Definition
A Flexible Manufacturing System (FMS) is a production method utilizing equipment that is designed to adapt to varied types of product creation. It combines various types of machines, automated systems, and ability to produce different parts without major retooling, enabling the production line to quickly switch over to produce different products. This method enhances efficiency, reducing production time and cost, and is commonly used in industries that have varying demand.
Key Takeaways
- Flexible Manufacturing System (FMS) is a production method that is designed to easily adapt to changes in the type and quantity of the product being manufactured. This system uses equipment that can be reconfigured and robots that can perform several tasks, allowing for customization and quick switches in manufacturing processes.
- FMS often requires a significant investment but can result in improved production speed, increased productivity, and greater product variety. The system’s flexibility allows businesses to respond swiftly to customer demands and market changes, making it a valuable tool in industries with high levels of competition and rapidly changing technologies.
- Despite its benefits, implementation of FMS requires careful planning and management. It requires skilled operators and maintenance crews, and its efficiency depends to a large extent on the organization and control of manufacturing data. Therefore, an effective FMS plan must integrate both hardware and software systems, taking into account the potential risks and benefits.
Importance
The finance term, Flexible Manufacturing System (FMS), is important as it refers to a production method designed to easily adapt to changes in the type and quantity of the product being manufactured.
This system enhances efficiency, productivity and reduces operational costs by automating and integrating various processes such as material handling, metal cutting, or assembly tasks.
By offering adaptability in the manufacturing process, an FMS can quickly adjust to the demands of customers and market fluctuations.
This leads to improved customer satisfaction, robust inventory management, and better financial performance.
Therefore, it ultimately contributes to the financial stability and profitability of a company.
Explanation
A Flexible Manufacturing System (FMS) is a method employed in the realm of production and manufacturing that aims to respond quickly and efficiently to the changes and variances in product demand. This system utilizes high-speed machinery and equipment, arranged into systems, to achieve adaptable production processes.
The main purpose of a FMS is to produce a variety of products or parts simultaneously, in varying quantities, whilst maintaining top-notch efficiency and minimal waste. This is accomplished by using computer-controlled machines programmed to adapt to the requirements of individual components in real-time.
The utility of a Flexible Manufacturing System is significant in today’s increasingly dynamic market landscape. By having a flexible system in place, manufacturers can shift from producing one product to another without significant setup time or costs.
It allows companies to stay competitive and responsive to customer needs as they can tailor their production to meet the demand for personalized products. Moreover, it enhances productivity, reduces waste, and can lead to higher customer satisfaction, making it a beneficial option for businesses in both the short and long run.
Examples of Flexible Manufacturing System
Automobile Manufacturing: The auto industry is perhaps the most prominent and familiar example of a Flexible Manufacturing System (FMS) in action. Companies like Toyota and BMW utilize FMS in order to precisely tailor their production to meet changing customer demands without compromising on efficiency. Rather than producing large volumes of single models, these companies can quickly shift their production lines to produce different car models based on demand.
Electronics Production: Manufacturers of consumer electronics such as smartphones, laptops, and tablets often employ FMS. Samsung, for instance, is known to deploy FMS in their factories to balance the production of their diverse product lines. When a new model of smartphone is released, the system can be quickly reconfigured to accommodate the new design and its components.
Custom Furniture Production: Companies like IKEA uses FMS to meet the dynamic demands of their customers, offering a wide variety of design, size, and material options. This flexibility allows IKEA to produce customized orders on a large scale without sacrificing cost-efficiency or speed in manufacturing.
Frequently Asked Questions about Flexible Manufacturing System
What is a Flexible Manufacturing System?
A Flexible Manufacturing System, also known as FMS, is a method for producing goods that is readily adaptable to changes in the product being made. It involves both a high initial investment and high maintenance costs, but it is cost-effective for companies producing a large volume of a variety of products.
What are the advantages of a Flexible Manufacturing System?
The main advantages of Flexible Manufacturing System include: higher machine utilization, reduced work in progress, shorter lead times, increased system reliability, and adaptive scheduling. FMS can handle and adapt to any changes in design, thus ensuring a smooth manufacturing process.
What are the limitations of a Flexible Manufacturing System?
Despite its advantages, Flexible Manufacturing Systems have some disadvantages such as: high initial set-up cost, complex machinery which results in high maintenance cost, potential loss in efficiency due to system malfunctions, and it requires skilled workers to operate the machines.
How does Flexible Manufacturing System work?
Flexible Manufacturing System uses Computer-controlled Systems (CCS) for production. It consists of several machines that are interconnected by an automated material handling and storage system, and controlled by an integrated computer control system. When variations in product design change the production process, the system is capable of adapting to these changes in the process.
Who uses a Flexible Manufacturing System?
Flexible Manufacturing System is used by industries that produce high volume and variety of products. It is widely used in the automobile and electronics industries, where a range of different products are produced and rapid production is essential. Other sectors like food and beverage, clothes and textiles, pharmaceuticals also use Flexible Manufacturing System.
Related Entrepreneurship Terms
- Just-In-Time (JIT) Production
- Computer-Integrated Manufacturing (CIM)
- Lean Manufacturing
- Automation
- Mass Customization
Sources for More Information
- Investopedia – A comprehensive source of financial and investment terminology and concepts.
- Britannica – A globally-recognized encyclopedia offering various topics including finance and manufacturing systems.
- Business Standard – An Indian English-language daily newspaper and a reliable source for finance and business information.
- Encyclopedia.com – Free online encyclopedia, provides information on a wide array of topics including Flexible Manufacturing System.
