Paul Christodoulou, Principal Industrial Fellow at IfM Education and Consultancy Services in this video discusses the IfM process for ‘Production Footprint Strategy’.

Paul describes the decision on how to deploy multiple networks of industrial plants around the world as ‘amazingly complex’, but simplifies the challenge as being about ‘making the right things in the right places’.

He summaries the work as addressing four key questions:

• Why reconfigure the network? This stage involves understanding the market and technology challenges faced by the business, as well as the political and engineering context in which it finds itself.
• What are the boundaries of operation, based on the company’s distinctive position? Decisions on make-or-buy, where to invest, where to partner and how to develop low cost sources are all important here.
• Where should each type of plant be located, where should partner links be established, what specialisation is needed at each plant location?
• How should the desired transformation be achieved over the next 5 to 10 years? What internal capability needs to be developed internally?

The benefits of adopting this approach are: reduced cost - Paul cites an example of a company saving $55million pa - and improved responsiveness to customers. Working with the CIM provides the client with a clear set of guidelines and a consensus view, as well as new tools and capabilities for the future.

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Read the 2-page briefing 'Manufacturing footprint strategy: Making the right things in the right places'

Read the 2-page briefing 'Tailored approaches to manufacturing footprint strategy'