Agile Strategy: Flexible expectations for balancing production with changing demand

Agile strategies related to balanced production with changing demand is not a popular topic among project and product management teams, but under real conditions, many managers create their own Agile strategies for balancing their production processes.

Agile strategies often include

  • Acceptance of permanent work responsibilities
  • Agile approaches at work: moving to problem areas or where the main workload is
  • Use of inventory buffers to prevent the effects of equipment damage
  • Imposition of maximum preventive maintenance to prevent damage
  • Needs sophisticated computer-assisted analysis to evaluate and select core options
  • The need for human resourcefulness to provide flexibility and ways of avoiding difficulties

Agile strategies scheduled by the staff

  • The supervisor oversees the design work and adjusts the plans as needed
  • Scheduled to meet a fixed rate: Send out-of-line quality problems
  • Delay in quality problems, speed up when quality is good
  • Straight or L-shaped lines
  • U-shaped or parallel lines
  • The conveyor movement of materials is desirable
  • Position workplaces close to one another and remove conveyors
  • Purchase of super machines and their continuous use
  • Creating/buying small machines, adding more copies of them as needed
  • They are used in labor-intensive final assembly lines
  • Mechanization and automation is applied even in the case of financial-intensive assembly works and production activities
  • Mixed models are produced where the requirements for labor are related between the different models
  • Striving for mixed production, even with intermediate assembly and parts production

The Agile enterprise methodology is the decisive link between a strategy that decides what should happen in years and the operational management that accomplishes what is planned. Between these two stages of remote strategic management is the risk of uncertainty.

Features of Agile Industrial Enterprise Strategy

We emphasized that planning is about making decisions and taking actions that can contribute to the realization of decisions.

An Agile enterprise strategy is the set of actions that ensure the implementation of strategic decisions.

Decision-making and their importance will be examined from the point of view of the interests of the various entities related to the activity of the industrial enterprise. We will also include the social aspect of industrial management research. Each decision is directly or indirectly related to the following entities:

  • business owners:> personal; > capital;
  • managers;
  • contractors;
  • creditors;
  • providers;
  • customers;
  • society (country).

Any tactical decision that involves the use of resources has an impact on the interests of those groups of entities. This naturally causes problems in the implementation of the solutions, and in some cases even resistance.

Development and implementation of tactical decisions

The development and implementation of tactical decisions are a reflection of the ethical, moral, and social characteristics and attitudes of top and middle-level project managers. This aspect of exploring Agile’s strategy-oriented organization will find expression, on the one hand, in the style and place of work of project managers and project directors, and on the other, in the climate of the enterprise and corporate culture.

The foregoing allows us to distinguish three main elements of the Agile Industrial Enterprise Strategy:

  • company policy – tactical decisions that define and change the corporate culture of the enterprise; resource policy – management decisions of the investment process, provision of primary elementary production factors (machinery and equipment, materials, personnel policy);
  • management policy – style and method of leadership, building structures (organizations), incentive, and sanction systems.
  • The industrial enterprise strategy fulfills the following basic functions of tactical management:
  • builds and develops company culture;
  • contributes to the implementation of the Agile strategy chosen by specifying strategic decisions;
  • builds the structure for implementation of strategic decisions (creates and refines the organization of production and management of the enterprise);
  • provides the resources needed to implement the strategy;
  • Plan staffing needs, recruit and allocate human resources;
  • develops and builds technologies for management information systems.

Mission of the Enterprise strategy

The main mission of the enterprise strategy in the fulfillment of each of the above functions is to coordinate the interests between the different entities of the business activity of the enterprise. The enterprise is not a machine, but a social organism in which desires, interests, and motivation are constantly changing. In this regard, the Agile strategy should coordinate in the following areas:

Substantial coordination – through tactical decisions, the substantive detailing of strategic decisions are carried out, which, as we have already said, is more declarative. Tactical solutions need to be developed and implemented on the basis of strictly defined rules and regulations in order to realize this function.

Coordination over time – the unity of wishes expressed in the strategy and actions reflected in the Agile methodology should be coordinated not only substantively but also over time. This coordination over time adjusts the desires to the conditions and preconditions that the environment limits in time for the enterprise. Changes in the environment, especially in the context of a transition to a market economy, are so dynamic that any delay in adaptive capacity and adaptation to new conditions will be adversely affected. Reference: Kaizen 20 Keys of the workplace environment

For example, changes in legislation are so dynamic that delayed response to them can put a business in a state of a law violation. Any response and adaptation to environmental changes should be linked to structural improvements in production and management. But frequent changes, in turn, lead to a disruption of the system’s lability and ultimately also adversely affect efficiency.

Therefore, it is important to evaluate very carefully the changes in the environment and to distinguish the significant from the non-essential changes, which should not be reached by the enterprise.

Agile is the spirit of thinking and behavior of the organization and its staff

Coordinate in the community the spirit of thinking and behavior of the company and its staff. The company should have an atmosphere in which people unite in the development and implementation of strategic goals. Company policy should create the conditions and prerequisites for developing the individual creative abilities of all employees in the enterprise. At the same time, close coordination and unification of individuals must be carried out in a single working mechanism for the transformation of resources into a finished product, with a given efficiency.

Another important task of Agile’s industrial enterprise strategy is corporate identification. A set of activities should be implemented through the strategy of the industrial enterprise to facilitate the differentiation (differentiation) strategy. An example of differentiation is the fact that when you say Mc’Donalds, “everyone, no matter where in the world they are, understands a certain way of fast food, starting with the shape of the restaurant, the equipment in it, the quality, the service. Products everywhere are identical, specific to this company.

At the heart of the company, identity is the actions of the company to differentiate itself from all competitors in a way that is so fundamental that it cannot be copied.

The strategy outlines the directions of identity, but the latest Agile methodologies are one that implements them through a set of actions to achieve:

  1. a well-defined structure and relationships between the elements of the enterprise;
  2. certain model of decision making and implementation;
  3. specific communication within the enterprise.

The personification of the enterprise is reflected in:

Demonstrated self-esteem: – in the set goals; – in market behavior; – attitude towards clients: – corporate ethics; – corporate culture. Our current practice of transitioning to market relations is characterized by a complete lack of ethics, and therefore we will focus a little more on this element of the company identity.

Agile ethics

Ethics in an industrial enterprise are characterized by the following features:

  • the activity and relations within the company are regulated by specific norms;
  • the rules are developed on the basis of common practical reason;
  • norms are based on the principle of dialogue and understanding between staff;
  • the rules restrict the areas and areas of potential conflict between the objectives of profit and the objectives of good relations.

In order to develop standards and regulate certain corporate ethics, the following activities should be carried out through the Agile enterprise strategy.

Analysis of existing rules and regulations

Analysis of existing rules and regulations – this analysis is necessary to diagnose company relations and to determine ethics, since with the democratization of society, in some cases, distortions of the company image of the company have been obtained. From excessively totalitarian political normalization and regulation of relations between staff members has gone to the other extreme. Many people today think that any regulation is excluded in businesses.

Analysis of the development model

Analysis of the model for developing, making and implementing management decisions as an ethical process: – analysis of standards; – analysis of the workload of the individual in comparison with the effective fund (today the tendency of old-time workload, in accordance with the technological norms, is a maximum of 50% of the effective fund); – analysis of working conditions; – environmental analysis; – staff involvement in the different phases of the management and production process;