Organising a factory relocation can be a huge task. It’s time-consuming, requires detailed planning and the whole process is likely to need input from multiple departments which can make it a stressful undertaking.
A Relocation Checklist
There are a few common reasons why a production facility or manufacturing line will be chosen for relocation, such as the need for additional space, a closer proximity to key suppliers, or because their new geographical location gives access to a more cost effective labour pool.
While factory relocation isn’t uncommon, most companies tend to underestimate the risks involved with it. Not only are you facing operational hurdles but also financial ones. After all, it isn’t easy to pick up and move, especially when you need to properly dismantle and transport heavy machinery while trying to minimise disruption to the existing production output as much as possible.
These are the main steps to keep in mind, from potential risks to the importance of keeping the whole team involved at all times.
Potential risks of a Factory Relocation
If you are considering factory relocation, we will outline some of the potential risks involved and steps you can take to avoid any problems during your factory move to the new facility. However, the very first step has to be carrying out comprehensive risk assessments and relocation checklist.
Planning an industrial relocation will always take a lot of work, and there are always possible potential dangers involved, regardless of moving long distances or moving within the vicinity of your existing factory. But, you should be aware of the risks involved in facility relocation.
This risk assessment won’t be something that any single party can complete all on their own. It will be a collective effort, and must result in a document that is actionably effective and fluid, changing shape as necessary.
Equipment Liability and Machinery Relocation
As a factory owner, you probably own a couple of pieces of machinery and equipment that are part of making and finishing products. These machines may be specific to your business, meaning they have to be transported from your existing location to the new one. However, the disassembly, moving, and reassembly of many types of factory equipment is a huge job with all of the moving parts of large machinery. Planning a factory move requires a lot of safety measures.
Logistically speaking, this can be highly complex, and you need to start planning for the following issues:
- Equipment damage – It isn’t uncommon for parts and machines to get damaged during transit, leading to production issues. So, machine movers need to be careful.
- Inefficient layout – The new plant has to support productivity, but it could have the opposite effect too. Check your new shop floor layout works before you move.
- Improper infrastructure – The new factory may not be able to support your existing heavy machinery, thus needing extra work to meet your goals.
There will be certain measures you can put in place, such as industrial insurance, to mitigate the outcomes of these kinds of events. Still, the most effective strategy is to try to predict potential issues and then prevent them from occurring in the first place.
Project Management for Your Electronic Equipment
Heavy machinery relocation is one thing, but factory equipment is unlike regular electrical equipment. We are talking about servers and computers. Everything today revolves around the effective use of technology. Therefore, any lag in operations can cost you money. That’s why we understand if you are apprehensive about relocating your factory’s IT department to the new site, but sometimes it can’t be helped.
The best way to minimise the stress of your entire factory relocation is to take steps to prepare for the eventual transition. Speak with the IT department to figure out the best way forward. Data centres and servers can be hard to move, and reducing downtime is even harder, not to mention the plan has to be cost-effective, but it is possible with good planning and professional help.
Facility Relocation Projects May Mean Reducing Employees
Sometimes relocating your factory may mean downsizing your workforce. Your senior management like project managers will need to be in place during this transition period. However, you also need to care about those in mid-management and below, since they will be instrumental in ensuring that your facilities are up and running in the shortest time possible at the new location.
You will also want to consider how the move will impact their work or perhaps any other relationships you might have established with contractors and vendors. That said, don’t be surprised if the move triggers a higher staff turnover, as some employees may not have been able to transition from the existing plant.
It’s critical that none of these decisions are made too hastily. The impacts of the move may take a little time to figure out, and you don’t want to suddenly find that you have to rehire a substantial portion of your prior workforce.
Machine Moving and Inventory Problems
Factory relocation can lead to several issues, such as inventory management and machinery dismantling. When moving inventory to the new factory location, there are several things you’ll need to prepare for and issues you may encounter. To start with, you want to have a good tracking system in place, or you could lose items.
Tips to Overcome Factory Relocation Challenges
We know from years of experience that moving a factory is often daunting. Not only do you need lifting equipment, but also a skilled team to handle equipment safely. Yet, there are steps you can take to make the process run smoother.
Start Planning
Have schedules and timelines for everything mapped out. Every single task that needs to be accomplished should have a deadline. A common mistake in our experience is a lack of accountability. You will want to make a list of all the tasks that depend on others to be completed, then use this as your starting point.
Part of the plan should be to consider the timing of every step. However, you will want to refrain from executing a move during any busy periods, as the downtime could impact you financially.
Like anything else, planning is the key to easing the entire process. You will want to start by preparing the factory for relocation at least three months ahead of time. That way, your teams have plenty of time to prepare.
Instruct All Personnel
Not only do you want to prepare the equipment and machines to move, but also your in-house team. This will mean all your suppliers, customers, employees, and everyone else who will be impacted should be aware of the fact that you’re about to move and when.
Of course, some stakeholders will be more impacted than others. Likewise, some members of your team will need to be more involved in the move itself than others. It’s worth creating a communications document early on, to make sure that you’re adequately strategic in you’re approach and don’t make any slip-ups.
Hire A Professional Factory Relocation Service
As you might have already figured out, factory relocation isn’t easy. That’s why having a professional industrial moving company with similar experience will help to ease a lot of the stress associated with the relocation.
A reputable and experienced company such as VIG is the most efficient way to complete your relocation with the fewest issues.