ArticlePDF Available

Agile or adaptable? Finding a paradigm for an uncertain world

Authors:

Abstract

This paper looks at the way in which, over recent years, paradigms for manufacturing management have evolved as a result of changing economic and environmental circumstances. The lean production concept, devised during the 1980s, proved robust only until the end of the bubble economy in Japan caused firms to re-examine the underlying principles of the lean production paradigm and redesign their production systems to suit the changing circumstances they were facing. Since that time a plethora of new concepts have emerged, most of which have been based on improving the way that firms are able to respond to the uncertainties of the new environment in which they have found themselves operating. The main question today is whether firms should be agile or adaptable. Both concepts imply a measure of responsiveness, but recent changes in the nature of the uncertainties have heightened the debate about what strategies should be adopted in the future.
A preview of the PDF is not available
... Based on the literature, several challenges are identified to be caused by VUCA. These challenges can be categorized into (1) known factors (e.g., material shortages, resource shortages, cost increases, …) (Alam/Guehl, 2022., VIII, p. 6) and (2) unknown factors (e.g., property crises, economic crises, pandemics, …) (Nangia/Mohsin, 2020., Abidi/Joshi, 2015.), as well as into the subjects of (3) technologically driven (Krishnan/Bhattacharya, 2002., Schmidt et al., 2016, or (4) economically driven (Bennett, 2003., Schmidt et al., 2016.) global competition. ...
Article
Full-text available
Revolutionary changes of a VUCA-world are effecting more and more industries. Focusing the automotive industry, this is caused by several new trends in technology or market. This situation is requiring high flexibility and is questioning for sustainability as well as resilience in system development projects. This publication represents results out of a survey, part of a wider research. The objective is the development of a process orientated method for risk and technical change management. The survey is conducted by participants of transdisciplinary system development in automotive industry. Topics questioned are VUCA, complexity, (re-)action, quality and module interfaces of Generic Systems Engineering. The results demonstrate the participants’ experience and demands for sustainable and resilient system development projects. In conclusion, this report provides information on the considering elements to develop a process orientated method for risk and technical change management in automotive industry.
Conference Paper
In an increasingly complex world the ability to master changes becomes more and more relevant. Agility, leanness, flexibility, reconfigurability and changeability are frequently highlighted in this context, but usually not in a distinct way. Instead they are often used as synonyms - partially because they are hyped and “in” - which is in fact wrong since they refer to different concepts. This, in turn, confounds the research community due to inaccuracies. By means of a systematic literature review the paper at hand detects the very core of each concept and tries to demerge them. We found out that the terms are, firstly, partially dependent on each other and, secondly, nested.
Chapter
Full-text available
This paper deals with three concepts of concern to manufacturing management; agile manufacturing, adaptable production and lean production. These are described and compared within the context of the modern competitive situation in Japan. A survey of Japanese firms is described where the concepts are explored through a number of questions concerned with strategy, action programmes and performance measures. Many companies have responded to the change in economic conditions through a modification of their production operations and by changing their cost structure. The results suggest that companies are trying to realise their cost adaptability through agility enhancement activities.
Article
Full-text available
This paper deals with three concepts of concern to manufacturing management; agile manufacturing, adaptable production and lean production. These are described and compared within the context of the modern competitive situation in Japan. A survey of Japanese firms is described where the concepts are explored through a number of questions concerned with strategy, action programmes and performance measures. Many companies have responded to the change in economic conditions through a modification of their production operations and by changing their cost structure. The results suggest that companies are trying to realise their cost adaptability through agility enhancement activities.
Article
Full-text available
Describes the basic concept of lean production and the recent trend in Japanese manufacturing which has been towards a cycle comprising price competition, cost reduction, a proliferation of new products, higher fixed costs, increased break even points and lower profits. Explains how Japan’s recent recession has caused the cycle to be broken and considers how factors relating to the external and internal environment have influenced the viability of lean production within Japan’s emerging competitive climate. Uses case studies of four manufacturing plants to identify problems, solutions and the need for a new approach to production systems design where costs are more sensitive to changes in demand. Proposes the concept of adaptable production as an approach which can accommodate to greater changes in demand than lean production.
Article
This book is based on the Massachusetts Institute of Technology (MIT) 5-million-dollar 5-year study on the future of the automobile. Designated the International Motor Vehicle Program (IMVP), the MIT study explored the differences between mass production and lean production in the automobile industry. Lean production, pioneered by Eiji Toyoda and Taiichi Ohno at the Toyota Motor Company in Japan, combines the advantages of craft and mass production, while avoiding the high cost of the former and the rigidity of the latter. Toward this end, lean producers employ teams of multiskilled workers at all levels of the organization and use highly flexible, increasingly automated machines to produce volumes of products in enormous variety. Lean production (a term coined by IMVP researcher John Krafcik) is "lean" because it uses less of everything compared with mass production. Also, it requires keeping far less than half the needed inventory on site, results in many fewer defects, and produces a greater and ever growing variety of products. Lean production changes how people work. Most will find their jobs more challenging and will become more productive, but, at the same time, they may find their work more stressful. Lean production calls for learning far more professional skills (than in mass production) and applying these creatively in a team setting (rather than a rigid hierarchy). This book is organized in three sections. The first, "The Origins of Lean Production," traces the evolution of lean production. The second, "The Elements of Lean Production," looks at how lean production works in factory operations, product development, supply-system coordination, customer relations and as a total lean enterprise. Finally, in the third section, "Diffusing Lean Production," the authors examine how lean production is spreading across the world and to other industries and, in the process, is revolutionizing how people live and work. Also examined are the barriers that are preventing companies and countries from becoming lean. Creative ways leanness can be achieved are suggested.
Article
The new form of commercial competition rapidly spreading in the technologically most advanced societies has been named `Agile Competition.' It possesses decisive advantages in what are today the most profitable markets for goods and services. The information processing capability to treat masses of customers as individuals is permitting more and more companies to offer individualized products while maintaining high volumes of production. The convergence of computer networking and telecommunication technologies is making it possible for groups of companies to coordinate geographically and institutionally distributed capabilities into a single `Virtual Company,' and in the process, achieve powerful competitive advantages.
Agility Mission to the U.S.- Findings and Recommendations, Centre for the Exploitation of
  • Cest
CEST, OSTEMS Agility Mission to the U.S.- Findings and Recommendations, Centre for the Exploitation of Science and Technology, London, 1997.
The Redesign of Japanese Management Systems and Practices
  • J Miyai
Miyai J, The Redesign of Japanese Management Systems and Practices, APO Productivity Journal, Summer, (1995).
Innovative Technology Transfer Framework Linked to Trade for UNIDO Action
  • D J Bennett
  • K G Vaidya
  • Unido
  • The World
  • Summit On Sustainable
  • Development
Bennett D J and Vaidya K G, UNIDO and the World Summit on Sustainable Development: Innovative Technology Transfer Framework Linked to Trade for UNIDO Action, United Nations Industrial Development Organization, Vienna, Austria, June, V.02-54935 <http://www.unido.org/doc/511850.html>, 2002.