Here at DLS we understand the importance of flexibility in the EMS sector, over both the longer and shorter term. Market conditions and supply chain issues mean that anyone working within the sector needs to be able to move quickly to react to changing circumstances, from a sudden ramping up in demand for a specific component, to a delay in the supply of parts or materials. One way in which we respond to this landscape is to offer our clients flexible delivery schedules. Put simply, it means that we work in a way that enables clients to pay for what they need as and when they need it. It sounds simple when it’s set out like that, but it marks a radical shift from the traditional model of clients needing to invoice for and then take immediate delivery of a full order. It’s emblematic of our approach to electronics manufacturing in general and why we’re perfectly placed to explain the benefits of agile manufacturing.
What is agile manufacturing?
Agile manufacturing is the name given to an approach which covers virtually all aspects of the manufacturing process. It runs from the design of the products through the technology employed in turning those designs into a reality and then beyond, to seamless cooperation with the supply chain – both up and down stream – and a close partnership with any corporate partners. The other aspect of agile manufacturing which has to be borne in mind is that it is an approach to project management which requires buy-in across every level of the business in question. In order for the kind of flexibility that sits at the heart of agile manufacturing to be achievable, every part of the company needs to be committed to it – from the shop floor to the board room. This means investing in employee training and a clear communication strategy aimed at entrenching agile manufacturing within everything the business does. The result of successfully applying agile manufacturing to project management will be the ability to respond at speed to any changes in the requirements of an individual customer or the conditions across the wider market. In simple terms, if the circumstances change – and this could range from a customer asking for delivery of an order to be delayed due to issues with storage space, to a component suddenly being scarce thanks to problems like geo-political tensions – a business which adopts an agile approach will be able to work with the new circumstances without compromising any aspect of the product they are delivering.
Agile Manufacturing vs. Lean Manufacturing
Before looking at agile manufacturing in any more depth, it will probably be useful to mention the fact that, as a concept, it is sometimes confused with lean manufacturing. Lean manufacturing is an approach which places the focus on constantly streamlining and refining the manufacturing process in order to eliminate waste as far as possible. The thinking behind lean manufacturing is that the elimination of waste will reduce costs, increase value for the end-purchaser and improve the efficiency of the production line. Steps that a business which is instigating lean manufacturing might take include the following:
- Setting up continuous production flows
- Organising employee working patterns to facilitate the continuous production flows
- Streamlining the actual manufacturing process itself using an iterative approach. This refers to the practice of constantly refining a product through incremental changes, on the basis of customer feedback and analysis, so that the process of production is always evolving toward greater efficiency and less waste.
- Using the same iterative approach to eliminate waste and defects in the design and manufacture of the product
- Utilising just-in-time materials wherever possible in order to keep costs lower and reduce lead times
From this relatively brief summation of lean manufacturing it should be clear that it shares much in common with agile manufacturing. Indeed, the question should be not whether a project manager embraces lean or agile manufacturing, but the degree to which they embrace a combination of the two approaches. Adapting a lean approach will reduce costs and make the manufacturing process more efficient, something which will also support the agile philosophy of working at speed and in a flexible manner. For the purposes of this particular article it’s probably most accurate to state that a project manager could adopt a lean only approach to manufacturing without being agile, but that any fully-realised agile approach will, as a matter of course, include some aspects of lean manufacturing.
Agile – A Brief History Lesson
The roots of the agile manufacturing approach can be traced back to the emergence of information technology and software development. Issues with software development which emerged as the market for PC computing grew in the early 1990s led, over time, to the creation of the ‘Agile Manifesto’ in 2001. Prior to this, a situation had developed in which the delivery of new software applications was typically taking around three years. It goes without saying that this kind of timeframe was woefully inadequate in terms of keeping pace with customer requirements within what was an otherwise rapidly developing sector. In more highly specialised fields such as defence and aerospace, the time taken to deliver entirely new software could be up to 20 years, or even longer. One prime example of this phenomenon can be seen in the NASA Space Shuttle programme which, in 1982, was still running on software initially developed during the 1960s. To some degree this has been explained away as a reflection of the efficiency of said software, but a faster development process would doubtless have seen even the most efficient software being refined and improved.
A Physical Engineering Approach
One of the key problems encountered by the software developers of this era was the fact that software engineering based many of the processes used on the realm of physical engineering. More than anything else, this approach lacked flexibility, with applications being developed across specific phases, delivered in sequence and as separate processes. The fact that each phase needed to be completed before the next could even begin made it difficult to go back and fix any problems emerging further along in the process. This inflexibility meant that software developers would err on the side of caution and put increasing time and effort into the planning stage of the process, something which only served to make lead times even longer.
