Central to the effectiveness of design teams is how the planning of the design work is organized and coordinated. This paper describes how Saab Aeronautics, a large Swedish developer of jet fighter airplanes, has adopted an agile methodology on a large scale. The paper discusses central mechanisms of agile methodology including development of both software and hardware. The findings indicate two main factors that play an important role in reaching the benefits of agile in a large organization: setting up a system allowing focused team-work and giving the teams an empowered role in planning.