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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4MEASURE IMPLEMENTATIONDecisions regard<strong>in</strong>g <strong>flexibility</strong> are made with limited knowledgeabout cost and ga<strong>in</strong>s; effective measurement is neglectedTransparency of <strong>flexibility</strong>Do you measure <strong>flexibility</strong> of your <strong>in</strong>ternal<strong>operations</strong>?22%Yes31%Partly47%NoDo you measure the <strong>flexibility</strong> of yourexternal supply cha<strong>in</strong>?10%Yes35%Partly55%NoDo you know the cost of be<strong>in</strong>g moreflexible?60%30%10%YesPartlyNoQUOTES• "We build buffers and flexibilizework<strong>in</strong>g hours although h we are notreally sure these efforts pay off ..."• "Often we are not exploit<strong>in</strong>g our<strong>flexibility</strong> potentials where we couldbecause supplier are not transparent"• " We tackle <strong>flexibility</strong> needs whenthey occur, then we make a bus<strong>in</strong>esscase and calculate cost implications"• "What is more complex thencalculat<strong>in</strong>g l <strong>flexibility</strong> cost is to get toknow the benefits of <strong>flexibility</strong>"CONCLUSION• The majority of companiesdo only have a rough ideaabout their <strong>in</strong>ternal<strong>flexibility</strong>• Most companies cannotfully utilize their supplier<strong>flexibility</strong> because they donot measure it• Consequently decisionsregard<strong>in</strong>g <strong>flexibility</strong> aremade with limited knowledgeabout cost and ga<strong>in</strong>s• Effective measurementsystems are not fullyimplementedSource: <strong>Roland</strong> <strong>Berger</strong> <strong>in</strong>terviews, 2008Airbus<strong>in</strong>terview25