Factory Relocation Consulting
Drive improvement through factory relocation with strategic site selection and a structured transition process
Manufacturing plant relocation involves making strategic, long-term decisions to optimize operations by relocating facilities to more advantageous locations. Whether driven by cost reduction, capacity expansion, market access, or supply chain optimization, the process of relocating a factory is complex and requires meticulous planning and execution.
Successful plant relocations demand structured methodologies that minimize disruption, control costs, ensure timely execution, and mitigate risks. Kaizen’s relocation services focus on maximizing return on investment and optimizing every stage of the process—from site selection and operational feasibility to transition planning, process optimization, and production ramp-up. With our support, companies can achieve a seamless factory move that drives efficiency improvement, enhances competitiveness, and ensures long-term sustainability.
Kaizen Factory Relocation Services
- Business Objectives: Clarify the main objectives of the relocation, such as cost reduction, increased capacity, expansion into new markets, proximity to customers or suppliers, tax optimization, among others.
- Assessment of Current and Future Production Needs: Consider demand projections, technological requirements, production flexibility, and supply chain impact.
- Timeline: Establish the major project phases and key dates for each, highlighting critical milestones from the strategic decision through to the stabilization of the new operation.
- Governance Model: Define a clear governance model that outlines roles, responsibilities, and project management standards, including meetings and the use of an Obeya room, to ensure effective decision-making and change management.
- Selection of Potential Locations: Identify and evaluate alternative sites based on factors such as costs, accessibility, tax incentives, and available infrastructure.
- Operational Feasibility Assessment: Analyze the impact on the supply chain, availability of skilled labor, regulatory requirements, and geopolitical stability.
- Cost and Investment Breakdown: Develop detailed estimates of installation, operational, and transportation costs, as well as incentives, and potential hidden costs.
- ROI Analysis: Assess return on investment and impact on competitiveness.
- Risk Analysis: Evaluate risks associated with each scenario.
- Comparative Scenario Matrix: Create a matrix comparing the advantages and disadvantages of each option to support the strategic decision-making process.
- Data-Driven Decision: Choose the location that optimally balances costs, benefits, and strategic alignment.
- Detailed Study and Site Research: Analyze available land, existing infrastructure, licensing requirements, and environmental compliance. Assess the feasibility of adapting existing facilities versus building a new factory.
- Competitor and Local Market Analysis: Evaluate the presence of competitors, strategic suppliers, and partnership opportunities that may influence operations.
- Incentive and Regulatory Analysis: Identify subsidies, tax exemptions, government support, and legal requirements that may impact the decision.
- Negotiation with Local Authorities and Partners: Secure tax benefits, incentives, and strategic agreements to facilitate the transition.
- Concept: Align stakeholders with the strategy for the new factory, transforming it into clear concepts before starting the design phase.
- Value Stream Analysis: Design the global value stream aligned with strategy and Kaizen Lean principles, focusing on waste elimination.
- Lean Line Design: Evaluate different scenarios and conduct financial and operational feasibility analyses.
- Flow-Oriented Layout: Design the factory layout, showcasing equipment placement, material flow, and space optimization to support informed decision-making.
- Detailed Construction and Transition Plan: Establish clear timelines, milestones, and responsible parties to ensure on-time completion and operational continuity.
- Inventory Management: Plan logistics to minimize disruptions, considering temporary storage and safety stock.
- Risk Management Plan: Identify potential failures and mitigate operational, financial, and logistical risks.
- Stakeholder Communication and Management: Ensure engagement of customers, suppliers, and employees to foster a transparent and successful transition.
- Transition Management: Implement the change in phases with a strong focus on project management, especially in coordination with suppliers, to prevent timeline and budget overruns. Ensure proper labeling of dismantled equipment, efficient packing, effective transportation management, and seamless reassembly at the new location to facilitate a smooth production transfer.
- Training and Onboarding: Develop local team competencies, ensuring training on processes, safety protocols, and the use of new equipment.
- Testing Execution: Define and implement processes for Factory Acceptance Tests (FAT) and Site Acceptance Tests (SAT).
- Commissioning Preparation: Develop a detailed plan for the factory startup phase.
- Commissioning: Implement the commissioning plan, including equipment transfer, technology deployment, initial testing, and adjustments to ensure proper operation.
- Qualification: Validate production line performance through extended and rigorous testing, ensuring quality and efficiency criteria are met.
- Verification: Conduct a formal review of operations after qualification to ensure performance objectives are sustainable.
- Key Performance Indicator (KPI) Analysis: Monitor efficiency, quality, safety, and financial impact of the relocation.
- Feedback and Final Adjustments: Implement improvements based on the first months of operation.
- Future Optimization Planning: Review strategies for sustainable growth and continuous improvements.
Impact
Total relocation costs reduction
Project lead time reduction
Improvement in operational efficiency
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What other types of support do we offer?
In today’s fast-paced and constantly changing economy, the pressure to deliver complex projects quickly, efficiently, and sustainably has never been greater. At the Kaizen Institute, our approach to Capital Project Excellence begins with a phase of Strategy Design. During this initial phase, we develop a comprehensive roadmap tailored to each project’s unique challenges and goals. This roadmap typically encompasses three types of activities that we specialize in: Project Management Workshops, Lean Project Development, and Lean Project Management.
Project Management Workshops
Use lean capital project management methodologies to streamline processes and improve communication and risk management across capital projects.
This approach ensures that projects are delivered on time, within budget, and meet quality standards.
Lean Project Development
Leverage our improvement workshops to optimize project development throughout all phases of capital projects, from initiation to commissioning.
This approach will help reduce delivery lead times and costs, improve quality, and ensure a vertical startup of the deliverable, whether it’s a factory, equipment, or another type of asset.
Lean Project Management
Our team of project experts will help you boost efficiency by working with your team on an ‘as-needed’ basis to provide essential project services, such as: Overall Project Management, Project Coordination, Estimating, Planning, Procurement, Cost Control, Risk Management, Commissioning & Startup.
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Get in touch with us and share your business needs to get a tailored consulting or training approach
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Every industry faces different obstacles
Kaizen Institute works directly with the client teams, with a “Hands On” and “Teaching by Doing” approach
Kaizen Institute works directly with the client teams, with a “Hands On” and “Learning by Doing” approach
