1. Introduction
Current wisdom maintains that organizations must be able to react to a changing competitive environment
By implementing loose/decentralized organizational structures
By implementing information technology
But what does this mean???

2. The Enterprise System A system is;
“a set of objects together with relationships between the objects and between their attributes related to each other and to their environment so as to form a whole”
Business organizations can be viewed as very complex systems

3. The Enterprise System
Systems, including business organizations, pursue goals.
Purposeless Behavior
Purposeful Behavior
Purposive Behavior
Purposeful and Purposive behavior are the basis for organizational strategy

4. The Enterprise System Systems must also relate to their environment
A “closed” system has a fixed and inflexible behavior
Successful ongoing systems must monitor the environment, ...and respond appropriately!
Mechanisms to monitor and respond to the business environment are part of ongoing systems

5. Definitions Of Agile Manufacturing
A concept and a culture change and a way of doing business.
Agile manufacturing integrates TQM, concurrent engineering and flexible manufacturing.
Capable of responding rapidly to demand for high quality, highly customized products.
Ability of a manufacturing system to reconfigure itself to meet changing demands.
The dimensions of competition have moved beyond cost and quality - TIMELINESS.
“Agile-based competition is destined to displace mass-production based competition as the norm for global commerce” (Goldman, Nagel, and Preiss, 1995)

6. The Agile Environment Agility is defined as:
“The ability of an organization to adapt proficiently (thrive) in a continuously changing, unpredictable business environment”
Rick Dove, 4th Annual Agility Forum Conference, Atlanta GA March 1995

7. What is Agile Manufacturing?
The ability to thrive in an environment of constant change (Nagel, Dove, and Goldman, 1991)
The ability to delight customers by meeting unanticipated demands (Nagel, Dove, and Goldman, 1991)
Reconfigurable everything (Dove, 1994)

8. Agility Ability to thrive on unanticipated change
Leverages on an enterprise's knowledge
Proactively meets customer requirements for quality, responsiveness, and customer satisfaction

9. Definitions Definition:
(1) Agility - “ability to respond to unexpected and
unpredicted changes”
(2) Flexibility
“ability to respond to the expected change and
implies adaptability and versatility in the
manufacturing domain”
(3) Lean
“concerns with less of everything - less time to
design, less inventory and less defects”

10. The Agile Enterprise
Change in the business environment is driven an “impatient market”
Technology reorganize the market place
Customers are aware of technological change and demand action
An “Agile” Enterprise is one that can respond appropriately to the demands of the market place

11. Agile Technologies Key Need Areas (KNA)
TQM
Value-based compensation
Dynamic Multiventuring
Refined Accountability
Information Systems
Investment in KNA enable organization to meet requirements for global customers

12. Million Dollar Question
So I need to invest in and implement all of the Key Need Area Technologies??

13. Strategic Alignment
Technology investment and implementation should be closely tied to organizational environment
Internal Issues - Culture, Human Resources
External Issues - Industry Standards
Blind investment and implementation can result in failure
“Productivity Paradox”

14. Strategic Alignment Models
Henderson and Venkatramen, 1993
Highlights the dangers of failing to synchronize technology investment and corporate strategy
Taguchi “Cost to Society” Model
Investment in process capability is optimized when it is balanced with customer requirements

15. Strategic Alignment for Agile Technologies
Costs of implementing technologies to support a strategy of agility can be expensive
Investment Expense
Human Resources
Organizational Disruption
Costs of NOT implementing technologies to support a strategy of agility can be expensive

16. Strategic Alignment for Agile Technologies
The “Enterprise System” must:
Monitor the environment proactively
Pursue purposive and purposeful goals
Information from environmental scanning activities will guide analysis criteria
Organization must develop an equilibrium between investment and costs of inaction

17. Strategic Alignment Cost Structure
“Over Reaction”
Costs
Incurred
Increasing Costs
Satisfactory
Expenditure
Region
Costs
Incurred
Increasing Costs
“Cost of Inaction”

18. Describing the Agile Challenge for Your Corporation and the Nation
Ability to thrive on change and uncertainty
Organization speed of change
Organization agility
“Concept To Cash” cycle time
Leverage People and Information Resources
Compensation
Freedom of action
Information products
Cooperation Increases Competitiveness
Inside organization
Outside organization
Selling Solutions for Value
Do customers get products or solutions?
Organized to sell solutions

19. Two Main Pillars Of Agile Manufacturing
Organizational environment
Facilitate change and innovation
Decentralized decision-making
Quick moving market windows
Fast product turnaround
Industry take the lead
Technology Environment
Technology already exists
Build to order products
highly customized
upgradable
reconfigurable
Global supplier data base (FAN)

20. Attributes of Agile Manufacturing
Cultural
Empowered people
Total Quality Management
Value based compensation
Concurrency
Business
Exceed Customer Requirements
Customer involvement
Customer education
Performance measurements and benchmarking

