Agile manufacturing systems in the automotive industry

In the automotive industry, it is thought that agile manufacturing systems will permit fast cost-effective responses to unpredictable and ever-changing product demand, and support rapid product launches for previously unplanned products tailored to meet changing customer desires. We discuss two simple decision models that provide initial insights and industry perspective into the business case for investment in agile manufacturing systems. The models are applied to study the hypothetical decision of whether to invest in a dedicated, agile, or flexible manufacturing system for engine and transmission parts machining. These decision models are a first step toward developing practical business case tools that help industry to assess the value of agile manufacturing systems. (C) 2003 Elsevier B.V. All rights reserved.