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Examples of Agile Manufacturing to See Why It Is Very Critical

AGILE_MANUFACTURING
An agile manufacturing strategy is one that places a strong priority on responding quickly to the needs of the customer, resulting in a major competitive advantage.

It is a captivating method to build a competitive work system in today's fast-moving marketplace. An agile organization must be able to adapt quickly to take advantage of limited opportunities and rapid shifts as per client demand. Agile manufacturing is gaining favor among manufacturers due to its several benefits, including increased work productivity and good control over the final deliverable. Furthermore, the shorter time to market is expanding the global market for enterprise agile transformation services.

According to Market Watch, with a CAGR of 17.9% from 2019 to 2026, the US enterprise agile transformation services market is predicted to reach $18,189.32 million by 2026.

So why is agile manufacturing gaining traction? What challenges do manufacturers encounter when implementing agile manufacturing, and how have industry leaders like GE, Adobe, and Accenture effectively implemented agile methodology in their organizations and become the best examples of agile manufacturing? In this article, we'll take a closer look at each point.


What Is the Importance of Agile Manufacturing?

The term "agile manufacturing" refers to the use of a variety of different technologies and methodologies in the production process. In order to meet market standards and criteria, organizations must be able to adapt quickly and effectively to their customers' needs by bringing agility to manufacturing. To ensure the quality of products and the cost of production are kept to a minimum, agile manufacturing helps firms to regulate their end product.

Because it immediately addresses the needs and worries of the clients, it is an effective strategy as well. By using this method, firms may better understand the market and use it to their advantage by creating products that meet the needs of their customers.


Challenges While Adopting Agile Methodologies on a Project

When we talk about agile challenges when implementing it on any project, some will be routine and some will be unique. So, let's get a quick grasp on the agile challenges.

Communication about the project: Clear communication between the development team and the product owner is critical throughout the project development life cycle. Any miscommunication can have an impact on the product's quality and the end result of the entire process.

Managing the day-to-day operational challenges: Throughout the project, daily minor or large operations play a significant impact on the overall project output. Any obstacles encountered when working on everyday chores should be resolved immediately to avoid any delays or halts in the process.

To make it function, you'll need experience: Any inexperienced product owners, scrum masters, or individuals new to the agile approach may have a negative impact on the project's expected output.

Various project contributors' buy-in: Inadequate training, a lack of motivation to show up from project participants, keeping customers in the loop, and a lack of departmental management are some of the problems that may hinder the accurate implementation of the agile methodology. The presence of one or more of these obstacles in any business or project may jeopardize the agile methodology and its total output.

Though there are many online training courses and books available on how to integrate agile practices into your project, each organization's scenario is unique, as are the challenges they encounter. As a result, handling the situation with experienced personnel that have a can-do attitude is what is required to make it work.

Following that, we'll look at some manufacturing business agile examples and how they've successfully implemented agile methodology in their organizations.


Agile Manufacturing Examples

We'll look at one of the most well-known industrial examples of agile manufacturing that has successfully implemented the methodology and achieved great outcomes. Take a peek at it.


Adobe

One of the most popular agile manufacturing examples in performance management revamps is Adobe. When Donna Morris was Senior Vice President of People Resources in 2012, she thought the annual performance evaluation and the stack-ranking process were bureaucratic, paperwork-heavy overly complicated, taking up too many management hours for the company. Aside from this, she discovered that it set barriers to joint efforts, creativity, and development.

The Adobe team ditched annual performance reviews and encouraged managers and employees to regularly discuss performance via a system called “Check-in.” Adobe has reduced voluntary turnover by 30% and increased voluntary departures by 50% since making the transition. Moreover, the company saved 80,000 management hours annually.


General Electric

General Electric famously overhauled its performance management system in 2015, paving the path for other global firms to follow in the electronics industry. Annual performance evaluations and the infamous rank-and-yank performance rating system (ranking employees and regularly eliminating the bottom 10%) had GE decide they needed to update their performance management system. The annual appraisals lasted a decade longer than the ranking system. They are now a more agile organization.

Instead of directing employees to attain goals, managers now guide and coach them. GE also decided to deploy an app they designed called PD@GE to facilitate regular employee feedback and productive performance discussions.

Using the app, each employee establishes priorities and solicits feedback. They can also give real-time feedback. Employees can request a face-to-face meeting at any time to discuss transparency, honesty, and continuous improvement.

These traits will not arise quickly and will require motivation and commitment for self-growth.


