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Plant Closing
Cumberland Capital recently completed the closing of a chemical manufacturing plant within 75 days of the decision. This included heading the team from both chemical plants, with the team creating and executing plans to:
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Determine Optimum Location: Cost/Benefit analysis of which plant gets
consolidated into the other plant, including opportunity costs of
potentially lost business as well as direct one-time and ongoing costs vs.
one-time and ongoing savings.
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Fixed Assets: Analyze the fixed assets of the plant to be closed, what
equipment could be moved to the new location, what additional equipment was
needed and the cost of purchase and installation at the new locations; the
cost/benefit analysis of all of this.
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Production: analyzed capability of equipment at new location vs. current equipment and products produced; created plan to test and ramp up production at new location; timing was always an issue; created plan to coordinate movement of raw materials to be where needed, when needed.
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Outsource Production: if not all the present products could be cost effectively produced at the new location, analyzed the potential outsource companies, the geographic issues for customer deliveries, and the cost/benefit of a make vs. buy decision.
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Warehouse: Additional warehouse space identified, negotiated, and available when needed.
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Inventory: analyzed obsolete inventory and categorized as Disposal, Work Off and Sell Off; marketing plans created and implemented for each category; results tracked in order to minimize the movement of obsolete inventory to the new location, and to maximize the cash flow from sale of goods.
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Personnel: worked with Personnel and all departments to determine what workers were needed to complete the plant closing, what workers were offered jobs and relocation at the new plant; coordinated relocation packages, temporary housing, office space, and the timing of all of this.
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Financing: worked with Finance department and lender to accommodate various changes in the debt financing agreement for changes in inventory locations.
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MIS: analyzed MIS accounting and manufacturing software which was different at both plants; worked with MIS head to identify new software and implement during and after the move.
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Customer Service: worked with Customer Service to identify, correct and minimize problems resulting from movement of inventory and production.
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Environmental: worked with Production to determine any permitting issues at new location with additional products. |
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3495 Piedmont Road NE
10 Piedmont Center, Suite 525
Atlanta, GA 30305
Tel: (404) 995-6220 ---
Fax: (404) 995-6221
Email Debra Glidden -- Email Dee Vaughan
©2007 Cumberland Capital
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