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Abstract
Purpose – Many of the pressures from the manufacturing environment are turning manufacturing
managers’ attention to the virtues of developing a flexible manufacturing function. This paper,
originally published in 1987, focuses on flexibility in manufacturing.
Design/methodology/approach – Assessses how managers in 10 companies view manufacturing
flexibility in terms of how they see the contribution of manufacturing flexibility to overall company
performance; what types of flexibility they regard as important; and what their desired degree of
flexibility is.
Findings – Flexibility has different meanings for different managers and several perfectly legitimate
alternative paths exist towards flexible manufacturing. The results of the investigations in these ten
companies are summarised in the form of ten empirical “observations”. Based on these “observations”
a check-list of prescriptions is presented and a hierarchical framework developed into which the
various issues raised by the “observations” can be incorporated.
Originality/value – Provides a focus on flexibility in manufacturing, as determined in 1987.
Keywords Flexible manufacturing systems, Manufacturing industries
Paper type Conceptual paper
Introduction
Flexibility is fashionable. As customers demand faster response and a wider variety of
updated products and as competitors achieve levels of performance above that which
was considered feasible a few years ago flexibility, above all other measures of
manufacturing performance, is cited as a solution. More flexibility in manufacturing
operations, it is held, means more ability to move with customer needs, respond to
competitive pressures and be closer to the market. Yet for all its new found popularity,
flexibility seems to be the least understood of manufacturing objectives; the very word
flexibility is used by different managers to mean different things.
The literature on manufacturing flexibility treated as a broad management
objective, is sparse. Zelenovic (1982), Buzacott (1982), Gerwin (1982) and Slack (1983),
amongst others, all developed some form of flexibility typology. Adler (1985) provides
an excellent summary of the work on flexibility classifications and some of the
emergent issues, while Gerwin (1983) and Graham (1986) develop methodologies for a
limited comparison of the flexibility of alternative manufacturing systems. As yet,
International Journal of Operations & though, no totally satisfactory methods exist for assessing a company’s flexibility
Production Management
Vol. 25 No. 12, 2005 needs, auditing its flexibility capability or (perhaps of most immediate use) evaluating
pp. 1190-1200
q Emerald Group Publishing Limited
0144-3577
This paper was first published in IJOPM Volume 7 Issue 4 (1987) pp. 35-45. It has been included
DOI 10.1108/01443570510633594 here as part of the 25th anniversary issue of the journal.
in a broad sense change or in-vestment proposals involving the enhanced flexibility of The flexibility of
production systems. manufacturing
The intention of this article is to take the area at least one step further towards an
evaluative procedure by contributing in two ways to the growing debate on the systems
importance, nature and analysis of manufacturing flexibility. It presents:
(1) the results of a study which sought managers’ views on manufacturing
flexibility; and 1191
(2) an hierarchical framework which can be used for conceptualising and analysing
the flexibility needs of manufacturing organisations.
Figure 1.
Observation 2. Different types of manufacturing are concerned with the flexibility of The flexibility of
different resources manufacturing
Across all companies there was a tendency to concentrate on flexibility at the resource
rather than the system level. Amongst the companies studied, this tendency was most systems
marked in the jobbing/batch manufacturers for whom “flexibility” equated with
“machine flexibility”, and for process manufacturers where “flexibility” usually meant
“labour flexibility”. Companies in the batch/mass production area seemed to 1193
concentrate either on machine flexibility or alternatively both machine and labour
flexibility. In only one company was the issue of infrastructural flexibility raised; this
in relation to the ability of the company’s production control system to reschedule
production at short notice.
Observation 3. At the total manufacturing system level, managers identify four main
types of flexibility
When managers volunteered views on system flexibility or when discussion was thus
guided, four distinct types of flexibility emerged as important.
(1) Product flexibility: the ability to introduce novel products, or to modify existing
ones.
(2) Mix flexibility: the ability to change the range of products made within a given
time period.
(3) Volume flexibility: the ability to change the level of aggregated output.
(4) Delivery flexibility: the ability to change planned or assumed delivery dates.
These types are similar to a previously published typology Slack (1983) with the
omission of “quality flexibility” – the ability to change planned product quality levels.
No support was found in the sample for the idea that companies might want to vary the
quality of their products – improve maybe, but not “vary”.
It became clear that failure to distinguish between range and response flexibility was a
major cause of confusion between managers in the same organisation. For example, in
one of the sample companies a new flexible machining centre was installed which
considerably enhanced the production function’s response flexibility (giving major
benefits in terms of shorter throughput times, lower work in progress, etc.) but which
actually reduced the range of (differently sized) products which the company could
produce. Not surprisingly the marketing manager could not understand why the new
“flexible” technology seemed less flexible (in terms of range flexibility) than the old
jobbing shop which it had replaced.
