This article surveys the extensive literature on manufacturing flexibility over the past 10 to 20 years. It begins with a review of classical economic and organizational theories on flexibility, providing a foundation for understanding manufacturing flexibility. The paper defines various types of manufacturing flexibility, their purposes, methods of achieving them, and suggests measurements and valuations. It examines the relationships among different types of flexibility, reports and discusses empirical studies and analytical/optimization models related to these flexibilities, and concludes with suggestions for future research directions. The concept of manufacturing flexibility has become crucial in the design, operation, and management of manufacturing systems, especially with the advent of new microprocessor technologies. However, the literature on manufacturing flexibility is complex, multidimensional, and difficult to capture. Over 50 different terms are used to describe various types of flexibility, and definitions are often imprecise or inconsistent. There is a lack of rigorous analytical models and optimal flexibility levels. Management of flexibility remains poorly understood, with some studies indicating that flexible manufacturing systems in the U.S. lack flexibility compared to their Japanese counterparts. Japanese firms take a long-term view of capital investments, considering not only cost savings but also strategic implications of flexibility and versatility. The article aims to document the evolution of understanding of manufacturing flexibility. It reviews economic and organizational literature dating back to the 1920s and 1950s, then surveys recent literature on manufacturing flexibility, focusing on discrete parts manufacturing. The paper classifies various flexibilities and discusses their interrelationships. It outlines the structure of the article, beginning with a historical perspective, followed by a general description of manufacturing flexibility and its strategic importance, specific flexibility definitions, empirical studies, and concluding remarks and future research directions.This article surveys the extensive literature on manufacturing flexibility over the past 10 to 20 years. It begins with a review of classical economic and organizational theories on flexibility, providing a foundation for understanding manufacturing flexibility. The paper defines various types of manufacturing flexibility, their purposes, methods of achieving them, and suggests measurements and valuations. It examines the relationships among different types of flexibility, reports and discusses empirical studies and analytical/optimization models related to these flexibilities, and concludes with suggestions for future research directions. The concept of manufacturing flexibility has become crucial in the design, operation, and management of manufacturing systems, especially with the advent of new microprocessor technologies. However, the literature on manufacturing flexibility is complex, multidimensional, and difficult to capture. Over 50 different terms are used to describe various types of flexibility, and definitions are often imprecise or inconsistent. There is a lack of rigorous analytical models and optimal flexibility levels. Management of flexibility remains poorly understood, with some studies indicating that flexible manufacturing systems in the U.S. lack flexibility compared to their Japanese counterparts. Japanese firms take a long-term view of capital investments, considering not only cost savings but also strategic implications of flexibility and versatility. The article aims to document the evolution of understanding of manufacturing flexibility. It reviews economic and organizational literature dating back to the 1920s and 1950s, then surveys recent literature on manufacturing flexibility, focusing on discrete parts manufacturing. The paper classifies various flexibilities and discusses their interrelationships. It outlines the structure of the article, beginning with a historical perspective, followed by a general description of manufacturing flexibility and its strategic importance, specific flexibility definitions, empirical studies, and concluding remarks and future research directions.