Question

This week we've heard a lot about companies modifying their capabilities to produce personal protection equipment (PPE) for medical staff. This includes, masks, gloves, etc. used by medical staff, as well as ventilators. What strategy to increase/modify capacity do you think these companies are implementing to meet these needs?

Answer 1

The strategy that companies are implementing to increase/modify capacity for producing PPE for medical staff is the strategy of leveraging their expertise with regards to production. These companies are not expert at manufacturing PPE and related items like masks, gloves etc. The company is not looking this at a roadblock; instead they are implementing their strategy in a way so that they overcome this roadblock.

The companies are not looking to re-invent the wheel but are simply focusing on their core strengths and area of expertise like fast manufacturing, efficiency and strength in logistics and their strong supply chain operations.

For example Ford is a car manufacturing company and has never manufactured PPE and ventilators. However the company will manufacture ventilators at its factories by focusing on its strengths in manufacturing which lies in fast and efficient manufacturing, logistics and supply chain. Ford is making use of a simplified design to make the ventilators to ensure that the production of these ventilators at its plants does not encounter any problems.