Factory Consolidation & Relocation
Running any factory at the lowest possible cost to improve gross margins is essential in today’s highly competitive business environment.
In bygone years if you needed more manufacturing capacity you just built a new factory, converting cash into fixed assets. But additional factories introduce additional overheads and inefficiencies that drive up costs.
Getting more out of your existing factory is a much more cost effective route:
- Using Business Process Improvement to determine alternative methodologies
- Identifying new investment in up to date equipment and facilities
- Improving existing floor layouts
- Making use of the 3 dimensional space, using selected mezzanine structures
- Subcontracting non core business operations to focus on important processes
And if you have two or more factories, consolidating to one factory
During the last 10 years we have undertaken numerous factory consolidations and relocations particularly to Eastern Europe and Far East. Many of our Interims are factory movers (Lifters & Shifters) with an excellent knowledge of manufacturing & supply chain. The process requires:
- Meticulous planning and coordination of all factory operations
- Product rationalisation, stock building to minimise disruption
- Fully documenting all processes (including the "black art")
- Facility decommissioning, shipping of all equipment & commissioning
- Training & developing new operators and support staff
- Closing redundant facilities / making safe and selling off
Most factory moves will take between 6 to 18 months depending on size. External project management can greatly reduce risk.
To discuss how we can help with your factory consolidation & relocation Contact Us.