Manufacturing companies in today’s time are in a hurry to cope with the fast-paced technological advancements. Whether it is a plan of expansion due to having a company acquisition, to increase work force or invest in new machinery, all are willing to gamble a few, to earn more.
By doing such a big project, like an expansion, manufacturing companies will surely face issues and problems along the process. Thus, starting with a good plan in hand is the key to face such future issues without incurring losses.
For example, if an expansion project is being laid out by the maintenance management to ensure a bigger area for a product line testing, all existing machinery will have to be moved to another area to continue the production run in parallel to the construction project. On the other hand, other machinery might have to stop running because of the limited space available. Despite having the need to continue the production testing, it is not safe to do so for issues such as production accidents might occur when forced, and that will be another issue the company might have to handle.
With this scenario, it is very important to have the expansion project done at the earliest time possible so that sales and profits will continue to flow in. If the production stops for even a longer time, the company will not only suffer the loss but its clients as well. In a manufacturing business, every second count in a production run. A few seconds could equate to thousands of dollars earned or lost.
With the maintenance management overseeing this expansion project, they should have a clear timeline that should be strictly followed so that everything is under control and there will be less downtime as much as possible. Investing in maintenance management software will assist them in this task of ensuring that there will be a lesser waste of money.
Having a Good Expansion Strategy
With expansion projects being laid, there is a brighter future for the manufacturing plant to increase profit, since this project means more space for additional machinery or product testing. However, the cruel truth of every expansion project includes sacrifices and losses as well and that includes lesser throughput, idle workforce, reduced productivity, lesser income and more.
So what can a manufacturing company do to fight these? A good expansion strategy is all it takes.
- At the earliest and most bare face of the plan, all possible hindrances, concerns, and issues should be addressed even before starting the actual expansion project. This might not totally solve issues that might occur, but it can be a good tool at the very least when something unexpected occurs.
- You can make use of different build strategies such as Design-Build process or Design-Bid-Build process. The former includes hiring a single entity do the design and construction process. While the latter includes hiring two separate entities as the designer and the builder, the latter is commonly used by most companies in the US. Both methods have their own share of advantages and disadvantages as well as an appropriate application.
- Have a clear cost budget. The budget is by far the most critical aspect of every expansion project. The budget can be just enough, in excess or in deficit. Common scenarios such as choosing whether to the increased budget to compensate for quality or stagnate it while sacrificing quality is something every company should try not to get in to. So having a clear and properly done cost budget will save the company in many ways
- Be timely on schedule. While this strategy is often the most difficult to actualize, companies and project contractors should both work hand in hand to achieve this difficult goal during the project. In any case, taking the most efficient route will lead to this goal.