuring options at a computer example, configuring options at a computer in a dealer showroom.in a dealer showroom.

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

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

Exercise Exercise

War has broken out somewhere in War has broken out somewhere 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 conventional munitions-and they need them immediately. How can need them immediately. How can suppliers meet this kind of suppliers meet this kind of unpredictable demand? unpredictable demand?

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 Manufacturing we will be able to develop new ways of interacting with our customers and ways of interacting with our customers and suppliers. Our customers will not only be able suppliers. 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 and but will also be able to easily assess and exploit our competencies, so enabling them to exploit our competencies, so enabling them to use these competencies to achieve the things use these competencies to achieve the things that they are seeking.that they are seeking.

BibliographyBibliography1.1. Abair, Bob. Abair, Bob. Agile Manufacturing: Not Just Another Agile 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 New Agile Manufacturing: Forging New Frontiers. Frontiers. http://www.cheshirehenvury.com/publications/ammaterial.htmlhttp://www.cheshirehenvury.com/publications/ammaterial.html..