Flexibility Flexibility Defined A crosscutting capacity flexibility is

Flexibility

Flexibility Defined • A crosscutting capacity, flexibility is the ease with which the system can respond to uncertainty (variability) in a manner to sustain or increase its value delivery. • It should be noted that uncertainty is a key element in the definition of flexibility. • Uncertainty can create both risks and opportunities in a system, and it is with the existence of uncertainty that flexibility becomes valuable.

Importance of Flexibility • Flexibility is used to absorb variation. • Sources of variability include: demand (item mix and volume), supply, product or service, process, and resource (workforce and equipment).

Flexibility Types 1. Volume (market): ability to operate profitably at varying output levels 2. Product: ability to adapt to process new and different products (variety and product development speed), may come from machines, materials handling, operations, etc. 3. Process: ability to produce a set of various current parts, may come from machines, materials handling, operations, routing, etc. 4. Expansion: The ability to increase/decrease the capacity of a system • Many of the flexibility types are linked to each other • Increasing one flexibility type also increases another, but in some cases tradeoffs between two flexibility types exists.

Achieving Flexibility 1. Technology: e. g. , flexible manufacturing system (FMS) 2. Low set-up time and cost: SMED 3. Multi-skilled workers and versatile processing equipment 4. Reserve capacity 5. Dependable, rapid suppliers 6. Others?

Flexibility and Customization • Customization is the ability to tailor a product or service offering, i. e. , allowing customer preferences to drive production or service offerings and distribution processes. • Mass customization is delivering a customized good or service while achieving cost, speed, and quality objectives. • Flexibility is the key to achieving these objectives while offering customization.