What is Flexibility for Lean Manufacturing?

By Jon Miller Updated on June 29th, 2023

Flexibility is a term that is often used interchangeably with Lean manufacturing. But what does it actually mean, and how does it relate to Lean philosophy?

The Lean blog published an insightful post on Thursday, September 7th titled “Lean and Flexible,” which delves into the relationship between flexibility and Lean manufacturing. Blogger Luke Van Dongen notes that while the term “flexibility” is sometimes used interchangeably with Lean, the two concepts have unique meanings.

According to Van Dongen, flexibility primarily refers to the traditional philosophy of capacity and capital equipment, whereas Lean philosophy emphasizes the ability to quickly and effectively meet customer demands through well-planned customer service policies and production schedules. Overall, the post provides a promising discussion on the topic of flexibility and its significance in the context of Lean manufacturing.

In this article, we’ll explore the concept of flexibility and its role in Lean manufacturing. We’ll look at examples of how flexibility can be both helpful and harmful to manufacturing operations, and discuss the importance of designing systems and equipment that are scalable and adaptable.

What is Flexibility?

At its core, flexibility is the ability to expand or contract in response to pressure. It’s the measure of a company’s ability to respond to changes in demand, whether that’s due to shifting customer preferences, unexpected market forces, or other factors.

For manufacturing executives, flexibility is often included on the list of metrics to focus on, alongside quality, cost, and speed. However, it’s frequently added to the list without being defined in concrete terms.

In practice, flexibility is usually championed by marketing and sales teams, who seek to accommodate customer demands and respond quickly to changes in the market. However, this can sometimes lead to problems on the manufacturing side, as we’ll see in the examples below.

Examples of Flexibility in Action

One company we worked with had a philosophy of “flexibility” which meant they could make whatever the customer wanted, whenever they wanted it. While this approach allowed them to be highly responsive to customer demands, it also resulted in demand swings that made it difficult to keep a steady production schedule. As a result, they kept a significant amount of work in progress at all times, which led to lower productivity, limited cross-training, and higher error rates.

One significant issue that arises when companies focus too heavily on flexibility is the “bullwhip effect.” This term describes the phenomenon of demand amplification up the supply chain, where small changes in customer demand can be magnified as they ripple back through suppliers, manufacturers, and distributors. The result is often erratic demand patterns that make it difficult to forecast and plan production schedules.

Another example of flexibility not aligning with Lean principles is the case of “Flexible Manufacturing Systems” (FMS). These large, expensive machines are designed to perform a wide range of functions, from machining to material handling. While they offer impressive technological capabilities, they are not always the most efficient choice from a production system standpoint. For example, scaling up or down in capacity typically requires adding or subtracting entire FMS machines, which is a costly and inflexible solution.

The Importance of Scalability and Adaptability

In both of the examples above, the lack of scalability and adaptability led to inefficiencies and lost productivity. To truly embrace the spirit of Lean manufacturing, companies need to design systems and equipment that can respond quickly and efficiently to changes in demand.

This means thinking beyond just the manufacturing department and considering the entire value stream, from the end customer to the supply chain and back again. By focusing on making only what the customer is truly buying right now, rather than planning and building capacity based on forecasts, companies can avoid false economies of scale thinking and reinforce customer behavior that values shorter lead times and smaller, more frequent orders.

Ultimately, true flexibility in Lean manufacturing is about designing systems and processes that can deliver Every Product Every X, with X being days, hours, or even minutes. By embracing this philosophy, companies can create a culture of continuous improvement and agility that allows them to thrive in today’s rapidly changing market.

Jon Miller

Jon has dedicated his 25+ year career to the field of kaizen, continuous improvement, and lean management. Jon spent the first eighteen years of his life in Japan, then graduated from McGill University with a bachelor’s in linguistics.

Kristina Hani-Elaoud
June 29, 2023 - 10:00 am
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I am curious to know why Jon did not get a degree in Lean Manufacturing, Business management, or manufacturing?