MONITORING FLEXIBILITY PROVIDES THE FEEDBACK BETWEEN THE CAPACITY ALLOCATION DECISIONS AND THE MEASUREMENT OF FLEXIBILITY. THE RELATIONSHIP BETWEEN CAPACITY ALLOCATION, MEASURING FLEXIBILITY, AND MONITORING FLEXIBILITY IS DESCRIBED THROUGH THE USE OF THE DECISION LIFE CYCLE MODEL. THIS MODEL ILLUSTRATES THE INTEGRATED NATURE OF DECISION MAKING IN FLEXIBLE MANUFACTURING AND IDENTIFIES THE ROLE THAT FLOW TIME PLAYS IN MONITORING FLEXIBILITY. WITH FLOW TIME AS THE CRITICAL PERFORMANCE VARIABLE, A STEP-BY-STEP PROCEDURE IS DESCRIBED FOR THE IMPLEMENTATION OF A PERFORMANCE MONITORING PROCEDURE FOR FLEXIBLE MANUFACTURING.