Manufacturing
Relocation of Manufacturing Operations

Background

The client was the UK subsidiary of an US corporation that was owned by US Venture Capitalists.

The UK business had been performing badly for a number of years and the decision was taken to close the manufacturing operation of the UK business and transfer the operation in part to a sister company in Italy and in part to a sister company in Canada.

The current site was then to be sold and the remaining part of the business (sales, customer services and a scaled down Finance team) were to be relocated to a newly leased office.

The business had a local Financial Controller in situ but she was considered to be too inexperienced to project manage this transformation of the company.

The Brief

My role was to project manage the exercise to relocate the two elements of manufacturing to different sister sites and to plan the relocation of the remaining parts of the UK business to a new sales office site.

Key to the brief was the coaching of the local Financial Controller during all stages of the project. Whilst I was there, I also had a task to watch over the month end process and comment upon anything of interest.

Assignment

The project consisted of the following:

Preparation of a business plan for the project including detailed action plans of what needed to be done, who owned the task and when the target completion date was for the task.

Work with the Group HR Director to calculate (a) a one-off bonus scheme to hit certain production targets by a target date and (b) all termination payments for the operations staff who would be losing their jobs.

Present a fully costed plan to the UK Group Board for sign off

Draft two separate action plans for the decommissioning of the various pieces of kit which were sent to Italy and Canada.

Liaise with Operations teams in Italy and Canada to keep them fully up-to-date with the status quo of the transfer of the plant and the order books that they would be expected to pick up.

Oversee a local manager’s search for new accommodation for the Sales, Customer Services and Finance staff.

Liaise with a Group Manager regarding the timing of the potential sale of the Manufacturing site.

Liaise with the local Financial Controller to define what the Finance Team would look like post the move and to implement the removal of the necessary heads.

Chair a weekly Project Update meeting with representatives from Group and the teams from Italy and Canada

Conclusion

The project was completed on time and to the satisfaction of the client.

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