A quantification of the value of flexibility

Hutchinson, George K.; Sinha, Diptendu

doi:10.1016/0278-6125(89)90019-8

Cited by 60 publications

(18 citation statements)

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“…This is simply inadequate. A variety of suggestions and approaches to deal with the financial justification of investments in flexible technology have been offered in the literature; see, e.g., Myers (1984), Kaplan (1986), Krasa and Llerena (1987), I.ederer and Singhal (1988), Hutchinson and Sinha (1989), Suresh and Meredith (1986), Monahan and Smunt (1987), Buckiey (1987), Choobineh (1988), and Chand and Sethi (1982). The reader may also consult Wallace and Thuesen (1987) for an annotated bibliography on investment in flexible automation.…”

Section: Surveys Of Fmss and Resultsmentioning

confidence: 99%

Flexibility in manufacturing: A survey

Sethi

1990

Int J Flex Manuf Syst

1,338

994

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This article is an attempt to survey the vast literature on flexibility in manufacturing that has accumulated over the last 10 to 20 years. The survey begins with a brief review of the classical literature on fexibility in economics and organization theory, which provides a background for manufacturing flexibility. Several kinds of flexibilities in manufacturing are then defined carefully along with their purposes, the means to obtain them, and some suggested measurements and valuations. Then we examine the interrelationships among the several flexibilities. Various empirical studies and analytical/optimization models dealing with these flexibilities are reported and discussed. The article concludes with suggestions for some possible future research directions.

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Section: Surveys Of Fmss and Resultsmentioning

confidence: 99%

Flexibility in manufacturing: A survey

Sethi

1990

Int J Flex Manuf Syst

1,338

994

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“…Detailed flexibility accounting is part of on-going research. Other attempts to measure flexibility of FMS can be found in Chatterjee et ale (1984), Kumar (1986), upton and Barash (1988), Hutchinson and Sinha (1989, Brill and Mandelbaum (1989), among others. Masuyama (1983) suggests that FMS system flexibility can be captured by two factors, namely, (1) the quick response to a change (Q), and (2) the economical response to the change (E).…”

Section: The Flexibility-competitiveness Connectionmentioning

confidence: 98%

Managing the Flexibility of Flexible Manufacturing Systems for Competitive Edge

Chung

Chen

1990

Selection and Evaluation of Advanced Manufacturing Technologies

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Flexible Manufacturing Systems (FMS) are believed to be a major means productivity.for improving both production flexibility andIf well managed, FMS can be a formidable competitive weapon for manufacturing firms. However, there exists confusion concerning how to define the concept of flexibility. One result is the misconception that flexibility may cause the decline of productivity. This paper reviews the existing studies on flexibility and presents a "flexibility map" which clarifies the relationship between various flexibility concepts and measures.This map also provides a foundation for exploring the issue of how flexibility can contribute to the firm's competitiveness. We further point out the importance of a Total System Flexibility (TSF) concept which considers two important flexibility factors:quickness of response to a change and economic response to the change. A numerical example of routing flexibility is used to demonstrate how flexibility can enhance the competitive or strategic value of FMS. Indeed, total system flexibility can increase rather than reduce productivity, and therefore enhance the firm's competitiveness. M. J. Liberatore (ed.), Selection and Evaluation of Advanced Manufacturing Technologies

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“…Similar modifications derived by inflationary conditions are applied to Pyoun and Choi's formulas in Eqs. (12), (19) and (21) to yield with formulas in Buckley's notations in Eqs. (18), (20) and (22), respectively.…”

Section: Pyoun and Choi's Quantification Of Flexibility Valuementioning

confidence: 99%

“…(2) the intangible parts of flexibility that cannot be quantified in monetary terms can be measured by a surrogate value [8,27,30,32]; and (3) all intangible parts of flexibility can be quantified as far as it is possible in monetary terms [12,25,26,28].…”

Section: Quantification Of Manufacturing Flexibilitymentioning

confidence: 99%