Factory Reorganisation and Site Reorganisation

What is Factory/Site Reorganisation?

As part of their strategic planning, many companies often review the merits of reorganising their existing operations. The option to relocate the Company may not be available due to time, cost or other factors and the need to consolidate the business may require drastic changes to existing infrastructure. The need to reorganise a factory or site becomes a higher profile issue whenever there is a major change in company’s business operations or when production output reduces. Because companies rarely make drastic changes in their site operations, it is unlikely that an organisation will have the necessary experience or skills to research, plan and generally undertake the Factory/Site Reorganisation project in-house. The pressures already put on a business usually means that existing resources are heavily loaded and the failure costs of poorly planned/executed reorganisations brought about by time pressures are real and very public. Reorganisations are more often undertaken by an experienced project management company, working alongside key client staff, who understand the client project manager already has a ‘day job’. Successful factory and site reorganisations will always recognise the need to maintain continuity of service to customers and cause as little disruption as possible to the business in terms of its customers, employees and other stakeholders.

Why Reorganise?

The cause of a company or business needing to change its operations (factory reorganisation, site reorganisation, building changes etc) can vary and could be a simple reaction to an increase or decrease in product demand or through changes in manufacturing methods or from Corporate requirements to consolidate with other operations. Practical issues such as the unsuitability of existing premises that need to be upgraded to meet new legislation are also a common reason for site reorganisation. However, the most likely reason for a business to decide to commit to a site reorganisation is when a UK business decides to outsource their products from a third party. This is especially true for commodity items which can be sourced from overseas at much lower costs. Businesses can decide to source all their requirements from global and/or local suppliers or retain some of the high added value/complex products. Either way there is a major reduction in the facilities required by the new operation and the associated ongoing costs.

Is Site Reorganisation expensive?

The cost of site reorganisation is dependent on many factors including the size, complexity and specific requirements of the project in question. Major changes to an existing site involves significant investment. However, provided executed correctly, this investment will dramatically improve the cost base of a business and the efficiency of the retained processes. The cost associated with site reorganisation are not cheap but must be weighed against the financial viability of the existing operation in the future and the potential to meet/beat market forces. Who should oversee a Site Reorganisation?

Major site reorganisation projects are performed rarely in the lifetime of a Company and are not to be entered into lightly. They require a specialised and experienced team to ensure they run effectively and efficiently as project failure is often catastrophic for a business. As such, it is not wise to pass the job on to overworked staff that have lots of responsibilities already. The planning, risk management, project execution and communication strategies that must be put in place requires highly focused and specialised skills to ensure that the “new site” becomes a wise investment rather than a financial failure. The key appointments are firstly to select a Client Project Manager who understands the objectives and has the gravitas to communicate at all levels within the organisation. The Project Manager should then be supported by a team which should include experience resources brought in for a defined period.

How long does a site reorganisation take to complete?

Major site reorganisation is usually a one-off process which requires weeks of planning to ensure a smooth change from existing to new with minimal disruption to the rest of the business. Attention to risk management, clear project definition and planning cannot be overstated. Any saving in time by taking short cuts at the start of this kind of project are often dwarfed by failure costs experienced before the end.

Who can advise and support a business undergoing a Site Reorganisation?

Site reorganisation requires the need for practical and experienced support to plan and assist in the execution of the transition. PROjEN is a nationally recognised project management company with proven experience of factory/site reorganisations.

What does a Site Reorganisation consist of?

Site relocation projects can be deceptively complex in nature. They may include some or all of the following elements, although every project plan is designed according to the client and business needs.

• Establish a clear set of objectives and strategies
• High level and detailed planning of all elements of the project
• A confidential time/cost appraisal of the transition
• Risk assessment and risk management of the transition
• Development of a project execution plan and communication strategy
• HR Strategies
• Business Continuity Plans
• Detailed layouts including state of the art 3D visualisation of the new facility
• Contract management of new plant services and facilities
• Dismantling, removal, transport and reinstallation/commissioning of existing plant and machinery
• Provision of Health and Safety, construction management, CDM roles and responsibilities etc
• Potential Site de-commissioning/disposal/Residual environmental issues

What could a Site Reorganisation specialist do for me?

A site reorganisation specialist can ensure a complicated project runs efficiently and effectively and gives the result expected at the start. It ensures this “one-off” project has the best chance of success. As well as being a highly established project management company, PROjEN PLC have developed a unique Site Reorganisation service which has been used on a number of confidential and multi-faceted projects. PROjEN’s key focus during site reorganisations is to ensure that project timescales are met, budgets are adhered to and business disruption is minimal.

Specialist consultants in Factory / Site Reorganisation

PROjEN PLC are a well established project management company recognised as being leaders in the delivery of industrial projects on a stand alone/turnkey basis or working alongside client companies.

As part of our service offering, PROjEN deliver a number of Business Improvement Products, which have been carefully selected to add real benefits. These products have their foundation in the successful implementation of projects over the last three decades, a statement given credence through the recognition of the 2005 Bentley BE Award for Excellence of New Technology Adoption, ECI Contractor of the Year in 2003, ECI ACTIVE Project of the Year Awards in 2004, 2006 and 2008 and as well as a ‘Royal Society for the Prevention of Accidents’ (RoSPA) Gold Medal in 2006, 2007 and 2008 following seven consecutive Gold Awards. PROjEN have also been awarded Vale Royal Business of the year 2006, the High Sheriff of Cheshire award for Enterprise in 2007 and received Carbon Trust Accreditation in 2007.

PROjEN can work independently or alongside the client project owners, providing expert advice from day one. We supply crucial resource when it is needed, control budgets and programmes and ultimately deliver the project as the client originally intended. Our core business is the successful delivery of projects from feasibility, capital justification, front-end engineering, detailed design, through to full turnkey project completion, providing the client with single point responsibility.

In an age of specialisation, PROjEN can also offer a full design responsibility across all disciplines (Process, Control & Instrumentation, Mechanical, Electrical, Civil & Structural) in addition to Construction Supervision, Health and Safety, Procurement and Commissioning. Our extensive experience across a wide range of industries encourages cross fertilisation of ideas and adoption of best practice techniques. Our up to date knowledge and translation of current legislation and CDM regulations which allows PROjEN to provide practical help and advice at costs sufficient to satisfy current regulations.

Contact PROjEN plc

Head Office: PROjEN PLC, Winnington Avenue, Northwich, Cheshire, CW8 4EE
Telephone: 01606 871111
Fax: 01606 871133
Email: enquiry@projen.co.uk

For more information about PROjEN and our services visit Project Management Resources