SRM UNIVERSITY

AGILE MANUFACTURING
Indiaby K.CHANDRA MOHAN

DATE: 23/09/2012

INTRODUCTION
What is Manufacturing Recent trends in Manufacturing Manufacturing support system Lean production Agile Manufacturing Market forces & agility Reorganizing the production system for agility Managing relationship for agility Agility vs Mass Production

MANUFACTURING

The Process of Converting Raw Materials Into Products

RECENT TRENDS IN
MANUFACTURING SYSTEM

GROUP TECHNOLOGY FLEXIBLE MANUFACTURING SYSTEM CELLULAR MANUFACTURING DESIGN FOR MANUFACTURING & ASSEMBLY AUTOMATED ASSEMBLY SYSTEMS ARTIFICIAL INTELLIGENCE ??????

MANUFACTURING SUPPORT SYSTEMS

PRODUCT DESIGN & CAD CAM (QFD, PRODUCT DESIGN) PROCESS PLANNING & CONCURRENT ENGINEERING (CAPP, AMP) PRODUCTION PLANNING & CONTROL SYSTEMS
(JIT, MRP, CP, MRP II)

LEAN PRODUCTION & AGILE MANUFACTURING

LEAN PRODUCTION

The term lean production was coined by reaserchers at MIT to describe the activities and programs that seemed to explain Toyotas success: the efficiency with which they produced cars and the quality of cars they produced. Our first definition is a pharaphrase in the book THE MACHINE THAT CHANGED THE WORLD womans and jones define lean as doing more and more with less and lessless human effort ,less equipment, less time and less space while coming closer and closer to providing customers with exactly what they want. It also can be defined as an adaptation of mass production in which workers and work cell are made flexible and efficient by adopting methods to reduce waste.

4 Principles of Lean Production

1. MINIMIZE WASTE
2. PERFECT FIRST TIME QUALITY 3. FLEXIBLE PRODUCTION LINE 4. CONTINUOUS IMPROVEMENT

THE FROG!

Rebbit! Rebbit!

Uh oh!

10OoC

5OoC

OoC

Poikilothermic (= dont try this at home)

AGILE MANUFACTURING
The term Agile manufacturing was coined to describe a new manufacturing paradigm that was recognized as emerging to replace mass production. key findings of the study included the following. A new competitive environment is emerging that is forcing changes in manufacturing systems and organization. Agile companies that can rapidly response to demand for customized products Agility requires integration of (1)Flexible production technology. (2)Knowledgable work force. (3)Management structures. The American standard of living is at risk unless US industry can led the transition to agile manufacturing

DEFINTION
Agile production can be defined as (1) an enterprise level manufacturing strategy of introducing new product into rapidly changing markets and (2) an organizational ability to thrive in a competitive environment characterized by continuous and some times unforeseen change. Agility is strategy for profiting from rapidly changing and continuously fragmenting global market for customized product and services.( making profit , survive in the future) Companies successfully implemented agile manufacturing

AIR PRODUCTS AND CHEMICALS, AT & T, BOEING, CHRYSLER, FMC, GENERAL MOTORS, IBM, KINGS BURRY CORP, MOTOROLLA, TEXAS INSTRUMENTS.

4 Dimensions of agility
Organize to master change Leverage the impact of people

Agile manufacturing

Cooperate to enhance competition

Enrich the customers

MARKET FORCES AND AGILITY

IDENTIFYIN COMPETITION: -1) global comp 2) decreasing cost of info 3) pressure to reduce time to market 4)short product life. FRAGMENTATION OF MASS MARKET: -emergence of niche markets, high rate of model changes, shrinking windows of markt opp COOPERATIVE BUSINESS RELATIONSHIP: - increasing inter relationship cooperation, increased out sourcing, improved labour mangment relationship

MARKET FORCES AND AGILITY

CHANGING CUSTOMER EXPECTATIONS -market demands changing ,customers are more sophisticated and indidualistic, increased information content than quality

SUV MARKET
MAHINDRA SCORPIO TOYOTA FORTUNE5R TATA SAFARI TATA SUMO GOLD SKODA YETI BMW X SERIES AUDI Q SERIES LANDROVER RAGEROVER

WHEN MAHINDRA XUV 500 ENTERS

MAHINDRA XUV SPECIALITIES

2200CC ENGINE 5TH GENERATION TURBOCHARGER 6 INCH MONOCHROME TOUCH INFO DISPLAY MICROHYBRID SYSTEM INTELLIGENT PARKING RAIN SENSING WIPER HEADLAMP IMMOBILIZER ABS, TILT STEERING GPS NAVIGATION , HILL HOLD CONTROL

COMPARISON

MAHINDRA XUV 500 Rs 13.5 lakhs TOYOTA FORTUNER- Rs 30 lakhs BMW X SERIES ---RS 30.4 lakhs

CHANGING CUSTOMER EXPECTAION

FREQUENT NEW PRODUCT INTRODUCTION

Renault Duster 1600cc,7.5 lks, july 2012 Mahindra Quonto1500cc, 6 lks , sep 2012

Fiord ecosports1000cc , 5 lks , jan 2013

AGILITY IN RENAULT

RELEASED 5 NEW MODELS WITH IN 18 MONTHS

RENAULT PULSE RENAULT FLUENCE RENAULT SCALA RENAULT KOLEOS RENAULT DUSTER

REORGANISING THE PRODUCTION SYSTEM FOR AGILITY

PRODUCT DESIGN: - Product design determine app 70% of the mfg cost of a product. MARKETING - The best effort of a design may be lost if the marketing plan is flawed.

PRODUCTION OPERATIONS - A sustainable impact of agility can be achieved by reorganizing factory operations

PRODUCT DESIGN
CUSTOMIZABLE UPGRADABLE RECONFIGURABLE DESIGN MODULARITY FREQUENT MODEL CHANGES PLATFORM OF INFORMATION AND SERVICES

CELLPHONES AND LAPTOPS

MARKETING
AGGRESSIVE AND PROACTIVE PRODUCT MARKETING CANNABALIZE SUCCESFUL PRODUCTS FREQUENT NEW PRODUCT INTRODUCTION LIFE CYCLE PRODUCT SUPPORT PRICING BY CUSTOMER VALUE EFFECTIVE NICHE MARKET COMPETITOR

CELLPHONES

PRODUCT OPERATIONS
BE A COST EFFECTIVE, LOW VOLUME PRODUCER BE ABLE TO PRODUCE TO CUSTOMER ORDER MASTER MASS CUSTOMIZATION USE CONFIGURABLE AND REUSABLE PROCESS (modular fixtures) BRING CUSTOMER CLOSER TO THE PRODUCTION PROCESS-(pc config) INTEGRATE BUSINESS PROCEDURES WITH PRODUCTION(MRP, MRPII)

MANAGING RELATIONSHIPS FOR AGILITY(

COOPERATION SHOULD BE THE BUSINESS STRATEGY)

MASS PRODUCTION VS AGILE MANUFACTURING

MASS PRODUCTION AGILE MANUFACTURING

Standardized products Long market life expected Produce to forecast Low information content Single time sales Pricing by production cost

Customized products Short market life expected Produce to order High information content Continuing relationship Pricing by customer value

CONCLUSION
Single time sales is not enough Customer retention Customers are willing and able to pay more if it is customized for them Increased information content

QUERIES

THANK YOU