Today, trends in manufacturing automation favor high levels of adaptability and flexibility for rapid product change, customization, and new process integration. This paper looks at a new technology, diamagnetic micro manipulation (DM3), for taking adaptability of automation to a higher level. Experiments reported here show a path to automation systems that can self-assemble their own robotic manipulators, fabricate tools-on-demand to execute new processes, optimize existing processes, and/or replace or repair tools. These printed circuit board (PCB) systems can control very large numbers of milli-scale robots. Hence, as described in this paper and in contrast to conventional robotic systems, only a small percentage of DM3 system resources, approximately 5–10% of system area and robot numbers, are needed to achieve on-board self-assembly and tool-on-demand functions. This paper describes the key step of self-assembly of self-levitating magnet arrays using 1 mm × 1 mm × 0.4 mm magnets, with self-assembly times of less than 10 s. We also report experiments showing how milli-robots can build simple end effector tools (a straight probe tip, a forked tip, and a hook tip) on other milli-robots for on-board, tool-on-demand functions.