Decision-Making in Case of FMS

Another strategic benefit of FMS is that it is able to handle the risk due to uncertainty about the future. It might be done through planning in a way that maintains flexibility of the environment. Though it is impossible to predict the future, one might make estimates of probabilities and proceed in ways to accord along the future. The simple decision tree in figure illustrates the decision-making in case of FMSs governing the choices among three different options based upon the nature of the market.

                                                                                                    Figure: Simple Decision Tree

The primary option is a specialized manufacturing system that performs well in stable market (payoff = 100) since will perform poorly (payoff = 30) if the market is variable. The second choice, the FMS will perform fairly well (payoff = 90) regardless of the type of market. The third option is the job shop that shall perform well in variable (payoff = 100). From the instance, it is clear that an FMS performs less well than a particular option in specific market but proves to be a rather good performer when the nature of market is not defined.

As a result, FMS technology might be termed as an evolutionary step beyond transfer lines that enables the industries to accommodate the rising customer demand and maintain the rapid delivery of customized products. This is the newest wave in attaining greater productivity with instant positive response to both adversities and new opportunities.