Transformation to Agility

Manufacturing in the Marketplace of Unanticipated Change

Jeffrey Amos

• Publisher: Routledge
• Year: 2018
• ISBN:
  9781351213417
• Edition: 1
• Topic: Business
• Subtopic: Business General
• Index: Business

History is replete with examples of one political system replacing another, one scientific discovery invalidating another – and this cycle has occurred repeatedly in the production of goods and products for society. This book, first published in 1998, examines the massive transition currently taking place: the decline of the system of mass manufacturing. Various global changes in American business and manufacturing have forced a review of accepted thinking, and this book is a key text in this evaluation.

CHAPTER 1

Introduction

History is replete with examples of one theology overtaking another, one political system replacing a former, one scientific discovery invalidating a host of old theories. This cycle has occurred repeatedly in the production of goods and products for society. Sometimes there are those who recognize years or even decades ahead that a certain way of “doing things” is changing, hopefully, for increased effectiveness and efficiency. Now is one of those times where a massive transition can be observed first hand.

Various global changes in American business and manufacturing have forced a review of accepted thinking. The last great change in business paradigms was the move from the American System to the system of Mass Manufacturing (Hounshell, 1984). For many years now, multiple scholars, industry researchers and business executives have been working on pieces of a replacement paradigm to the well-accepted thinking and philosophy of mass manufacturing.

A few scholars foresaw the decline of the system of mass manufacturing early, “we have begun the painful process of replacing the … already outdated concept of production, which I shall call, for want of a better name, ‘mass production’,” from “Production Under Pressure,” by Wickham Skinner, 1966 (qtd in Pisano, 1995, p. xv). Later in 1971, Skinner declared that the “conventional factory is fast becoming an anachronism” (qtd in Pisano, 1995, p. xv). By the late 1970s, it became painfully obvious to most that there were problems with the very structure of the American mass manufacturing production system. Scholars and practitioners began to try to find causes and solutions to the changes that were occurring. Some looked at the “emergence of a technology gap in manufacturing” (MSB/NRC, 1984, p.1). Others looked at the perceived excessive separation between companies and their customers. Many looked abroad and hoped to emulate the success of some foreign nations particularly the Japanese and the Germans. Hayes and Wheelwright (1984) concluded that the secret weapon of international competitors was manufacturing superiority (foreign companies were simply better at making products. The critical change factor, these scholars claimed, was that the U.S. had relinquished its manufacturing focus and leadership. This is an unacceptable situation. Manufacturing research experts Giffi, Roth and Seal assert, “manufacturing is vital for the economic health of the nation and for North American world leadership” (Giffi, Roth et al., 1990, p 1).

In response to the apparent decline of American industrial dominance, a multitude of programs and initiatives were developed that helped some companies while doing nothing for others. Many “rational analytical plans” have been found to be the source of an “attribution error.” Scholars and consultants have prematurely linked these plans with competitive success when they may have contributed very little to that success (Pascale, 1984; Mintzberg, 1989). The overuse of these uncorrelated plans led to the declaration that

… there is a crises of failing competition and in our desperation to survive and recover we are grabbing at anything new that offers hope to do better on any single criterion of performance. As a result, productivity and quality are up, inventories are down and we are still losing market shares in dozens of industries. Why? (Skinner, 1992, p. 25).

After more than a decade of individual programs with sporadic successes, there is a boisterous consensus that it is the mass manufacturing paradigm itself that is untenable. Industry is in the midst of a major transition. Multiple sources declare that manufacturing and business in general must be reconsidered from an entirely new perspective.

•the [manufacturing] ‘mind set’ since the beginning of the Industrial Revolution is now dysfunctional (Skinner, 1985).

•It’s undeniable that such practices as TQM, benchmarking, rightsizing, and just-in-time have helped many companies improve their operations. But such devices are limited and incremental. [New management systems] will require an entirely different focus and effort (one that is strategic and unending (Want, 1993, p. 28).

•What is needed are new manufacturing strategies which innovate entirely new integrated structures and create a true manufacturing enterprise (Skinner, 1992, p. 25).

•Manufacturing in the 1990s and beyond … is no longer based on huge accumulations of capital, standardization of products, mass production, and mass consumption (Kozmetsky, 1993).

•A new American paradigm for competitive manufacturing is essential in order to create wealth, economic stability and maintain world leadership (Roe, Fossum et al., 1993, p.xviii).

•Most manufacturing people in the U.S. now know we need a new theory of manufacturing (Drucker, 1990).

RESEARCH STATEMENT

This dissertation examines and helps refine a proposed manufacturing framework that is purported to be the replacement of mass manufacturing, namely Agile Manufacturing. Indeed, the concepts under investigation actually extend beyond manufacturing into the most fundamental aspects of business. The objective of this effort is to provide a comprehensive description and theoretical formulation for ‘Agile Manufacturing’ and ‘Agility’.¹ At this time, there is a virtual absence of academically rigorous investigations of Agility.

