Advantages and Disadvantages
Advantages
- Since the company is constantly changing according to the customers’ needs, their customers may be more satisfied.
- New designs are based on the customers’ needs which mean that the customer will have a wider variety to choose from.
- Companies can respond quickly to change. This is done by retaining some mass production properties while remaining flexible. This is called mass customization.
Disadvantages
- Shortages will occur if there is a sudden grows in demand both with respect to volume or variety.
- On the other hand, if the demand suddenly drops during a high production rate, the products could not be sold.
- Highly skilled personnel are required to operate an agile manufacturing company.
- Installation costs are high because of interchangeability.
- Due to short life-cycles, machinery and workers need to keep up-to-date because of new technologies.
- The complex machinery could add to the cost if there is a breakdown, which will increase the production down time.
- Maintenance cost is expensive.
- Management of these systems is hard and intensive planning and management is required.