Introduction

1. Introduction • Current wisdom maintains that organizations must be able to react to a changing competitive environment • By implementing loose/decentralized organizational structures • By implementing information technology • But what does this mean???

2. The Enterprise System • A system is; “a set of objects together with relationships between the objects and between their attributes related to each other and to their environment so as to form a whole” • Business organizations can be viewed as very complex systems

3. The Enterprise System • Systems, including business organizations, pursue goals. • Purposeless Behavior • Purposeful Behavior • Purposive Behavior • Purposeful and Purposive behavior are the basis for organizational strategy

4. The Enterprise System • Systems must also relate to their environment • A “closed” system has a fixed and inflexible behavior • Successful ongoing systems must monitor the environment, ...and respond appropriately! • Mechanisms to monitor and respond to the business environment are part of ongoing systems

5. Definitions Of Agile Manufacturing • A concept and a culture change and a way of doing business. • Agile manufacturing integrates TQM, concurrent engineering and flexible manufacturing. • Capable of responding rapidly to demand for high quality, highly customized products. • Ability of a manufacturing system to reconfigure itself to meet changing demands. • The dimensions of competition have moved beyond cost and quality - TIMELINESS. “Agile-based competition is destined to displace mass-production based competition as the norm for global commerce” (Goldman, Nagel, and Preiss, 1995)

6. The Agile Environment Agility is defined as: “The ability of an organization to adapt proficiently (thrive) in a continuously changing, unpredictable business environment” Rick Dove, 4th Annual Agility Forum Conference, Atlanta GA March 1995

7. What is Agile Manufacturing? The ability to thrive in an environment of constant change (Nagel, Dove, and Goldman, 1991) The ability to delight customers by meeting unanticipated demands (Nagel, Dove, and Goldman, 1991) Reconfigurable everything (Dove, 1994)

8. Agility • Ability to thrive on unanticipated change • Leverages on an enterprise's knowledge • Proactively meets customer requirements for quality, responsiveness, and customer satisfaction

9. Definitions • Definition: (1) Agility - “ability to respond to unexpected and unpredicted changes” (2) Flexibility “ability to respond to the expected change and implies adaptability and versatility in the manufacturing domain” (3) Lean “concerns with less of everything - less time to design, less inventory and less defects”

10. The Agile Enterprise • Change in the business environment is driven an “impatient market” • Technology reorganize the market place • Customers are aware of technological change and demand action • An “Agile” Enterprise is one that can respond appropriately to the demands of the market place

11. Agile Technologies • Key Need Areas (KNA) • TQM • Value-based compensation • Dynamic Multiventuring • Refined Accountability • Information Systems • Investment in KNA enable organization to meet requirements for global customers

12. So I need to invest in and implement all of the Key Need Area Technologies?? Million Dollar Question

13. Strategic Alignment • Technology investment and implementation should be closely tied to organizational environment • Internal Issues - Culture, Human Resources • External Issues - Industry Standards • Blind investment and implementation can result in failure “Productivity Paradox”

14. Strategic Alignment Models • Strategic Alignment Model • Henderson and Venkatramen, 1993 • Highlights the dangers of failing to synchronize technology investment and corporate strategy • Taguchi “Cost to Society” Model • Investment in process capability is optimized when it is balanced with customer requirements

15. Strategic Alignment for Agile Technologies • Costs of implementing technologies to support a strategy of agility can be expensive • Investment Expense • Human Resources • Organizational Disruption • Costs of NOT implementing technologies to support a strategy of agility can be expensive

16. Strategic Alignment for Agile Technologies • The “Enterprise System” must: • Monitor the environment proactively • Pursue purposive and purposeful goals • Information from environmental scanning activities will guide analysis criteria • Organization must develop an equilibrium between investment and costs of inaction

17. Strategic Alignment Cost Structure “Over Reaction” Costs Incurred Increasing Costs Satisfactory Expenditure Region Increasing Costs Costs Incurred “Cost of Inaction”

18. Describing the Agile Challenge forYour Corporation and the Nation • Ability to thrive on change and uncertainty • Organization speed of change • Organization agility • “Concept To Cash” cycle time • Leverage People and Information Resources • Compensation • Freedom of action • Information products • Cooperation Increases Competitiveness • Inside organization • Outside organization • Selling Solutions for Value • Do customers get products or solutions? • Organized to sell solutions

19. Two Main Pillars Of Agile Manufacturing • Organizational environment • Facilitate change and innovation • Decentralized decision-making • Quick moving market windows • Fast product turnaround • Industry take the lead • Technology Environment • Technology already exists • Build to order products highly customized upgradable reconfigurable • Global supplier data base (FAN)

20. Attributes of Agile Manufacturing • Cultural • Empowered people • Total Quality Management • Value based compensation • Concurrency • Business • Exceed Customer Requirements Customer involvement Customer education Performance measurements and benchmarking

