Opel AG

four chosen case companies with the agility model of four dimensions as proposed for the purpose of this research. The similarities across the four companies will be specifically pointed for later discussion. Furthermore, dimensions that each of the four companies are performing well will be highlighted, and detailed information and discussion will be presented in the next chapter.

4.1 Opel AG

Table 4: Agility Practices of Opel AG Operation and Manufacturing

Dimension Alliances and Suppliers Dimension

 Standardized production processes

 Lean manufacturing

 Concurrent engineering

 Heavy use of computerized management systems

 Emphasis on the proximity of suppliers

 Alliances used only on market exploitation

Market and Product Dimension Strategy and Organization Dimension

 Standardized and modular product design with custom options

 Medium dynamic and diverse business environment

 Integrated relationship with the market end

 High interdepartmental cooperation

 Flexible and decentralized

 Taylorist job design

 Versatile culture

Generally speaking, it could be concluded from the table above that Opel’s agility practices focuses more internally than externally. Opel utilizes a standardized production strategy while allowing its manufacturing agility with the use of

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concurrent engineering while heavily dependent on computerized management systems. Concurrent engineering is known to allow shortened time-to-market of a company’s product. Agile, therefore, has been said to be supported by concurrent engineering as JIT is among the backbones of lean manufacturing. Furthermore, the use of computerized management systems allows the company to keep everything under control, including the ability to quickly respond and adapt to the changing market.

Moreover, Opel recognizes the fact that agility should be an idea rooted and integrated deep inside the culture of a company. Thus, Opel strategy and organization directed straightly toward agility by enhancing the flexibility and cooperatability in its everyday operations environment. Thus, during times of uncertainty and continuous change, Opel’s internal operation allows fast adaptability to the competitive environment and market condition.

Last but not least, Opel’s agility practices significantly cover and affect its market and product dimension. From Opel’s standardized and modular product design, it is obvious that Opel has the ability to switch from one product line to the next whenever it is needed or wanted without the need for large investment redesigning. Moreover, standardized and modular design also means low cost to Opel, such as material stockings and warranty costs that could be utilized elsewhere.

However, it is observed that Opel does not demonstrate strong ambition in integrating its value chain or creating its alliance networks. Summarizing Opel’s practices, it has not been shown that Opel is keeping strategic relationship with it value chain partners. Opel put strong emphasis on the proximity of its partners.

This, however, is a traditional practice in the automobile manufacturing industries prior to the adoption of lean thinking, which brought in other techniques to resolve the

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similar problems in distance. Furthermore, unlike many automakers that are forming strategic alliances or even networks to enhance their ability to leverage competencies, Opel is not utilizing the idea of alliances beyond new market exploration and penetration.

4.2 3M (Minnesota Mining & Manufacturing Company)

Table 5: Agility Practices of 3M Operation and Manufacturing

Dimension Alliances and Suppliers Dimension

 Flexible production

 Integrated management model in manufacturing (on site labs)

 R&D based on advanced technology

 Extensive use of planning and communication internally

 General consensus on the extensive use of knowledge management

 Concurrent engineering

 Extensive use of planning and communication between collaborators

 Developed network of collaborators with highly integrated value chain and suppliers

 Alliances used on market exploitation

Market and Product Dimension Strategy and Organization Dimension

 Strong connection with customers, allowing opinion injection during design phase

 Low dynamic but highly diverse business environment

 Developed network of collaborators

 Strategically focused on innovation

 Organic organization

 Market focused culture

 People-centric innovation culture

 Highly decentralized and self-managing teams based on project system

As presented in the table above, 3M’s agility practices are generally overall comprehensively embedded across all four dimensions. First of all, the broad picture of 3M tells that 3M is based solely on market demand. 3M has been known to be a company producing solutions toward their customers’ problem. Originally founded as a mining company, 3M encountered a major setback that forced its exit from the

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industry. After that, 3M was forced to quickly reposition itself in the market. 3M’s culture was rooted as actively innovating products that solve problem in one way or the other and its operational practices and strategic goals have been aimed toward this goal.

Firstly, begin with 3M’s operation and manufacturing dimension, 3M’s use of advanced R&D systems, the logics behind its product design, and the manufacturing processes are all built upon agility. Not only does 3M’s utilization of standardized production and concurrent engineering assists its agility in manufacturing, but its skillful integration between manufacturing and R&D (on-site labs) is also a great way to allow the company to respond to change in significantly shortened time.

Furthermore, 3M’s embedded tradition of extensively using knowledge management also provides the company with strong support in agility. With large amount of past experiences and data consisted with useful information on from all aspect of the company’s operation, such as manufacturing technologies, R&D, and market information, the utilization of knowledge management allows 3M to plot out potential useful combinations of knowledge in times of need; thus, providing the company the ability to respond to change and uncertainty in the minimum amount of time.

Secondly, as Dove (1994) has been strongly advocating, agility should be an idea rooted in the company’s strategy. As in the case for 3M, the company has its strategic, organizational, and cultural aspects all fine-tuned to support the company’s vast need to innovating and staying ahead of the trend. To begin with, along with its already established market-focused corporate culture and supported by its organic organization design, the company is strategically focused on innovation.

Furthermore, the company encourages people-centric innovation atmosphere, famously allowing employee to work on job unrelated projects at their own will.

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3M’s operational design concept is also based on its aim to become innovative that it confers self-managing teams with sole decentralized decision making and responsibilities under the company’s project system.

At the other end of the spectrum, 3M’s relationship with its alliances and suppliers is also tuned toward agility. Agile corporations should maintain close cooperative relationship with its collaborators so that in case of uncertainty, their supply network could keep up with the companies’ change pace. 3M maintains its collaborator networks by continuous and extensive planning and communication.

Furthermore, 3M’s highly integrated supply chains is also an example in consistent to agility principles.

Lastly, the core idea of agility could be summarized as the need to continually monitor the undulation of the market, and change in accordance to market movements.

Thus, it is crucial for an agile corporation to maintain close collaboration with the market one way or the other. In 3M’s case, the company maintains strong collaborative relationship with the market by always integrating customers’ opinion injection into its product designs. By integrating customer opinions into its products, the company risks less in developing and introducing un-needed or unpopular products.

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