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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DEMAND FLEXIBILITY LEVERSLevers to tackle demand <strong>flexibility</strong> are well known, though theirimportance <strong>in</strong> the eyes of <strong>operations</strong> managers is chang<strong>in</strong>gTop levers address demand <strong>flexibility</strong>Rank # General Purchas<strong>in</strong>g Manufactur<strong>in</strong>g Supply cha<strong>in</strong>1IV.7TemporaryII.2Multiple/dualI.12Reduce lead timeIII.4workerssourc<strong>in</strong>g<strong>in</strong> productionII.6SuppliercollaborationI.15SubcontractoruseIII.4Push-pull-po<strong>in</strong>tdifferentiationOutsourc<strong>in</strong>g2IV.6Flexible work<strong>in</strong>gII.1Global/crossI.2Multi purposeIII.5hoursregional sourc<strong>in</strong>gplantsIII.10Advanced plann<strong>in</strong>gsystemsBuffer stocksComments• Temporary workers and<strong>in</strong>ternally flexible work<strong>in</strong>ghours <strong>in</strong> the most commonmeans to tackle demandfluctuation• Models of both leversstrongly depend on locallegislation• Multiple sourc<strong>in</strong>g or dualsourc<strong>in</strong>g is applied forcritical materials• For materials/serviceswhere this is most feasiblecollaboration models up toJV approaches are applied• For suppliers where secondsource is too expensivesometimes dual siteproduction at supplier isrequested/ supported• Lead time reduction isclearly highest on theagenda of manufactur<strong>in</strong>gresponsibles• Strategic <strong>flexibility</strong> is built <strong>in</strong>by us<strong>in</strong>g subcontractors forvolatile/peak demand• Multi purpose plants areconsidered whereeconomically feasible• A differentiated def<strong>in</strong>itionof push-pull-po<strong>in</strong>t (make-toordervs. make-to-stock)has risen <strong>in</strong> the attention• Outsourc<strong>in</strong>g rema<strong>in</strong>s anestablished lever to sharevolatility risk with serviceproviders• Buffer stock is used tocover sales upsw<strong>in</strong>gpotentials though focus ison lead-time reduction <strong>in</strong>production <strong>in</strong>steadSource: <strong>Roland</strong> <strong>Berger</strong> <strong>in</strong>terviews, 20082828