-Agile _QR_Manufacturing.pptx
Transcript of -Agile _QR_Manufacturing.pptx
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Quick Responseor Agile
Manufacturing
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Today's theater of competition
for manufacturing firms isspeed — not only speed ofdelivery, but of concept, design
and production. e! doorsopen for those !ho can getproducts to market before the
competition, and successhinges on the ability to respond"uickly.
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Quick Response Manufacturing
#QRM$ is a company!ide strategy
to cut lead times in all phases of
manufacturing and office
operations. %t can bring yourproducts to market more "uickly
and secure your business
prospects by helping youcompete in a rapidly changing
manufacturing arena.
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It will increase
profitability by reducing
non–value–added time,
cutting inventory andincreasing return on
investment.
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The benefits of QRM are &
• a$ Reduce lead times
throughout your
organiation• b$ (ecrease your
manufacturing costs
c$ %ncrease your market
share
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d$ )ill customer ordersfaster e$ *oost product "ualityf$ %ntroduce ne! products
rapidlyg$ +liminate !aste andinefficiency
h$ ecure yourmanufacturing future
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The phrases "+fficient
-onsumer Response" in
the food industry and "Quick
Response" in the clothingindustry have been used to
describe similar features of
Agile Manufacturing
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Conventionally, agile means fast
moving. Agility means an etensionto fleibility. !leibility is the ability torespond rapidly and adapt to
changes. It includes dimensions ofvolume, product, process mi,delivery and operations. ut agilitygoes beyond fleibility and mergesthe components of fleibility, #uality,cost and reliability.
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Agility implies being
fleible with high
#uality, low cost ,superior service and
greater reliability
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Agile or $uic% response
Manufacturing means productionof highly customi&ed productsand #uic% responses to
customer demand withoutassociated higher costs, throughefficient and effective use offleible and programmablemachinery and reconfigurableproduction facilities.
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Traditional 'ractice Current 'ractice
(td. di&ed or uniform Customi&ed or
'roducts highly variable
products
)onger Mar%et )ife (horter Mar%et )ife
'roduced to forecast 'roduced to order
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Traditional 'ractice Current 'ractice
)ow information *igh information
Content Content
'riced by 'riced by customer
Manufacturing unit perceived value
Cost + margin
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Traditional 'ractice Current 'ractice
(pecific mar%et Multiple mar%et
iche iche
(elf Contained open for
upgrades -
information -
(ervices
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The core concepts of agility
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Agile manufacturing is a
term applied to anorgani&ation that has created
the processes, tools, and
training to enable it to respond
#uic%ly to customer needs and
mar%et changes while stillcontrolling costs and #uality.
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An enabling factor in becoming an
agile manufacturer has been thedevelopment of manufacturingsupport technology that allows themar%eters, the designers and the
production personnel to share acommon database of parts andproducts, to share data on productioncapacities and problems particularly where small initialproblems may have largerdownstream effects.
http://en.wikipedia.org/wiki/Downstream_(manufacturing)http://en.wikipedia.org/wiki/Downstream_(manufacturing)
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It is a general proposition of
manufacturing that the cost of
correcting #uality issues
increases as the problemmoves downstream, so that it
is cheaper to correct #uality
problems at the earliestpossible point in the process.
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Agile manufacturing is seen as the
net step after )/A in theevolution of production methodical.
The %ey difference between the two
is li%e between a thin and anathletic person, agile being the
latter. 0ne can be neither, one or
both. In manufacturing theory beingboth is often referred to as leagile.
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According to Martin Christopher,
when companies have to decidewhat to be, they have to loo% at the
Customer 0rder Cycle 1the time
the customers are willing to wait2and the lead time for getting
supplies. If the supplier has a short
lead time, lean production is
possible. If the customer order
cycle is short, agile production is
beneficiary.
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The order cycle is the total time
taken from customer initiation of the
order through receipt of the product
or service by the customer. Thus, if
a sales person obtain an order from
a customer holds it for fe! daysbefore entering the order then that
those fe! days get added to the
order cycle time, even though thosedays !ere invisible to the
distribution center.
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+lements of the ordercycle include placing theorder, order entry #if
separate from placement$,order placing pickingfor shipment, transit time,
and the actual deliveryprocess.
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-ustomers tend to be more
concerned !ith the consistency oftotal lead times than !ith absolutelead time. o it is important tomonitor actual performance in thisregard take corrective action!henever needed. /o!ever, !iththe increased emphasis on time
based competition, reducing totalcycle time has received greaterattention.
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0ust %n TimeManufacturing
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0ust in time is a 1pull2 system
of production, so actualorders provide a signal for!hen a product should be
manufactured. (emand&pullenables a firm to produceonly !hat is re"uired, in the
correct "uantity and at thecorrect time.
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This means that stoc% levels of
raw materials, components,wor% in progress and finished
goods can be %ept to a
minimum. This re#uires a
carefully planned scheduling
and flow of resources throughthe production process.
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Modern manufacturing firms usesophisticated production
scheduling software to planproduction for each period oftime, which includes ordering the
correct stoc%. Information isechanged with suppliers andcustomers through +(% 1+lectronic (ata %nterchange2 tohelp ensure that every detail iscorrect.
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(upplies are delivered right tothe production line only whenthey are needed. !or eample,a car manufacturing plant mightreceive eactly the right number
and type of tyres for one day8sproduction, and the supplierwould be epected to deliver
them to the correct loading bayon the production line within avery narrow time slot.
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• Advantages of 0%T in 3roduction
• )ower stoc% holding means a reduction
in storage space which saves rent andinsurance costs
• As stoc% is only obtained when it is
needed, less wor%ing capital is tied up instoc%
• There is less li%elihood of stoc%
perishing, becoming obsolete or out ofdate
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•
Avoids the build4up of unsold finishedproduct that can occur with sudden
changes in demand
•
)ess time is spent on chec%ing and re4wor%ing the product of others as the
emphasis is on getting the wor% right
first time
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• (isadvantages of 0%T in 3roduction
• There is little room for mista%es asminimal stoc% is %ept for re4wor%ingfaulty product
• 'roduction is very reliant on suppliers
and if stoc% is not delivered on time,the whole production schedule can bedelayed
• There is no spare finished productavailable to meet unepected orders,because all products are made to meet