operations flexibility in process industries - Roland Berger Strategy ...
operations flexibility in process industries - Roland Berger Strategy ...
operations flexibility in process industries - Roland Berger Strategy ...
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3 NETWORK FLEXIBILITYFlexible production networks allow companies to adapt tochang<strong>in</strong>g market conditions on a short-term baseManufactur<strong>in</strong>g network aspectsExplanation100%ProductioncapacityProductionvolume• Use of flexibleproduction volumes• e.g. use morevolume/capacities dueto currency advantage• Volatiledemand asksfor productionvolume shifton a shortterm base• Degree ofvalue added isdecreas<strong>in</strong>gVolatile demandpatternDegree of valueadded• Production oflabour<strong>in</strong>tensiveproducts• Make use ofrelative costpositionsShare ofvalue addedLabor costst• Make use of globalproduction networks,e.g. shift productionvolumes andproduction of lowvalue-add<strong>in</strong>gcomponents• Be able to react on ashort-term base onchang<strong>in</strong>g bus<strong>in</strong>esscharacteristics17