Agile manufacturing: Difference between revisions
From CEOpedia | Management online
(The LinkTitles extension automatically added links to existing pages (<a target="_blank" rel="noreferrer noopener" class="external free" href="https://github.com/bovender/LinkTitles">https://github.com/bovender/LinkTitles</a>).) |
|||
| Line 1: | Line 1: | ||
'''Agile manufacturing''' describes a company's ability to adjust production to dynamic changes in the market and uncertainties in the corporate environment. The competitive advantage arises from offering high-quality products at a low price, which meet most individual customer needs, and the rapid adaption of products if the customer needs change. To achieve this, the latest available technology, innovative strategies, and human resources are used enterprise-wide. The advantage of agile manufacturing over other manufacturing systems such as lean manufacturing is that companies are not dependent on historical data but can work with current market data <ref> Gunasekaran et al., 2019, pp. 4-5; Iqbal et al., 2020, p. 751; Kumar et al., 2019, pp. 162-163 </ref>. | '''Agile manufacturing''' describes a [[company]]'s ability to adjust [[production]] to dynamic changes in the [[market]] and uncertainties in the corporate [[environment]]. The [[competitive advantage]] arises from offering high-[[quality]] products at a low [[price]], which meet most individual [[customer]] [[needs]], and the rapid adaption of products if the [[customer needs]] change. To achieve this, the latest available [[technology]], innovative strategies, and human resources are used [[enterprise]]-wide. The advantage of agile manufacturing over other manufacturing systems such as lean manufacturing is that companies are not dependent on historical data but can [[work]] with current market data <ref> Gunasekaran et al., 2019, pp. 4-5; Iqbal et al., 2020, p. 751; Kumar et al., 2019, pp. 162-163 </ref>. | ||
==Framework of agile manufacturing== | ==Framework of agile manufacturing== | ||
To achieve the competitive advantage described above, the right framework conditions must be in place for agile manufacturing. These framework conditions have changed over the years due to the availability of new technologies or the changing market dynamics. Thus, the framework of agile manufacturing can be categorized according to the following six blocks <ref> Dubey & Gunasekaran, 2015, pp. 2147-2150; Kumar et al., 2019, pp. 165-166 </ref>: | To achieve the competitive advantage described above, the right framework conditions must be in place for agile manufacturing. These framework conditions have changed over the years due to the availability of new technologies or the changing [[market dynamics]]. Thus, the framework of agile manufacturing can be categorized according to the following six blocks <ref> Dubey & Gunasekaran, 2015, pp. 2147-2150; Kumar et al., 2019, pp. 165-166 </ref>: | ||
# (Information) '''Technology''': using increasingly advanced (information) technologies, information can be shared more effectively and efficiently within a company, and thus market dynamics can be recognized more quickly. This also increases the speed of responding to the needs of customers within the market. These advanced (information) technologies include among others enterprise resource planning (ERP), robotics, e-commerce, and cloud computing. | # ([[Information]]) '''Technology''': using increasingly advanced (information) technologies, information can be shared more effectively and efficiently within a company, and thus market dynamics can be recognized more quickly. This also increases the speed of responding to the needs of customers within the market. These advanced (information) technologies include among others enterprise [[resource]] [[planning]] (ERP), robotics, [[e-commerce]], and cloud computing. | ||
# '''Empowerment/ leadership support''': top management's goal is to motivate the employees and thus increase productivity. This can be achieved through better coordination and communication of workers between the different workstations, but also within a workstation. Lastly, improving the sharing of information across all hierarchical levels also contributes to a successful agile manufacturing system. | # '''Empowerment/ leadership support''': top [[management]]'s goal is to motivate the employees and thus increase productivity. This can be achieved through better coordination and [[communication]] of workers between the different workstations, but also within a workstation. Lastly, improving the sharing of information across all hierarchical levels also contributes to a successful agile manufacturing [[system]]. | ||
# '''Customer focus''': to be able to react to customers' expectations in the shortest possible time, the so-called “voice of the customer” must be considered. By listening to customer feedback, companies can more quickly identify factors that are important for the quality of their products. It is not only customers' feedback on their own products that are important, but also feedback on competitors' products. | # '''[[Customer focus]]''': to be able to react to customers' expectations in the shortest possible time, the so-called “voice of the customer” must be considered. By listening to customer feedback, companies can more quickly identify factors that are important for the quality of their products. It is not only customers' feedback on their own products that are important, but also feedback on competitors' products. | ||
# '''Supplier relationship''': a stable supplier relationship is very important in an uncertain and turbulent environment. The continuous exchange of information between the company and its supplier can improve coordination, the identification of dynamics, and the speed of dynamics. To improve agility in this area, supplier-driven inventory and collaborative planning, forecasting, and replenishment have been particularly successful in recent years. | # '''[[Supplier]] relationship''': a stable supplier relationship is very important in an uncertain and turbulent environment. The continuous exchange of information between the company and its supplier can improve coordination, the [[identification]] of dynamics, and the speed of dynamics. To improve agility in this area, supplier-driven inventory and collaborative planning, [[forecasting]], and replenishment have been particularly successful in recent years. | ||
# '''Organizational culture''': managing the growth of the organization and the planning of human resources should lead to the improvement of the feeling of togetherness and it creates an environment where workers at each level can give suggestions. Therefore, motivation and productivity increases, and workers have the feeling they can participate in the decision-making process. | # '''[[Organizational culture]]''': managing the growth of the [[organization]] and the planning of human resources should lead to the improvement of the feeling of togetherness and it creates an environment where workers at each level can give