Economics and success factors of flexible manufacturing systems: The conventional explanation revisited

This article analyzes costs and relative benefits of several hundred flexible manufacturing systems (FMSs) in the world. The analyses are based on the computerized data bases, which make it easy to correlate different cost and benefit indicators with each other and to look for regular patterns and tendencies in the applications. Both investment cost distributions and the system complexity distributions are analyzed. The relative benefits and advantages and their relationships are shown. Finally, technical and economic explanations for successful implementation strategies are given. The results show that there are two classes of economically successful systems. The small-scale and technically compact systems are usually used in small-batch production for the replacement of semimanual production. The main benefits are increased capacity and productivity as well as quality improvements. The large-scale and technically complex systems are used in large-volume production for the replacement of fixed automation and transfer lines. The benefits are mainly due to the increased potential for flexibility and capital savings.