Flexible manufacturing systems allow companies to adapt to changing demand and technology, but require initial investment and cultural change. Benefits include meeting customer demands and minimizing labor costs.
A flexible manufacturing system (FMS) is an approach to organizing a company’s manufacturing effort so that manufacturing policies and procedures can be changed or adapted with relative ease. The idea behind this type of flexibility is often to allow the company to anticipate and shift priorities as technological innovations or changes in demand for the company’s products change. There are a number of benefits and responsibilities associated with a flexible manufacturing system that should be considered before attempting to use this approach for business operations.
One of the major benefits of a flexible manufacturing system is the change to adapt the operation to meet emerging customer demands for certain products. This can help the company capture significant market share and enjoy higher revenues as long as demand for those products remains in place. For example, a textile plant operating under a flexible manufacturing system may be able to quickly adapt carding and spinning machinery to accommodate the production of corduroy rather than terry cloth, if the general public starts to demand more clothing made with corduroy, then switch back to terry making once the trend has died down.
Another benefit of a flexible manufacturing system is the ability to minimize labor costs during seasonal downturns, then increase the workforce during busy seasons. This approach can be achieved by cross-training employees who can take on additional responsibilities during lean seasons, then transfer some of those responsibilities to part-time staff during busy seasons. The end result is an efficient operation that still helps keep the cost of production per unit produced below a certain level.
While there are a number of benefits to a flexible manufacturing system, there are also some potential drawbacks that should be considered. Conversion to this type of arrangement often has a significant initial cost, as machinery may need to be modified to allow for easier conversion of the goods produced. This approach also often requires a change in corporate culture, a process that can take a long time and lead to a loss of efficiency in the short term. Technology barriers can also slow down efforts to be more adaptable, requiring additional planning to overcome those barriers and creating additional expense for the business. Before deciding that a flexible manufacturing system is the right option, business owners should weigh the benefits against the liabilities and decide whether the effort will ultimately be in the best interests of the business.
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