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Purpose The purpose of this paper is to develop a set of key performance indicators (KPIs) for agile manufacturing (AM) and to propose a methodology for its performance evaluation. Design/methodology/approach The proposed methodology was developed using fuzzy analytic hierarchy process (FAHP) and performance value analysis (PVA) to evaluate and analyze the AM performance. The FAHP is applied to determine the importance of KPIs, and PVA is used to evaluate AM performance. Findings The proposed methodology is applied to an Indian auto component manufacturer, and it is observed that there is an improvement of performance along the timeline. Research limitations/implications The proposed approach is generic in nature and can be applied to different agile business environments for performance evaluation. Practical implications This study provides insights into the AM performance evaluation. The managers can establish the impact of each significant area (SA) on AM and each KPI on its corresponding SA by capturing their manufacturing environments. Originality/value Although many issues related to AM have been widely researched, only a few studies have been carried out to quantify, analyze and evaluate the AM performance in the Indian manufacturing environment. The proposed model has the ability to capture the performance of AM along the KPIs to draw fruitful conclusions.
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