suggestions. Therefore, [[motivation]] and productivity increases, and workers have the feeling they can participate in the decision-making [[process]]. | ||
# '''Flexibility''': flexibility in agile manufacturing can be divided into three categories. ''New product flexibility'' allows production and offering of a large number of products with different features. ''Mix flexibility'' enables that in an uncertain environment a large number of products can be produced in the shortest possible time. And last ''volume flexibility'' allows the organization to be able to operate profitably at different levels of output | # '''Flexibility''': flexibility in agile manufacturing can be divided into three categories. ''New [[product]] flexibility'' allows production and offering of a large number of products with different features. ''Mix flexibility'' enables that in an uncertain environment a large number of products can be produced in the shortest possible time. And last ''volume flexibility'' allows the organization to be able to operate profitably at different levels of output | ||
==Agile Manufacturing vs. Lean Manufacturing== | ==Agile Manufacturing vs. Lean Manufacturing== | ||
| Line 14: | Line 14: | ||
More anchored in agile manufacturing | More anchored in agile manufacturing | ||
* Knowledge management | * [[Knowledge]] management | ||
* Flexibility | * Flexibility | ||
* Manufacturing technology | * Manufacturing technology | ||
| Line 21: | Line 21: | ||
* Product design | * Product design | ||
* Set up time reduction | * Set up time reduction | ||
* Lot size reduction | * [[Lot size]] reduction | ||
* [[Just in time]] scheduling | * [[Just in time]] scheduling | ||
Revision as of 23:36, 19 January 2023
Agile manufacturing describes a company's ability to adjust production to dynamic changes in the market and uncertainties in the corporate environment. The competitive advantage arises from offering high-quality products at a low price, which meet most individual customer needs, and the rapid adaption of products if the customer needs change. To achieve this, the latest available technology, innovative strategies, and human resources are used enterprise-wide. The advantage of agile manufacturing over other manufacturing systems such as lean manufacturing is that companies are not dependent on historical data but can work with current market data [1].
Framework of agile manufacturing
To achieve the competitive advantage described above, the right framework conditions must be in place for agile manufacturing. These framework conditions have changed over the years due to the availability of new technologies or the changing market dynamics. Thus, the framework of agile manufacturing can be categorized according to the following six blocks [2]:
- (Information) Technology: using increasingly advanced (information) technologies, information can be shared more effectively and efficiently within a company, and thus market dynamics can be recognized more quickly. This also increases the speed of responding to the needs of customers within the market. These advanced (information) technologies include among others enterprise resource planning (ERP), robotics, e-commerce, and cloud computing.
- Empowerment/ leadership support: top management's goal is to motivate the employees and thus increase productivity. This can be achieved through better coordination and communication of workers between the different workstations, but also within a workstation. Lastly, improving the sharing of information across all hierarchical levels also contributes to a successful agile manufacturing system.
- Customer focus: to be able to react to customers' expectations in the shortest possible time, the so-called “voice of the customer” must be considered. By listening to customer feedback, companies can more quickly identify factors that are important for the quality of their products. It is not only customers' feedback on their own products that are important, but also feedback on competitors' products.
- Supplier relationship: a stable supplier relationship is very important in an uncertain and turbulent environment. The continuous exchange of information between the company and its supplier can improve coordination, the identification of dynamics, and the speed of dynamics. To improve agility in this area, supplier-driven inventory and collaborative planning, forecasting, and replenishment have been particularly successful in recent years.
- Organizational culture: managing the growth of the organization and the planning of human resources should lead to the improvement of the feeling of togetherness and it creates an environment where workers at each level can give suggestions. Therefore, motivation and productivity increases, and workers have the feeling they can participate in the decision-making process.
- Flexibility: flexibility in agile manufacturing can be divided into three categories. New product flexibility allows production and offering of a large number of products with different features. Mix flexibility enables that in an uncertain environment a large number of products can be produced in the shortest possible time. And last volume flexibility allows the organization to be able to operate profitably at different levels of output
Agile Manufacturing vs. Lean Manufacturing
Both agile manufacturing and lean manufacturing systems have gained high recognition in operational manufacturing paradigms of the 21st century. Agile manufacturing can be seen as a further development of lean manufacturing due to its later development, however, the literature is divided as to whether both systems can exist side by side in a company. The following differences between agile manufacturing and lean manufacturing can be identified [3]:
More anchored in agile manufacturing
- Knowledge management
- Flexibility
- Manufacturing technology
More anchored in lean manufacturing
- Process management
- Product design
- Set up time reduction
- Lot size reduction
- Just in time scheduling
Footnotes
References
- Dubey, R., & Gunasekaran, A. (2015). Agile manufacturing: framework and its empirical validation. International journal of advanced manufacturing technology, 76, 2157.
- Gunasekaran, A., Yusuf, Y. Y., Adeleye, E. O., & Papadopoulos, T. (2018). Agile manufacturing practices: the role of big data and business analytics with multiple case studies. International Journal of Production Research, 56(1-2), 385-397.
- Gunasekaran, A., Yusuf, Y. Y., Adeleye, E. O., Papadopoulos, T., Kovvuri, D., & Geyi, D. A. G. (2019). Agile manufacturing: an evolutionary review of practices. International Journal of Production Research, 57(15-16), 5154-5174.
- Iqbal, T., Jajja, M. S. S., Bhutta, M. K., & Qureshi, S. N. (2020). Lean and agile manufacturing: complementary or competing capabilities? Journal of manufacturing technology management, 31, 774.
- Kumar, R., Singh, K., & Jain, S. K. (2019). Development of a framework for agile manufacturing. World Journal Of Science Technology And Sustainable Development, 16, 169.
Author: Janina Klüsch