Accenture

According to Accenture's previous system, employees who perform well tend to be the most narcissists and self-promoters. Accenture wanted to revamp their system and reward genuine employees. So they started using on-going performance conversations while focusing on performance development.

Because it required employees to compete with coworkers who may have had a different position, Accenture decided that forced ranking was illogical. The new system is more centered on the employee and aims to assist them in becoming the best version of themselves.


Final Words

Agile manufacturing is a way to get the finest results and exceed client expectations on every project. Businesses are benefiting from agile manufacturing because it improves the end product and helps them better utilize their resources. The necessity of agile manufacturing in business is vital, and organizations must overcome the challenges they encounter while applying the agile approach to any of their projects in order to reap the benefits of agile production.


FAQ


How does agile manufacturing help businesses?

An agile manufacturing process enables organizations to respond to client requests with flexibility when market conditions change, as well as regulate their intended production while preserving product quality and minimizing costs.


What is an agile organization?

Unified alignment, accountability, specialization, transparency, and cooperation are key elements in an agile organization. To guarantee these teams can work efficiently, the organization must maintain a solid environment.


What are the core elements of agility?

Individuals and interactions over processes and tools are the four values of the Agile Methodology. A working program is preferable to in-depth documentation. During contract negotiation, the customer's cooperation is valued.

Spotlight

FAW

FAW Group is a global leader in the vehicle manufacturing industry with a 50-year history of innovation. Founded in 1953, FAW employs 133,000 people around the world and sells products in over 70 countries. FAW is a diversified maker of quality light, medium, and heavy-duty trucks, automobiles, municipal buses and luxury tourist coaches, custom bus chassis, and mini-vehicles with total sales in excess of 7 million vehicles worldwide. FAW maintains the lead market position within China while continuing to expand into new international markets, executing a carefully planned strategy to build a comprehensive global organization.

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AM has emerged as a transformative solution within the smart manufacturing industry, offering numerous advantages, such as improved labor, energy, and material optimization, enabling companies to respond to changing market demands effectively. AM is particularly time-saving and cost-effective for small-batch complex geometries products, allowing for non-traditional mass customization and shortening the product development cycle. It encourages changes in sustainable business models, including integrating recycled materials, increasing component attributes, and enhancing product lifecycle. AM’s sustainable benefits have garnered significant attention, focusing on reducing waste, optimizing material consumption, and shortening supply chains. Using layer-by-layer production, AM is considered less wasteful than traditional subtractive methods. It also facilitates the creation of products with extended lifecycles through repair, refurbishment, and remanufacturing, promoting sustainability and environmental responsibility. Study data estimates that the cost savings that can be achieved with Industry 4.0 transformations is 50%. 6. Choose the Appropriate Technology The success of digital transformation endeavors hinges on the careful selection of technologies to invest in. Avoid investing in the latest technology just for the sake of digitization, and refrain from rushing into numerous significant changes simultaneously, which may overwhelm employees. Instead, opt to gradually replace legacy systems and synchronize technology with business objectives through the implementation of new procedures. Here’s what Airbus did. Case Study: Airbus Airbus is the market leader in aeronautics and aerospace products and services worldwide. The organization needed a user-centric digital transformation solution to optimize its data analytics, technology, and machine learning tools, but this proved difficult. Later, it embraced open-source technology and consolidated its 15 tools onto a user-friendly platform. In ten months, this helped produce 290,000 visits and 2,200,000 page views. Additionally, the company's service center is now managing 30% fewer incidents. 7. Adapt Company for a Change Digital transformation does not demand extensive technical expertise from management and employees; rather, it necessitates a shift in mindset. By embracing this new mindset and leveraging technology solutions to automate processes for both customers and employees, rapid growth can be achieved within the organization as well as in the external market. To facilitate this transformation, it is essential to identify areas that require change, enhance transparency, and foster a culture of collaboration within the organization. By taking these steps, an organization can effectively prepare for the changes brought about by digital transformation. Case Study: Honeywell The Fortune 100 manufacturer operates in industries such as aerospace and building technology. To improve product quality and make it easier to apply digital strategies, it cut its operations from eight markets to six. Early in its transformation journey, it established a digital transformation group in the company that led digital innovations like data-driven product offerings, IoT-connected devices, and advanced industrial process control. Honeywell Intelligent Wearables eliminated the need for expert site visits, empowered workers to continue learning, improved their performance, and effectively shared their knowledge with peers by connecting field workers with remote advice. In 2018, Honeywell's share price grew from $95 to $174, and revenue went from $40 billion to $43 billion. 8. Integrate Digital Transformation into Business Goals Establish a strong connection between the digital transformation journey and the company's goals. Define the specific achievements to accomplish through digitization efforts. By aligning digital transformation initiatives with business objectives, a company can enhance its effectiveness in completing tasks, retaining existing employees, attracting new talent, and successfully overhauling company culture. Case Study: Cummins Cummins, a manufacturer of diesel and alternative fuel engines and generators is an example of a company that has capitalized on the increased demand for environmentally friendly products. Microsoft cloud compliance opportunities boost data security and IP protection. Microsoft has been one of the world's foremost technology companies for decades. Satya Nadella shifted the company's revenue model away from desktops and accelerated the transition to cloud computing. Cummins now uses Microsoft 365 for information management and collaboration to create a new workplace culture. Cummins' 58000 employees work cross-functionally and globally to stay ahead. Cummins relies on Microsoft 365 for strict security, data management and delivery, and compliance. Final Thoughts Successful digital transformation in Industry 4.0 requires a strategic and holistic approach beyond technology adoption. It demands a cultural shift, stakeholder collaboration, and a clear vision of the desired outcomes. To achieve successful digital transformation in Industry 4.0, organizations must adopt best practices that encompass technological, cultural, and strategic dimensions. Data-driven decision-making, agility, continuous learning, and a customer-centric approach are key elements in this transformative journey. By prioritizing these practices, businesses can navigate the complexities of digital transformation, drive innovation, and stay competitive in the dynamic landscape of Industry 4.0.

