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Agile Manufacturing


        Jimeel Ferris
   OperMngt. 345 Sec. 001
        May 7, 2002
What will be covered
•   Introduction
•   What is Agile Manufacturing
•   Why do we need to be agile
•   Key to Agility and Flexibility
•   Agile Manufacturing in our company
•   Four Core Concepts
•   Nuts and Bolts
•   Interdisciplinary Design
•   How can we make the transition
•   Real world example
•   Exercise
•   Summary
•   Bibliography
Introduction

• Manufacturing industry is on the
  verge of a major paradigm shift.
  This shift will take us away from
  mass production, way beyond
  lean manufacturing, into a world
  of Agile Manufacturing (5)
What is Agile
Manufacturing?
• Agile manufacturing is a method
  for manufacturing which
  combine our organization,
  people and technology into an
  integrated and coordinated
  whole. (5)
Why do we need to be
agile
• Global Competition is intensifying.
• Mass markets are fragmenting into
  niche markets.
• Cooperation among companies is
  becoming necessary, including
  companies who are in direct
  competition with each other.
Why do we need to be
agile cont:
•   Customers are expecting:
       1.   Low volume products
       2.   High quality products
       3.   Custom products
•   Very short product life-cycles,
    development time, and production
    lead times are required.
•   Customers want to treated and
    individuals (4)
Keys to agility and
flexibility
• To determine customer needs quickly and
  continuously reposition the company
  against it’s competitors.
• To design things quickly based on those
  individual needs.
• To put them into full scale, quality ,
  production quickly.
• To respond to changing volumes and mix
  quickly.
• To respond to a crisis quickly. (1)
Agile manufacturing in
our company
• Customer-integrated process for designing,
  manufacturing, marketing, and supporting
  all products and services.
• Decision making at functional knowledge
  points not in centralized management
  “silos”
• Stable unit costs, no matter what the
  volume
• Flexible Manufacturing-ability to increase
  or decrease production volumes at will.
Agile manufacturing in
our company cont.
• Easy access to integrated data whether it
  is customer-driven, supplier-driven, or
  product and process-driven
• Modular production facilities that can be
  organized into ever changing
  manufacturing nodes.
• Data that is rapidly changed into
  information that is used to expand
  knowledge.
• Mass customized product verses mass
  produced product. (1)
Four core concepts
1. A strategy to become an Agile
   Manufacturing enterprise.
2. A strategy to exploit agility to achieve
   competitive advantage.
3. Integration of organization, people and
   technology into a coordinated
   interdependent system which is our
   competitive advantage.
4. An interdisciplinary design methodology
   to achieve the integration of
   Organization, people and technology. (5)
Nuts and Bolts
•   Enriching the customer
    1. Replace large centralized with
       distributed clusters of mini-assembly
       plants located near customers.
•   Cooperating to enhance
    competition.
    1. Internal—cross-functional teams,
       empowerment.
    2. External—managing the supply chain.
Nuts and Bolts
•   Organizing to manage change and
    uncertainty
    1. Rapid reconfiguration of plant and
       facilities.
    2. Rapid decision making-shallow
       empowered.
•   Leveraging people and information.
    1. Distribution of authority, resources, and
       rewards. (1)
Interdisciplinary Design
   Interdisciplinary design will form
the basis of designing Agile
Manufacturing systems in the new
knowledge intensive era.
Interdisciplinary design is one of the
most important challenges to that
managers and systems designers and
integrators will face in the years
ahead, it leads us to new approaches
and new ways of working and of
thinking. (5)
Interdisciplinary Design
To successfully adopt an
  interdisciplinary design method, we
  need to:
• Challenge our accepted design
  strategies and develop new and
  better approaches.
• Question our established and
  cherished beliefs and theories, and
  develop new ones to replace those
  that know longer have any validity.
  (5)
Interdisciplinary Design
• Consider how we address organization,
  people and technology, and other issues in
  the design of manufacturing systems, so
  we can have systems that are better for
  performance, better for the environment,
  and better for the people .
