Factory and Site Relocation

What is Factory/Site Relocation?

As part of their strategic planning, many companies often review the merits of remaining where they are against the benefits of moving factory relocation. The option to relocate the Company becomes a higher profile issue whenever there is a major change in its business operations and when it embarks on a major reorganisation of a part or whole of its business premises. Because companies rarely relocate, it is unlikely that an organisation will have the necessary experience or skills to research, plan and generally undertake the Factory/Site Relocation 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 relocations brought about by time pressures are real and very public. Relocations 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 site relocation 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 Relocate?

The cause of a company or business needing to change its location (factory relocation, site relocation, office relocation 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 or changed are also a common reason for site relocation. However, the most likely reason for a business to decide to commit to a site or factory relocation 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 Relocation expensive?

The cost of site relocation is dependent on many factors including the size, complexity and specific requirements of the project in question. Both site relocation and factory relocation involve significant investment. However, provided executed correctly, this investment will dramatically improve the cost base of a business. When completed, site relocation enables a company to focus its attention on product and market differentiation and promotional activities. The cost associated with site relocation 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 Relocation?

Site relocation 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 site relocation 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 relocation take to complete?

Site relocation 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 Relocation?

Site relocation 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 relocations.

What does a Site Relocation 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
• • Backfilling of existing project position/activity shortfalls
• • Detailed layouts including state of the art 3D visualisation of the new location/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
• • Site de-commissioning and disposal
• • Residual environmental issues

What could a Site Relocation specialist do for me?

A site relocation 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 Relocation service which has been used on a number of confidential and multi-faceted relocations. PROjEN’s key focus in during site relocations is to ensure that project timescales are met, budgets are adhered to and business disruption is minimal.

Specialist consultants in Factory / Site Relocation

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 25 years, a statement given credence through the recognition of the European Construction Institute's 'Contractor of the Year 2003’ and 'Project of the Year 2004’.

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 Support