The response to these issues came in the form of meetings in which a group of 17 professionals, brought together by aerospace engineer Jon Kern, would meet to discuss the issue of long lead times and inflexibility and attempt to come up with a better methodology. They eventually made a breakthrough in the form of the aforementioned Agile Manifesto, which set out the principles of working in a way that enables businesses to track and understand the changing needs of their customers, and then respond rapidly to those changes.
Core Requirements of Agile Manufacturing
The fundamental requirements of an agile manufacturing process can be broken down as follows:
Design Principles for Rapid Adaptation
The design of the products in question should be such that it can be modified and adapted at speed. Modular design principles can play a key role in delivering this adaptability, by breaking the wider design down into a series of smaller steps – or modules – any one of which can be modified, improved, replaced or exchanged with other modules as and when required.
The Role of Information in Agile Processes
The dissemination of information across the whole of a business plays a vital role in enabling an agile approach to project management. The good news is that the technology now available makes it easier than it’s ever been to maintain a transparent and seamless flow of real time information between the various departments tasked with delivering a project. From employees on the production line and sales teams to warehouse staff and management, everyone working within a modern, digitally integrated environment (as detailed in our blog on the future of electronics manufacturing – link) should be able to access the latest data on market conditions and the production process. The greater the visibility of that process, the more likely it is that any problems will be identified and flagged up at the earliest possible moment, minimising the impact and potential cost.
Collaborating with Partners and Suppliers
One of the lubricants keeping any agile manufacturing process running smoothly is the ability to maintain positive relationships with any corporate partners and/or suppliers. The kind of information which is readily available to your own employees needs to be shared along the supply line, and partners and suppliers need to be chosen carefully, on the basis that they are ready and willing to embrace an agile approach to delivery. Strong cooperation will ensure that if, for example, customer demand for a specific component increases rapidly, your partners and suppliers will be ready and able to increase production to meet that demand.
Training Teams for Agility and Empowerment
If you’re introducing agile manufacturing into an environment which has previously worked more traditionally, then you have to ensure that the employees responsible for delivering the agile approach receive the training they need. Production schedules, designs, products and even the technology and equipment being used might all need to adapt and change in order to embrace a genuinely agile approach, and the right training will ensure buy-in across all the employees in your business. The speed of response which is part of an agile approach calls for teams to be able to work autonomously and to feel empowered to respond immediately to any challenges or market demands. The traditional ‘top down’ approach to the management of teams is very unlikely to be able to deliver genuinely agile responses, as it doesn’t lead to teams feeling empowered to own and control their own role in the production process. The additional benefit of this bottom-up approach is that the hands-on team members who work closest to the manufacturing process will feel able to speak up about any challenges or problems they become aware of.
Technology That Powers Agile Manufacturing
We’ve already mentioned the key role that information technology can play in creating and maintaining the clear and transparent lines of communication upon which agile manufacturing depends. As well as data gathered in traditional ways – i.e. customer feedback or stock inventories – a digitally integrated factory can make use of data feeds via the industrial Internet of Things (IoT). Sensors on equipment can feed into a centralised hub enabling teams to monitor every stage of the production process in real time. In addition, AI can be used to analyse the massive amounts of data a sizeable production line is likely to generate, even going as far as creating fully realised ‘digital twins’ which can be used to ‘road test’ responses to changing circumstances. Additive manufacturing (AM), also known as 3D printing, is another technology which can bolster agile manufacturing by producing parts and components at speed and with reduced waste. In addition, 3D printing opens up greater design freedom, particularly when being used at speed. In some cases, manufacturers utilise AM in order to create ‘digital inventories’ of spare parts and components which can then be manufactured accurately at speed when in particular demand.
ERP
Tweaking and optimising production schedules in real time in order to respond flexibly to customer requirements is a highly complex process, with the potential for small shifts in one area to have a ‘domino effect’ and cause unforeseen consequences further along the production line. Planning and scheduling software, also known as enterprise resource planning (ERP) is another example of technology helping to harness the power of real time data in order to make adjustments without causing disruptions and delays.
Agile Manufacturing – the Edited Highlights
A project manager who embraces agile manufacturing in a sector such as electronic manufacturing services (EMS) will find themselves in the position of being able to deliver flexibility, personalisation and adaptability, whether in response to the direct demands of their customers or the wider conditions prevailing in the market. The ebbs and flows of demand for electronic devices, for example, are something which is difficult to predict with any degree of certainty – indeed, uncertainty has typified the geo-political and economic landscape since at least the financial crash of 2008, and with it the market for EMS. Rather than attempting to predict future developments and put concrete long term plans in place, project managers can utilise agile manufacturing to react effectively in real time, thus delivering efficiency, value and highly tailored solutions. If you want to see how flexibility of this kind works in practice, then take a look at the flexible delivery schedules offered to every customer by DSL.
