Consolidate or merge a checklist
Consolidate or merge a checklist
Equipment, facility and process issues
Merge or consolidate to concentrate resources for successful operation; use economies of scale to minimize cost. In any economy, especially this one, consolidation or merger can make economic and strategic sense.
To consolidate or merge successfully, through choice or because it has been imposed by market forces, a company must properly integrate equipment, processes and facilities in the final entity. A well done facility project can create an effective, productive enterprise, maximize operating and distribution relationships, and achieve the original objectives. This checklist points out the major topics to consider. Jackson Productivity Research Inc. uses this approach for its consolidation or merger clients.
The following issues are often involved in facilities consolidation. Mergers are similar, built on the same framework. This article is a checklist of topics, but see also my article “Merger or consolidation; facility actions help it succeed” for elements of strategy. And when you are ready, Jackson Productivity Research Inc. will be glad to assist with the many details necessary for successful facility consolidation or merger both in the due diligence steps and later in implementation.
1. Background
In order to consolidate physically and integrate practically, the project team must clearly understand the strategic and logistical aspects of the project; strategy, scope and objectives, timetable, budget. Responsibility of the source facilities and of the destination facilities must be carefully set forth, and assigned to resources of the organizational chart after the change expected. At this point an appropriate plan should be established for both internal and external communications.
2. H. R. Issues
A merger by nature is likely to involve personnel actions. Address what H. R. actions will be taken to accomplish the financial objectives of the merger, what company policy is regarding the actions, and timetable for announcements and actions. Be sure to consider not only the final situation, but also the transition period.
3. Integrate electronic and manual systems of acquired company with existing company
Start with specs, part numbers, financial systems, inventory of product materials and supplies. Keep or change hardware, software, control systems? Location of final computer system and plan to reach the integration. Cutover plans for systems and communications.
4. Inventory plan during transition
Receive, use, store raw materials, ship products from multiple plants. Inventory drawdown to minimize shipment.
5. Customer relationships
Before, during, after to assure continuity of delivery.
6. Vendor relationships
Before, during, after to assure supply and minimum relocation.
7. Day to day operation
Source shut down plan, equipment transfer or dispose of, destination startup plan.
8. Status of destination facility
Physical characteristics of facility and grounds, capacities and limitations. Changes and timetable necessary to develop a more suitable facility.
9. Plan for relocation
Process and technology, equipment, inventories, administrative and support. Training plan for startup team.
10. Prepare the destination facility
Plan, modify or construct as needed. Add operators and train them.
11. Complete the relocation itself
Shut down, pack and ship
12. Start up the relocated equipment with the trained operators.
Jack Greene Jackson Productivity Research Inc.
Consolidate or merge a checklist - To learn more about this author, visit Jack Greene's Website.
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Consolidate or merge, a checklist
Equipment, facility and process issues
Merge or consolidate to concentrate resources for successful operation; use economies of scale to minimize cost. In any economy, especially this one, consolidation or merger can make economic and strategic sense.
To consolidate or merge successfully, through choice or because it has been imposed by market forces, a company must properly integrate equipment, processes and facilities in the final entity. A well done facility project can create an effective, productive enterprise, maximize operating and distribution relationships, and achieve the original objectives. This checklist points out the major topics to consider. Jackson Productivity Research Inc. uses this approach for its consolidation or merger clients.
The following issues are often involved in facilities consolidation. Mergers are similar, built on the same framework. This article is a checklist of topics, but see also my article “Merger or consolidation; facility actions help it succeed” for elements of strategy. And when you are ready, Jackson Productivity Research Inc. will be glad to assist with the many details necessary for successful facility consolidation or merger both in the due diligence steps and later in implementation.
1. Background
In order to consolidate physically and integrate practically, the project team must clearly understand the strategic and logistical aspects of the project; strategy, scope and objectives, timetable, budget. Responsibility of the source facilities and of the destination facilities must be carefully set forth, and assigned to resources of the organizational chart after the change expected. At this point an appropriate plan should be established for both internal and external communications.
2. H. R. Issues
A merger by nature is likely to involve personnel actions. Address what H. R. actions will be taken to accomplish the financial objectives of the merger, what company policy is regarding the actions, and timetable for announcements and actions. Be sure to consider not only the final situation, but also the transition period.
3. Integrate electronic and manual systems of acquired company with existing company
Start with specs, part numbers, financial systems, inventory of product materials and supplies. Keep or change hardware, software, control systems? Location of final computer system and plan to reach the integration. Cutover plans for systems and communications.
4. Inventory plan during transition
Receive, use, store raw materials, ship products from multiple plants. Inventory drawdown to minimize shipment.
5. Customer relationships
Before, during, after to assure continuity of delivery.
6. Vendor relationships
Before, during, after to assure supply and minimum relocation.
7. Day to day operation
Source shut down plan, equipment transfer or dispose of, destination startup plan.
8. Status of destination facility
Physical characteristics of facility and grounds, capacities and limitations. Changes and timetable necessary to develop a more suitable facility.
9. Plan for relocation
Process and technology, equipment, inventories, administrative and support. Training plan for startup team.
10. Prepare the destination facility
Plan, modify or construct as needed. Add operators and train them.
11. Complete the relocation itself
Shut down, pack and ship
12. Start up the relocated equipment with the trained operators.
Jack Greene Jackson Productivity Research Inc.
Consolidate or merge a checklist - To learn more about this author, visit Jack Greene's Website.
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