Flexible Manufacturing
Ashlee Choman
Annalisa Scotto
Sara Weron
Operations Management and
Flexible Manufacturing
“A form of computer-integrated manufacturing
used to make small to moderate-sized batches
of parts.”
 According to MIT study: American companies
spend twice as much on product innovation as
they do on process innovation
 Operations Management and Flexible
Manufacturing


Why do we need flexible manufacturing?
The Need for Flexibility
 Flexibility
 Cost
savings
 Efficiency
 Mass production
 Time
 Flexibility today means quickness in
delivery and high quality at reasonable
prices.
Issues
 Customizability

Adapt to changing environments; become
more flexible
 Quality
and Quantity
 Cost Savings
 Mass Production
Advantages
 Faster,
lower cost products
 Lower direct labor costs
 Consistent and better quality
 Reduces errors and rejects = Higher Six
Sigma
Disadvantages
 Limited
capacity of machinery (logic)
 Substantial pre-planning
 Expensive machinery
 Sophisticated manufacturing systems
mean expensive programs to train
employees
Sustainable Competitive Advantage
 Customizability-
Companies have to adapt
to the environment in which they operate
to be more flexible in their operations and
to satisfy different market segments
 Thus the innovation of FMS became
related to the effort of gaining a
competitive advantage.
Sustainable Competitive Advantage
 …We
produce more, at a better
price, with a higher quality…

Car companies make many models of cars in
great time in order to meet customer needs
History of Flexible Manufacturing

In the beginning, there was not much
competition and so FM systems were not
needed.


“People can order any color of car as long as it is
black.” Henry Ford
After WWII, market focused on consumer (not
manufacturer)
 The first FM system was patent in 1965 by Theo
Williamson who made numerically controlled
equipment
History (Cont’d)
 Change
in manufacturing over time
 60’s- Efficiency in manufacturing
 70’s- Efficiency and quality
 80’s- Efficiency quality and flexibility
 Due To:



Increased international competition
The need to reduce manufacturing cycle time
and
Pressure to cut production costs
Recent Trends- Renault
 “All
major car makers will switch to flexible
manufacturing within 7 years”- Greg
Gardner (US manufacturing specialist,
Troy, Michigan)
 Renault integrated manufacturing system
will build 3 platforms, 6 body styles, on
one line
Recent Trends - Renault
 Renault


is the latest to choose flexibility
RIMS aims at producing multiple models on
one assembly line
First RIMS will open in 2009 in India
• Used by Nissan, Renault and Mahindra (Indian)

Renault CEO Carlos Ghosn says the RIMS
will half R&D costs between 2006 and 2009
and increase sales from 2.5 million to 3.3
million in 2009
Recent Trends

Flexibility gives option to adjust to changing
environment



Not a simple task
Very costly
One car per one plant systems does not cut costs if
plants are being under utilized
• i.e.-Car models are not as popular

The alternative to flexibility would be to increase
manual labor and individualization while
increasing time to market

Cheaper, but does not provide SCA
Recent Trends
 In
2007, KUKA”Titan” became world’s
strongest robot


Power of mid-sized car
Builds parts for automotive industry
• i.e.- capable of moving whole cars

July 7, 2005- joined forces with auto
companies to develop new flexible
manufacturing processes for aerospace
industries
www.kuka.com
What is Flexible Manufacturing?

“A form of computer-integrated manufacturing
used to make small to moderate-sized
batches of parts.”
• Communication
• Technique
• Cost
• Jobs
Evidence of Everyday Use
 Audi
 Jeep
 General
Motors
 Microsoft
 McGraw- Hill
Why Choose Flexible
Manufacturing?
 Competitive




Quick and Easy
Expensive Initial Cost
Low Cost to Change Design
Keep Up With Competitors
 What



Market
Makes This Approach Better?
Computer Does The Work
User Friendly
Cost Efficient
Discussion Of Flexible
Manufacturing
 Basic


Mechanics
Computer Designed Work
No Need For New Equipment
 Issues



With Flexible Manufacturing
Costly
Time and Complexity
Not Guaranteed
ATI Industrial Automation

Leading engineering-based world developer of
robotic accessories that include:







Robotic tool changers
Force/torque sensors
Robotic collision sensors
Robotic and CNC Deburring Tools
Remote center compliance devices
Robotic rotary joint
http://www.ati-ia.com/library/video_listing.aspx
Robotic Accessories

Used by:

Automotive Firms
• Chrysler Group

Medical Facilities
• John Hopkins University
Honda

Reduces time and resources with flexible
manufacturing
 Operates in unprecedented level of flexibility to
meet customer demand
 Company added production of cars to existing
plants due to flexible manufacturing


Increased annual North American production
capability for Civics by 60,000 units
Restored Alabama plant to annual capacity of
300,000 vehicles
Flow Corporation
 Waterjet







Cuttin System
Cuts greater variety of materials
Setup and fixturing is complete in minutes
Different jobs do not require different tooling
Increases productivity
Edge quality eliminates costly secondary
finishing
Raw material savings
Compliments existing technology
Waterjet Cutting Technology
 http://www.youtube.com/watch?v=Jn7v65
ZhhW4
 Used by:

Metal intensive firms
• The Wagner Companies

Airline Industry
• Boeing Commercial Airplane Group
Orange County Choppers
 Founded
by metalworker Paul Teutul, Sr.
 Designed custom choppers
 Implemented Flow’s waterjet in 2003
 Priceless machine
 Opened new design possibilities for OCC
 Easy to use
 Allows more bikes to be built in shorter
period of time
Contrast Company
 Indian




Larry Motorcycle Company
Custom builds each bike
Relies on craftsmanship
Tools, not computers
Prides on legacy
Conclusion
 How
is the new approach better?
 How does it make it more
competitive?
 What’s the advantage?
 What are the drawbacks?
 Recommendations
Questions or
Comments?
Sources Used

www.answers.com
 www.audi.com
 www.ati-ia.com
 www.flowcorp.com
 www.gm.com
 www.kuka.com
 www.jeep.com
 www.microsoft.com
 www.mcgraw-hill.com






www.uky.edu
www.orangecountychoppers.co
m
www.search.eb.com
www.wagnercompanies.com
www.world.honda.com
De Saint-Seine, Sylviane.
Renault Plants Get Flexible.
Automotive News Europe.