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| Reconciling the values of efficiency and flexibility. |
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How can you balance the competing values of economies of scale and just-in-time distribution? Is it really possible to run an efficient manufacturing operation AND respond appropriately to the ever-changing wants and needs of your customers and their customers? Opponents of the just-in-time concept deride the ideal of lot-size-one, cycle-time-zero. But the opposite extreme doesnt work, either: in our era of variety and customization, inflexible upstream mass production processes feeding large inventories to downstream distribution is a thing of the past. And as if this conundrum werent complicated enough, about the time you think you have it all figured out, something changes a new technology, a shifting cost structure, etc.
So, whats the answer? The Progress Group recommends a regular re-synching of demand and supply values, including changing opportunities and cost variables. Advances in technology, improvements in changeover capability, and new levels of process reliability all mean that closer synchronization between demand and supply is more possible every day. We can help you consider all sides of each issue objectively and take the steps that will be most productive for your operation. |
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Copyright © 2011 The Progress Group, LLC. All rights reserved.
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