The GRACE main objective is to realize a cooperative multi agent system (MAS) operating at all stages of a manufacturing system, integrating process control with quality control, for developing: - self-adaptive procedures into control and diagnostic systems at local and global level handling variation in process set-point and variables and unplanned fluctuations of process/product parameters; - supervision and control schemes at factory level based on a continuous flow of information between agents; - factory-level decision making strategies based on data analysis methods; - a modular engineering methodology enabling the efficient use of MAS production platforms. The project seeks to close the gap between theory on MAS and adaptive/intelligent agents and the control systems actually implemented in manufacturing lines. To reach the goal of a real world validation of the results, the project considers the production of washing machines and will show: - improvement of production efficiency; - reduction of production-line down-time; - reduction of non-conformities by improved quality control of products. Five main scientific/technical objectives are foreseen: - Development of a flexible, adaptive and reconfigurable architecture integrating process and quality control - Development of self-adaptation and self-optimization mechanisms - Development of modular and adaptive testing systems - Enable systematic transferability and industrial applicability of GRACE - Prototype of the concept and real test case This project impacts on production engineering research through the development of technologies for flexible and re-configurable production, implementing the concept of adaptivity, for improving process capability, production efficiency and product quality, to build technological competitive advantage for leading manufacturing sectors in Europe. GRACE has a strong industrial involvement and a strong potential for industrial take-up and exploitation.