operations flexibility in process industries - Roland Berger Strategy ...
operations flexibility in process industries - Roland Berger Strategy ...
operations flexibility in process industries - Roland Berger Strategy ...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Different <strong>flexibility</strong> types exist: from handl<strong>in</strong>g of day-to-daydemand fluctuation to strategic considerations for M&A activitiesTypes of <strong>flexibility</strong>TYPEEXPLANATIONEXAMPLE1Demand• The capability to deal with volatiledemand patterns• Increase <strong>in</strong> the advent of a new productor the downturn at the end of theproduct life cycle2Geography• The capability to <strong>in</strong>stall necessary<strong>operations</strong> for a new market entry• (e.g. local supplier <strong>in</strong>tegration)• Entry <strong>in</strong>to Ch<strong>in</strong>ese market mak<strong>in</strong>g use oflocal labour cost advantages (keep<strong>in</strong>gup necessary <strong>in</strong>gredient quality)3Network• The capability to change volume andproduct allocation with<strong>in</strong> a global siteportfolio• e.g. new products, market demand shiftsor currency changes might require anoptimized utilization of global sites4Technology• The capability to replace old technologywith new technology• e.g. new small batch technologiesrequire different skills and productionsystem set-ups5Mergers & Acquisitions• The capability to make use of synergiesor reta<strong>in</strong> exist<strong>in</strong>g synergies <strong>in</strong> the caseof <strong>in</strong>vestment and divestments• Integration of newly acquired plants <strong>in</strong>toan exist<strong>in</strong>g production network13