# Flexible Manufacturing System (FMS): Adaptability & Efficiency in Production

![Flexible Manufacturing System (FMS): A production method that is designed to easily adapt to changes in the type and quantity of the product being manufactured.](https://www.investopedia.com/thmb/ZRBrJfYLNuNaRz4NFXx7tDBMPmI=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/Flexible-manufacturing-system_final-4d92852c5c5c4743874ac6be187c4eeb.png)

*— Investopedia / Michela Buttignol*

## What Is a Flexible Manufacturing System (FMS)?

A flexible manufacturing system (FMS) is designed up front to be readily adapted to changes in the type and quantity of goods being produced. It allows for a make-to-order production strategy. An FMS enhances efficiency and reduces production costs, and its automated nature reduces labor costs. However, it requires a significant initial investment as well as skilled technicians. The FMS concept was pioneered by American inventor Jerome H. Lemelson in mid-20th century.

### Key Takeaways

*   Flexible manufacturing systems (FMS) can adapt to changes in product type and quantity effectively, enhancing production efficiency.
*   FMS automation reduces labor costs but requires significant initial investment and skilled technicians.
*   Jerome H. Lemelson, an American inventor, pioneered the concept of flexible manufacturing in the 1950s.
*   FMS technology supports make-to-order strategies by allowing product customization and minimizing inventory levels.
*   FMS reduces downtime by eliminating the need to shut down and set up production for different products.

## How Flexible Manufacturing Systems Enhance Efficiency

A flexible manufacturing system (FMS) can improve efficiency and reduce [production costs](https://www.investopedia.com/terms/p/production-cost.asp), which are crucial concerns in [the process of business development](https://www.investopedia.com/articles/personal-finance/090815/basics-business-development.asp). Flexible manufacturing supports a [make-to-order](https://www.investopedia.com/terms/m/make-to-order.asp) strategy, enabling customized products and [low inventory levels](https://www.investopedia.com/ask/answers/040215/what-are-main-benefits-jit-just-time-production-strategy.asp). This flexibility often involves higher upfront costs. Buying and installing specialized equipment can be more expensive than traditional systems.

The concept of flexible manufacturing was developed by Jerome H. Lemelson (1923–1997), an American industrial engineer and inventor who filed a number of related patents in the early 1950s. His original design was a robot-based system that could weld, rivet, convey, and inspect manufactured goods.

Lemelson didn’t build his system; at the time, building it wasn’t feasible. Eventually, however, it became possible to build one, and the FMS debuted on factory floors in the United States and Europe in the late 1960s and started to proliferate in the 1970s.

An FMS may have interconnected workstations with computer terminals for the [complete](https://www.investopedia.com/terms/e/end-to-end.asp) product creation process. It can manage functions like loading, machining, storing, and testing. The system can be programmed to switch automatically between different product batches.

> **Important**
>
> Flexible manufacturing is vital for a make-to-order strategy, enabling customers to order customized products.

## Weighing the Pros and Cons of Flexible Manufacturing Systems

The main benefit is the enhancement of [production efficiency](https://www.investopedia.com/terms/p/production_efficiency.asp). Downtime is reduced because the [production line](https://www.investopedia.com/terms/a/assembly-line.asp-0) does not have to be shut down to set up for a different product.

Disadvantages of an FMS are higher initial costs and more time to design system specifications. Specialized technicians add further expense. However, advocates of FMS maintain that the increase in automation typically results in a net reduction in [labor costs](https://www.investopedia.com/terms/c/cost-of-labor.asp).

### Pros and Cons of an FMS

Pros

*   More efficient production leads to longer-term savings.
    
*   Quickly adapts to changing needs and customizations.
    

Cons

*   An FMS has higher upfront costs and takes time to set up.
    
*   An FMS requires specialized technicians, which may increase labor costs.
    

## How Is a Flexible Management System (FMS) Set Up?

An FMS may be set up in a number of ways. After all, its main lure is its adaptability. One configuration might involve interconnected computer workstations that process the end-to-end creation of a product. This starts with loading/unloading functions and proceeds to machining and assembly, storing, quality testing, and data processing. The FMS programming can automatically switch from one set of products in a certain amount to another set in a different amount.

## What Are the Benefits and Drawbacks of an FMS?

The main benefit of an FMS is that it makes production more efficient. Delays are reduced, as production doesn’t have to be shut down to set up for a different product.

Drawbacks include higher up-front costs and the greater time required to design the system specifications for a variety of future needs. There is also an additional cost for the specialized technicians who work the FMS.

Nevertheless, the system’s automation generally leads to an overall reduction in labor costs.

## Who Invented the FMS?

Jerome H. Lemelson (1923–1997), an American industrial engineer and inventor, is credited with developing the concept of flexible [manufacturing](https://www.investopedia.com/terms/m/manufacturing.asp). His initial design featured a robot-based system that could weld, rivet, convey, and inspect manufactured goods. Systems based on his design began showing up on factory floors in the United States and Europe in the late 1960s, becoming even more popular in the 1970s.

## The Bottom Line

A flexible management system (FMS) is used in manufacturing industries to quickly adapt a production line to changes in the product being manufactured. It offers a manufacturing solution for make-to-order, custom product strategies. An FMS can increase production efficiency despite having to deal with different product types and quantities. It reduces downtime and labor costs due to automation. However it has higher initial costs than a fixed system due to the need for specialized equipment. Plus specialized technicians are required to maintain it. American inventor Jerome H. Lemelson developed the concept of flexible manufacturing.  

> **Article Sources**
>
> 1.  Smithsonian Institution. "[Jerome Lemelson](https://invention.si.edu/jerome-lemelson)."