

Guest Editorial
So We're Lean. What Now?
Pursuing agile manufacturing to adapt to economic challenges
By Dusty Alexander
June 2009 - Manufacturers have worked for years to get lean and become leaner, and now many may be wondering, "What's next?"
Agile manufacturing is a result of streamlining processes on the shop floor to hasten order fulfillment, and in doing so, maximize capacity for increased productivity. Control is the key issue differentiating agile manufacturing from lean manufacturing. Lean manufacturing is a term applied to companies good at managing things under their control. Agile manufacturing deals with the things that are not readily controlled, like fluctuations in the economy.
This relatively new concept is seen as the next step after lean in the evolution of production methodologies, but many have not begun to implement these new tactics. In fact, Industry Week's 2006 Census of Manufacturers found that although 40 percent of respondents engaged in lean manufacturing, fewer than 4 percent pursued agile manufacturing. However, experts see agile pursuits quickly taking a front seat as market demands continue to fluctuate.
Operating under today's economic constraints underscores the importance of agility as supply chain processes become even less predictable. The basic concept of agile manufacturing is developing a nimble mindset when it comes to understanding market environments. Rapid changes in the market call for rapid responses and aren't something to be feared. They should be seen as opportunities to beat the competition to the punch.
Agile manufacturing represents a complete shift in the mindset of production industries--one in which there is both a greater relationship between technology and worker skills and greater customer access to the core competencies of their manufacturers and vendors. In today's dynamic global marketplace, it's incumbent on the manufacturer to be able to respond to evolving demands at a more demanding pace.
The modern job shop has evolved to accommodate increasingly shortened lead times and 90-degree engineering changes. Paperless routers facilitate computerized linkages from sales-order generation to the tracking of shipments. Shop floor wireless systems account for inventory levels, automated purchasing and materials movement. Engineering schemata (particularly changes in design and construction) can be relayed directly to machine operators via graphical user interfaces as they're generated.
Technology (particularly enterprise resource planning software) is an enabling factor in agile manufacturing--identifying the right technology that helps the whole shop share a common database of parts and products, production capacities and trouble spots within the supply chain. Responding deftly to customer demands, materials shortages or other contingencies is crucial, considering that small initial problems are typically amplified in time and dollar costs down the line.
A first step toward becoming an agile manufacturer is developing the means by which business intelligence of the marketplace is made meaningful, and production is wholly synthesized through integration. The employment of ERP software brings all areas of the manufacturing operation into a single, real-time database where the actions of one department never happen in isolation, where all aspects of the operation are capable of responding quickly to present and emerging customer demands. Particularly suited for agile manufacturing, ERP software provides the basis for rapid communications and the exchange of data, as well as the means by which responsive actions can be made quickly to ensure competitive advantage.
The manufacturer that has made the effort to instill agility through ERP has the competitive advantage when it comes to quickly transforming knowledge into new products and services for its customers.
In a global economy, windows of opportunity open quickly and can close just as fast. The more agile the manufacturer, the greater the rewards to be gained from being the first responder to customer needs. Expanding the customer base through emerging and diverse markets necessitates the quick reflexes that result from the consistent improvement of business intelligence--the knowledge, skills and empowerment of employees toward the idea of greater interaction with customers.
Dusty Alexander is the president of Global Shop Solutions. With headquarters in The Woodlands, Texas, Global Shop Solutions is the largest privately held ERP software company in the United States. For more information, visit www.globalshopsolutions.com.
|