The impact of flexible manufacturing systems on productivity and quality

Worldwide competition and the pace of technological innovation will not permit distraction from industry´s primary task: producing quality products at competitive prices. A flexible manufacturing system (FMS) provides a good means of improving this situation. Nevertheless, an FMS implementation usually costs an organization millions of dollars, and the long payback period for an FMS may hinder management from adopting this technology. It is therefore necessary that both financial and strategic benefits produced from the acquisition of an FMS be evaluated on a long-term basis. Flexible manufacturing systems are widely claimed to positively impact productivity and quality. From an extensive search and analysis of empirical studies, propositions regarding issues of flexibility, productivity, and quality are presented. Major findings show FMS investment leading to reduced labor costs, increased output, decreased manufacturing costs, increased flexibility, and reduced production lead time