Defense and aerospace industries usually possess unique high-mix low-volume production characteristics. This uniqueness generally calls for prohibitive production costs and long production lead-time. One of the major trends in advanced, smart manufacturing is to be more responsive and better readiness while ensuring the same or higher production quality and lower cost. This study reviews the state-of-the-art manufacturing technologies to solve these issues and previews two levels of flexibility, i.e., system and process, that could potentially reduce the costs while increasing the production volume in such a scenario. The main contribution of the work includes an assessment of the current solutions for HMLV scenarios, especially within the defense of aerospace sectors, and a survey of the current and potential future practices focusing on smart production process planning and flexible assembly plan driven by emerging techniques.