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

4A large pharmaceutical producer uses external intermediatesbusiness as a buffer to cope with fluctuation of internal demandInterview example: Pharmaceutical companySITUATION/CHALLENGEVolatile internal capacitydemand …Internal demandTime… combined with extremelyflexible plantsManufacturing technologyPotential of plant equipmentProductsSOLUTIONExternalbusinessas capacityreserveFlexiblemanufacturingsystem• Company sells intermediates to external customers• If internal demand is increasing/decreasing, businesswith external customers is slashed/increased• Flexibility is secured by relatively l short-term t contractstwith external customers• Due to combination of internal and external demandeconomies of scale can be realized within the plants• Extensive use of multi-purpose-plants• Avoidance of continuous production processes• Standard shift models to vary personnel capacity• Flexible working models (working time, accounts,job rotation)• Manufacturing KPI system to measure performanceand flexibility• Sharing of warehouses with other pharmaceuticalcompaniesSource: Roland Berger interviews, 200834Airbusinterview