Modeling and performance evaluation of agility coupled with sustainability for business planning

Abstract

PurposeAgility and sustainability are different manufacturing paradigms. Ideally, companies should merge the two concepts so as to enhance competitive advantage. Agility, which has evolved from lean manufacturing, is the ability of an enterprise to respond quickly to a wide range of customer demands. On the other hand sustainability is a condition in which a company optimizes economic, social and environmental factors by taking into account indirect and long-term consequences. Merging the two concepts could result in holistically improving the system, by fulfilling performance without depleting available resources. Thus, identifying and simultaneously improving two areas with common goals could lead to developing a successful and an emerging enterprise. The paper aims to discuss these issues.Design/methodology/approachThe authors identify agility-sustainability criteria which complement each other from amongst a set of differentiating criteria. The conceptual model is built by integrating five enablers with 25 criteria and 75 attributes. The combined criteria are modeled using graph theory which considers interdependencies and contributing factors on the organization. Within each enabler, the authors investigate the interdependencies between criteria and focus further on those that have potential to improve overall score. The methodology was applied in a manufacturing organization that operates on ad hoc basis depending on projects’ availability.FindingsThe model determines a range of values for extreme scenarios under theoretical and practical situations, along with the current level of business. The scenarios are tested for assessing performance by identifying the gaps in the weaker areas.Research limitations/implicationsApproach can serve as a managerial tool for monitoring performance of the organization along agility and sustainability dimensions. Further, government entities can use the approach in devising policy for improving economies by considering holistic approach rather than only environmental aspect. Biased and conflicting opinions of experts might deter chances for comprehensive and consistent decision.Originality/valueThe study integrates a framework for modeling and performance evaluation for a system that incorporates agility and sustainability characteristics. The study will enable practicing managers and decision makers to identify suitable characteristics that would simultaneously improve an organization’s agile performance by considering aspects of sustainability.