Abstract—Intensive Competition and rapid technology development in global market has left no space for competing manufacturer to harbour system inefficiencies. The stress confronted by manufacturing systems is comprised of production of variety of products with efficient on time deliveries, flawless quality and with smallest possible costs. To be alive in market manufacturing organizations need to improve their systems by making them flexible and agile. Maintaining the effectiveness of dedicated system along with the flexibility of job shop is the objective of new manufacturing paradigm. An effort is made through this paper to develop a hybrid system that contains both the attributes of flexibility and agility. Developed AgiFlex system is then experimented in discrete event simulation environment and evaluated against a real time manufacturing system. Results have shown that AgiFlex system accommodates expected and unexpected market changes swiftly by engaging its flexible and agile attributes simultaneously.