Flexibility Ratios and Manufacturing Strategy

Abstract

In this exploratory, empirical study of modernizing durable goods plants, it was found that typical measures of flexibility (e.g., number of unique parts and part families) are independent. More importantly, plants and firms with greater strategic manufacturing focus, regardless of specific emphasis (e.g., cost or quality), scheduled fewer part numbers on new flexible automation systems. This suggests that product focus and strategic focus are related in plants producing discrete parts. When flexibility is emphasized as a strategic manufacturing focus, new automation systems are significantly more likely to have shorter change-over times per part family. In general, part family-changeover time ratios appear to have the greatest potential of measures evaluated for building a useful theory of flexibility in discrete parts manufacturing. An evaluation of changes made in part types and part families during the implementation period showed that product flexibility is pursued as a way to reduce high labor costs in manufacturing. These plants accomplished this end by increasing the number of parts scheduled on new systems. Implications for strategic management of flexibility and scope are presented.