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Plant Relocation

Whether you are a CEO, Managing Director or Plant Manager, decisions in off-shoring production to lower cost labor centers have no doubt crossed your desk.

This trend has had significant impacts in most major markets and usually takes the form of market challenges from traditional as well as new competitors who have taken advantage of these lower cost areas. The decision you made might have been moving one or more of your own product lines to these lower cost labor centers or you may have chosen to compete head-on by reducing your existing labor costs. In either situation, Lean and Six-SigmaTM methodologies, either together or separately, will play a critical role in a successful outcome.

Plant Relocation
Besides the logistics, if there are any existing challenges in the existing product or service delivery, they will be worsened after moving them. Remember: “Improve before Move!” Not only will most supporting business processes and interfaces be interrupted, but the product assembly and service delivery processes will be changed too. Often, so much time is spent on the physical machinery in manufacturing, and working to link up the supporting utilities and other services, overall process control is overlooked. Only with a well-documented control plan with thorough understanding of all Y = f(x) relationships can an entire process be moved quickly and successfully. This advice applies to service processes as well, with key information flows being the “production processes”. If the investment has been made to thoroughly understand and improve the key processes before moving, setup will be accomplished with far less difficulty and effort.

Personnel in the offshore location will also need training on Six Sigma and Lean methods to effectively understand the control plans and process improvements being passed on to them. They will also be properly and far better equipped to deal with any start-up issues that may arise. This training can help offset the language barriers that often impede startups in transferred production systems. Although globalization of business grows, language barriers will persist for the foreseeable future.

Shelter Program
In case you have decided to move the production line or perphaps the entire plant offshore, SBTI will provide the factory space, the required personnel, the labor, and the infrastructure to operate your manufacturing facility in Mexico. Also included is customs service, bringing your technology, material and necessary equipment across the U.S./Mexico border, the warehouse on the U.S. side and the daily guidance to succeed in Mexico.

SBTI offers to the client:
• Industrial buildings with world class infrastructure
• Building and non production areas maintenance
• Accounting Tax Administration
• Elimination of facilities ownership risks
• Elimination of all legal responsibilities related to the operation
• All legal requirements
• Ecology / Environmental services
• Government procedures, permits, regulations, licenses and registries
• Labor Relations support
• Cash management services
• Human Resources planning
• Medical support
• Security services
• Customs and Freight administration