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Critical Manufacturing Mantra: Location, Location, Location

The manufacturing landscape, especially in the electronics industry, might be called, at worst, volatile, or at best, lively. Electronics OEMs are managing a combination of business growth, demand changes, and more. It’s important to weigh the benefits against the potential downsides carefully before deciding to relocate.

Moving manufacturing to a new location requires more than just a new building or location. Organizations should consider that a move may demand other kinds of changes as well, including:

  • Changes to the organizational operating or service models.
  • Reductions or increases to labor force.
  • Consolidation or expansion of the physical workspace.  

If a move is deemed to be the best path forward, careful planning is critical. It’s important to give the organization plenty of lead time and build the relocation team carefully. Include a broad variety of people in the planning and don’t forget to involve human resources, health and safety, and union reps on the team. That’s when the to-do list gets really long:

  • Figure out who is going to do what.
  • Hire experienced project managers, contractors and advisors.
  • Create and cross check drawings of both the current and new factories.
  • Audit and document your machinery.
  • Review your supply chain with an eye toward how a move will impact it.
  • Build out a relocation schedule.
  • Create a schedule of work with detailed instructions.
  • Consider potential areas for improvement.

There are many reasons that a move may be in the best interest of the organization, even in light of all the time and effort that it demands. In addition, a move to new manufacturing facility provides an opportunity to create new processes and workflows that allow the organization to do more and to improve quality at the same time.

Take a look at the infographic below from CNC Exchange for more information about why organizations may choose to move and what steps they should take.

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