5. Reduce diversity by optimizing your network of production units

In the case of a network of production units manufacturing similar products, the overall impact of diversity can be reduced by optimizing the network:

• Plant specialization by product size or component type reduces the number of part numbers to be managed;

• more simply, grouping similar products together in the same plant reduces average changeover times, and therefore increases capacity.

This decision to specialize is generally the responsibility of the industrial or supply chain strategy; however, it may be a good idea to question, or even challenge, this strategy in the case of the introduction of a major innovation!