Drivers of volume flexibility requirements in manufacturing plants

This paper presents the results of a major survey and case study of UK manufacturing punts in six major industrial sectors: electronics, process, engineering (capital), engineering (consumer), household goods and food. The paper explores the conditions under which volume flexibility is required by manufacturing plants. The major driver of volume flexibility requirements in manufacturing plants was found to be demand variability regardless of differences in sector, product and other plant characteristics. Other major drivers of volume flexibility were demand uncertainty, short product life-cycle, short product shelf life, supply chain complexity and action of competitors. The applicability of most of these drivers is independent of the industrial sector. Drivers may be generic or may be dependent on the contextual or sectoral characteristics specific to a plant. The requirement for volume flexibility is, therefore, dictated by the specific conditions which a plant is faced with, and the degree of volume flexibility required varies widely.