Facility relocation is a complicated process, and it’s important to get it right at every phase. The experts at Campbell

Corp. are available to help you plan a seamless relocation , redesign, or expansion. today to get in touch,

or give us a call at .

Above All, Partner With an Experienced Consultant

Utilizing the Benchmarking outlined earlier, recommission your equipment to the required specification and condition

required to meet your operational and production requirements and goals. Recommissioning should be a formal

process identified in your project schedule.

Recommission Equipment

When necessary, build product to inventory, both Work in Process and Finished Goods, to supplement the downtime

associated with pieces of equipment or lines being decommissioned, relocated, PM’d, reinstalled, and


Whenever possible, start at the first process and relocate processes and equipment downstream. Sequential planning

or start at the last process and relocate processes and equipment upstream.

Communicate the detailed relocation plan to all impacted stakeholders and highlight the impacts and potential

breaks to production.

The ultimate goal of successful relocation planning is minimizing or eliminating the impact on your customers,

which includes meeting all delivery promise dates.

Plan Your Relocation

Depending on the size of the project, this can be a full-time job throughout construction or renovation.

Underestimating the expertise and time requirements of this role opens you up to project risk on budget, schedule,

and overall success. Identify resource(s) within your organization to mitigate your risks or consider hiring a project

manager to represent your interests.

Who at your company will represent you during construction? Owners’ representation of construction management

fills many roles including a liaison between management and trades, representing the manufacturing process

throughout construction or renovation activities, ensuring the work being performed meets specifications and

industry quality standards, and reviewing and approving progress draws.

Find Construction or Renovation Representation

The site planning team must consider the building codes enforced in the area relating to building setbacks, water

retention, impermeable surfaces, fire department access, etc.

Best practices include planning for existing and future employee parking, commercial and employee traffic, access

for waste removal, location and access to bulk gas storage facilities, future access for large equipment replacement,

or any unique considerations unique to your operations and processes.

Attention to Site Planning details is critical to the short and long term success of a facility. Planning to add a shift

or for your next expansion at the initial facility design can save investment, time, and headache when your new

facility is no longer adequate to meet your production needs.

Site Planning Considerations

Keep in mind when laying out your facility some basic principles of construction economies. It is usually more cost

effective to build a square building than a rectangular one. This is due to the relatively high cost of perimeter walls

compared to a supported roof structure.

Review your current operations, noting your manufacturing constraints. You can lay out your facility to meet short

term manufacturing goals, but what about future growth? Planning to relieve any cell or line constraints you have

visibility of today will make increasing capacity in the future easier and more efficient.

Rethink how you use your real estate. For example, a trend for Low Volume / High Mix manufacturers includes

Production Support Suites adjacent to production areas which can include areas for sales, purchasing, engineering,

superintendents, and all other business functions which support a Value Stream. A new facility provides a blank slate

to transform how you do business.

Don’t forget employee amenities including designated employee and visitor walkways. Building codes and OSHA are

often inadequate at planning for your employees restroom, locker room, and breakroom needs. Depending on the size

of your planned facility, consider multiple locations for employee entrance and amenities to minimize the time they

spend accessing their work area and amenities.

There will also be facility related requirements including sprinkler rooms, a main electrical service area or room, code

compliance including egress and fire walls, etc.

Plan spaces for any production or process requirements including material movement aisles, WIP storage,

compressor rooms, hazardous material storage, daily huddles, forklift battery / maintenance station, and anything

else required by your organization.

Design Raw Materials and Finished Goods Warehouses. Explore utilizing equipment to maximize the density of your

warehouses including Narrow Aisle and Very Narrow Aisle forklifts, ASRS solutions, etc.

Generally, align equipment and processes in the order required for fabrication and assembly. Consider any shared

resources. Prioritize the products and processes that have the largest impact to business.

Design an Optimized Layout
Consider including your millwright contractor in this phase of relocation.

Auditing and documenting your equipment’s condition prior to disassembly and relocation can further protect your

interests in memorializing condition before the equipment is relocated.

If you’re measuring OEE, you might be tempted to think you’re already measuring the performance parameters

required to specify the recommissioning requirements at your equipment’s new location, but these benchmarks are

different. For instance, defect is inherent in the leveling and alignment of a machining center although expressing

a specification in Thousandths is much more definitive than 1 part defect per 10,000 units defines the health and

accuracy of your existing production equipment. Many of the critical specifications can be found in the equipment

OEM installation instructions.

To ensure your equipment performs to the requirements of your operations, measure, test, or observe and document

all critical performance elements including tolerances, rate of production, defect rate, etc.

Benchmark Equipment Performance and Audit

Equipment Condition


The Resource List and Library should be available to all design engineers and contractors involved in the design and

relocation of your new facility. These documents can be included in the Contract Documents to preserve the project

schedule and budget and promote project success.

We create a digital library, and recommend this as a best practice. The library is the repository for equipment

AutoCAD blocks, manuals, equipment performance requirements, consumable requirements, foundation drawings,

performance tolerances, environmental specifications, and any other resources required for your equipment and

operators to successfully transform raw materials into finished goods.

Equipment and resource management is key to successfully relocating a manufacturing facility. We have a template

we use as a starting point for our client relocations, but it’s not rocket science. The template includes an equipment

ID along with equipment mechanical, environmental, foundation, and material handling requirements.

