There are many reasons why a company might need to review its layout and expand its plant: to increase capacity, to better meet demand, to introduce new technologies, and so on. Plant expansion is a complex process that can take more than two years to complete, from the preparation of the plan to its completion. The preparatory phase of the expansion is crucial to the whole process and requires a great deal of thought. In this article, we describe the various stages involved in preparing for an expansion, and their respective importance in the process.
1. Define your Long-Term Objectives
First and foremost, it’s very important to clearly define your objectives and have a clear vision of your long-term operations. Where do you see yourself in 3 to 5 years’ time? What will your production capacity be? As the investment involved in an expansion is quite substantial, it’s preferable not to expand a plant beyond your objectives, but you certainly don’t want to start the process all over again in a few years’ time. Focus your investments on the added value of the process.
Of course, it’s very difficult to predict the ups and downs of the market, but it is possible to establish a realistic vision over a five-year horizon. Defining your vision is very important and will influence your entire expansion strategy.
2. Value Stream Mapping (VSM)
Depending on the type of plant, the next step is to determine the various workstations, machines and operational tasks that will be needed to realize the vision previously established. A study of the plant’s various flows (material, labor and information) is essential to determine how these flows will be grouped together. This flow study is carried out by drawing up a Value Stream Mapping (VSM). At this stage of the process, you’ll also have the opportunity to optimize the sequences you’ve already put in place, so that you can start afresh on a solid footing.
Basically, Value Stream Mapping maps out your ideal vision, but it’s quite possible at this stage that you’ll realize you need to make some changes.
3. Design the Layout
Now that your vision has been mapped out, it’s time to lay out your requirements in the form of a plan, including dimensions and positioning the main machines. This is also the stage at which physical and logistical constraints are introduced. It will be important to create several versions of the layout plan according to the different constraints, in order to measure their impact. You will then proceed to evaluate the versions, analyzing the advantages and disadvantages of each, and then choose the best possible layout.
4. Optimize the Layout and Plan the Project
Once the layout is chosen, it’s time to fine-tune it! It will become more and more rigid as you work out your budget and deadlines. With the help of architects, you can finalize your plan down to the last detail. Building regulations and standards that you may not have considered at the outset will certainly play tricks on you, leading you to make changes to your initial plan.
You’ll also need to draw up a transition plan to ensure that the expansion doesn’t have too great an impact on your plant’s operations. You may need to rent temporary premises to help you continue your business.
Expansion often means adding human resources. Define your workforce needs in terms of capacity and skills that will be required. Will new equipment require training? You need to be able to answer this type of question. Optimizing your layout, developing a transition strategy and forecasting your workforce requirements are actions that will contribute to the successful deployment of your strategy.
5. Execute the Plan
This is the time to roll out your expansion plan and to seek external resources for its execution. The purchase and installation of machinery is done at this stage. It’s not unusual for your plan to take more than a year to implement. This is when your transition plan (step 4) really comes into its own, which is why it’s so important to get it right.
As you can see, the preparation process leading up to the execution of a plant expansion is complex and requires significant investment. When it comes to preparing your plant expansion, put your trust in our teams of experts, who can support you throughout the process by helping you develop your vision, map your value chains and create your expansion plans.
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MERKUR is a consulting firm founded in 1994. It specializes in helping manufacturing companies in Quebec and elsewhere. The company stands out for the depth of its offering and its knowledge of small, medium and large manufacturing companies. We’re proud to have been contributing to innovation and productivity in Quebec for 25 years!
KHROME PRODUIT TRANSPORT is a Drummondville-based manufacturing integrator specializing in the design and manufacture of train car interiors and exteriors. Its strength lies in its strong engineering capability and manufacturing agility. Its customer portfolio includes major OEMs such as Alstom, Bombardier Transport and Kawasaki Rail Car.
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