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Table 4.3
D’Souza
and
Williams’
flexibility
dimensions
Category Type 
Description 
Externally-
driven
flexibility 
Volume flexibility The ability to change the level of output. 
Variety flexibility The ability to produce a range of products and services, and to 
introduce new products and service. 
Internally-
driven
flexibility 
Process flexibility The ability to adjust to and accommodate changes in the 
manufacturing and service process. 
Materials handling The ability to effectively deliver materials to the appropriate 
stages of the manufacturing process. 

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4.3 FLEXIBILITY COMPETENCY
4.3.2 Framework of flexibility competency
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Fig.4.2
Framework
of
flexibility
competency
Uncertainties
in
global
environment
‐
Global
economy,
marketing,
political,
and
natural
uncertainties.
Global
business
strategy
‐
Scope
and
type,
time,
cost,
quality
Required
flexibility
competency
Delivery
with
posture
‐
Passive
flexibility
‐
Defensive
flexibility
‐
Proactive
flexibility
Performance
evaluation
Delivered
flexibility
competency
Global
operations
strategy
Delivery
on
subjects
‐
Product
flexibility
‐
Process
flexibility
‐
Infrastructure
flexibility

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4.3 FLEXIBILITY COMPETENCY
4.3.3 Delivering flexibility 
•
Passive flexibility strategy

Apple, for example, has adopted a passive strategy in regards to its product flexibility. The 
color options of the iPhone are limited to black and white. As compared with other cell phone 
makers, which offer multiple color options, Apple has made a conscious effort to reduce the 
number of types and to keep its products “simple”. 
•
Defensive flexibility strategy

Some clothing companies, for example, will design, modify, produce and deliver new clothing 
styles only after they have been able to collect information at fashion shows and from 
competitors’ stores in the brief period prior. This is a defensive flexibility strategy which 
allows for a response to up-to-date marketing information.
•
Proactive flexibility strategy

Zara then sells these new styles in Zara stores within a period of weeks. Some new styles may b
successful, others may fail. This is a proactive flexibility strategy designed to handle market 
uncertainties.

Another proactive strategy is to hold some new modes and product types in reserve. While IT 
companies such as Intel, Nokia and IBM might sell some models of their electronic products, the
typically will develop, design and release a set of newer models, future products or conceptual 
products to be held in reserve. 

A similar process can be observed among automobile companies like Volkswagen, Ford and Peugeot. 
This is another proactive flexibility strategy, meant to handle potential market change.
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4.3 FLEXIBILITY COMPETENCY
4.3.3 Delivering flexibility 
Processes, product and infrastructure flexibility
•
Processes flexibility

Process flexibility refers to the capability to fabricate different types of 
products in the same plant, at the same time (Graves and Tomlin 2003, Jordan and 
Graves 1995). The most commonly used approaches to achieving this end are resource
sharing, resource substitution, transshipment, postponed differentiation and mass 
customization. 

One of the most influential theories in process flexibility is Jordan and Graves’
(J-G) principles on the benefits of process flexibility, which assert that, “(1) 
Limited flexibility, configured in the right way, yields most of the benefits of 
total flexibility. (2) Limited flexibility has the greatest benefits when 
configured to chain products and plants together to the greatest extent possible.”
(Jordan and Graves 1995, p. 577).
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Fig.4.3
J
‐
G
flexibility
configuration
(based
on
Jordan
and
Graves
1995)
1.
Dedicated
2.Partial
flexibility
(pairs)
3.Partial
flexibility
(complete
chain) 4.Total
flexibility
Note:
○
denotes
product;
□
denotes
plant; a
link
denotes
the
plant
can
make
the
product.
<
<
≈ 

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4.3 FLEXIBILITY COMPETENCY
4.3.3 Delivering flexibility 
Processes, product and infrastructure flexibility
•
Product flexibility

Production systems usually evolve as products progress through their life cycles. 

In a global economy with more new products being introduced by global competitors,
the product life cycles have tended to become shorter.

MNEs have therefore needed more flexible operations strategies to accompany the mo
frequent development and introduction of new products. 
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4.3 FLEXIBILITY COMPETENCY
4.3.3 Delivering flexibility 
Processes, product and infrastructure flexibility
• Infrastructure flexibility

A firm can deliver flexibility by infrastructure subjects. Lau (1999) presented th
following five subjects: 
1) workforce autonomy (e.g., the level of empowerment of workers in the decision-
making process), 
2) communication (e.g., the level of access which exists between senior managers and 
line workers), 
3) interdepartmental relationships (e.g., the relationship between the manufacturing,
supply, marketing, design and finance departments within a company), 
4) supplier flexibility (e.g., the level of flexibility of the major suppliers in 
terms of adjusting production volumes and types) and 
5) technology (e.g., the use of group technology for process design). 

Another infrastructure is flexible production and inventory planning, in which 
production planning might be based on a flexible manufacturing system, such as a 
manufacturing configuration able to rapidly adapt to changing demands, which can 
help the firm achieve flexibility competency.
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CASE EXAMPLE: MASS CUSTOMIZATION IN STARBUCKS
Case questions
1.
By analyzing the menu, do you think Starbucks Lyon uses mass customization i
the menu design? Why does Starbucks use mass customization?
2.
By analyzing the “create your perfect beverage” program, do you think 
Starbucks Lyon uses mass customization in the program? Why? What are the advantages o
this program?
3.
Starbucks claims that their “Frappuccino blended beverages are com-pletely
customizable”. Do you agree with this claim? Why?
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