As we are approaching the 21st century, manufacturing success and survival are becoming more and more difficult to ensure. This fact is rooted in the emergence of a new business era that has “change” as one of its major characteristics. This critical situation has led to a major revision in the business priorities, strategic vision, and viability of conventional and even relatively contemporary models and methods developed so far. The emphasis is now on adaptability to change in the business environment and a proactive way of approaching to market and customer needs through newly evolved cooperation methods such as virtual organisation. The emerging paradigm is agile manufacturing, which in concept is a step forward in generation of new means for better performance and success of business, and in practice is a strategic approach to manufacturing, considering the new conditions of the business environment. Responding to changes, and taking advantage of them through strategic utilisation of managerial and manufacturing methods and tools, are the pivotal concepts of agile manufacturing. This paper discusses the concepts and the development of a methodology to achieve agility based on them. An introduction to the subject is given followed by a detailed discussion of the proposed methodology. In addition an empirical study is carried out to support and validate the proposed methodology. Some preliminary results of this study are reported as well.