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agile manufacturing pdf notes

Agile manufacturing is a term applied to an organization that has created the processes, tools, and training to enable it to respond quickly to customer needs and market changes while still controlling costs and quality.

An enabling factor in becoming an agile manufacturer has been the development of manufacturing support technology that allows the marketers, the designers and the production personnel to share a common database of parts and products, to share data on production capacities and problems — particularly where small initial problems may have larger downstream effects. It is a general proposition of manufacturing that the cost of correcting quality issues increases as the problem moves downstream, so that it is cheaper to correct quality problems at the earliest possible point in the process.

Agile manufacturing is seen as the next step after Lean manufacturing in the evolution of production methodology.[citation needed] The key difference between the two is like between a thin and an athletic person, agile being the latter. One can be neither, one or both. In manufacturing theory, being both is often referred to as leagile. According to Martin Christopher, when companies have to decide what to be, they have to look at the Customer Order Cycle (the time the customers are willing to wait) and the leadtime for getting supplies. If the supplier has a short lead time, lean production is possible. If the COC is short, agile production is beneficial.

WHAT IS AGILE MANUFACTURING?

Agile manufacturing represents a very interesting approach to developing a competitive advantage in today’s fast-moving marketplace. It places an extremely strong focus on rapid response to the customer – turning speed and agility into a key competitive advantage. An agile company is in a much better position to take advantage of short windows of opportunity and fast changes in customer demand.

WHY IS IT EFFECTIVE?
Why is agile manufacturing an effective strategy?
Consumers love instant gratification. They are increasingly getting used to it and they are often willing to pay for it. For example, have you ever ordered a product with overnight shipping…waiting in eager anticipation?
Consumers love choice. They prefer to get a product exactly as they want it…without compromise.
Consumers are fickle. Their interests shift and move in unpredictable ways.
Agile is effective because it directly addresses these issues. It acknowledges the realities of the modern marketplace and transforms them into a competitive advantage.
Agile is of particular value for manufacturers in countries with large, well-developed local markets and high labor costs (e.g. the United States). It leverages proximity to the market by delivering products with an unprecedented level of speed and personalization, which simply cannot be matched by offshore competitors. It turns local manufacturing into a competitive advantage.
KEY ELEMENTS OF AGILE MANUFACTURING
There are four key elements for agile manufacturing:
Modular Product Design (designing products in a modular fashion that enables them to serve as platforms for fast and easy variation)
Information Technology (automating the rapid dissemination of information throughout the company to enable lightning fast response to orders)
Corporate Partners (creating virtual short-term alliances with other companies that enable improved time-to-market for selected product segments)
Knowledge Culture (investing in employee training to achieve a culture that supports rapid change and ongoing adaptation)

WHAT IS THE DIFFERENCE BETWEEN LEAN AND AGILE MANUFACTURING?


As your manufacturing company seeks ways to reduce waste and improve your bottom line, no doubt you have considered lean and agile manufacturing as options. Your company could be taking a lean approach, agile approach, or both. If you would like a comparison of the two, read on as Team Quality Services profiles them for you.

Both lean and agile manufacturing are methodological approaches to lowering costs, improving customer service, and providing faster response time. Take a look at the definitions of both, their similarities, and their differences.

Agile Manufacturing Defined

Agile manufacturing is manufacturing that responds quickly to customer desires and input through a highly integrated information technology communication system to produce high-quality, highly customizable modular products.

The internal structure of the organization is radically different from the traditional model, converting communication to a level playing field with bosses and managers taking the role as enablers of small teams of highly responsible employees who are given the freedom to use their skill and creativity in short uninterrupted cycles to complete the work in a way that makes the customer happy.

Lean Manufacturing Defined

Lean Manufacturing is a manufacturing approach that focuses on minimizing costs. It means there is a minimal amount of money invested in raw materials and inventory at all times. It follows a demand-based flow style. It is driven by a mindset that there is always room for improvement, and regularly measures how well facilities, materials, and time are being utilized. Commonly used metrics for this are OEE. The design itself also is viewed through a lens of continual improvement.

Similarities

Both lean and agile manufacturing are suited for modern managers who desire to increase business sustainability and revenue. Both are designed to keep companies competitive. They both must be decided on early in the manufacturing planning process, as they affect all aspects of the process. Both rely on statistical analysis and open communication between all involved stakeholders.

Differences

Lean manufacturing focuses on reducing costs, allowing companies greater price flexibility. Agile manufacturing focuses on responding quickly to unexpected customer requests, allowing companies to capitalize on the highest possible number of sales opportunities.

Production configuration for agile manufacturing uses fewer people, relying more on automation and modular design than lean manufacturing, which relies heavily on people. Regarding inventory, lean manufacturing requires a higher inventory of smaller parts, while agile manufacturing requires a lower inventory due to modular design. The modular design also makes agile manufacturing systems more ready to adapt to customization requests.