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What is Agile Manufacturing?

Agile manufacturing is focused on meeting the needs of customers while maintaining high standards of quality and controlling the overall costs.
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  • Written By: Mary McMahon
  • Edited By: O. Wallace
  • Last Modified Date: 21 November 2014
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Agile manufacturing is an approach to manufacturing which is focused on meeting the needs of customers while maintaining high standards of quality and controlling the overall costs involved in the production of a particular product. This approach is geared towards companies working in a highly competitive environment, where small variations in performance and product delivery can make a huge difference in the long term to a company's survival and reputation among consumers.

This concept is closely related to lean manufacturing, in which the goal is to reduce waste as much as possible. In lean manufacturing, the company aims to cut all costs which are not directly related to the production of a product for the consumer. Agile manufacturing can include this concept, but it also adds an additional dimension, the idea that customer demands need to be met rapidly and effectively. In situations where companies integrate both approaches, they are sometimes said to be using “agile and lean manufacturing.”

Companies which utilize an agile manufacturing approach tend to have very strong networks with suppliers and related companies, along with numerous cooperative teams which work within the company to deliver products effectively. They can retool facilities quickly, negotiate new agreements with suppliers and other partners in response to changing market forces, and take other steps to meet customer demands. This means that the company can increase production on products with a high consumer demand, as well as redesign products to respond to issues which have emerged on the open market.

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Markets can change very quickly, especially in the global economy. A company which cannot adapt quickly to change may find itself left behind, and once a company starts to lose market share, it can fall rapidly. The goal of agile manufacturing is to keep a company ahead of the competition so that consumers think of that company first, which allows it to continue innovating and introducing new products, because it is financially stable and it has a strong customer support base.

Companies that want to switch to the use of agile manufacturing can take advantage of consultants who specialize in helping companies convert and improve existing systems. Consultants can offer advice and assistance which is tailored to the industry a company is involved in, and they usually focus on making companies competitive as quickly as possible with proved agile techniques. There are also a number of textbooks and manuals available with additional information on agile manufacturing techniques and approaches.

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anon232093
Post 3

This is really good to read and easy to understand. I'm very happy with this.

allenJo
Post 2

@NathanG - I think they are the same in principle. I worked for a manufacturing company for some time, and now and then we needed to fix a product that was not manufactured to specifications.

It was always better to find and fix the product early on, rather than wait until it was further downstream in the manufacturing process and trying to fix it then.

Waiting always cost more time and money. I would guess that’s the same principle for agile software development as well.

NathanG
Post 1

I don’t know much about manufacturing personally but I wonder if agile manufacturing would be similar to agile development in software? That’s the industry I work in and we definitely follow an iterative, agile process to releasing software updates.

The model we follow seems to mirror what’s used for agile manufacturing: the idea is that it’s far better to release incremental updates as soon as problems are discovered, rather than wait for the major releases and update everything all at once.

The agile development process gives us the opportunity to hear feedback from our customers as soon as an incremental update is released. We can more easily tweak the software and save time and money.

If we wait until a major release and unveil the whole barrage of software updates at once-it makes it more difficult to troubleshoot the exact cause of an error when it occurs.

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