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Agile Manufacturing Overview

Agile manufacturing is an enterprise-level strategy introduced after lean production that allows companies to rapidly introduce new products into changing markets. It focuses on organizing resources to adapt to uncertainty, leveraging knowledge and innovation, and cooperating internally and externally to quickly bring solutions to customers. The four key principles of agile manufacturing are to organize for change, leverage people and information, cooperate for competitiveness, and enrich the customer through customized products valued based on solving customer problems rather than production costs alone. This contrasts with mass production strategies of standardization, long product life cycles, and pricing based solely on costs.

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228 views9 pages

Agile Manufacturing Overview

Agile manufacturing is an enterprise-level strategy introduced after lean production that allows companies to rapidly introduce new products into changing markets. It focuses on organizing resources to adapt to uncertainty, leveraging knowledge and innovation, and cooperating internally and externally to quickly bring solutions to customers. The four key principles of agile manufacturing are to organize for change, leverage people and information, cooperate for competitiveness, and enrich the customer through customized products valued based on solving customer problems rather than production costs alone. This contrasts with mass production strategies of standardization, long product life cycles, and pricing based solely on costs.

Uploaded by

Sai Srinivas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Agile Manufacturing

Agile manufacturing-Definition
Agile manufacturing (AM) has
emerged after lean production.
It can be defined as Enterprise level
manufacturing
strategy
of
introducing new products into rapidly
changing markets.
Organizing ability to thrive in a
competitive
environment
characterized by continuous and
sometimes unforeseen change.

Principles
1. Organize to Master change
2. Leverage the impact of people and
information.
3. Cooperate to enhance
competitiveness.
4. Enrich the customer.

Organize to Master Change:


An agile company is organized in a way that
allows it to thrive in conditions of change and
uncertainty while the human and physical
resources can be rapidly reconfigured to adapt to
changing environment and market opportunities.
Leverage impact of people and information:
In an agile company, knowledge is valued,
innovation is rewarded, authority is distributed to
the appropriate level of the organization. The
management provides the resources that
personnel
need,
the
organization
has
entrepreneurial spirit, and there is a climate of
mutual responsibility for joint success.

Cooperate to enhance competitiveness:


Cooperation internally and with other
companies is the top priority strategy of the
agile companies. The objective is to bring
products to market as rapidly as possible
and
the
required
resources
and
competencies
are
found
and
used,
wherever they exist. This may involve
partnering with other companies, even with
competitors, to form virtual enterprises.

Enrich the customer.


The products of an agile company
are perceived as solutions to
customers problems. Pricing the
product can be based on the value of
the solution to the customer, rather
than on manufacturing costs.

Comparison of MP and AM attributes


Mass Production

Agile
Manufacturing

Standardized products

Customized products

Long market life expected

Short market life expected

Produce to forecast

Produce to order

Low information content

High information content

Single time sales

Continuing relationship

Pricing by production cost

Pricing by customer value

Four Principles of Lean Production and Agile Manufacturing

Lean
Production

Agile
Production

Minimize waste

Enrich the Customer

Perfect first-time quality

Cooperate to enhance
competitiveness

Flexible production lines

Organize to master change

Continuous improvement

Leverage the impact of


people and information

Comparison of Lean Production and Agile Manufacturing Attributes

Lean Production

Agile Production

Enhancement of Mass
Production

Emphasis on mass
customization

Flexible production for product


variety

Greater flexibility for


customized products

Focus on factory operations

Scope is enterprise wide

Emphasis on supplier
management

Formation Virtual enterprises

Emphasis on efficient use of


resources

Emphasis on thriving in
environment marked by
continuous unpredictable
change

Relies on smooth production


schedule

Acknowledgement and
attempts to be responsive to
change.

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