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Mastering Operational Flexibility
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Mastering operational flexibility Three ways to manage manufacturing volatility and drive growth
Transcript of Mastering Operational Flexibility
Mastering operational flexibilityThree ways to manage manufacturing volatility and drive growth
2Copyright © 2016 Accenture All rights reserved.
Managing manufacturing volatilityBarriers exist to achieving flexibility
Operational flexibility—the ability to meet changing customer demand and control costs—is hampered by:
said the production process61%
Barriers to operational flexibilitySluggish production changeovers
Resistant workforce practices
Lack of consistent, multichannel customer information lack accurate and timely
“market sensing”33%
3Copyright © 2016 Accenture All rights reserved.
Driving operational flexibilityMastering demand fulfillment and costs
Masters that achieve operational flexibility apply three practices:
said operational flexibility is a strategic priority
94%
There is a gap between prioritization and progress
have achieved it in the past decade11%
Capture insights directly from their customers
Remodel production lines
Assign new flexibility metrics But only
Masters anticipate demand patterns faster than their peers
42%
58%
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Capture insights directly from their customers
End-customer tracking vs. Direct-customer tracking
How important are the following capabilities to achieve operational flexibility?
Masters
% of survey respondents says “Extremely important”
Masters
Others
• Better anticipate demand patterns by tracking end-customers’ behaviors directly.
• Do not rely solely on channel partners.
Source: Accenture Manufacturing Flexibility Survey, Accenture Institute for High Performance, 2015
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Remodel production linesMasters adapt their production lines to prioritize flexibility
Copyright © 2016 Accenture All rights reserved.
of masters expect to increase the size of their production lines in the next decade
62%
of masters say manufacturing more SKUs per line is extremely important
58%
Masters
• Accommodate greater volume and use more stock keeping unit variations.
• Use cross-trained machine operators to reduce changeover times.
Source: Accenture Manufacturing Flexibility Survey, Accenture Institute for High Performance, 2015
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Assign new flexibility metricsMasters measure value chain flexibility
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Masters
• Regularly assess efficiency, productivity and flexibility.
• Employ robust metrics to track business changes.
Source: Accenture Manufacturing Flexibility Survey, Accenture Institute for High Performance, 2015
27%
31%
28%
46%
54%
58%
Masters Others
Which of the following metrics do you track on a regular basis?
Average changeover cost or time
Number of prototype iterations
Inventory days of cover by SKU*
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Three ways to manage manufacturing volatilityThe path to operational flexibility
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Overcome obstacles to manufacturing success:
Capture insights directly.
Track end-customer behaviors to anticipate
demand.
Prioritize value chain flexibility. Reengineer the value
chain to address areas of need.
Employ new metrics.
Measure value chain flexibility to be
responsive to change.
8Copyright © 2016 Accenture All rights reserved.
About the researchAccenture Institute for High Performance
business executives from manufacturing companies, examining the period 2005 to 2015
Conducted online surveybetween July and August 2015
Annual revenues greater than US$1 billion
8 countries and 6 industries
Extensive secondary research
247
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Contact us
Smriti Mathur Associate manager Accenture Institute for High [email protected]
Raghav Narsalay Managing director Accenture Institute for High [email protected]
Aarohi Sen Associate manager Accenture Institute for High [email protected]
Mastering operational flexibilityThree ways to manage manufacturing volatility and drive growth
10Copyright © 2016 Accenture All rights reserved.
The Accenture Institute for High Performance develops and communicates breakthrough ideas and practical insights on management issues, economic trends and the impact of new and improving technologies. Its worldwide team of researchers collaborates with Accenture’s strategy, digital, technology and operations leadership to demonstrate, through original, rigorous research and analysis, how organizations become and remain high performers. For more information, follow @AccentureINST or visit www.accenture.com/Institute
About Accenture Institute for High Performance
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com
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