LEAN AND AGILE MANUFACTURING SYSTEMS:
COMPETING OR COMPLEMENTARY APPROACHES TO WORLD CLASS MANUFACTURING?
Part 1
This research compares lean and agile manufacturing approaches for achieving manufacturing excellence. Currently, there is much discussion in the manufacturing industry as to whether these approaches are competing or complementary techniques. The differences between these two approaches are identified and discussed, but more importantly the synergies between these disciplines are identified. Both approaches employ world class manufacturing principles and apply them to today’s competitive and ever changing manufacturing industry.
A case study is presented which demonstrates the benefits of these lean and agile approaches. Improvements in cycle times, inventory, operating expenses, customer service and profitability are all common benefits being realized by employing these world-class techniques. A case study is performed using experiences in an electronics manufacturing facility where complex electronic assemblies are manufactured for the high-end computer server industry. Results consistent with the aforementioned were experienced in the case study. Factory throughputs, cycle times, product quality and serviceability where all areas that experienced significant improvement; while at the same time the organization has become more flexible through an organizational transformation initiative.
The factory’s Work in Process (WIP) and manufacturing cycle times were reduced to less than one quarter their original levels, with cycle times for the plant running in the range of 2 to 3 days, and WIP inventory turns improved by more than 4X. The factory output, over the first year of this ongoing improvement initiative, was improved by approximately 2X. On time delivery performance, profitability and product quality were also improved as a by-product of these efforts. Both effectiveness and efficiency gains are realized, but more important, is the framework that remains in place to promote ongoing improvement efforts. The cultural transformation that the leadership and workforce is undergoing has helped to enable the results experienced to date, and create on environment which embraces continual change and improvement opportunities. This case study demonstrates that lean and agile techniques are quite complementary, and this thesis is supported by the dramatic and continuous improvement in factory financial and operating performance.
