Total Operations Solutions

Foundation 12: Flexibility and Lean Processes

Foundation 12: Flexibility and Lean Processes

Encouraged by the Japanese investment in flexibility and their success in the just-in-time strategy, flexibility has become one of the most fashionable of manufacturing virtues. However, it also created confusion and ambiguity in the Western world. There are instances of failures during the 1980s and 1990s where companies invested in sophisticated FMS (flexible manufacturing systems) in pursuit of flexibility. At the other end of the scale all the attention was given to organizational flexibility (e.g. cultural and skills integration between craftsmen and operators), producing limited success. Recognizing a closer link between lean processes there is a huge interest in the service sector; also how to optimize the benefits of lean processes for a faster response to customer demand. It is important to clarify what we mean by flexibility in operations, what we mean by lean processes and how they are linked to flexibility, why we need flexibility and how we can improve flexibility.

What is Flexibility?

Flexibility in manufacturing is the ability to respond quickly to the variations of manufacturing requirements in product volume, of product variety and of the supply chain.

The variability in volume is demonstrated by product launching, seasonal demand, substitution and promotional activities. The changes in variety relate to increased number of SKUs (stock keeping units) in new products, distributors' own brands (DOB), etc. The variations in the supply chain result from variability of lead times of both suppliers and customers, increased service level, change in order size, etc.

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