Generate Production Resource List

It’s at this stage of the project that we often include local architects, engineers, builders, and millwright companies

as well as possible equipment vendors to assist in the realistic preparation of the Project Budget and Scope.

Is rebuilding aging and tired equipment required to achieve your relocation goals? Investment in new equipment?

Whether building a new facility, renovating an existing facility, or simply relaying out existing operations, identify

and communicate what is in scope and what is out.

Develop Project Scope, Budget, and Schedule

Involving all stakeholders, and keeping them informed of progress, promotes success. Your team should also include

any required contractors and subcontractors including millwrights, mechanical contractors, and project

management professionals.

Relocation impacts all aspects of your company: operators, production management, warehousing, sales, EHS, HR,

purchasing, engineering, maintenance, etc.

Establish and Manage Your Facility Planning Team

Countries with a relatively low cost of entry and labor can seem attractive. But the considerations to relocating

to another country are often complicated and not as straightforward as they might seem on the surface. Risks

include host nation inflation, exchange rate, required employee benefits–including meals and retirement

contributions, unreliable utilities, protection of intellectual property–inflated finished goods inventories, longer

lead times, cultural differences, and increased management oversight.

Proximity to vendors and customer bases can reduce the overall cost of transportation. States or counties offering

relatively large monetary and support incentives can sometimes be appealing. However, these areas often have

higher costs of doing business.

Some manufacturers seek operational, logistical, or fiscal incentives to relocating in a new region or country.

Many manufacturers are simply looking to expand their current facility or relocate within their current region

to reduce relocation costs and maintain their current workforce.

Identify Target Relocation Regions
Create a checklist to maintain these goals throughout the lifecycle of the project.

Keep in mind, a new facility will have soft benefits as well. While soft benefits don’t contribute to shorten the payback

period, many manufacturers identify them nonetheless. These metrics can include Visual Factory elements, the

Customer Experience, employee satisfaction, and many more benefits which are difficult to quantify but can be

important none the less.

At the onset, define what metrics you want to achieve after reworking your layout or relocating. Examples of these

metrics can include a 50% reduction in material travel, a shortening of Lead Time from 8 weeks to 3, etc.

A successful facility layout and relocation initiative includes defining success.
Develop Hard and Soft Relocation Goals

Do you have equipment or processes with a large amount of Work in Processes in front of it? If your operators

are doing something other than adding value your customers are willing to pay for, you have manufacturing

opportunity by leveraging some simple Lean tools.

Evaluate your Overall Equipment Effectiveness or OEE. You can get an idea of how you’re OEE by simply walking

your shop floor. Note how many operators are actively transforming raw materials to finished goods.

A good resource can often be your forklift or racking vendor to explore Narrow Aisle and Very Narrow Aisle

forklifts, Automated Storage and Retrieval Systems, and other applications and technologies to reduce the

square footage to store Raw Materials and Finished Goods.

Evaluate potential space savings from increasing Inventory Turns. Once parsed of any non-essential inventory,

evaluate the density capacity of your material handling equipment and fixtures.

The first step to estimating your operational opportunities in your current facility is to audit your existing

facility to determine how much floor space you need to accommodate Work in Process and aging Raw Materials

and Finished Goods inventories.

Option 2 : Audit Your Floor Space

Informally audit your operators at different periods of the day. Are they actively transforming raw materials

to finished goods? Or are they looking for a tool, sourcing raw materials, seeking clarification, or engaged

in any other non-value-adding activity?

Walk your shop floor. Is there Work in Process accumulating before constrained processes?
We recommend a few different approaches when considering your options:
Option 1 : Take Stock of Operational Activities
How to Assess Whether You Need to Relocate?
We’ve also seen increases to capacity by a factor of two or three in the same footprint.

Generally, the application of Lean can slash a quarter to a third of an operation’s footprint, and we’ve seen this our

clients attain this range.

Often, by applying Lean Manufacturing principles, manufacturers can meet their production goals right where they

are with a drastically reduced investment and schedule.

Whether expanding your product offerings or gaining market share, a larger facility might not be necessary. The

application of Lean Engineering reduces operational space requirements, while increasing throughput and reducing

lead time.

Evaluate the Necessity to Relocate in the First Place
Design a new, optimized layout.
Nail down site planning considerations.
Secure construction or renovation resources.
Share relocation plan with stakeholders.

Formalize your approach to equipment


Evaluate the necessity to relocate.
Develop goals.
Identify target relocation regions.
Develop project scope, timelines, and budget.
Generate a production resource list.
Benchmark equipment performance.

The experts at Campbell Corp. have decades of experience helping clients move and expand their operations.

And we’re here to support you with our comprehensive facility relocation checklist. We could only cram so much

information into this checklist, but it’s a deep well with many complexities. So, reach out to learn more about how

to apply these steps to your project.

Facility relocation is all about planning and precision .

However, these initiatives often fall outside the experience and expertise of most manufacturing executives and

management. It often represents a substantial investment with high organizational visibility to the company as well.

Relocating or expanding a manufacturing facility is complicated. It’s our hope that the following information helps

you with your project!



January 11, 2022
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