Observation 8. Response flexibility is of more immediate concern to most managers than The flexibility of
range flexibility manufacturing
There was in most organisations a distinct tendency to view response and range
flexibility as short-term and long-term problems, respectively. In other words, the most systems
pressing issues of flexibility improvement which could reasonably be resolved in the
short-term were nearly always concerned with improving response, i.e. the time or
(more rarely) cost of making changes. So, for example, short-term flexibility problems 1195
included machine changeover times, new product lead times, purchasing lead times,
limiting volume changes, and so on. Issues of range flexibility on the other hand, were
usually long-term in nature and involved extra or improved resources. For example,
the range of products or parts capable of being produced in the manufacturing system
is usually determined by the capabilities of the technology and labour resources in the
system. Changing the possible range of products means changing or adding to these
resources in the longer term.
So, flexibility was often judged in terms of how it enhanced other measures of
manufacturing performance, namely dependability, productivity and availability.
Which of these was regarded as being most important was governed by the
perceived competitive position of the company, but also seemed to be strongly
influenced by functional responsibility.
Managers on the supply side of companies such as purchasing (suppliers of
material) and personnel (suppliers of labour) managers had a tendency to stress
flexibility as an answer to dependability problems. For example in-house
manufacturing capability (mix flexibility) helps to overcome slow vendor response,
transferability of labour between departments (labour flexibility) helps cope with
temporary skill shortages and so on.
Manufacturing managers, in the middle of the material chain, were more likely to see
flexibility as contributing to overall productivity. Manufacturing systems which were
flexible were seen as overcoming such problems as, for example, long machine changeover
times, excessive work in progress, fluctuating demand between product groups and so on,
all of which adversly affected resource utilisation and therefore manufacturing cost.
IJOPM Sales and marketing managers on the demand side of the company seemed to focus
25,12 on flexibility as a solution to problems of availability. The major advantages of a
flexible manufacturing function were seen as reducing delivery lead times, reducing
new product introduction lead times, the ability to offer customisation, and so on.
It should be stressed that there was not an exclusive preoccupation by any class of
manager on dependability, productivity or availability alone. Most managers cited all
1196 three justifications but in perceived importance the focus was as described (Figure 2).
Observation 10. The types and dimensions of flexibility which most concern
manufacturing organisations are determined by variety and uncertainty
It is perhaps traditional to leave the more speculative observations until last, and this
final point certainly is presented with less empirical support from the study. However,
as well as an intuitive attraction the idea does have some support from the research
data and was not directly contradicted in any of the sample companies.
In searching for some predictor of which types of flexibility were of interest to the
companies in the sample it seemed that two factors more than any other were at the
root of the need to be flexible. These two factors were:
(1) the variety of products, processes and activities with which the system has to
cope; and
(2) the ability of the system to predict the demands on it, i.e. the degree of
uncertainty under which it operates.
Figure 2.
increases the need to be able to introduce a wide range of new products (product The flexibility of
flexibility – range). manufacturing
High levels of uncertainty in the market mean that in the short term emphasis
will be placed on responding to unexpected changes in demand (volume flexibility – systems
response), introducing new or modified products at short notice (product flexibility –
response) and rearranging due dates (delivery flexibility – response). Longer term, the
likelihood of continued market uncertainty will prompt concern over the limits to how 1197
much or how little needs to be produced (volume flexibility – range), what can be
produced using current technology and labour (mix flexibility – range) and by how
much orders can be expedited (delivery flexibility – range).
Figure 3 shows the effect of these two factors. Concurrent high levels both of variety
and uncertainty will presumably result in the whole field of flexibility types being
relevant.
The ten observations presented above are essentially descriptive in nature –
even allowing for occasional interpretive lapses by the researcher. It is not too
large a step however to framing a set of prescriptions useful for any organisation
which wants to understand its own broad flexibility requirements. Such a list
could be:
.
Flexibility is about the ability to change. Think of how the whole
manufacturing system can change what it does, as well as how individual
parts of it can change.
.
All resources contribute to flexibility. Flexible technology cannot be totally
effective without flexible labour and vice versa. Neither can be effective without a
set of procedures, systems and controls which are themselves capable of coping
with the flexibility of the physical processes.
.
Think of flexibility in four areas:
Figure 3.
IJOPM (1) introducing product changes;
25,12 (2) making different mixes of products;
(3) adjusting the volume of output; and
(4) changing delivery dates.
