15. Equipment utilization for the FMS sometimes is not as high as one would expect. Japanese firms tend to have a much higher equipment utilization rate than U.S. manufacturers utilizing FMS. This is probably a result of U.S. users' attempt to utilize FMS for high-volume production of a few parts rather than for a high-variety production of many parts at a low cost per unit. U.S. firms average ten types of parts per machine, compared to ninety-three types of parts per machine in Japan.
16. Other problems can result from a lack of technical literacy, management incompetence, and poor implementation of the FMS process. If the firm misidentifies its objectives and manufacturing mission, and does not maintain a manufacturing strategy that is consistent with the firm's overall strategy, problems are inevitable. It is crucial that a firm's technology acquisition decisions be consistent with its manufacturing strategy.
17. If a firm chooses to compete on the basis of flexibility rather than cost or quality, it may be a candidate for flexible manufacturing, especially if it is suited for low- to mid-volume production. This is particularly true if the firm is in an industry where products change rapidly, and the ability to introduce new products may be more important than minimizing cost. In this scenario, scale is no longer the main concern and size is no longer a barrier to entry.
18. However, an FMS may not be appropriate for some firms. Since new technology is costly and requires several years to install and become productive, it requires a supportive infrastructure and the allocation of scarce resources for implementation. Frankly, many firms do not possess the
19. necessary resources. Economically justifying an FMS can be a difficult task—especially since cost accounting tends to be designed for mass production of a mature product, with known characteristics, and a stable technology. Therefore, it is difficult to give an accurate indication of whether flexible manufacturing is justified. The question remains of how to quantify the benefits of flexibility. In addition, rapidly-changing technology and shortened product life cycles can cause capital equipment to quickly become obsolete.