A flexible factory can produce different items quickly with little downtime, but is typically set up around a theme. It costs less to operate than a focused factory because workers can focus on producing items with high demand.
A flexible factory is capable of manufacturing different parts and products, unlike a focused factory which can only produce very similar items. In addition to having machinery equipped for changes, a flexible factory is able to quickly rearrange equipment to make different items with little downtime. Being too flexible can be a problem with marketing and targeting workloads, so this factory is typically set up around a theme. While this factory can produce many different items, it is typically cheaper for entrepreneurs to run, because workers can focus on producing items that have high demand, rather than having a factory that may have long downtimes.
The common factory, known as a focused factory, is usually able to make very similar parts. For example, if a factory is responsible for manufacturing wrenches, it may produce wrenches of different sizes but will still only produce wrenches. A flexible factory is capable of making very different items. Instead of just wrenches, this factory might also be able to make screwdrivers, drills, saws, and other tools.
Another qualifying aspect of a flexible factory is the rapid retooling between different items. A focused factory may receive a customized order which is out of its normal product range and it may take days to prepare the machines. With a flexible factory, machines are typically set up to enable retooling within a day, if not within minutes or hours. This results in less downtime between equipment reconfigurations.
While flexibility has many benefits, there can be a problem with being too flexible. For example, if a tool factory started making plush toys and shelving, it would require a very wide range of equipment and technicians from many different industries. It may also be difficult for the factory to get workers skilled enough to work on each type of item, and marketing for companies may also be difficult. For this reason, most flex factories focus on one theme, such as tools, cars, or toys.
Unlike a focused factory, which can have extensive downtime and additional costs associated with making different products, a flexible factory often costs less to operate. This is due to the change in demand for a product. For example, if one product is in demand and another has low demand, the flex factory can be set up to run both items to adequately supply businesses with minimal downtime. If a company has two focus plants and one is responsible for producing the least popular item, the low amount of work can leave employees sitting around waiting for the next order, resulting in extra costs and high downtime.
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