Read More

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Article | February 11, 2020

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Wuhan, the epicenter of the outbreak, is considered a crucial hub in the middle of China, a place of high importance for the production of automobiles, electronics, optics, and fiber optics. Wuhan and surrounding cities in the Hubei province are currently on a government-imposed quarantine at a scale the world has never seen before, some Chinese officials have referred to the situation as warlike.

Read More

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Article | February 10, 2020

Making digitalization work for you requires an understanding of your manufacturing ecosystem. Standards - such as ISA-95 - only guide you on a journey to more deeply comprehend the workings of your unique process for manufacturing your products. A batch manufacturing ecosystem often includes campaign management. Campaign management is not mentioned in ISA-95, which only speaks generally of order processing.

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Toyota Supercharges North Carolina Battery Plant with New $8 Billion Investment

PR Newswire | November 01, 2023

Toyota announced a new investment of nearly $8 billion that will add approximately 3,000 jobs at Toyota Battery Manufacturing North Carolina (TBMNC). This brings total investment to approximately $13.9 billion and job creation to more than 5,000 – further supporting Toyota's multi-pathway approach to global vehicle electrification. This investment adds capacity to support battery electric vehicles (BEV's) and plug-in hybrid electric vehicles (PHEV's). An additional eight BEV/PHEV battery production lines will be added to the two previously announced, for a total of ten battery lines. Production will be increased in a phased approach, with line launches planned through 2030 to reach a total production of more than 30GWh annually. said Sean Suggs, president of Toyota North Carolina. "Today's announcement reinforces Toyota's commitment to electrification and carbon reduction, bringing jobs and future economic growth to the region. We are excited to see the continued energy and support of this innovative manufacturing facility." [Source:PR Newswire] In 2021, Toyota, in partnership with Toyota Tsusho, announced the new Liberty location with an initial investment of $1.29 billion for battery production and the creation of 1,750 new jobs. With today's announcement, Toyota North Carolina solidifies its position as the company's epicenter of lithium-ion battery production in North America. Overall, the campus will boast seven million square feet, equating to 121 football fields of battery production. "Through the last few years of building relationships, including my most recent trip to Tokyo and meeting with President Sato, our partnership with Toyota has become stronger than ever, culminating in this historic announcement," said North Carolina Governor Roy Cooper. "North Carolina's transition to a clean energy economy is bringing better paying jobs that will support our families and communities for decades to come." A pioneer in electrified vehicles, Toyota has put more than 24.6 million hybrid, plug-in hybrid, fuel cell and battery electric vehicles on the road globally. By 2025, the company plans to have an electrified option available for every Toyota and Lexus model globally. The company is steadfast in its promise of being best-in-town by supporting local nonprofits and education initiatives. This year, Toyota announced donations totaling $200,000 to the Boys & Girls Clubs of Central Asheboro and Greensboro, Junior Achievement of the Triad, Shift_ed and Volunteer Center of the Triad. Last year, the company announced a $1 million investment in North Carolina students enrolled with Communities in Schools Randolph County and North Carolina Agricultural and Technical State University. Additional Quotes from North Carolina Officials "Toyota's latest expansion in North Carolina is monumental," said Senator Phil Berger. "The additional jobs and increased capital investment are proof that the Triad and our rural communities are prepared to support high-tech manufacturing. I'm thankful for Toyota's dedication to our state and I look forward to seeing it continue to grow and employ hard-working North Carolinians." House Speaker Tim Moore said, "Today's announcement that Toyota will make an additional investment of nearly $8 billion at its newest North American facility right here in North Carolina is a tribute to the hard work the General Assembly has done to ensure North Carolina is the best state for business and innovation." He continued, "Toyota's success is a prime example of how a balanced budget, a strong workforce, and a AAA credit rating pave the way for business growth. Toyota's additional investment in North Carolina is a sign that we are on the right track."

