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MANUFACTURING ANALYSIS:HOW MUCH FLEXIBILITY? In addition to production systems that fabricate very high quality products,at low cost,and with ultrarapid delivery,many strategic planners and economists point to the need for flexibility. Publications from Japan(Yoshio,1994。Ohsono,1995)express a similar view,and the more recent parative surveys on automobiles indicate thatnow that others are closing the quality gap,the Japanese have to pete in other areas(see Rechtin,1994。and the annual J. report series).Emphasis is thus place on these bined factors of quality,cost,delivery,and flexibility(QCDF).The ability to react to smaller lot sizes and the quest for ultrarapid delivery are major conconcerns,culminating in the possbility of a threeday car(Iwata et al.,1990_. In an ideal situation,once the various market sectors have been established,production will settle into a groove and be constantly refined and improved but with no major ,in recent years,manufacturers have not been able to rely on long periods of uninterrupted production because events in the world economy have forced rapid changes in consumer demand and the range of consumer preferences. Henry Fords favorite aphorismthat his cutomers could have any color of car they wanted as long as it was blackis in sharp contrast to today39。s range of consumer has led to the proposal by some academics that manufactering can be built for customized mass production.This sounds nice on first ,for products like automobiles,the degree of customization can go only so far for a given batch size and price hyperwealthy CEOs and movie stars can get precise customization in products like automobiles. Nevertheless,an ability to be prepared for any sudden market shifts is being more of an new equipment is purchased,manufacturing panies must decide between harware that is dedicate to only a few tasks and is thus relatively inexpensive,and more costly but more versatile equipment that might perform unforeseen tasks in the methodologies for analyzing capital expenditures,returns=oninvestment(ROI),and depreciations are given in many texts (see Parkin,1992). these can be used to analyze the ROI for new machinery that has been identified as useful and is therefore about to be ,since today39。s market trends are so uncertain,such analyses do not help to predict the specific systems to install in the firt hope is that some of the engineering solutions will provide much more flexible machinery for only a modest increase in cost(Greeenfeld et al.,1989).In this way,the investment dilemna might be less critical. The preceding discussions emphasize that flexibility is a main challenge for the continued growth of a mew main question is:Can a design and fabrication system that is first set up to respond to one market sector be quickly reconfiqured to respond to the needs of another market sector,or even another product,and be just as efficient? Today,the answer to this question isprobably not.For example,if a machine shop is well equipped with lathes but has no vertical boring machines,there will be a natural limit on achievable is unlikely that it will be able to suddenly jump from truck transmissions to helicopter even in the reverse scenario,if a shop has dedicated itself to precision is unlikely that the equipment and the craftspeople will be able to br quickly redeployed in a costeffective manner to routine production procedures and less demanding tolerances。their petitive advantage would be same parisons can be made for semiconductor who are currently focusing on the highvolume production of memory chips will not readily switch to applicationspecific devices or vece