I often see the pursuit of flexibility in production. It can be a desirable goal. A way to adapt to changing market demands, customer preferences, and operating conditions. However, this flexibility often comes hand in hand with a less-discussed companion: complexity.
As we strive for more flexible production systems, adding new infrastructure and operational pathways, we inadvertently weave a web of complexity. These can be physical (e.g. processing plant and equipment) or systems of control (e.g. a logistics optimisation software platform). The image above shows how each new node of infrastructure exponentially multiplies the production pathways. With this growth comes a surge in potential disruptions, defects, and failures. Managers navigate an increasingly intricate maze, compounded by challenges like an inexperienced workforce and bureaucracy. What they intended as a system capable of rapid adaptation and growth can, without careful management, devolve into a demoralising environment of inefficiencies and setbacks.
What could be a culture of continuous learning and improvement can instead become one of continuous impairment and regression.
Take the example of ABC Mining, who expanded their production lines to include more versatile machinery and diversified products. While this initially seemed a boon, the complexity of managing these multiple lines soon led to frequent breakdowns, production delays, and a steep learning curve for the workforce. The sheer number of production options within a dynamic and time sensitive environment makes optimal decision challenging.
A crucial lesson for production businesses: increased production flexibility, while beneficial, demands sophisticated management to harness its potential without falling prey to the pitfalls of complexity.
One pitfall of operational complexity is production disruption. How does this occur? Does the workforce become overwhelmed? Does this explain our diminishingly effective labour force?
The Productivity Problem Part 1: Defining the Problem Series