Page 424 - Operations Strategy

case study 5 • delta synthetic Fibres (dsF) 399

● ● Should every site produce both product ranges, or should we try and develop
‘Centres of Expertise’ for the two product ranges?
● ● Even if all three sites do produce both product ranges, should each site specialise in
one part of each product range?

● ● How can we make sure that all sites understand their contribution to the company’s
overall operations capability? In other words, should strategic operations decisions
still be made at the centre or should we allow each site some degree of autonomy in
developing their own strategies for their markets or their product ranges?
● ● In the longer term should we give different sites different roles in developing our
overall operations capability? For example, Chicago has shown particular enthu-
siasm (and enjoyed some success) in improving both productivity and flexibility
on its line. It has done this mainly through a series of incremental technology
improvements to the process. Because of this, should it be given responsibility for
process improvement, even though traditionally this responsibility has been seen
as belonging to the central technical resource at Teesside?
● ● Following from this last point, what should be the role of our central technology
resource? In the past it has been good at understanding the practicalities of imple-
menting modifications to our existing technology in a ‘top-down’ way. However, it
has been less good at motivating and training factory-level operations people in the
three sites to take responsibility on themselves for improvement.

● ● How can we link our technology/operations capabilities with sales and market-
ing? So far we have prospered through pushing our new technologies out into
the market, but this is unlikely to be successful in the future. Although Britlon’s
enhanced performance will give a major boost to sales, increasingly it will be small
product modifications that will win us extra business. I’m sure there will be some
big technology breakthroughs in the future. But we can’t wait for these to come
through every few years. The future is more likely to be one of fast development and
response to specific customer needs in a wider variety of markets.

the capacity working group
In the autumn of 2004 Paul Mayer set up the capacity working group to consider the
introduction of the new product range and all its implications. However, he did place
some limits on what the company would do.

‘Liam is right, we have to consider the underlying issues and assumptions behind the reconfigu-
ration of our operations, but for the time being we need to confine ourselves to existing sites. In
the short term the creation of an entirely new site would increase the complexities of multi-site
operation to an unacceptable level. Conversely, the complete closure of one of the three existing
sites is, I consider, a waste of the manpower and physical resources that we have invested in
that location. I believe expansion could take place at one, two or all of the existing sites. In
the future, however, all things are possible. For example, it may make sense to develop a new
site in Asia both to service the growing Eastern markets and to take advantage of lower costs.’
(Paul Mayer, CEO)

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