How to Best Utilize Existing and Future Manufacturing Assets
Manufacturing Strategy and Capacity Planning, a key component of Value Chain Optimization, focuses on identifying the most effective use of existing and potential capacity in relation to changes in supply and demand across manufacturing and warehousing operations.
Relying solely on intuition to manage capacity at the network level is risky, as the trade-offs Managing capacity at a network level based solely on intuition is risky because the trade-offs become interdependent. Any adjustments made across different sites can affect baseline manufacturing costs. Therefore, it is essential to have a structured process that allows for the assessment of complex variables and the evaluation of various options, leading to decisions based on analytics.
- How much of which products to produce on which resources
- Make vs. buy
- When and where to add/divest capacity
- How many manufacturing locations are required? Where should they be located?
- Make vs. Buy? What are the ideal supplier terms?
- How best to adjust capacity and labor requirements seasonally?
- What is the optimal allocation of capital to improve the footprint? Should machines be upgraded or replaced?
Operating costs
Production capacity
Return On assets
Download: A Step-By-Step Guide to Driving Business Impact With Capacity Planning
How Value Chain Optimization Transforms Network Design for Our Customers



