A flexible manufacturing system (FMS) is defined as a set of numerically controlled machine tools and supporting workstations connected by an automated material handling system and controlled by a central computer. An FMS allows for multiple part types to be loaded and processed in any sequence through automated tool changing and material handling. Key benefits include reduced costs, improved equipment utilization, and the ability to easily changeover to new product lines. Effective FMS design requires determining the optimal system size, hardware, software and part selection to maximize savings subject to system capacity.