How to buy - Step 12) Flexibility Study Part 3

FLEXIBILITY STUDY PART 3 – MANUFACTURING FLEXIBILITY & THE ECONOMIC BENEFITS

Figure 1.1 represents the “Flexibility Solution Design Process”. This is the basic methodology used to develop the “Flexibility Solution Design Process”.

This process comprises of seven steps:

1. Flexibility study the facility to collect information about its actual flexibility and the needed flexibility. This task involved designing a comprehensive flexibility study, which would determine, understand, and quantify the facility's changes.
2. Once the flexibility study is conducted, it will be analysed to estimate the actual and needed flexibility measures. Measurement schemes for the needed flexibility were developed. The flexibility study would identify the flexibility bottlenecks in the facility.
3. Use the flexibility study analysis data, the gap between the actual and the needed measures of flexibility to calculate the first-cut estimate of potential benefits resulting from increased flexibility, taking into consideration the bottlenecks in the facility.
4. If the benefits from gained flexibility are substantial, generate innovative concepts and review existing tools to build a flexible solution. Simultaneously, derive the capital constraints for the flexible solution.
5. Design a flexible solution using innovative concepts and within the capital constraints. This would be a detailed design that will include a list of equipment, flexible tools and the implementation procedure.
6. Perform a detailed economic analysis of the chosen flexible solution to justify the investment and its value impact.
7. The final step would be to prepare a formal proposal for submission to the management, which would summarise all the above activities.

STRATEGY IMPLEMENTATION FEASIBILITY

The strategies identified will be listed based on feasibility, affordability and organisational readiness. The estimated initial and annual cost, implementation time is considered to decide the affordability of the strategy.

Organisational readiness, top management support and ROI are also considered to qualify a strategy.

Refer to study summary II, “Study summary for Strategy Implementation Feasibility Identification”, and study summary III “, ROI Study summary”.

VALUE-LOADED STRATEGY SELECTION

Value-Loaded solutions close the needed flexibility gap at value-driven cost. The cost considered will be the summation of initial cost and opportunity value. Refer to study summary IV “Study summary to identify value-loaded strategy”.