Define and discuss flexible manufacturing, specifically machine flexibility and routing flexibility


Flexible manufacturing emerged in the early 1990s in response to the production challenges described earlier in this chapter-product proliferation, shorter life cycles, faster competitors, and more sophisticated customers. The purpose of this strategy is to build some flexibility into the production system in order to react effectively to markets characterized by frequent volume changes and rapid product evolution.

One type of reactive capability is machine flexibility. Under this strategy, general purpose machines and equipment staffed by cross-trained workers provide the ability to produce different types of products as well as change the order of operations executed on a product. In the automobile industry, Honda leads the way. To respond to changes in economic conditions, Honda shuffles production among different plants and also makes different models in one plant. Within minutes, technicians change production line settings and adjust equipment, so that production can
shift from cars to sport utility vehicles. Other manufacturers take weeks to make similar changes.

Another type of reactive capability (there are eight in all) is called routing flexibility, which provides managers with production options and the ability to adapt to changing needs. In its simplest terms, routing flexibility provides managers with a choice between machines for a part's next operation. This capability is valuable for overcoming machine breakdowns so that production can continue for the given products. It also creates opportunities to flow products through alternate routes within the production facility. Under these scenarios, the system has the ability to absorb large-scale changes, such as in volume, capacity, or capability.

A primary advantage of the flexible manufacturing strategy is the ability to leverage production resources (e.g., time and effort) in support of different transformation processes. It also takes advantage of the capabilities of strong vendors, information technology, and highly trained indirect staff. The desired outcome is the achievement of economies of scope where small batches of a large variety of products can be produced cost effectively. Other benefits include improved productivity, quality, and labor cost due to higher automation, as well as shorter preparation and setup time for new products.

For all its benefits, the flexible strategy is not perfect. Its main flaw is cost, as companies find it expensive to purchase multipurpose or adjustable equipment. Building excess flexible capacity into the system is also a costly proposition. In addition, the promise of productivity increases doesn't always pan out in flexible operations. Finally, inadequate information systems are frequently cited as significant barriers to achieving manufacturing responsiveness and true flexibility.

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