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Greenfield Plant Success Story

A medical device manufacturer in Asia needed to build significant manufacturing capacity to support their marketing projections for a new product family.

new factory with empty floor space

Challenge

Our client wanted an engineering study conducted to examine a potential, conceptual development scheme for a greenfield plant.

Approach

The Manufacturing Specialists at Pre Automation Solutions have extensive experience in plant layout and design optimization as well as the manufacture of various types of medical devices. This knowledge was critical to the desired outcome of a facility concept that:

  • delivered manufacturing efficiency
  • considered future expansion needs with minimal business interruption risk
  • identified project scale, timing and cost

Beginning with a site visit and staff interviews, we collected data regarding:

  • current capabilities
  • equipment performance
  • product types and forecasted volumes
  • process and material requirements
  • staffing needs
  • sites
  • associated costs

From this data we extrapolated total equipment and staffing requirements and associated floor space, and created a simplified material flow and relationship diagram.

Using this information, we designed an equipment floor layout and adjusted it as material flow plans were considered. This work was then expanded to include:

  • warehouse and raw material storage
  • administration spaces
  • utilities
  • change rooms
  • parking
  • laboratories

The result was a blocking and stacking diagram of the plant and offices. Ultimately this diagram could be changed as a result of final site selection, but it showed the conceptual spatial relationships between the main areas of the plant and other relative spaces in terms of horizontal and vertical arrangements.

We generated estimates for the proposed plant in collaboration with the client’s engineering firm. We then added the estimates for the proposed sites and anticipated utility costs to the analysis, along with consideration for other typical financials like depreciation, IRR, and NPV.

The final detailed analysis identified the costs of implementing the plant concept including:

  • projected cash flow needs
  • annual profit/loss estimates
  • annual debt/surplus estimates
  • annual average cost to manufacture each unit of sale

The financial model used was flexible enough to allow calculations to be rerun as data was updated.

Result

The client was pleased to receive the conceptual engineering study report that identified the capital investment necessary to satisfy their marketing forecasts.

The report included everything the client needed to make a strategic decision including a plant layout and stacking diagram that would meet their long term manufacturing needs. It also included a roadmap identifying when investments would have to be made and when the new product family would become profitable.