THE ADVANTAGES OF TECHNOLOGICAL PROCESS IMPROVEMENTS IN FABRICATION ARE BECOMING MARGINAL. THE POTENTIAL FOR ENHANCING COMPANY PERFORMANCE LIES IN REORGANIZED LOGISTICS. FLEXIBLE FABRICATING IS AN APPROACH THAT TAKES INTO ACCOUNT ORDER THROUGHPUT AND ORDER CHANGEOVER BY REORGANIZING MATERIAL, PARTS, AND INFORMATION FLOW. ALONG AN ARTERIAL TRANSPORT AND BUFFER SYSTEM, MACHINES ARE INTEGRATED TO BUILD A FABRICATING SYSTEM THAT GIVES ITS USER FLEXIBILITY AND REAL-TIME CONTROL OVER THE PRODUCTION. AS A RESULT, INCREASED CHANGEOVER FREQUENCIES CAN BE HANDLED REDUCING INVENTORIES AND ALLOWING TO PRODUCE IN SMALLER LOT-SIZES JUST-IN-TIME AND AT LOWER COST.