THE PURPOSE OF THIS CASE STUDY IS TO EXPLAIN THE CRITICAL SUCCESS FACTORS OF PLANNING AND IMPLEMENTING A FLEXIBLE MACHINING COMPLEX FOR PRODUCING A SPECIFIC LINE OF AXLE HOUSINGS AND RELATED COMPONENTS. THE ANALYSIS INCLUDES THE THREE (3) MAJOR FACTORS (CULTURE ASSESSMENT/CHANGE, TECHNICAL COMPETENCY AND FINANCIAL ANALYSIS) THAT MUST BE ADDRESSED IN ORDER TO HAVE A SUCCESSFUL OPERATION. THE FACTORS ARE LOGICALLY INTERRELATED AND NEED TO BE APPLIED WITH A MEASURE OF EQUALITY. THE STUDY IS BASED ON A REAL EFFORT WHERE THE INVOLVED PEOPLE EXPERIENCED A BONDING PROCESS AS THEY WORKED TOGETHER TO ACHIEVE THE PROJECTED OUTPUTS.