Take advantage of an opportunity to turn an expense into an investment

By Philippe Leroux, Groupe Progima

One day or another, a company will find itself obliged to rearrange its facilities in one way or another, or to build new ones and move the business and this can happen due to any one of a myriad of reasons.

A construction project or an industrial redesign differs in a number of ways from residential, commercial or institutional projects. Nevertheless, the most marked distinction is the opportunity of getting some return on the investment. If the project is intelligently designed using the principles of industrial engineering, it may be possible to transform what may be perceived at first as an expense, into an investment!

Over the years, various changes made inside a plant can have a negative effect on productivity. For example, due to budget limitations, a new piece of equipment may be installed some distance away from its optimal position (it being installed wherever there happens to be enough room). After 10, 15 or 20 years of operations, events of this kind add up creating plants that are no longer efficient considering the unnecessary handling and the obligation of manufacturing in large lots. In some of the Groupe Progima projects, it has been observed that in a typical plant, about 30% of the workers’ time was being used to make up for a poorly adapted layout and 20% of plant space could have been recovered or eliminated following a review process.

Corporate management must be conscious of this and seize the opportunity to reduce its direct manpower costs and capitalization budget. It must apply the principles of industrial engineering (PVA) in its new plant in order to remove all this inefficiency:

  • linearize production in order to reduce handling to a minimum;
  • apply a strategy of manufacturing cells to reduce the space occupied by current products;
  • use new warehousing and handling method to maximize space.

The recovery of lost hours and unused space allows company management make its relocation, renovation or expansion project profitable.

To find out more, we invite you to attend one of our seminar, « Les secrets d’un réaménagement réussi » which represented by DEL two or three time per year.