Today, people want highly-customized products to satisfy their individual requirements. However traditional manufacturing technology is not geared towards high-mix, low-volume manufacturing. Holonic Manufacturing Systems (HMS) is a new paradigm to bridge this divide. HMS offers enterprises a new breed of technology to continuously reconfigure themselves to manufacture a larger variety of products in smaller batch sizes, and do this profitably. A suitable metaphor for implementing the holonic manufacturing system is the emerging IEC function block architecture. The paper describes how function blocks can be used to build such holonic manufacturing systems. We also illustrate the merits of our approach through a real-world engine assembly line being developed by DaimlerChrysler.