Boosting Efficiency in Asset-Intensive Industries

Many producers of steel, aluminum, and other metals have seen their margins fall into negative territory—especially in Europe—and companies have responded with a variety of cost-cutting measures. But these steps often fail to reduce expenses beyond the short term. To meet this challenge, companies need to think holistically and address strategic and operational questions at the same time.

A Flex in Operations framework can help companies boost efficiency in asset-intensive industries. The framework consists of these important elements:

Flexibility Enablement

  • Accountable leadership
  • Stakeholder management
  • Transformation management

Flexible Assets

  • Setting up a demand-based footprint
  • Managing asset shutdown

Flexible Operations

  • Data-driven performance management
  • Synchronized scheduling
  • Reduction in activities that don’t add value

Flexible Organization

  • Flexible staffing
  • Lean organization structures
  • Efficient mix of centralization and decentralization

Flexible Raw-Material Consumption

  • Investment in efficiency of core assets
  • Value-in-use-based raw materials
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