Adding an OPEX Perspective to Network Optimization

A manufacturing network, carefully configured by choosing the right locations for its sites and their respective roles, aims to fulfill its network strategy. At the same time, each site on its own strives toward operational excellence, eventually turning into a continuously improving organization. While the interplay between these sites should be regularly refined and revised to guarantee the fulfillment of the network strategy, every single site should be frequently assessed regarding its Operational Excellence (OPEX) maturity. Metaphorically speaking, not only is it essential for a soccer coach to decide on the right formation and tactics, but it is also crucial to assess the players’ current performance and to develop their capabilities through training. This chapter provides insights in a case study about how a globally operating pharmaceutical company approached the challenge of monitoring its sites’ performance improvements and production system implementation. A theoretic framework set the conceptual basis for the operationalization of performance and production system implementation, which would allow for a meaningful comparison and efficient assessment of the sites. Additionally, a site performance measurement cockpit was developed and its usage process in the organization was defined, enabling profound decision-making for continuous improvement efforts and network management.