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22 1. l ,22. 22 is a contour of constant production rate. 67. The advantage of using 70 machines, lies in the greater flexibility of the system with respect to production rate. It is possible to expand the production rate to 56 PPH with 70 machines (a horizontal line drawn at number of machines = 70 intersects the 56 PPH contour), but it is not possible to do so with 29 machines. This example emphasizes the importance of a quantitative understanding of manufacturing attributes, in making manufacturing decisions (in this case, deciding on the number of machines and their operating speeds).

If the probability of change is low, then POC will again be low, even if the penalty for change is relatively high. This reflects the fact that a system should not be considered in flexible when it has a high penalty for changes, which have little probability of occurring. By the same token, a system should not be considered much more flexible than another system having a minimal penalty for changes, when those changes have little probability of occurring. The value of POC is based on two inputs: penalty for potential change and probability of potential change, where change is a transition from one "state" to another.

Volume flexibility: the ability to operate profitably at different production volumes. • Expansion flexibility: the ability to expand the system easily and in a modular fashion. • Operation flexibility: the ability to interchange the ordering of several operations for each part type. • Production flexibility: the universe of part types that the manufacturing system can produce. g. g. machine breakdowns). g. breakdowns) to the expected production rate without disturbances. Furthermore, measures such as the number of units produced per downtime hour, have been proposed for machine fiexibility, and a plant-wide ratio of setup times to cycle times has been proposed for operation fiexibility [5].

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