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Operations management pressures ''being reported by UK manufacturers''
2 September 2011
Pressures on operations management officials such as supply chain constraints, limited spare capacity and lengthening lead times are being reported by the manufacturing industry.
This is the claim made by chief economist at EEF, the manufacturers' organisation, Lee Hopley, who explained that a contraction of activity in the sector seen in the latest Purchasing Managers' Index (PMI) should not necessarily be interpreted as "the beginning of a significant downturn".
She stated that the body is seeing evidence "on the ground that manufacturers are still busy, although more wary about the future".
Ms Hopley's remarks come after Markit and the CIPS reported that there was a contraction of manufacturing output in the UK during August this year, following a decline recorded in July.
However, she pointed out that although there is an indication that activity is softening as a result of "growing global economic challenges", a cautious approach should be adopted in interpreting such information as there is evidence that production is continuing.
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