Research on flexible unit systems (FUS) with the context of descriptive, predictive, and prescriptive analysis have remarkably progressed in recent times, being now reinforced in the current Industry 4.0 era with the increased focus on integration of distributed and digitalized systems. In the existing literature, most of the work focused on the individual contributions of the above mentioned three analyses. Moreover, the current literature is unclear with respect to the integration of degradation and upgradation models for FUS. In this paper, a systematic literature review on degradation, residual life distribution, workload adjustment strategy, upgradation, and predictive maintenance as major performance measures to investigate the performance of the FUS has been considered. In order to identify the key issues and research gaps in the existing literature, the 59 most relevant papers from 2009 to 2020 have been sorted and analyzed. Finally, we identify promising research opportunities that could expand the scope and depth of FUS.