operations flexibility in process industries - Roland Berger Strategy ...

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Most companies in the process industries have recognized theneed for flexibilityVerbatimsJeffry B. Kindler (CEO)"We must reduce our absolute cost andput in place a more flexible structure"Kurt Hogh (Value stream optimization)"…Stricter market requirements (in terms of freshhigh-quality chocolate, volume adjustments, moredemanding customers,…) and strategic targetsmean that flexibility must be at the heart of ourcompany …" 1)"… our business now meets allconditions for long-term success: flexibleasset structures … and a global focusbacked by regional flexibility…"(Annual report 2007)1) Translated from German sourceDr. Rainer Oschmann(Executive General Manager)"… Operations flexibility is a clearstrategic objective of our company… ""Great flexibility is really importantso that we can rapidly adapt to …how our local customers work."(Letter to shareholders, June 2007)"… Flexibility will have an everincreasing relevancy in order toreduce capital tie-up and to be ableto react more quickly…"(Annual report 2007 1) )" [Our] financial strength is therefore theresult of the followed strategic course andof the flexibility and speed with whichexternal challenges are dealt with."(Mission statement 2008)10
Participants of this study confirm the relevance of flexibility –however systematic transfer into their operations strategy is rareFlexibility objectives and operations strategyASSESSMENTS ON OPERATIONS FLEXIBILITYDo you perceive operations flexibility as one of yourtop 5 priorities?89%yes11%Do you systematically define strategic measures toachieve this objectives?56%no44%Beverage producer, Production manager"… operations flexibility is very importantin our capital intensive industry…"Specialty chemicals company, COO"… flexibility is much more economicalthan investing in forecastingexcellence … we had to learn it thehard way…"Speciality chemicals company,Head of Strategic Planning"Operations flexibility is soinevitably important. It would befoolish if we left it to chance."Pharma and Chemicals Group,Head of Business development"Definitely, flexibility is among ourstrategic goals. We would soon beout of the market if we would notconstantly try to react as flexibly aspossible."Consumer Care company; Managermanufacturing"Only when we felt the strong market pushand had to quickly boost our output did werecognize significant hidden flexibilitybuffers; in one plant we where able toincrease output by 15% without anyinvestments"yesnoPharmaceutical producer, Head of Operations"We do build in flexibility but it is rather a functionalresponsibility than a systematic corporate approach"Source: Roland Berger interviews, 200811
Page 1: OPERATIONS FLEXIBILITYIN PROCESS IN
Page 4: The study covers three process indu
Page 7 and 8: Eight trends in the pharmaceutical
Page 9: Six trends in the consumer goods in
Page 13 and 14: Different flexibility types exist:
Page 15 and 16: 1 DEMAND FLEXIBILITYPredicting year
Page 17 and 18: 3 NETWORK FLEXIBILITYFlexible produ
Page 19 and 20: 5 BUSINESS PORTFOLIO FLEXIBILITYM&A
Page 21 and 22: Choosing the most suitable flexibil
Page 23 and 24: 2DEDUCT OPERATIONS FLEXIBILITYBusin
Page 25 and 26: 4MEASURE IMPLEMENTATIONDecisions re
Page 27 and 28: DBest practice flexibility levers27
Page 29 and 30: M&A FLEXIBILITY LEVERSWith regard t
Page 31 and 32: 1A manufacturer of pharmaceutical p
Page 33 and 34: 3A consumer goods and a pharmaceuti
Page 35 and 36: 5A large consumer goods company fac
Page 37: 7The specialty chemicals company us

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