Network competency

Network competency

Improves the value

Better net output thanks to network competency

Network competency describes how well a production plant cooperates with external partners. If information and materials can flow freely in both directions, the result is an increase in the net output.

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Peter Röttchen

Peter Röttchen Senior Consultant

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Network competency means:

  • A high level of transparency in all processes - from customer orders to delivery
  • The flow of materials and information, and the quality of processes are constantly analysed and interpreted
  • Interfaces to external partners are aligned and brought into harmony
  • Weak links in the chain are pinpointed and optimised using Best Practices
  • Increased net output, more flexibility and better productivity are the result

The better that internal processes - from order processing to distribution - are aligned with external interfaces to customers, suppliers and production partners, the easier it is to ensure a production site performs well.

"Sensors" measure performance constantly, and "actuators" can intervene in processes, i.e. by prescribing or adjusting targets. An unhindered flow of information, not only internally but also to external partners, is a prerequisite for fast reactions.

Inventory management and monitoring provide a "haemogram" of the production plant

The inventory and key production figures are indicators of the quality of processes in the plant. The values measured along the value chain are like a "haemogram" for the plant. Analysing this haemogram shows where action needs to be taken in processes: Where are there bottlenecks? Where is there a high level of utilisation? Where are there deviations? Where are there quality issues?

Reacting flexibly to deviations, and controlling growth

Once the "haemogram" of the plant has been analysed and a diagnosis made, tried and trusted methods can come into play (drawn from Best Practices) to react flexibly and quickly to "disruptive situations" such as changes in demands in various projects. The overall performance of the plant improves, and controlled growth becomes possible.

Public Management - Network competency



Peter Röttchen

Peter Röttchen

Senior Consultant