Close this search box.

Table of Contents

Flexible Manufacturing Systems (FMS)


Flexible Manufacturing Systems (FMS) refer to a method of producing goods that is readily adaptable to changes in the product being made. It involves the use of machines capable of performing a wide range of tasks along with a system for delivering parts to different machines. In essence, FMS is about optimizing production processes to handle diverse and changing customer demands efficiently.


Flexible: /ˈflɛksɪbəl/Manufacturing: /ˌmæn.jəˈfæk.tʃər.ɪŋ/Systems: /ˈsɪs.təmz/FMS: /ˌef.ɛmˈes/

Key Takeaways

<ol><li>Efficiency: Flexible Manufacturing Systems (FMS) provide businesses with the ability to quickly adapt to changing market demands, leading to improved lead times, productivity and efficiency in manufacturing processes.</li><li>Cost Savings: By using an FMS, companies can significantly reduce costs associated with manual labor, machine maintenance, and inventory management. This can result in significant cost savings over time.</li><li>Quality Control: FMS allows for constant, real-time monitoring of the production process which ensures high standards of quality control. Any inconsistencies or problems can be identified and corrected immediately, preventing the production of defective products.</li></ol>


Flexible Manufacturing Systems (FMS) are critical in the business and finance realm as they bring about improved efficiency and productivity in production processes. FMS provides a system where there’s significant adaptability in managing diverse types of products in varying volumes, enabling a business to respond swiftly to changing customer demands. This flexibility increases the utilization of resources, minimizing waste, and reducing costs, leading to better profit margins. Simultaneously, it supports the production of custom-made products, enhancing a company’s competitive advantage. Therefore, FMS signifies an essential component in strategic manufacturing, making businesses more sustainable and profitable.


Flexible Manufacturing Systems (FMS) serve a key purpose in many industries, particularly where there is need for a versatile and adaptable production process. The main aim of an FMS is to efficiently manage and carry out tasks such as machine loading, production scheduling, part routing and tooling, with reduced human intervention. It enables companies to easily adjust and respond to changes in production requirements, reducing the need for large inventories, thus minimizing waste and saving costs. The flexibility of these systems allows organizations to quickly shift between different product types, enabling them to fulfill varying demands and custom orders, enhancing customer satisfaction.In addition, FMS can dramatically improve production efficiency and speed, thus enabling businesses to meet market demands quickly and effectively. The integration of advanced software and automated equipment in FMS not only diminishes the likelihood of error occurrences but also boosts productivity. The use of programmable automation and computerized controls means that companies can run production on a 24/7 basis, optimizing capacity utilization. Overall, with the ability to maintain production flow, minimize waste, and seamlessly adapt to changes, Flexible Manufacturing Systems have become an invaluable tool in today’s fast-paced, customer-focused manufacturing environment.


1. Automotive Industry: In automobile manufacturing companies like Toyota, they greatly utilize Flexible Manufacturing Systems. Their production lines are set up in such a way that they can easily switch from making one model of vehicle to another without requiring significant downtime. This increases efficiency and allows Toyota to respond quickly to changes in market demand or to introduce new models.2. Electronics Industry: Apple Inc.’s network of manufacturers businesses utilize flexible manufacturing systems. This allows them to respond rapidly to changes in product design or customer demand. For example, if a new iPhone model is being released, the company can swiftly shift its manufacturing processes to focus on the new product with minimal time wastage.3. Aerospace Industry: Companies such as Boeing utilize FMS in the manufacturing of airplane parts. This automated system allows for the production of a variety of parts on the same system without needing to stop and restart the process. For instance, it enables the quick production of different airplane models by easily adjusting to the specific needs of each model. With the flexible manufacturing system, Boeing can improve efficiency and reduce lead times, making their business more cost-effective and responsive to customer needs.

Frequently Asked Questions(FAQ)

What is a Flexible Manufacturing System (FMS)?

A 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.

What are the key components of a Flexible Manufacturing System?

FMS includes a few key components such as Computer Numerically Controlled (CNC) machines, Robots, Material Handling Systems, and Computer Control Systems.

What are the benefits of using a Flexible Manufacturing System?

FMS can lead to decreased production time, increased operational efficiency, lower production costs, improved product quality, and a higher volume of production customization.

What industries often use Flexible Manufacturing Systems?

Industries such as automotive, aviation, electronics, and furniture manufacturing often employ FMS to adjust quickly to new production lines or changes in existing products.

Are Flexible Manufacturing Systems expensive to implement?

Initial implementation of a Flexible Manufacturing System can be expensive, but it often results in significant savings over time through increased efficiency and productivity.

How does a Flexible Manufacturing System (FMS) handle different production scenarios?

FMS has the flexibility to manage different production scenarios. It can cater to both high product mix with low volume and low product mix with a high volume.

Can FMS improve overall manufacturing efficiency?

Yes, FMS can improve both manufacturing efficiency and productivity by reducing setup time, improving routing flexibility, and minimizing unnecessary workflow.

Is staff training necessary for the implementation of a Flexible Manufacturing System?

Yes, effective implementation of FMS requires staff to be trained. They need to understand the operation and maintenance of the system to maximize its benefits.

How does FMS contribute to supply chain management?

FMS improves responsiveness to changes in market demand and reduces lead time, allowing for an effective and efficient supply chain management.

Can FMS accommodate customized products?

Yes, a key feature of FMS is its ability to efficiently switch from creating one product to another, allowing for customization according to the demands.

Related Finance Terms

  • Computer-Aided Design (CAD)
  • Automated Guided Vehicles (AGVs)
  • Computer Numerical Control (CNC) machines
  • Robotics in manufacturing
  • Lean manufacturing

Sources for More Information

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More