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

4MEASURE IMPLEMENTATIONDecisions regarding flexibility are made with limited knowledgeabout cost and gains; effective measurement is neglectedTransparency of flexibilityDo you measure flexibility of your internaloperations?22%Yes31%Partly47%NoDo you measure the flexibility of yourexternal supply chain?10%Yes35%Partly55%NoDo you know the cost of being moreflexible?60%30%10%YesPartlyNoQUOTES• "We build buffers and flexibilizeworking hours although h we are notreally sure these efforts pay off ..."• "Often we are not exploiting ourflexibility potentials where we couldbecause supplier are not transparent"• " We tackle flexibility needs whenthey occur, then we make a businesscase and calculate cost implications"• "What is more complex thencalculating l flexibility cost is to get toknow the benefits of flexibility"CONCLUSION• The majority of companiesdo only have a rough ideaabout their internalflexibility• Most companies cannotfully utilize their supplierflexibility because they donot measure it• Consequently decisionsregarding flexibility aremade with limited knowledgeabout cost and gains• Effective measurementsystems are not fullyimplementedSource: Roland Berger interviews, 2008Airbusinterview25