Agile Scrum in Production: Innovation and Flexibility in Physical Product Development

Agile Working According to Scrum Was Never Limited to Software Development. In fact, business researchers Takeuchi and Nonaka discovered that companies experimented with product development using small, cross-disciplinary teams. This wasn’t about IT at all. Nowadays, more and more companies in the manufacturing and engineering sectors are discovering the benefits of this flexible approach for the development of physical products. By integrating Agile principles into their processes, these companies can innovate faster, better respond to changing market conditions, and increase customer satisfaction.

Agile Scrum in Practice

Wikispeed is a remarkable example of Agile Scrum in the production sector. This company developed a functional car in three months using Scrum principles. By breaking work into short sprints and focusing on incremental improvements, Wikispeed quickly developed prototypes and tested them efficiently.

John Deere, the manufacturer of agricultural machinery, implemented Agile methods in their product development process. Cross-functional teams and regular feedback loops shortened the time-to-market and better met the needs of farmers.

Tesla uses Agile principles in their production methods. Thanks to flexibility in production processes and rapid adjustments, Tesla can continuously implement improvements in their vehicles, even during production.

Benefits of Agile Scrum in Production

The implementation of Agile Scrum in production environments offers several benefits:

  • Increased Flexibility: Teams quickly respond to changing market conditions or customer needs.
  • Improved Quality: Regular feedback and iterative development identify and solve problems early.
  • Faster Time-to-Market: Products are developed and launched faster by breaking work into manageable sprints.
  • Increased Customer Satisfaction: By closely collaborating with customers and regularly collecting feedback, products are better aligned with end-user wishes.
  • Improved Team Communication: Daily stand-ups and regular sprint reviews promote transparency and collaboration within the team.

Challenges and Solutions

While Agile Scrum offers many benefits, there are also challenges in implementing it in production environments:

  • Physical Limitations: Physical products cannot be adjusted as easily as software. Solution: Focus on modular design and use 3D printing for rapid prototyping.
  • Longer Production Cycles: Production of physical goods often takes more time than software development. Solution: Adjust the sprint length to what is realistic for the product, for example, 4-6 weeks instead of the usual 2 weeks.
  • Safety and Regulatory Requirements: Physical products often must meet strict safety standards. Solution:Integrate compliance checks in every sprint and involve regulatory agencies early in the process.
  • Resistance to Change: Traditional production environments may resist new ways of working. Solution: Start with a pilot project and demonstrate the benefits before broadly implementing Agile Scrum.

Case Studies

In addition to the aforementioned examples, more companies have successfully implemented Agile Scrum in their production processes:

  • Bosch has integrated Agile methods into their product development. Scrum teams and regular sprint reviews reduced the development time of new products by 50% and improved quality.
  • Saab applied Agile principles in the development of their Gripen fighter jet. Iterative development and regular feedback from pilots led to a better-suited aircraft for end-users.
  • Ericsson implemented Agile methods in their hardware development. Cross-functional teams and regular sprint reviews shortened the time-to-market of new products and better responded to the rapidly changing telecom market.

Implementation of Agile Scrum in Production

For companies considering implementing Agile Scrum in their production environment, here are some key steps:

  • Start Small: Begin with a pilot project to test and adjust the methodology to the specific needs of your organization.
  • Train Your Teams: Ensure all team members are trained in Agile principles and Scrum methodologies.
  • Adapt the Methodology: Be flexible in the application of Scrum and adjust it as needed to meet the unique demands of physical product development.
  • Foster a Culture of Continuous Improvement: Encourage teams to regularly reflect on their processes and implement improvements.
  • Invest in the Right Tools: Use project management tools such as Vabro and Jira that support Agile practices and facilitate the visualization of progress.


The application of Agile Scrum in production environments offers enormous opportunities for innovation and efficiency improvement. Although there are challenges, companies like Bosch, John Deere, Saab, Tesla, and Wikispeed show that it is possible to successfully integrate Agile principles into the development of physical products. By being flexible, closely collaborating with customers, and continuously improving, manufacturing companies can strengthen their competitive position and better respond to rapidly changing market conditions.

The key to success lies in adapting the Agile Scrum methodology to the specific needs of the production environment, overcoming the unique challenges of physical product development, and cultivating a culture of innovation and continuous improvement. With the right approach, companies in the manufacturing and engineering sectors can benefit from the flexibility, efficiency, and customer-centricity that Agile Scrum offers, thereby strengthening their market position.


By: Merijn Visman