Case Studies - Facilities Rationalization

Facilities Rationalization

Business Challenge

A large industrial equipment manufacturer had undergone significant growth through acquisition, which resulted in similar products being produced in each of its four manufacturing facilities. This operational redundancy created inefficiencies that negatively impacted productivity, manufacturing costs and profitability. The company decided to establish manufacturing centers of excellence and relocate products to the appropriate facility. This initiative involved moving eight product lines to a new facility. Clearly this type of change can be very disruptive, and the challenge was to make sure it was seamless to customers. Accomplishing this was going to require significant planning and flawless execution.

eLogic Business Solution

eLogic was engaged to manage the data, systems and process portions of these product moves. We brought a well defined methodology and tool set to manage the entire process. Key elements of this initiative included:

Business Process Alignment - Existing order entry and fulfillment processes were documented and go forward processes were developed and implemented
Data Management - Defined all data requirements and reconciled all discrepancies that existed due to process and system differences
Live Order Logistics - Reconciled and appropriately routed all sales orders and purchase orders
Supply Chain Logistics - Planning for the transfer of shop load from one facility to another involved managing key items such as:
- Supplier Changes and Consolidations
- Vendor Managed Inventory
- Shop loading and capacity expansion
- Make / Buy component changes

Results Achieved

This structured and disciplined approach delivered a risk-averse transfer of product, data, processes and manufacturing to new sites, while meeting the challenge of uninterrupted delivery to the customer. This was achieved with a high level of workforce motivation, despite the business obstacles, and allowed key resources to focus on the continued management of the business.