• Go beyond the automation paradigm of the
  industrial era, to use technology in a way
  that makes human skill, knowledge, and
  intelligence more effective and productive,
  and that allows us to tap into the creativity
  and talent of all our people. (5)
transition to Agile
manufacturing?
• Make the break with the things
  that are wrong with the way we
  do things today.
• Examine and define the
  underlying conceptual
  framework on which Agile
  Manufacturing enterprises will
  be built.
Making the transition
cont.
• Explore and understand the nature of
  the mass production paradigm and
  the nature of the cultural and
  methodological difficulties involved
  in the transition to Agile
  Manufacturing.
• Define a methodology for designing a
  21st century manufacturing
  enterprise.(3)
Real world example:
• The Industry: Japanese car
  makers
• The goal: To produce the three
  day car, (three days from
  customer order for a
  customized car to dealer
  delivery)
Real world ex. Cont.
The Challenges:
•   The challenges:
    1. Break dependency on scale and
       economies of scale (reducing setup
       costs in key).
    2. Produce vehicles in low volumes at a
       reasonable cost.
    3. Guarantee the three day car.
    4. Replace large centralized with
       distributed clusters of mini-assembly
       plants located near customers.
    5. Be able to reconfigure components in
       many different ways.
Real world ex. Cont.
The Challenges:
 1.   Make work stimulating.
 2.   Turn the customer into a “prosumer,” an ugly
      neologism that means proactive something; the
      idea is that the customer will take an active
      role in the product design by, for example,
      configuring options at a computer in a dealer
      showroom.
 3.   Streamline ordering systems and establish
      close relationships with suppliers.
 4.   Manage the massive volumes of data generated
      by the production system so as to be able to
      analyze that data quickly and agilely (3)
Exercise
  War has broken out somewhere in
 the world, and the US becomes
 involved. Suddenly, all branches of
 our armed forces need more
 conventional munitions-and they
 need them immediately. How can
 suppliers meet this kind of
 unpredictable demand? (2)
Summery
    Agile Manufacturing enterprises will be
capable of rapidly responding to changes in
customer demand. They will be able to take
advantage of the windows of opportunities that
appear in the market place. With Agile
Manufacturing we will be able to develop new
ways of interacting with our customers and
suppliers. Our customers will not only be able
to gain access to our products and services,
but will also be able to easily assess and
exploit our competencies, so enabling them to
use these competencies to achieve the things
that they are seeking. (5)
Bibliography
•   Abair, Bob. Agile Manufacturing: Not Just Another
    Buzzword.
    http://www.partnersforexcellence.com/95art3.htm
•   Agile Manufacturing: Gearing to meet demand.
    Linkages http://www.llnl.gov/str/Burleson.html
•   “Agile Manufacturing” linkages
    http://www.peterkeen.com/engbp003.htm
•   D&ME. Pacific Northwest National Laboratory.
    Linkages
    http://www.technet.pnl.gov/dme/agile/index.stm
•   Kidd, T. Paul. Agile Manufacturing: Forging New
    Frontiers.
    http://www.cheshirehenvury.com/publications/ammat
    .

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Agile manufacturing

  • 1. Agile Manufacturing Jimeel Ferris OperMngt. 345 Sec. 001 May 7, 2002
  • 2. What will be covered • Introduction • What is Agile Manufacturing • Why do we need to be agile • Key to Agility and Flexibility • Agile Manufacturing in our company • Four Core Concepts • Nuts and Bolts • Interdisciplinary Design • How can we make the transition • Real world example • Exercise • Summary • Bibliography
  • 3. Introduction • Manufacturing industry is on the verge of a major paradigm shift. This shift will take us away from mass production, way beyond lean manufacturing, into a world of Agile Manufacturing (5)
  • 4. What is Agile Manufacturing? • Agile manufacturing is a method for manufacturing which combine our organization, people and technology into an integrated and coordinated whole. (5)
  • 5. Why do we need to be agile • Global Competition is intensifying. • Mass markets are fragmenting into niche markets. • Cooperation among companies is becoming necessary, including companies who are in direct competition with each other.
