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Agile in the Age of Industry 4.0: A New Era for Factories, Automotive Industry and Other Industries
- Yusuf CİNGÖZ
- May 2
- 4 min read
After the 11 September attacks, the FBI started a software project called "Virtual Case File" in order to renew its technological infrastructure. The aim was to move from paper-based case management to a digital system.
The VCF project was managed with the traditional "Waterfall" model. In other words, phases such as analysis, design, development and testing were carried out sequentially and rigidly. User feedback could be received very late and changes could be made at the end of the process. Started in 2000, this project was cancelled in 2005.
After the failure of the VCF project, software developers came together in Utah in 2001 and created the "Agile Manifesto".
The 4 Core Values of the Agile Manifesto can be summarised as follows:
Individuals and interactions are more valuable than processes and tools.
→ Inter-team communication and co-operation is more important than the software or rules used.
Working software is more important than extensive documentation.
→ A product that actually works, not documentation, is the ultimate measure of success.
Co-operation with the customer is superior to contract negotiation.
→ It is more effective to involve the customer in the process and move forward together.
Being able to react to change is more important than following a specific plan.
→ Plans are important, but adapting quickly to changing needs is more valuable.
Agile vs Waterfall
Agile offers an iterative and flexible structure, while the Waterfall model represents a more fixed and sequential structure. The main differences between them clearly show how these two methods will bring success or trouble in different business environments.
AGILE | WATERFALL |
Flexible and iterative structure. | The phases are sequential and rigid. |
Continuous feedback is received and the project direction can change according to requirements. | Requirements are expected to remain constant |
Requirements are expected to remain constantProjects are managed by dividing them into small parts. | All projects are planned at the beginning and progressed step by step. |
The customer actively participates in the project process | Customer feedback is usually received at the end of the project |
It is open to change and margins of error are detected early. | Low uncertainty but limited flexibility. |
How can Agile, born from the software world, be applied in physical production environments?
Answer; thanks to Industry 4.0. Thanks to technologies such as Automation, Data Traceability, Digital Twins and Artificial Intelligence-supported decision mechanisms, production processes are now more similar to software projects.
Industrial Application Areas of Agile:
Volvo Cars - Agile Product Development
Volvo aimed to shorten the product development time by adopting Agile approaches while developing new models.
It established cross-functional teams working with iterative sprints instead of the classical ‘V Model’.
With the ‘Agile Release Train’ structure, where hardware and software teams work simultaneously, rapid feedbacks and revisions can be made in cockpit interface systems.
The transition time from prototype to serial production was shortened by ~30%.
I recommend you to read the article on ‘Why And How Volvo Embraces Agile At Scale’ published in FORBES.
SAAB Gripen E - Agile in Fighter Jet Development
SAAB applied Agile methods instead of classical large cycles while developing the Gripen E fighter jet.
Software, simulation and flight control systems were divided into small parts and developed on a sprint basis.
Even production teams checked progress with stand-up meetings.
Early integration and ‘test-before-fly’ approach was successfully implemented in complex defence systems.
BOSCH - Agile@Scale in Manufacturing
Bosch applies Agile methods for modular hardware and software development while developing industrial automation solutions.
‘Agile teams of teams’ structure was established, even hardware prototypes are developed in sprints.
With the ‘incremental product delivery’ approach, solutions are gradually offered to the customer.
The Strategic Role of Agile in the Automotive Industry
Electric vehicles, autonomous driving systems, over-the-air software updates and shortened model life cycles have become too dynamic to be managed with traditional Waterfall methods.
At this point, Agile methodologies and Model-Based Engineering approach come into play together:
While Agile enables teams to work in an agile and cross-functional manner, Model-Based Engineering methodologies integrate design-verification-documentation processes in a virtual environment without the need for a physical prototype.
In this way, software and hardware development processes are synchronised and decision-making mechanisms are fast and data-based.
In the automotive industry, where the high pace of change and integration requirements are decisive, not only Agile, but also Agile + Model Based Engineering has become a strategic necessity.
Disadvantages of Agile
At this point, it is necessary to mention the advantages of Agile as well as the challenges that await us. We can summarise them as follows:
For example, in sectors such as automotive or defence, managers are used to working with long-term Gantt plans and fixed deadlines. Agile's sprint-based flexibility can lead to a sense of "loss of control".
Lack of documentation is a problem for some industries. In regulation-intensive areas such as medical devices or aerospace, detailed documentation is a legal requirement in the product development process. Agile's ‘just enough documentation’ principle may pose additional risks in these sectors.
While Agile can work efficiently in software teams of 50-60 people, ensuring coordination between teams in hardware-software integrated projects of 500+ people requires the disciplined implementation of structures such as ‘Scrum of Scrums’. This increases implementation costs.
Agile's ‘team-based decision-making’ philosophy is difficult to be accepted in hierarchical structures where decisions are made from top to bottom. This can create resistance and inefficiency within the organisation.
As a Conclusion
Although Agile methodology was born in the software world, today it has become a strategic transformation tool in all sectors with a high pace of change, especially in innovation-oriented areas such as automotive.
However, Agile should be considered not only as a project management method, but also as an organisational mindset transformation.
When used in conjunction with digitalised engineering approaches such as Model-Based Engineering, Agile both accelerates the product development process and supports organisational agility. This transformation brings about fundamental changes in cultural adaptation, process design and team dynamics.
For those who want competitive advantage, the answer to this question is clear.
