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The manufacturing profile of flexible and low-cost producers: an empiral study

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  • Vereecke, A.

    ()

  • Pandelaere, E.

    ()
    (Vlerick Leuven Gent Management School)

Abstract

Since the introduction of the concepts of lean manufacturing, agility and mass customization it is questioned to what extent the trade-off between cost and flexibility still holds. It has been the objective of our research to test the trade-off theory empirically using the data of the International Manufacturing Strategy Survey (IMSS). Our research confirms the well accepted manufacturing profile of low cost producers, which typically use a line process, and of flexible producers, which typically produce in a job shop. However, we also observe that some companies manage to overcome the cost/flexibility trade-off, by introducing the concept of postponed manufacturing. These companies are characterized by an assembly-to-order policy of standardized semi-finished products, produced in a line process. Flexibility and low cost are thus obtained by playing with the position of the decoupling point.

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Bibliographic Info

Paper provided by Vlerick Leuven Gent Management School in its series Vlerick Leuven Gent Management School Working Paper Series with number 2004-21.

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Length: 24 pages
Date of creation: 14 Jan 2005
Date of revision:
Handle: RePEc:vlg:vlgwps:2004-21

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Keywords: manufacturing strategy; mass customization; flexibility Note;

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