The approach is to develop a systemic, normative model based upon an analysis and interpretation of manufacturers at various stages of Agility. The experiences of these manufacturers are supplemented by data collected through in-depth interviews, personal observation, and correspondence, and through a thorough review of literature on Agility and related sub-topic issues. This research provides a step towards the generation of an Agile implementation methodology. The research also builds on previous studies to provide a basis for increased understanding of the transition from mass manufacturing processes and practices to agile manufacturing processes and practices.

CONTRIBUTIONS

This dissertation makes the following specific contributions:

Conceptual Definition

•Compilation and review of existing models and definitions,

•Development of definition of Agility that lends itself to testing,

•Development of a conceptual model for Agility that lends itself to empirical verification,

•Presentation of postulates of antecedent factors leading to Agility and expected results,

•Revision of model and postulates that are analyzed based upon grounded theory data.

Analysis and Interpretation of Data

•Proposes criteria for the identification of Agile attributes and characteristics,

•Identifies ways in which manufacturers characterize success and failure and measure process improvement,

•Presents a comprehensive description of the status of Agile technology and barriers and enablers to its implementation,

•Presents and initial review of the application of Data Envelop Analysis as a possible candidate for the creation of a metric of Agility.

Implications of Research

•Presentation of elements addressing the required focus of organizational change for Agility,

•Presentation of guidelines and recommendations addressing factors important to an creating and maintaining and Agile organizational infrastructure,

•Presentation of guidelines and recommendations addressing Agility implementation through Agile implementation projects,

•Relation of propositions and guidelines in a conceptual framework for Agile implementation,

•Presentation of links to other research areas critical to Agility.

OVERVIEW OF DISSERTATION FORMAT

This dissertation is broken down as follows: an analysis of manufacturing history, the theory of Agility, presentation of an antecedent model of Agility, case study analyses, and the testing of a particular measure for Agility. Chapter 2 begins with a presentation of manufacturing development throughout history divided into stages. The drivers, attributes and consequences are identified in each stage. Following the stage presentation is an overview of the drivers both economic and in the businessplace that are forcing changes in the status quo. Chapter 3 identifies concepts and theories that are closely related to Agility, some of which form basic building blocks for the Agile framework. The early development and critical theoretical concepts of agility are then presented. After the completion of this literature review basis for agility, Chapter 4 provides the methodology for the current research. In Chapter 5 the proposed preliminary model for agility is presented which builds into the presentation of the two major case studies. Each case study is analyzed individually in Chapters 6 and 7 and then a cross study examination is provided in Chapter 8. Chapter 9 provides additional supporting case studies which focus on individual specific individual variables. Chapter 10 shifts the flow of the research and presents the work and conclusions on the attempt to determine an effective global metric of Agility. Finally, research results, summarized conclusions and areas identified for future research are provided in Chapter 11.

NOTE

1. The definition of Agility will be formally reviewed in Chapter 5, but at this point business Agility refers to the nimbleness of a company to quickly assemble its technology, employees, and management via a communication and information infrastructure in a deliberate, effective, and coordinated response to changing customer demands in a market environment of continuous and unanticipated change.

CHAPTER 2

Stages of Manufacturing

As a prerequisite for an effective presentation of Agility it is necessary to first recount some key events in the progression of manufacturing (Figure 2.1). This presentation is based upon the Stage Model theories (Kuznets, 1965) which have been applied in many fields (e.g. economic development, Marx, 1932; Information systems, Nolan, 1973; 1979, etc.). Presentation of stages of manufacturing helps provide a framework for the theory formulation of Agile Manufacturing. Multiple stages and transitions identified by many well-respected authors will be presented. An ...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Table of Contents
• FIGURES
• TABLES
• ACKNOWLEDGMENTS
• CHAPTER 1. INTRODUCTION
• CHAPTER 2. STAGES OF MANUFACTURING
• CHAPTER 3. MANUFACTURING IN THE 21ST CENTURY
• CHAPTER 4. METHODOLOGY
• CHAPTER 5. DEVELOPMENT OF A THEORY OF AGILITY
• CHAPTER 6. CASE 1. ARROWPLANE AND COMPOSIT MATERIALS, INC.
• CHAPTER 7. CASE 2: THOMPSON ENTERPRISES AND BILMO INCORPORATED
• CHAPTER 8. AGILITY AND THE GLOBAL AEROSPACE INDUSTRY
• CHAPTER 9. CREATING A MEASURE OF AGILITY
• CHAPTER 10. ANALYSIS AND MODEL REVISIONS
• APPENDIX A. GAMS PROGRAMS AND DATA USED IN CHAPTER 9 AND FIGURES 9.7-9.40
• BIBLIOGRAPHY
• INDEX