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Manufacturing Technology

Rockwell Automation Invests in Momenta Fund for Sustainable Tech

Rockwell Automation | November 08, 2023

Rockwell Automation invests strategically in Momenta's Industry 5.0 Fund, focused on resilient, sustainable, and human-centric industrial operations. The Industry 5.0 Fund promotes a transition from shareholder to stakeholder value, emphasizing sustainability and empowering individuals with technology to make informed decisions. This partnership positions Rockwell Automation to gain early access to innovative technologies that have the potential to disrupt industrial markets and enhance sustainability while supporting startups at the forefront of digital transformation in energy, manufacturing, smart spaces, and supply chains. Rockwell Automation, a global leader in industrial automation and digital transformation, has made a strategic investment in Momenta's Industry 5.0 Fund. The Industry 5.0 Fund, with an initial capital of $100 million, supports startups dedicated to advancing resilient, sustainable, and human-centric industrial operations. Switzerland-based Momenta launched the fund in cooperation with the EU Commission to promote research and innovation in line with the Commission's Industry 5.0 initiative. The fund aims to transition industries to focus on stakeholder value over shareholder value, emphasizing sustainability and empowering people with information and technology for decision-making. Targeting entrepreneurs in Europe and North America who are at the early stages of development and are at the forefront of the digital revolution in energy, manufacturing, smart spaces, and supply chains, the Industry 5.0 Fund will provide them with venture capital funding and direct value creation. Rockwell Automation is an anchor investor in the fund, allowing the company early access to cutting-edge technologies that can disrupt industrial markets and enhance sustainability. The investment aligns with Rockwell's strategy for inorganic growth and provides valuable insights into next-generation technologies driving digital transformation. Cyril Perducat, Senior Vice President and Chief Technology Officer of Rockwell, expressed excitement about partnering with Momenta to support startups poised to disrupt the industry while expanding human potential. He emphasized the intrinsic benefits of adopting technology that benefits all stakeholders. Ken Forster, a founding partner at Momenta, expressed his appreciation for Rockwell Automation's investment in their Industry 5.0 fund. He acknowledged that Rockwell Automation played a defining role in industrial automation and digital transformation within North America. Under the leadership of an impressive team, they had also been extending their global influence. Ken noted that Momenta's primary focus for the past decade had been investing in companies that drive industrial impact. He further mentioned that they couldn't have found a better partner for the Industry 5.0 fund than Rockwell Automation.

