Relocation and Consolidation
Consolidating or relocating manufacturing plants is a challenging task for which few companies are fully resourced. Our team has a proven track record of driving the rapid consolidation of complex manufacturing operations across international boundaries.
Our experience shows that these projects often appear to be going well until time to move product lines or cells. By then, the only path to recovery is often to spend unbudgeted money. The internal project managers who are nominated to execute these projects are often very capable, but has a day job to attend to and may never have successfully completed a physical restructuring project.
We look for strategies to improve the cost base at the new plant by optimizing production lines before they are relocated.
Our support can begin through development of a network model and associated analysis to understand which facilities should be consolidated. Alternately, our support can begin once a clear strategy has been defined. An important part of the process is reviewing the business case our clients have developed for the project. In our experience, politics often plays a role, and the business cases fail to capture the full cost impact of either the consolidation or operating expense at the new site. In parallel to our business case review, we work with your experts to understand the products that are being moved and develop a management plan for the consolidation.