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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5A large consumer goods company facilitates its manufactur<strong>in</strong>gnetwork and service providers to cover demand fluctuationsInterview example: Consumer goods companySITUATION/CHALLENGEDifferent demand patterns …DemandProduct 2Product 3Product 1Time… comb<strong>in</strong>ed with <strong>in</strong>creas<strong>in</strong>gcomplexity <strong>in</strong> packag<strong>in</strong>gNumber ofpackag<strong>in</strong>g variantsTimeSOLUTIONManufac-tur<strong>in</strong>gnetworkUse ofserviceprovidersTechnology• Mostly local manufactur<strong>in</strong>g for local demand, at leastfor commodity products• Worldwide sister plants use same raw materials (e.g.chemicals, packag<strong>in</strong>g) and the same plant equipment• Shift of production capacity is <strong>in</strong>stitutionalized with<strong>in</strong> ITsystems for the case of demand peaks, local rawmaterial shortages etc.• Contract manufactur<strong>in</strong>g is used to cope with demandpeaks• Service providers have expert knowledge when itcomes to fast product/plant changes, oftenmanufactur<strong>in</strong>g of products with small lot sizes isoutsourced• Benchmark<strong>in</strong>g with the external service providershelps to <strong>in</strong>crease speed of product/plant changes• Throughput optimization with mach<strong>in</strong>es focussed onone product type (e.g. shampoos), flexible automationof mach<strong>in</strong>e periphery to cope with packag<strong>in</strong>g variantsSource: <strong>Roland</strong> <strong>Berger</strong> <strong>in</strong>terviews, 200835Airbus<strong>in</strong>terview