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Additive Manufacturing

Nexa3D Plans to Acquire Essentium for Broadened Capabilities

Nexa3D | November 07, 2023

Nexa3D, an ultrafast 3D printing leader, has taken a substantial step in staking its leader position in the industrial additive manufacturing space by signing a LOI to acquire Essentium, a manufacturer of HSE 3D printers and materials, adopted for high requirement, precision applications in aerospace, defense, and military. With this acquisition, Nexa3D will add high-speed extrusion (HSE) to its current product portfolio. The acquisition would broaden capabilities, diversify revenues, and expand addressable markets for the fast-growing 3D printing company. Avi Reichental, Co-founder, Chairman, and CEO of Nexa3D, stated that they are looking forward to welcoming the Essentium team to Nexa3D’s family. The acquisition will be a testament to their unwavering commitment to pushing the boundaries of 3D printing technology. He continued that by joining forces with Essentium, they aim to create synergies to deliver unmatched value to their customers. Together, they will drive ultrafast additive manufacturing innovation and provide even more powerful solutions for manufacturers seeking to achieve their production goals. Essentium, known for its variety of materials portfolio, true independent dual extruders (IDEX) and award-winning high-speed extrusion 3D printers, has provided solutions for complex polymer production applications 5 to 15 times quicker than other competing extrusion technologies. Essentium’s commitment to reliability and innovation has made it a go-to choice for manufacturers worldwide. Nexa3D has rapidly emerged as a leader in the 3D printing space, delivering excellent production solutions for businesses across various sectors. Best known for its ultrafast 3D printers, from desktops to the factory floor, its technology has redefined the possibilities of 3D printing production, enabling unparalleled productivity, material flexibility, and accuracy. Adopted by around 1200 customers all over the world, its printers have become the go-to solution for high-throughput production applications. This acquisition is expected to close by the end of this year or as soon as practicable afterward. Both Essentium and Nexa3D are committed to ensure a smooth transition and for maintaining uninterrupted services to existing and prospective customers. About Nexa3D Nexa3D is committed to the sustainable digitization of supply chains, driven by its relentless pursuit of advancing additive manufacturing. The company engineers ultrafast polymer 3D printers, capable of delivering remarkable productivity gains, up to 20 times greater, to professionals and businesses of varying sizes. Innovative partnerships with renowned material suppliers, combined with an open materials platform, serve as the catalyst for unlocking the full potential of additively manufactured polymers, particularly in volume production. Nexa3D leverages automated software tools, employing process interplay algorithms that optimize the production cycle.

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Manufacturing Technology

Toyota Supercharges North Carolina Battery Plant with New $8 Billion Investment

PR Newswire | November 01, 2023

Toyota announced a new investment of nearly $8 billion that will add approximately 3,000 jobs at Toyota Battery Manufacturing North Carolina (TBMNC). This brings total investment to approximately $13.9 billion and job creation to more than 5,000 – further supporting Toyota's multi-pathway approach to global vehicle electrification. This investment adds capacity to support battery electric vehicles (BEV's) and plug-in hybrid electric vehicles (PHEV's). An additional eight BEV/PHEV battery production lines will be added to the two previously announced, for a total of ten battery lines. Production will be increased in a phased approach, with line launches planned through 2030 to reach a total production of more than 30GWh annually. said Sean Suggs, president of Toyota North Carolina. "Today's announcement reinforces Toyota's commitment to electrification and carbon reduction, bringing jobs and future economic growth to the region. We are excited to see the continued energy and support of this innovative manufacturing facility." [Source:PR Newswire] In 2021, Toyota, in partnership with Toyota Tsusho, announced the new Liberty location with an initial investment of $1.29 billion for battery production and the creation of 1,750 new jobs. With today's announcement, Toyota North Carolina solidifies its position as the company's epicenter of lithium-ion battery production in North America. Overall, the campus will boast seven million square feet, equating to 121 football fields of battery production. "Through the last few years of building relationships, including my most recent trip to Tokyo and meeting with President Sato, our partnership with Toyota has become stronger than ever, culminating in this historic announcement," said North Carolina Governor Roy Cooper. "North Carolina's transition to a clean energy economy is bringing better paying jobs that will support our families and communities for decades to come." A pioneer in electrified vehicles, Toyota has put more than 24.6 million hybrid, plug-in hybrid, fuel cell and battery electric vehicles on the road globally. By 2025, the company plans to have an electrified option available for every Toyota and Lexus model globally. The company is steadfast in its promise of being best-in-town by supporting local nonprofits and education initiatives. This year, Toyota announced donations totaling $200,000 to the Boys & Girls Clubs of Central Asheboro and Greensboro, Junior Achievement of the Triad, Shift_ed and Volunteer Center of the Triad. Last year, the company announced a $1 million investment in North Carolina students enrolled with Communities in Schools Randolph County and North Carolina Agricultural and Technical State University. Additional Quotes from North Carolina Officials "Toyota's latest expansion in North Carolina is monumental," said Senator Phil Berger. "The additional jobs and increased capital investment are proof that the Triad and our rural communities are prepared to support high-tech manufacturing. I'm thankful for Toyota's dedication to our state and I look forward to seeing it continue to grow and employ hard-working North Carolinians." House Speaker Tim Moore said, "Today's announcement that Toyota will make an additional investment of nearly $8 billion at its newest North American facility right here in North Carolina is a tribute to the hard work the General Assembly has done to ensure North Carolina is the best state for business and innovation." He continued, "Toyota's success is a prime example of how a balanced budget, a strong workforce, and a AAA credit rating pave the way for business growth. Toyota's additional investment in North Carolina is a sign that we are on the right track."

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