Manufacturing Flexibility

MANUFACTURING FLEXIBILITY
What is flexibility?
It is the adaptability of a system to a wide range
of possible environments that it may encounter.

Why is flexibility important/necessary? What is

the role of flexibility in Manufacturing strategy?

MANUFACTURING FLEXIBILITY
Types of Flexibility
Machine flexibility: various types of operations
that the machine can perform without requiring a
prohibitive effort to switch from one operation to
another.
Process flexibility: It relates to the set of part
types that the system can produce without major
setups.
Volume flexibility: It is the ability to operate at
different overall output levels cost effectively.
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KEY OBSERVATIONS ABOUT

PROCESS FLEXIBILITY
Adding flexibility increases both expected sales
and expected capacity utilization.
Adding capacity increases expected sales but
decreases capacity utilization.
Adding flexibility can be substituted for changing
capacity to reach sales or capacity utilization
goals.
Benefits of flexibility remain significant as long
as total capacity is roughly balanced with the
expected demand.
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BENEFIT OF PROCESS FLEXIBILITY

It helps one to hedge against uncertainty and
aids in changing the product mix swiftly as the
demand for the different products vary over time.

CHAINING CONCEPT
A chain is a group of products and plants which
are all connected, directly or indirectly, by
product assignment decisions.
Little flexibility organized through proper
chaining can yield most of the benefits of total
flexibility.
Flexibility is most effective in increasing
expected sales and capacity utilization when it
helps in creating longer chains.
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Example:

Flexibility configurations with fewer, longer chains

have greater benefits than shorter chains.

1 long chain

2 shorter chains

A single long chain that connects all plants has almost the
same benefit as a configuration with total flexibility.

1 long chain & 8 links

Almost
equals

Total flexibility & 16 links

Products

Plants

Products

Plants

Dedicated

Flexible

Stochastic Case: Demand distribution for each of products A & B

Demand
50
100
150

Probability
1/3
1/3
1/3

Capacity at both
the plants = 100
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