Literature Review on FMS

Market flexible customizing system (MFCS) of Japanese vehicle manufacturers: An analysis of

Toyota, Nissan and Mitsubishi

TakahiroTominoaYoungwonParkbPaulHongcJames JungbaeRohc
https://doi.org/10.1016/j.ijpe.2008.12.002Get rights and content

Abstract
Many studies on Japanese manufacturing practices have rarely compared how different Japanese vehicle manufacturers implement market
flexible customizing system (MFCS). This study compares the collaborative practices of Toyota, Nissan and Mitsubishi in terms of how they
integrate changing market demand information into their production plans. From 2001 to 2008 a research team has engaged in-depth interviews
of eleven executives from Toyota, Nissan and Mitsubishi and five executives from their suppliers. Such longitudinal approach was to examine the
evolving sets of management philosophies and manufacturing practices. The results of this study suggest a few interesting findings. First, as an
improvement of flexible manufacturing systems (FMS) in 1980s, Japanese vehicle manufacturers have been adopting MFCS which integrates
long-term market-driven production planning with short-term customer-specified order demands. Second, Toyota, Nissan and Mitsubishi
combine make-to-plan (MTP) with make-to-order (MTO) and implement incentive practices for their suppliers and manage inventory risks.
Third, Toyota implements a few days shorter market responsive production practices than Nissan and Mitsubishi. This difference in “a few days”
characterizes Toyota's organizational capabilities in the form of highly flexible customizing system. This study suggests that three Japanese
vehicle manufacturers (Toyota, Nissan, and Mitsubishi) continue to implement MFCS as a way of securing their competitive advantages around
the world.

Chrysler shifting to Japanese method of 'flexible

manufacturing'
Daimler Chrysler AG's Chrysler Group is revamping its manufacturing process in the hopes of saving
billions of dollars in development and production costs.

Staff
SEP 01, 2005

The Dodge Caliber concept car, a version of which will be built at Belvidere, Ill.

For nearly a decade, Japanese automakers including Toyota Motor Corp. and Honda Motor Co. have been using
"flexible manufacturing" to build three or more different models in a single plant. At some plants in Japan,
Toyota and Honda produce as many as six different models per assembly line. Now, rising costs are forcing
Chrysler, GM, and Ford to adopt similar methods.

Key to Chrysler's new process is a new generation of stronger, less expensive robots that can carry, hold and
pass on large structural auto parts such as side panels, roofs and underbodies. Industry observers say robots are
now more like commodities that can be assembled with off-the-shelf parts, including stronger electric motors
that can lift heavier loads. Ten years ago, a robot that could lift a 330-lb part cost about $80,000; today one
that lifts 495-lb parts costs about $30,000.

These new robots should allow Chrysler to do away with the stationary equipment used to hold metal parts
while they are being welded—equipment that often costs hundreds of thousands of dollars.

The process will be initially used this fall at Chrysler's plant in Belvidere, Ill. The point of the retooling is to
have plants operate at close to maximum capacity, a big factor in increasing profitability.

The fragmentation of the U.S. vehicle market makes it difficult to sell all of a typical plant's production (roughly
200,000 to 240,000 vehicles a year) when all those vehicles are the same model. The new approach would
reduce output of a single model to 75,000 to 100,000 per plant. The Belvidere plant will use flexible
manufacturing to build a new compact hatchback and two small Jeeps. Next, Chrysler plans to install the
process in its Sterling Heights, Mich. plant, eventually expanding it to 12 other North American plants.

Why Flexible Assembly Systems Are Fundamental

Uncertainty may exist regarding demand, product prices, product mix and availability of resources. Uncertainty
may arise from the actions of competitors, changing consumer preferences, technological innovations, new
regulations, etc.
Thus, manufacturing flexibility clearly has major implications for a firm's competitive strength and can improve it
considerably. This importance of manufacturing flexibility makes it an imperative to include it as a part of the firm's
strategy.

Flexible Manufacturing Systems

Published on Feb 15, 2021

Abstract
Flexible Manufacturing Systems or FMS combine several production technologies to manufacture a wide
variety of parts in random order by machine rather than manual labor. Basically, FMS is a combination of
machine tools, material handling equipment, computer components and software. Its major applications
lay in the metal working industries.

However, FMS may also be appropriate for any batch manufacturing situation where the variety of parts
produced is high and/or the product mix is variable.

Overview

The two major types of metalworking machine tools are cutting (shape or surface-work metal by
removing metal) and forming (form metal under pressure). The functions of these tools have not
changed over the years but the methods of control have changed dramatically.

If correctly designed and implemented, flexible manufacturing offers the following benefits:

1.Greater labor productivity. Fewer workers requiring specialized education and skills.

2.Greater machine efficiency. Fewer machines, less floor space and less space for operator movement.

3.Improved quality. Less waste because on-line gauging allows immediate feedback and adjustment of
the manufacturing process.

4.Increased system reliability. Intelligent, self-diagnosing controls decrease the time required to identify
and correct hardware problems.

5.Reduced parts inventories. A key feature of flexible manufacturing is its ability to economically
accommodate different batch sizes - even down to a run of a single part.

6.Improved scheduling capabilities. These allow rapid response to changes in product design and
production scheduling, the ability to conform to just-in-time scheduling, and reduced lead times.

7.Adaptability to CAD/CAM operations. The digital specifications developed by Computer Aided

Design/Computer Aided Manufacturing systems can serve as inputs to the process.

8.The first major development was numerical control (NC), introduced commercially in the United States
in the 1950s. Originally these used special purpose control circuits, followed by the programmable
control (PC). More recently, control circuits have been built using general purpose computer modules or
chips and are referred to as computer numerical control (CNC) systems.

