Agility and production flow layouts: An analytical decision analysis

The term ‘agile manufacturing’ has referred to operational aspects of a manufacturing company concerning their ability to produce customized products at mass production prices and with short lead times. A core issue faced within agile manufacturing is the need for appropriate and supporting production and operations systems. Many design dimensions of agility and agile manufacturing exist. To help attain this goal for integrating the many design dimensions, operations infrastructure and capacity must be carefully planned to manage production flow, and thus production layout planning takes on an increasingly important role. Given the importance of these dimensions in response to agility, this paper seeks to make a contribution by providing insights into a decision aid for evaluating production flow layouts that support and enhance the agile manufacture of products. Layout design has a significant impact on the performance of a manufacturing or service industry system and has been an active research area for many decades. Strategic evaluation of production layouts requires consideration of both qualitative and quantitative factors (managerial, organizational, and technical). This paper makes use of the Analytical Network Process (ANP) which captures interdependencies among different criteria, sub‐criteria and dimensions, an evident characteristic of production flow layouts in complex agile manufacturing environments. An application case study exemplifying the practical usefulness of this type of model describes how management, after implementation of the model, made a mid‐course correction related to the production layout initially selected.