Flex Your Manufacturing Muscle With Flexible Systems
Increased globalization has opened new markets for manufacturers, but it also has carried some new demands. Today, you’re likely to be asked to produce a wider range of products with higher quality, lower costs and shorter lead times than ever before.
As a result, specialized, single-purpose machines that provided efficiency in the past have become cumbersome, outmoded dinosaurs in the present. Flexible manufacturing systems that can easily adapt to market fluctuations are the new darlings of the manufacturing industry — or at least those segments of the industry that are specialized enough.
The benefits
Flexible manufacturing replaces the long-standing tradition of efficiency through high-volume mass production. Its lower-volume, higher-product mix production is efficient both during the production cycle and in changeovers. Flexible systems also allow companies to combine production lines on multistation single lines that accommodate daily differences in demand for each product.
The systems are adaptable enough to accommodate changing product mixes, whether due to custom work for several buyers or to shifts in market patterns. The systems themselves can change, too, if you want to expand your business or new technologies become available.
The inner workings
Flexible manufacturing systems typically consist of several computerized numerical control (CNC) machine tools and a materials handling system, all controlled by one or more supervisory computers. They can operate largely without human intervention, producing as much or as little of a part or finished product as required.
A flexible manufacturing system can include, for example, a mill, a lathe and a robotic arm, all controlled by a computer that determines when one machine is done with a part and when the part should be moved to another area.
The costs
The biggest deterrent to widespread adoption of flexible manufacturing systems has been cost. The Chrysler Group waited until prices decreased as much as 50% before investing what still totaled $30 billion over five years to implement flexible systems that rely heavily on robotics.
The investment allows the company to shift production among and within its plants, introduce more new models in a year, and lower production costs — as much as 50% on the cost of making dies for new vehicle programs.
Admittedly, most manufacturers’ budgets don’t have the muscle to absorb billion-dollar investments, but most manufacturers don’t need a system as strong as Chrysler’s, either. Even those with a single plant can benefit from the increased product mix, better plant utilization, competitive advantages, reduced inventory and lower production costs that a flexible manufacturing system provides.
Incorporating flex into your operations
Before making a decision to move to flexible manufacturing, consider your supply lines. Suppliers that think in terms of weeks or months will need to shift to days or weeks to keep up with a flexible system.
Even though suppliers don’t have to implement flexible manufacturing systems of their own, they may need to revise some processes to accommodate your flexible requirements. Thus, establish a clearly defined sequence of assembly steps so you can be specific about what suppliers need to provide when.
Additionally, recognize that all areas of your own organization must work cohesively to get maximum results from a flexible system. If you want to run several products on the same line, for instance, those products must be designed with some fundamental similarities. That requires a shift away from adapting the process to the design. Instead, your designers must learn to keep the process in mind as they develop new products.
The future is here
Are flexible manufacturing systems the wave of the future? Perhaps. Increased international competition, pressure to cut production costs and the need to slash manufacturing cycle time all are reasons to consider flexible systems.
New technologies and improved systems continue to be introduced, and pricing continues to come down. Flexible manufacturing systems are still expensive, but in the “post-Fordism” era of production, they may prove to be worth their weight in gold.
Are you ready to flex?
Before you decide on a flexible manufacturing system, you need to determine whether you’re ready for it. Ask yourself these questions to help you decide:
- What operations are required to make our products?
- What’s the logical order in which those operations should be carried out?
- What equipment is required to complete the operations?
- How should the equipment be arranged for maximum efficiency?
- What special devices will improve the production process?
- What quality control measures do we use?
- What costs can a flexible system reduce?
- What training will be required?
- How much inventory will we need to have on hand?
- What will the cycle time be with a flexible system?
- What will changeovers require?
- Can a flexible system boost productivity and reduce costs enough to pay for itself?
- How long is the payback period?
For more information about our services to inventory based businesses,
Contact: Mark Walker, Partner, Director of Inventory Based Businesses Practice at 817.882.7724.
The articles in this newsletter are general in nature and are not a substitute for accounting, legal, or other professional services. We assume no liability for the reader's reliance on this information. Before implementing any of the ideas contained in this publication, consult a professional advisor to determine whether they apply to your unique circumstances.