The principles and challenges for the applications of wireless technology, which has evolved into an important technology for application in next generation manufacturing systems (NGMS) are discussed. The challenges for wireless technology includes achieving concurrency in all operations, integrating human and technical resources to enhance workforce performance and satisfaction, transform information gathered from a vast array of diverse sources into useful knowledge for making effective decisions; and reconfiguring manufacturing enterprise in response to changing needs and opportunities. An NGMS will need to satisfy some fundamental requirements such as enterprise integration, distributed organization, interoperability, and fault tolerance. Wireless sensor networks (WSN) is extensively used from building automation, to military equipment, chemistry process industry, environmental research and even surgeries. Wireless LANs help in production, maintenance and troubleshooting processes at production bays of a foundry or any automobile factory.