Examples of Agile Manufacturing to See Why It Is Very Critical

Bhagyashri Kambale | December 08, 2021 | 859 views
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.

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