Flexible Manufacturing System - FMS


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.

BREAKING DOWN '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.

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  2. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  3. How much working capital does a small business need?

    The amount of working capital a small business needs to run smoothly depends largely on the type of business, its operating ... Read Full Answer >>
  4. What does high working capital say about a company's financial prospects?

    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
  5. How can working capital affect a company's finances?

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