21. Attributes Of Agile Manufacturing • Business (cont) • Synchronized Processes Business Process Re-engineering Database of skills and core competencies Optimal use of distributed resources Standards for product/process integration Manufacturing process/product redesign • Dynamic Multiventuring Agility index based on core competencies Code for forming and dissolving enterprises Legal requirements Distributed cross-functional teams • Refined Accountability Processes Process based performance measures Continuous education and training

22. Attributes Of Agile Manufacturing • Business (cont.) • Information System Infrastructure Vision based leadership Adaptable standards • Technical • Rapid Response • Information Management Information is critical asset Mathematical underpinning Education and awareness program for end users

23. Attributes Of Agile Manufacturing • Technical (cont.) • Enabling Tools and Techniques Tools with effective human interfaces Global communications Virtual reality systems Simulation and modeling • Adaptive Infrastructure Modularity Extensibility Distributed information Monitoring support • Connectivity

24. Agile Manufacturing • Fast response to opportunity • Comfortable with uncertainty and change • Customer involved in design • Higher employee involvement • Leverages lean • High technology and information integration • Increased customization of product • Leverage resources

25. Agile Production Eight Agile Change Domains • Recovery : Return failed systems to service • Performance: Unanticipated requirements • Improvement: Continuous incremental upgrades • Creation: Build something new • Capacity: Increase/decrease existing resource mix • Capability: Add/delete resource types • Reconfiguration: Change relationships among modules • Migration: To different products, processes and systems

26. Develop Vision and Strategy Agile Dimensions Developing a vision requires a formal assessment of the internal and external environment which includes internal and external customers “an agile company is one that is perceived by its customers as enriching them in a significant way, not only itself” - Goldman et al, 1995

27. Develop Vision and Strategy Agile Dimensions Organizing for improvement: • Involves redesigning the enterprise to support the vision • Sets the stage for change “an agile company is organized in a way that allows it to thrive on change and uncertainty” Goldman et al, 1995

28. Change Culture Agile Dimensions Prepares an enterprise for realizing the potential of their human resources “People - what they know, the skills they possess, the initiative they display - and the information are the differentiators ....” Goldman et al, 1995

29. Improve & Integrate the Enterprise Agile Dimensions Holistically analyzes the enterprise to integrate processes “Cooperation - internally and with other companies - is an agile competitor's operational strategy of first choice” Goldman et al, 1995

30. Develop Technology Solutions Agile Dimensions Technology is viewed as an enabler for agile processes “Today, technology makes it possible to interact in a customized, personalized way with many customers and still make many varied products” Goldman et al, 1995

31. Determinants of Agility • From Dove (1995) • Four change proficiency metrics • Cost, • time, • robustness, and • scope

32. Dimensions of Agility

33. Cooperating to Enhance Competitiveness • input • both internally and externally cooperating • enterprise needs to utilize existing resources regardless of location bring the product to market as cost effectively and rapidly as possible.

34. Enriching the Customer • output • providing solutions, not just products • long-term stable customer relationships End user designed products

35. Mastering Change and Uncertainty • control • environment • flexible structure to allow for rapid reconfiguration an entrepreneurial company culture

36. Leveraging Impact of People & Information • mechanism • people and information most valued resource • improved motivation through empowerment An agile enterprise sells its ability to convert the knowledge, skills, and information embodied in its personnel into solution products for the individual customers

37. Agile Characteristics Worksheet The table shows the activity, the four dimensions of agility, and the four determinants. • This matrix provides a framework for understanding the relationship between the agile dimensions and the agile determinants • The agile characteristics are options of what can be implemented to improve the activity Fill Order.

38. Agility Model A-0 level of Attaining Agile Enterprise Wong, Whitman 1999

39. Five primary activities to attain agility • Develop Vision and Business Strategy • Provide Education and Training • Set and Enhance Product Development • Foster Interaction Among People and Technology • Integrate and Improve Enterprise

40. Develop Vision and Business Strategy • Develop a vision • Establish strategic business plan • Achieve long-term goals

41. Provide Education and Training • Introduce training programs • Continuous learning • Increase knowledge and skills of the employees

42. Set and Enhance Product Development • Study market needs • Set specification standards • Increase quality of product • Reduce production cost

43. Foster Interaction Among People and Technology • People and technology are integrated • Yield a competent culture within the organization

44. Integrate and Improve Enterprise • Focus on increasing the efficiency and effectiveness • Identify technology that made process improvements possible • Achieve Agile Enterprise

45. A0 – Activities to attain Agility Wong, Whitman 1999

46. Conclusion • Unexpected or unpredictable changes could bring damage • To survive is to be agile • Five activities determined to be factors for agility • Provides useful strategic plan • Provides a path to achieve agility in future