CONCLUSION The clearer picture explaining the surge in (labor) productivity in the gas and oil industry relies explicitly on the modeling and estimation of two technologies and plants switching between them. Automation creates job variety. The automation process has decreased labor costs. Automation also changes the relationship between the shop and the machine supplier; the machine supplier becomes part of the team. By embracing flexible manufacturing systems in automation Companies have increased part quality and production volumes, expanded into new business opportunities, focused its management efforts for efficient and effective operational practices, and can now simultaneously run multiple applications in one cell - Competition from overseas has forced many manufacturers to find an extremely delicate balance between cost-cutting and profitability. However there have been issues in FMS regarding workplace organization, their significant employment/labor-saving component at the company level; and changes in skills needed to run FMS versus traditional functional manufacturing processes.