21. Attributes Of Agile Manufacturing
Business (cont)
Synchronized Processes
Business Process Re-engineering
Database of skills and core competencies
Optimal use of distributed resources
Standards for product/process integration
Manufacturing process/product redesign
Dynamic Multiventuring
Agility index based on core competencies
Code for forming and dissolving enterprises
Legal requirements
Distributed cross-functional teams
Refined Accountability Processes
Process based performance measures
Continuous education and training

22. Attributes Of Agile Manufacturing
Business (cont.)
Information System Infrastructure
Vision based leadership
Adaptable standards
Technical
Rapid Response
Information Management
Information is critical asset
Mathematical underpinning
Education and awareness program for end users

23. Attributes Of Agile Manufacturing
Technical (cont.)
Enabling Tools and Techniques
Tools with effective human interfaces
Global communications
Virtual reality systems
Simulation and modeling
Adaptive Infrastructure
Modularity
Extensibility
Distributed information
Monitoring support
Connectivity

24. Agile Manufacturing Fast response to opportunity
Comfortable with uncertainty and change
Customer involved in design
Higher employee involvement
Leverages lean
High technology and information integration
Increased customization of product
Leverage resources

25. Agile Production Eight Agile Change Domains
Recovery : Return failed systems to service
Performance: Unanticipated requirements
Improvement: Continuous incremental upgrades
Creation: Build something new
Capacity: Increase/decrease existing resource mix
Capability: Add/delete resource types
Reconfiguration: Change relationships among modules
Migration: To different products, processes and systems

26. Develop Vision and Strategy
Agile Dimensions
Developing a vision requires a formal assessment of the internal and external environment which includes internal and external customers
“an agile company is one that is perceived by its customers as enriching them in a significant way, not only itself” - Goldman et al, 1995

27. Develop Vision and Strategy
Agile Dimensions
Organizing for improvement:
Involves redesigning the enterprise to support the vision
Sets the stage for change
“an agile company is organized in a way that allows it to thrive on change and uncertainty”
Goldman et al, 1995

28. Change Culture
Agile Dimensions
Prepares an enterprise for realizing the potential of their human resources
“People - what they know, the skills they possess, the initiative they display - and the information are the differentiators ....”
Goldman et al, 1995

29. Improve & Integrate the Enterprise
Agile Dimensions
Holistically analyzes the enterprise to integrate processes
“Cooperation - internally and with other companies - is an agile competitor's operational strategy of first choice”
Goldman et al, 1995

30. Develop Technology Solutions
Agile Dimensions
Technology is viewed as an enabler for agile processes
“Today, technology makes it possible to interact in a customized, personalized way with many customers and still make many varied products”
Goldman et al, 1995

31. Determinants of Agility
From Dove (1995)
Four change proficiency metrics
Cost,
time,
robustness, and
scope

32. Dimensions of Agility

33. Cooperating to Enhance Competitiveness
input
both internally and externally cooperating
enterprise needs to utilize existing resources regardless of location
bring the product to market as cost effectively and rapidly as possible.

34. Enriching the Customer
output
providing solutions, not just products
long-term stable customer relationships
End user designed products

35. Mastering Change and Uncertainty
control
environment
flexible structure to allow for rapid reconfiguration
an entrepreneurial company culture

36. Leveraging Impact of People & Information
mechanism
people and information most valued resource
improved motivation through empowerment
An agile enterprise sells its ability to convert the knowledge, skills, and information embodied in its personnel into solution products for the individual customers

37. Agile Characteristics Worksheet
The table shows the activity, the four dimensions of agility, and the four determinants.
This matrix provides a framework for understanding the relationship between the agile dimensions and the agile determinants
The agile characteristics are options of what can be implemented to improve the activity Fill Order.

38. Agility Model A-0 level of Attaining Agile Enterprise
Wong, Whitman 1999

39. Five primary activities to attain agility
Develop Vision and Business Strategy
Provide Education and Training
Set and Enhance Product Development
Foster Interaction Among People and Technology
Integrate and Improve Enterprise

40. Develop Vision and Business Strategy
Develop a vision
Establish strategic business plan
Achieve long-term goals

41. Provide Education and Training
Introduce training programs
Continuous learning
Increase knowledge and skills of the employees

42. Set and Enhance Product Development
Study market needs
Set specification standards
Increase quality of product
Reduce production cost

43. Foster Interaction Among People and Technology
People and technology are integrated
Yield a competent culture within the organization

44. Integrate and Improve Enterprise
Focus on increasing the efficiency and effectiveness
Identify technology that made process improvements possible
Achieve Agile Enterprise

45. A0 – Activities to attain Agility
Wong, Whitman 1999

46. Conclusion Unexpected or unpredictable changes could bring damage
To survive is to be agile
Five activities determined to be factors for agility
Provides useful strategic plan
Provides a path to achieve agility in future