Relocation Project Management

Example 1

This typical relocation was for a business manufacturing specialised plastic products.  The project was granted East Midlands MAS shared funding. The Client sought higher growth and a reduced cost base with a payback over 18 months. They had three different manufacturing processes in different locations:

• A complex foam injection process, produced in manufacturing cells and requiring fume extraction
• Three plastic extrusion lines
• A labour intensive hand moulding process for small volume requirements.

All three processes were relocated into one new location and were laid out for lean manufacture.  A mezzanine area was required, as was pallet racking for storage of raw material and finished goods.  All required services (compressed air, cooling water, fume extraction etc) were specified and installed.  Production volumes were increased prior to the moves and the move of the production areas was staggered to minimise disruption to customers.  This project also included the control of the dilapidations work on the old buildings. 

The client management team were able to focus on virtually eliminating disruption to customer demand while project management dealt with all external resources and negotiations, presenting informed and cost effective choices. The works programme was managed efficiently reducing delays, controlling costs and delivering competitive choices to the client.

Example 2

The Client owned two separate facilities in central Birmingham. The buildings were old, energy inefficient and production layout had evolved over many years. Manufacturing occupied one building while finished goods were stored in the second facility.

The move to a new factory required the custom preparation of electrical supplies, lighting, heating, partitioning, extensive racking, new telephone and IT systems and fire, security and Health and Safety management. Competitive quotations were sought from local service providers and a schedule of work was prepared.

The custom preparation of the factory, including building new canteen and showroom facilities, was managed and the final physical move from two premises to one new building was actioned by the interim project team, working closely with the Client.

The Client was able to continue managing his business and was able to focus on minimising disruption to his customers, supported by project management who presented him with competitive choices, managed the schedule of work and saved him both time and costs.

At the completion of the move, the Client had achieved a successful move into energy efficient new premises with lean production layouts, better logistics and importantly, significantly improved visibility of the entire manufacturing process from raw materials through to finished goods.

Example 3

How not to relocate.

The business wanted to relocate to their new location, a 20 year factory. The Owner decided to manage the relocation entirely by himself.
He needed:

• electrical work to power their machines
• some internal redecoration, stud walls and flooring
• two external small buildings to locate compressors and extractor equipment
• new phones and lines.
• A transfer of the computer network, which was working well.
• gas warm air factory heating.
• rectifications made to their planned new location

The Landlord of their old premises billed them for a major new roofing rectification and for painting the floor - £17,500

He failed to agree terms regarding a leak in the new premises roofing and the upgrading of the damaged floor – Cost them £8,500

The electrician discovered issues with the incoming feed and charged them £18,000 to rectify them. His final bill came to £103,000. (A more reasonable estimate would have been £38,000)

The Builder failed to complete the work in the timescale promised and delayed the electrician who insisted on immediate payment of required switchgear and cabling.

The Gas feed required to be upgraded to an industrial rating. The mains was 700 yards away from the factory. It cost £18,000 for all the trench work rectification of the outside road and took 12 weeks to be completed.

The hot air heaters had to be relocated from the position installed since the Gas Meter had to be relocated to a different part of the factory- extra £2,600

He ordered a new server and then discovered that for the system to operate, he required the latest version of their accounting package. This cost him an additional £12,000

The time wasted, scheduling problems and untested quotations left the business struggling with cash flow. A major loan had to be negotiated and the Bank charged distressed rates. The disruption to existing clients resulted in the permanent loss of 18% of their turnover. Three years later, he was forced to sell his business at an unfavourable price.