Tuesday, October 15, 2013

Avoiding the Pitfalls of Facility Consolidation/Relocation

As manufacturing continues toward globalization, it is increasingly important for companies to streamline in order to maintain competitiveness. In attempting to do so, many manufacturers will undoubtedly face challenges within their organizations that can be difficult to overcome. One such challenge, that can be particularly complex, is dealing with the individuals who may be affected by the streamlining process. Setting aside the human equation is often difficult, but necessary.



Department heads and team leaders don't always see the big picture when it comes to restructuring, or streamlining operations. They are not often privy to the numbers that drive a corporation to relocate or consolidate facilities for the benefit of the company.

Often, employees fight the much-needed changes that a company is attempting, because they are aware that course of action may ultimately result in layoffs. The survivability of a company sometimes boils down to streamlining to survive. This, however, does not always mean the loss of jobs. What it comes down to is continuous improvement to maintain competitiveness. The continuous improvement process, like the constant training of an Olympic athlete, is one of ongoing corrections to enhance corporate competitiveness.

Realigning production lines to refine process flow, and weeding out redundant tasks, can often lead to a vast upswing in the bottom line. Changes to workflow that boost efficiency and reduce cost per piece can sometimes be accomplished without much effort. An often-overlooked area is worker fatigue. Time studies taken at various periods throughout the shift can reveal many opportunities for improvement. Worker fatigue can be overcome, but it takes a trained eye to spot and is not always easy to accomplish. This is particularly evident in the case of highly skilled positions.

One of the major problems encountered while identifying these issues is with the very people on whom you may be relying to get the job done. Whether we want to believe it or not, supervising personnel often develop loyalties to workers that may impede necessary changes. When this is evident, streamlining can take a much longer than it should. For this reason, many companies and investment groups will hire specialists in the field of process analysis to identify and evaluate the issues.

Consolidating or relocating a facility should always start with careful planning and seeking outside professionals to help identify problem areas. An outside facility-planning firm should have no vested interest in human capital or local preconceptions. However, the facility planners should also be good listeners, take legitimate concerns into account, and challenge local paradigms. Because of this professional objectivity, facility planners should quickly identify issues and recommend solutions that bring results, without the hindrance of internal relationships and hidden agendas. They can also assist you in developing a written plan for the implementation of your project.

Writing your plan and formalizing your objectives with a detailed schedule, will give you a clearer picture of the process. Having a formal plan can keep you on track, and eliminate costly errors that may result in delays. A written plan also sets the agenda, so that there is no confusion regarding what you are attempting to accomplish, when it will be executed, and how it will be achieved.

Applying for permits and scheduling key vendors can be overwhelming, and dealing with the internal problems of day-to-day business is more than most would like to take on. Utilizing the expertise of a company that specializes in this field and has a practiced proficiency with these tasks can eliminate much of the stress and improve your odds of success.

A few qualities to look for before engaging a consulting firm to oversee your project are as follows:

· Experience

· An acceptable track record

· Knowledge

· Resources

· References

· Discretion

· Communication skills

· Professionalism

Contracting an experienced facilities-planning firm, that has the capabilities, capacity and energy to take your project from conception to realization, should be your primary goal in seeking consulting assistance.

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