1. Flexibility

2. 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.

3. 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).

4. 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.

5. 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?

6. 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.