Seven considerations for a successful manufacturing plant relocation to Mexico
Due to market conditions, supplier demands and a myriad of other reasons some companies are compelled to plan and execute a manufacturing plant relocation to Mexico.
As the global marketplace evolves, many companies are faced with the prospect of relocating a plant to another site – they may even consider executing a manufacturing plant relocation to Mexico. While such an undertaking can be quite daunting and complex, if care is taken to adequately address seven key considerations, the transition should be relatively smooth and successful.
In order to properly plan for optimal access to utilities and the most efficient layout for equipment when initiating a manufacturing plant relocation to Mexico, design drawings are absolutely essential in the early phases of moving facilities to a new site. Attention to detail should be included in each drawing, going so far as to include even overhead equipment. Other items to include:
- Building columns
- Utility locations
- Equipment sizes
2. Equipment Tagging
Carefully tag each item of equipment with an asset tag or ID before the move. Accurately identify each item and log in an equipment database. Only after this consideration can the planning of utility placement be fully productive.
3. Equipment Evaluation
A move is a perfect time to replace faulty equipment. Don’t spend resources on transporting equipment that will only be replaced or phased out in the near future. Carefully inspect and audit the functionality and long-term value of each major asset. The plant engineer should document the condition and make recommendations to replace, repair, or refurbish each respective item.
4. Equipment Instructions
A very important consideration is whether or not contractors will be needed to relocate equipment over the course of a manufacturing plant relocation to Mexico, and if so, what instructions to give the relocation contractors. Equipment Relocation Work Instructions (ERWI) or similar documents are vitally important in bidding the relocation contract and ensuring a successful start-up at the new site.
5. Relocation Schedule
Possibly the most intricate and most essential consideration of a relocation effort is developing a strategic schedule for the move. Often, the donor facility will have to ramp down operations in a specific sequence while the receiving facility is subsequently ramping up. This delicate transfer cannot be successful without careful consideration of specific schedules. It will sequence the removal and setup of equipment as well as the design and bringing online of utilities, and should be planned to the day.
6. Installation Strategy
The implementation of a successful relocation occurs when the plant engineer optimally coordinates with the relocation contractor and the utilities installer with detailed planning and execution in such a way that minimizes the disruption of production and optimizes the use of space, energy, and effort. To properly accomplish such a choreography, an installation strategy must be formulated to ensure equipment is installed in the right place at the right time.
Testing is a crucial before turning over operations to manufacturing. For a successful relocation, careful consideration must be invested in the testing and commissioning phase after relocation and installation are complete. Requirements should be predetermined and included in the ERWI or very early in the project to ensure clear objectives and standards for measuring the success of a manufacturing plant relocation to Mexico