  • 6. Why do we need to be agile cont: • Customers are expecting: 1. Low volume products 2. High quality products 3. Custom products • Very short product life-cycles, development time, and production lead times are required. • Customers want to treated and individuals (4)
  • 7. Keys to agility and flexibility • To determine customer needs quickly and continuously reposition the company against it’s competitors. • To design things quickly based on those individual needs. • To put them into full scale, quality , production quickly. • To respond to changing volumes and mix quickly. • To respond to a crisis quickly. (1)
  • 8. Agile manufacturing in our company • Customer-integrated process for designing, manufacturing, marketing, and supporting all products and services. • Decision making at functional knowledge points not in centralized management “silos” • Stable unit costs, no matter what the volume • Flexible Manufacturing-ability to increase or decrease production volumes at will.
  • 9. Agile manufacturing in our company cont. • Easy access to integrated data whether it is customer-driven, supplier-driven, or product and process-driven • Modular production facilities that can be organized into ever changing manufacturing nodes. • Data that is rapidly changed into information that is used to expand knowledge. • Mass customized product verses mass produced product. (1)
  • 10. Four core concepts 1. A strategy to become an Agile Manufacturing enterprise. 2. A strategy to exploit agility to achieve competitive advantage. 3. Integration of organization, people and technology into a coordinated interdependent system which is our competitive advantage. 4. An interdisciplinary design methodology to achieve the integration of Organization, people and technology. (5)
  • 11. Nuts and Bolts • Enriching the customer 1. Replace large centralized with distributed clusters of mini-assembly plants located near customers. • Cooperating to enhance competition. 1. Internal—cross-functional teams, empowerment. 2. External—managing the supply chain.
  • 12. Nuts and Bolts • Organizing to manage change and uncertainty 1. Rapid reconfiguration of plant and facilities. 2. Rapid decision making-shallow empowered. • Leveraging people and information. 1. Distribution of authority, resources, and rewards. (1)
  • 13. Interdisciplinary Design Interdisciplinary design will form the basis of designing Agile Manufacturing systems in the new knowledge intensive era. Interdisciplinary design is one of the most important challenges to that managers and systems designers and integrators will face in the years ahead, it leads us to new approaches and new ways of working and of thinking. (5)
  • 14. Interdisciplinary Design To successfully adopt an interdisciplinary design method, we need to: • Challenge our accepted design strategies and develop new and better approaches. • Question our established and cherished beliefs and theories, and develop new ones to replace those that know longer have any validity. (5)
  • 15. Interdisciplinary Design • Consider how we address organization, people and technology, and other issues in the design of manufacturing systems, so we can have systems that are better for performance, better for the environment, and better for the people . • Go beyond the automation paradigm of the industrial era, to use technology in a way that makes human skill, knowledge, and intelligence more effective and productive, and that allows us to tap into the creativity and talent of all our people. (5)
  • 16. transition to Agile manufacturing? • Make the break with the things that are wrong with the way we do things today. • Examine and define the underlying conceptual framework on which Agile Manufacturing enterprises will be built.
  • 17. Making the transition cont. • Explore and understand the nature of the mass production paradigm and the nature of the cultural and methodological difficulties involved in the transition to Agile Manufacturing. • Define a methodology for designing a 21st century manufacturing enterprise.(3)
  • 18. Real world example: • The Industry: Japanese car makers • The goal: To produce the three day car, (three days from customer order for a customized car to dealer delivery)
  • 19. Real world ex. Cont. The Challenges: • The challenges: 1. Break dependency on scale and economies of scale (reducing setup costs in key). 2. Produce vehicles in low volumes at a reasonable cost. 3. Guarantee the three day car. 4. Replace large centralized with distributed clusters of mini-assembly plants located near customers. 5. Be able to reconfigure components in many different ways.
