Resolve the rework route before the factory capability ends

Topic
Manufacturing site closure
Reading time
3 minutes
Last reviewed
On this page
  1. Three routes for an open batch
  2. Ask for the decision before setting the capability end date
  3. Compare complete routes rather than single costs

Identify known rework decisions before the factory loses the capability needed to assess or complete them. The question is about output already under review at closure, not possible returns from future customers.

A plan to retain one machine may still omit the people, information or quality authority needed for the work. Ask the responsible specialists to define the complete route and its conditions before making an operational commitment.

Three routes for an open batch

Suppose a fictional batch has a documented deviation. The business has not yet accepted a correction or decided the final disposition. There are three broad routes to investigate, none of which this example authorises.

Possible route What must be established
Complete assessed work at the existing factory Required capability, competent people, accepted method, applicable approvals and realistic time
Use a proposed alternative location or provider Suitability of the route, transfer of relevant information, required agreements and acceptance responsibility
Reach another authorised disposition Technical decision and the applicable commercial, ownership, regulatory or waste assessment

Avoid entering "send elsewhere" as a completed action. The proposed provider may lack the necessary process, information or authority. The original business also needs to understand which responsibilities continue after any transfer.

Ask for the decision before setting the capability end date

Give the technical and quality leads the batch identity, current status and proposed closure milestones. Ask what information is missing and when they can reach the next decision.

Connect that work to the held-batch reconciliation. The items should retain their unresolved status until the applicable decision changes it. A commercial deadline cannot turn an open deviation into accepted output.

If further testing is needed, include it in the remaining laboratory demand. A plan covering only production time can miss the later evidence and review needed for release.

Compare complete routes rather than single costs

An alternative provider's quoted operation may exclude investigation, transport arrangements, required testing or customer approval. Ask the relevant owners to establish those boundaries and the consequence if the proposed correction fails.

Keep commercial and technical acceptance separate. The lowest quoted charge does not prove equivalence, and a provider's willingness to receive the goods does not establish the right to transfer them.

Where the continuing product will be made elsewhere, review future manufacturing responsibilities. A one-off rework arrangement should not become an assumed long-term support agreement.

Once the approved route is known, update the equipment availability decision. In an enquiry with UK Auction Group, identify any assets still supporting that work and the unresolved conditions affecting their release. Keep any existing disposal agreement within its proper commercial review.

Record who owns the batch if the factory stops before the decision is complete. Keep that responsibility active in the continuing business record.

See the manufacturing site closure guides.

Sources

This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.

Closing a business with assets to sell?

UK Auction Group values everything on site, runs the sale and hands the premises back clear, with a full statement of proceeds at the end.

Send a list of what you have, where it is and your deadline. Decisions that are still open can be included.

Business closure auctions and site clearance Contact UK Auction Group

Business Closure Guide is part of the UK Auction Group portfolio.

Browse all guides by topic