Q: What is the state of "agility" in manufacturing? How do you define it?
A: I view agility as speed and flexibility that are guided by strategic direction. It is also the ability to be nimble — the ability to sense changes, select predetermined alternatives, and execute effectively. The potential of agility can be significant since it can help organizations meet the individual requirements of a large and varied customer base at the lowest cost while utilizing the fewest assets. It also enhances the capability of companies to execute quickly on strategic alternatives when confronted by changes in the business environment. Although most companies do not realize it, they are constantly being pushed to become more agile by customers or dynamic business conditions. The companies that succeed are the ones that recognize this reality and develop strategic plans, enable execution capabilities, and execute strategic flexibility to separate themselves from their competition. Business leaders will realize the importance of agility when the penalties of not being agile translate into business impacts.
Q: What do you think the top three business drivers are behind agility?
A: Agility is no longer an option. It is a necessity driven by the fact that the "world is flat." Customers are global and the competition and technology are not bound by geography. Agility needs to be top-of-mind for companies to satisfy mass-customization of customer requirements; have the flexibility to adjust the production network to optimize on a global basis; and increase asset effectiveness and enable virtual value chains.