  • 20. Real world ex. Cont. The Challenges: 1. Make work stimulating. 2. Turn the customer into a “prosumer,” an ugly neologism that means proactive something; the idea is that the customer will take an active role in the product design by, for example, configuring options at a computer in a dealer showroom. 3. Streamline ordering systems and establish close relationships with suppliers. 4. Manage the massive volumes of data generated by the production system so as to be able to analyze that data quickly and agilely (3)
  • 21. Exercise War has broken out somewhere in the world, and the US becomes involved. Suddenly, all branches of our armed forces need more conventional munitions-and they need them immediately. How can suppliers meet this kind of unpredictable demand? (2)
  • 22. Summery Agile Manufacturing enterprises will be capable of rapidly responding to changes in customer demand. They will be able to take advantage of the windows of opportunities that appear in the market place. With Agile Manufacturing we will be able to develop new ways of interacting with our customers and suppliers. Our customers will not only be able to gain access to our products and services, but will also be able to easily assess and exploit our competencies, so enabling them to use these competencies to achieve the things that they are seeking. (5)
  • 23. Bibliography • Abair, Bob. Agile Manufacturing: Not Just Another Buzzword. http://www.partnersforexcellence.com/95art3.htm • Agile Manufacturing: Gearing to meet demand. Linkages http://www.llnl.gov/str/Burleson.html • “Agile Manufacturing” linkages http://www.peterkeen.com/engbp003.htm • D&ME. Pacific Northwest National Laboratory. Linkages http://www.technet.pnl.gov/dme/agile/index.stm • Kidd, T. Paul. Agile Manufacturing: Forging New Frontiers. http://www.cheshirehenvury.com/publications/ammat .

Notas do Editor

  1. Then use that agility that arises from this integrated and coordinated whole for our competitive advantage. Being able to rapidly respond to changes occurring in the market environment and through our ability to use and exploit a fundamental resource – knowledge.
  2. Agility is the ability to thrive and prosper in an environment of constant and unpredictable change. Listed above are a few of the reasons that the manufacturing paradigm is changing form mass production to agile manufacturing.
  3. Agility is the ability to thrive and prosper in an environment of constant and unpredictable change. Listed above are a few of the reasons that the manufacturing paradigm is changing form mass production to agile manufacturing.
  4. “ Agility” includes “leanness” because a high stock or spare capacity method of providing flexibility to changing customer demands or adversity is not a viable financial option, but in addition it demands increased flexibility in terms of the ability
  5. The integration of these four concepts are key to becoming an Agile Manufacturing enterprise.
  6. There are no clear road maps designed to establish and achieve agility. These examples are merely guidelines to start the journey.
  7. There are no clear road maps designed to establish and achieve agility. These examples are merely guidelines to start the journey.
  8. Interdisciplinary design however, means more than just applying knowledge from other domains such a psychology and organizational science, to the design of Agile Manufacturing systems. It also implies looking into the unexplored areas between these disciplines and the areas where they overlap, to find new insights, new knowledge and new and original solutions.
  9. Japanese car makers can presently deliver the 10 day car right now, but are currently working on techniques in congruency with Agile Manufacturing to produce the three day car. Challenge #2) Nissan’s Intelligent Body System, a Lego-block approach that favors existing over newly designed body components, leaves tooling as the only major expense for a new model.
  10. Japanese companies invented JIT manufacturing, lean production, flexible manufacturing, and many of the tools of TQM. Even as the rest of the world catches up and some companies overtake them, they are positioning for the next leap forward. So, too are their American competitors. The three day car is coming. Flexible manufacturing is adaptive; agile production is adaptive and faster. The aim of lean manufacturing is to keep production steady and predictable and minimize cost and waste in a world of business that is increasingly unpredictable and unsteady.
  11. Japanese companies invented JIT manufacturing, lean production, flexible manufacturing, and many of the tools of TQM. Even as the rest of the world catches up and some companies overtake them, they are positioning for the next leap forward. So, too are their American competitors. The three day car is coming. Flexible manufacturing is adaptive; agile production is adaptive and faster. The aim of lean manufacturing is to keep production steady and predictable and minimize cost and waste in a world of business that is increasingly unpredictable and unsteady.
  12. The concept of Agile Manufacturing is built around the synthesis of a number of enterprises that each have some core skills or competencies which they bring to a joint venturing operation, which is based on using each partners facilities and resources. For this reason, these joint venture enterprises are called virtual corporations because they do not own significant capital resources of their own. This helps to make them agile, as they can be formed and changed very rapidly.