Process synchronization and profitability
Is the synchronization of processes to customer requirements really the most important dimension of a good production system? This was my question that arose a few years ago during a detailed presentation of a production system at a well-known car assembly company. They explained how they seek to ensure a synchronization of the flow of information and that of materials in order to eliminate as much as possible the occurrence of waste. In fact, many of the company’s non-performances are passed on to suppliers (this non-performance being visible in the decrease of suppliers’ profitability).
Companies that will continue to focus almost exclusively on optimum capacity loading and on-time delivery can become more inefficient than ever in these difficult times for all of us. The risk is obvious: the lack of profit and the appearance of bankruptcy more or less announced.
In this context, do you think that total satisfaction of customer requirements is the healthy approach in these times? Shouldn’t companies pay more attention to cost-effectiveness (cost down) and cash-flow (cash up) in these times of crisis than to deliver on time and load capacity optimally?
Source: Alin Posteucă on LinkedIn