Downsizing and consolidation

Combining sites changes the work as well as the address. These guides help owners describe the smaller operation, compare the resources it needs and check whether the expected savings reach the business.

Start with the services you intend to keep. Then test the shared workload, support and information behind that promise. Machinery becomes surplus through those decisions; the disposal list should follow the current operating plan.

Define the smaller business

• Define what the smaller business will still do
• Which site should the combined operation keep?
• One larger site or two smaller sites after downsizing?
• Fewer shifts or less floor space: different downsizing choices
• Could closing the annex be enough?
• When one specialist process prevents a smaller premises plan
• New work arrives after the downsizing decision

Check the work and support it needs

• Combined capacity is not the sum of the machines
• Can the smaller site handle the busy weeks?
• Find the bottleneck before combining departments
• Who does the support work after departments combine?
• Can different product families share the retained line?
• Can one maintenance team support the combined business?
• Combine teams without losing a necessary specialism
• Leave room for legacy service work in the smaller business

Agree shared rules and information

• Combine stock rules before combining the stores
• Reconcile job and stock codes before sites combine
• Set priority rules for the combined order book
• Check whether the two sites estimate work in the same way
• Should inspection become a shared service?
• Agree quality responsibilities when sites combine
• Which operating record becomes authoritative after consolidation?

Test the plan and review the result

• Which consolidation savings actually change cash spending?
• Test a combined workload before committing the site closure
• Spot overload after downsizing before it becomes normal
• Check the consolidation savings against actual bills

For a change of address, use the relocation guides. For a particular machinery upgrade, see idle plant and replacement projects. The premises-exit guides cover questions to resolve before leaving a property.

Discuss equipment the continuing business no longer needs with UK Auction Group, explaining the scope and any conditions affecting availability.

Return to all business closure topics.