Flexible Manufacturing System - FMS

AAA

DEFINITION of 'Flexible Manufacturing System - FMS'

A method for producing goods that is readily adaptable to changes in the product being manufactured, in which machines are able to manufacture parts and in the ability to handle varying levels of production. A flexible manufacturing system (FMS) gives manufacturing firms an advantage in a quickly changing manufacturing environment.

INVESTOPEDIA EXPLAINS 'Flexible Manufacturing System - FMS'

While an FMS has many advantages, it may not always be the most cost effective method of manufacturing due to the high cost of developing the system and obtaining sophisticated machinery. An FMS may be able to make up for this high cost with greater efficiency and less down time. For example, a traditional manufacturing system may need to halt if a key machine breaks down. However, an FMS may be able to adapt and keep production going during repairs.

RELATED TERMS
  1. Bill Of Materials - BOM

    A comprehensive list of raw materials, components and assemblies ...
  2. Manufacturing Production

    The creation and assembly of components and finished products ...
  3. Manufacturing Resource Planning ...

    An integrated information system used by businesses. Manufacturing ...
  4. Enterprise Resource Planning - ...

    A process by which a company (often a manufacturer) manages and ...
  5. Operational Efficiency

    A market condition that exists when participants can execute ...
  6. Service Mark

    A brand name or logo that identifies the provider of a service. ...
Related Articles
  1. Does High GDP Mean Economic Prosperity?
    Economics

    Does High GDP Mean Economic Prosperity?

  2. A Practical Look At Microeconomics
    Economics

    A Practical Look At Microeconomics

  3. Vital Link: Manufacturing And Economic ...
    Fundamental Analysis

    Vital Link: Manufacturing And Economic ...

  4. Do Cheap Imported Goods Cost Americans ...
    Economics

    Do Cheap Imported Goods Cost Americans ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center