Background and Challenge
Our client, a leading manufacturer of building products for residential and commercial construction, had recently acquired a single-plant metal roofing manufacturer, bringing its total number of metal roofing manufacturing plants to three.
The company sought to reduce its operating costs by consolidating these three roofing manufacturing plants into one.
Approach and Recommendations
We partnered with the client to define the right plan to consolidate its operations, maximize benefit, and minimize operational risk and cost by:
- Analyzing and comparing financial and operational impacts of consolidation into each of the three locations
- Summarizing the economic impact of the consolidation
- Creating a detailed floor plan for the consolidated plant layout that minimized reconfiguration of existing operations
- Developing an implementation plan to support the physical move while mitigating potential risk that defined timelines and ownership for each activity
- Baselining the current performance of the three plants to understand products, production processes, current and projected volumes/mix, cost performance, capacity/utilization, labor, infrastructure, supporting capabilities, etc.
- Assessing risks and developing a proactive risk mitigation plan
Results
- We determined that a plan for consolidation into a single facility was feasible operationally and attractive financially
- We calculated the expected run-rate operational cost reductions at approximately 10%, with additional upside potential from increased operational efficiencies that could be achieved throughout the forecast period
We provided a floor layout and consolidation timeline to ensure the client could successfully consolidate manufacturing without impacting required production
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