9.A key feature of flexible manufacturing is its ability to economically accommodate different batch sizes
- sometimes down to a run of a single part.

Origin of the Toyota Production System A production system fine-tuned over generations
Roots of the Toyota Production System

The Toyota Production System (TPS), which is based on the philosophy of the complete elimination of all waste in pursuit of the most
efficient methods, has roots tracing back to Sakichi Toyoda's automatic loom. TPS has evolved through many years of trial and error to
improve efficiency based on the Just-in-Time concept developed by Kiichiro Toyoda, the founder (and second president) of Toyota Motor
Corporation.

Waste can manifest as excess inventory, extraneous processing steps, and defective products, among other instances. All these "waste"
elements intertwine with each other to create more waste, eventually impacting the management of the corporation itself.

The automatic loom invented by Sakichi Toyoda not only automated work that used to be performed manually, but also built the capability to
make judgments into the machine itself. By eliminating both defective products and the associated wasteful practices, Sakichi succeeded in
rapidly improving both productivity and work efficiency.

Kiichiro Toyoda, who inherited this philosophy, set out to realize his belief that "the ideal conditions for making things are created when
machines, facilities, and people work together to add value without generating any waste." He conceived methodologies and techniques for
eliminating waste between operations, between both lines and processes. The result was the Just-in-Time method.

Via the philosophies of "Daily Improvements" and "Good Thinking, Good Products, TPS has evolved into a world-renowned production
system. Even today, all Toyota production divisions are making improvements to TPS day-and-night to ensure its continued evolution.

The Toyota spirit of monozukuri (making things) is today referred to as the "Toyota Way." It has been adopted not only by companies in
Japan and within the automotive industry, but in production activities worldwide, and continues to evolve globally.

What Gaps Still Remain?

While a leveraged Flexible Manufacturing System offers many appealing advantages to a manufacturer, there still remain several

disadvantages and qualifiers to this production approach. Foremost is the initial design and establishment of the FMS. Considerable

time investment is needed to understand the current production state and to spec out the criteria for the FMS. On top of which,

extensive capital must be spent to build and install both the physical and digital infrastructure of the FMS.

Relatedly, a Flexible Manufacturing System is best applied initially across a relatively narrow band on the product mix - product

volume chart. Any somewhat large swings in a company’s product mix or product requirements could quickly exceed capability of its

FMS to adapt. This could force additional investment within the FMS to accommodate the demand changes. If an organization has

not fully matured, this process could repeat itself multiple times.

Lastly, the complexity of a Flexible Manufacturing System can create challenges for some potential adopters. Some firms may find

that the technological capability of an FMS exceeds the processing needs of their products, especially in light of other barriers to

implementation such as cost and lead time. The sophistication of an FMS may also require companies to make additional

investments beyond the system itself; leveraging FMS could also drive further expenditures on technical literacy and training for

support resources, as well as increased maintenance and energy costs over traditional production cells.

What’s the Best Path?

While Flexible Manufacturing Systems bring a host of benefits, these systems and particularly their implementation, also raise

several concerns. Fortunately, whether these are financial hang ups or questions of organizational maturity, there are other means

by which companies can achieve similar results. For those seeking to make targeted improvements to equipment availability and
utilization, Lean Execution Systems (LES) such as Leading2Lean (L2L) provide an intermediate measure between current state and

broad FMS deployment.

LES are designed to uncover and drive change across all plant processes, through the classification and capture of details for each

unique event type desired. Not only do these include all the factors that an FMS may address – changeovers, material handling, etc.

– but it further encompasses all site processes, production and otherwise. These events can be entered manually, though L2L as an

LES provide for easy integration, so events can be logged automatically from production machine and sensor conditions.

LES reporting can then be used to analyze and expose the true systemic issues affecting productivity. While availability and

productivity elements will be represented, they may be interspersed with other unconsidered but equally impactful issues. Taking a

Pareto approach, the major contributor can be targeted for improvement, with a deep dive root cause investigation being retained

also in the LES. Repetition of this process will incrementally improve process performance and stability to the point that FMS

implementation is a logical investment instead of a potentially costly gamble. 

Abstract
Flexibility refers to the capability of a manufacturing system to respond cost effectively and arbitrarily to adapting production needs
and necessities. This ability is becoming increasingly important for the design and operation of manufacturing systems, as these
systems do function in highly variable and unpredictable environments. In this chapter, the reliability of the flexible manufacturing
system has been calculated based on the mathematical framework. The model of the system consists of the system structure and
the distribution of its components. The components are assumed to be repairable after various types of failures. In this work, the
reliability and availability have been analyzed by using Markov process, Laplace transformations and supplementary variable
techniques. Furthermore, the impacts of various failures on reliability, and availability of the system have also been analyzed.
Chapter Preview

Flexible Manufacturing Systems

Published on Feb 15, 2021

Flexible Manufacturing Systems or FMS combine several production technologies to manufacture a wide
variety of parts in random order by machine rather than manual labor. Basically, FMS is a combination of
machine tools, material handling equipment, computer components and software. Its major applications
lay in the metal working industries. However, FMS may also be appropriate for any batch manufacturing
situation where the variety of parts produced is high and/or the product mix is variable.
If correctly designed and implemented, flexible manufacturing offers the following benefits; Greater labor
productivity, Greater machine efficiency, Increased system reliability, Reduced parts inventories,
Improved scheduling capabilities, Adaptability to CAD/CAM operations. More recently, control circuits
have been built using general purpose computer modules or chips and are referred to as computer
numerical control (CNC) systems. A key feature of flexible manufacturing is its ability to economically
accommodate different batch sizes - sometimes down to a run of a single part.