New Plant Build & Zero-Based Cost Modeling

By February 2, 2018Strategy

Client

Leading $2 Billion European Tier I Automotive Supplier.

Business case

CEO and Executive team needed to build a new green-field facility in Mexico to service their automotive Original Equipment Manufacturer (OEM) client. They needed assistance with business case, new plant cost modeling, facility planning, staffing, legal guidance and commissioning of this new facility.

Scope

  • Guide client in facility location selection in Central Mexico, plant built-up, and manufacturing equipment sourcing and plant commencement.
  • Identify and develop cost model for building green-field manufacturing facility.
  • Provide strategic guidance to the client team on the operations of the facility to maintain optimal performance.
  • Conducted a personnel selection process for staffing key plant and program management positions.
  • Assist in completing the legal and administrative requirements for making facility operational.

Background

Our client won contract from North American OEM for new auto platform. The CEO and Executive Team wanted to build new facility in Central Mexico to service OEM plant and as such needed assistance to get this done.

Approach

This was a turnkey consulting and project management agreement, where we had advisory capacity in key end-to-end phases. Such as:

  • New facility cost model built up.
  • Business case formation.
  • Mexico site selection and new business entity registration.
  • Site finalization and plant build up.
  • Recruiting and plant staffing.
  • Plant equipment sourcing.
  • Plant trials and commencement.

Solution

Team delivered on key initiatives during this multi-phase project

  • Strategic and execution plan detailing processes needed for successful completion.
  • Business case creation.
  • plans for zero-based operational cost modeling.

Results

The client was in full operation within 18 months new facility fully staffed and in production.

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