.
Not all of these will be equally important. Consider priorities, based on the type
1198 of manufacturing engaged in and the competitive position.
.
Flexibility costs money. Try to focus flexibility where it is needed to enhance
competitiveness.
.
Do not make life unnecessarily difficult. It is bad enough that the market
demands flexibility without bad design, poor communication, lack of focus,
excessive routing complexity, with year-end spurts making things even worse.
.
Always distinguish between the range and response dimensions of flexibility, i.e.
between what changes are possible and how easily they can be made.
.
Getting better response flexibility is likely to give immediate benefit, but without
decisions on range flexibility resources cannot be effectively developed over the
long term.
.
Think of flexibility in terms of how it can improve manufacturing performance –
especially in terms of dependability of delivery (between different parts of the
production system or to the customer), productivity of resources, and availability
of products (either lead time or range).
.
If possible, try and separate the parts of the business which have to cope with
high variety from those which operate under uncertainty. When both come
together the need for flexibility is maximised.
It is also useful to link some of these ideas together; behind much of the perceived
confusion surrounding manufacturing flexibility is the lack of any model or framework
which links the various aspects and types of flexibility discussed above. In an attempt
to provide a suitable framework, a flexibility hierarchy is presented which can be used
to clarify the contribution and role of flexibility in overall manufacturing strategy.
The central argument is that flexibility should be considered at four levels.
(1) the production resources themselves;
(2) the tasks which the production function needs to manage;
(3) the overall performance of the production function; and
(4) the competitive performance of the whole company (Figure 4).
1199
Figure 4.
The flexibility hierarchy
working down through the levels. In other words a company’s chosen competitive
position should define the desired levels of availability, dependability and
productivity. This will indicate the necessary range and response characteristics for
the four types of flexibility which in turn will set goals for the development of
appropriately flexible resources.
Summary
Managers’ views on manufacturing flexibility seem to be partly influenced by their
functional responsibilities and partly by their organisational position. However, most
managers have only a limited view of their company’s flexibility needs. Rarely do they
consider all the facets of manufacturing flexibility, nor do they recognise that all
manufacturing structural and infrastructural resources contribute to flexibility.
As regards functional responsibility, managers who supply resources to the
manufacturing core of the organisation such as personnel and purchasing managers
stress flexibility as a means of coping with unplanned disturbance. A flexible
organisation is one, which can accommodate such disturbances and thus ensure
dependability of supply. Manufacturing managers see flexibility as an aid to greater
productivity because flexible resources can be utilised more readily without cost
penalties. Managers on the demand side of the organisation see enhanced availability
of supply, either by widening the range of what can be made or by shortening supply
lead time, as being the main benefit of a flexible manufacturing function.
Support was found for a modified version of a previously presented typology of
flexibility Slack (1983) with additional observations that response flexibility is largely
IJOPM a short-term concern and range flexibility a long-term concern. Further it was
tentatively suggested that the variety and uncertainty under which a company
25,12 operates will determine the most relevant types of flexibility.
Finally, it is suggested that availability, productivity and dependability be formally
incorporated into a flexibility hierarchy which links overall company competitiveness
with resource level decisions concerning operational flexibility. This hierarchy could
1200 then form the basis of a procedure for assessing the broad flexibility needs of the
organisation.
References
Adler, P. (1985), “Managing flexibility: a selective review of the challenges of managing the new
production technologies potential for flexibility”, A Report to the Organisation for
Economic Cooperation and Development, Stanford University, July.
Buzacott, J.A. (1982), “Principles of flexibility in manufacturing systems”, Proceedings of the 1st
International Conference on Flexible Manufacturing Systems.
Gerwin, D. (1982), “Do’s and don’t’s of computerised manufacture”, Harvard Business Review,
March-April.
Gerwin, D. (1983), A Framework for Analysing the Flexibility of Manufacturing Processes, School
of Business and Administration, University of Wisconsin, Milwaukee.
Graham, M.B.W. (1986), “A tale of two FMSs”, in Voss, C. (Ed.), Managing Advanced
Manufacturing Technologies, IPS (Publications) Ltd, Thessaloniki.
Puttick, J. (1980), “The design of flexible manufacturing systems”, B.P.I.C.S. Proceedings.
Slack, N. (1983), “Flexibility as a manufacturing objective”, International Journal of Operations
and Production Management, Vol. 3 No. 3.
Zelenovic, D.M. (1982), “Flexibility: a condition for effective production systems”, International
Journal of Production Research, Vol. 20 No. 3.