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

Different flexibility types exist: from handling of day-to-daydemand fluctuation to strategic considerations for M&A activitiesTypes of flexibilityTYPEEXPLANATIONEXAMPLE1Demand• The capability to deal with volatiledemand patterns• Increase in the advent of a new productor the downturn at the end of theproduct life cycle2Geography• The capability to install necessaryoperations for a new market entry• (e.g. local supplier integration)• Entry into Chinese market making use oflocal labour cost advantages (keepingup necessary ingredient quality)3Network• The capability to change volume andproduct allocation within 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 retain existing synergies in the caseof investment and divestments• Integration of newly acquired plants intoan existing production network13