The literature typically assumes that an FMS consists of a number of machines of diOE erent processing capability. Furthermore, in view of the inherent¯exibility of an FMS, many researchers believe that`¯exible' implies that a wide variety of parts can be, and should be, processed simultaneously in an FMS. To do otherwise will inevitably mean some machines are idle and hence the FMS may become a tremendous waste. This paper is an attempt to study this issue. Unlike a job shop, which is typically an eclectic collection of machines of diOE erent process capabilities, most¯exible manufacturing systems consist of only one or two types of versatile programmable machines. We contend that the FMS machines are analogous to the multi-skilled workers in lean production. In lean production, workers work in teams. It is common for each team to work on one job at a time, from start to ® nish. Jobs are not passed around from worker to worker. Likewise, machines in an FMS can be assigned into`teams', where each`team' is dedicated to process a single part type (or family) at a time. Parts do not necessarily have to move from machine to machine in a job shop manner.