The document discusses three ways that manufacturing "masters" achieve operational flexibility to manage volatility and drive growth. These include: 1) Capturing insights directly from customers to better anticipate demand patterns, 2) Remodeling production lines to prioritize flexibility and accommodate more product variations, and 3) Assigning new flexibility metrics to regularly assess efficiency, productivity and responsiveness to changes.

1. Mastering
operational flexibility
Three ways to manage manufacturing
volatility and drive growth

2. 2
Managing manufacturing volatility
Barriers exist to achieving flexibility
Copyright © 2016 Accenture All rights reserved.
Operational flexibility—the ability to meet changing customer
demand and control costs—is hampered by:
said the
production process
61%
Barriers to
operational flexibilitySluggish production changeovers
Resistant workforce practices
Lack of consistent, multichannel
customer information lack accurate and timely
“market sensing”33%

3. 3
Driving operational flexibility
Mastering demand fulfillment and costs
Copyright © 2016 Accenture All rights reserved.
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

4. Masters anticipate demand patterns faster than their peers
42%
58%
Copyright © 2016 Accenture All rights reserved. 4
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

5. 5
Remodel production lines
Masters 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

6. 6
Assign new flexibility metrics
Masters measure value chain flexibility
Copyright © 2016 Accenture All rights reserved.
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*

7. 7
Three ways to manage manufacturing volatility
The path to operational flexibility
Copyright © 2016 Accenture All rights reserved.
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.

8. 8
About the research
Accenture Institute for High Performance
Copyright © 2016 Accenture All rights reserved.
business executives
from manufacturing
companies, examining the
period 2005 to 2015
Conducted
online survey
between July and
August 2015
Annual revenues
greater than
US$1 billion
8countries
and 6 industries
Extensive
secondary research
247

9. 9
Contact us
Copyright © 2016 Accenture All rights reserved.
Smriti Mathur
Associate manager
Accenture Institute for High Performance
smriti.mathur@accenture.com
Raghav Narsalay
Managing director
Accenture Institute for High Performance
raghav.narsalay@accenture.com
Aarohi Sen
Associate manager
Accenture Institute for High Performance
aarohi.sen@accenture.com
Mastering operational flexibility
Three ways to manage manufacturing volatility
and drive growth

10. 10Copyright © 2016 Accenture All rights reserved.
The Accenture Institute for High Performance develops and communicates
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