Case 3 “optimise at the present or at a new location”

STARTING SITUATION
The business manager was considering leaving the present building, with different spaces and roof heights, and depart to another property. Due to considerations of competition he also wanted to reduce the costs of Logistics.

CHOSEN APPROACH
The internal activities and material movements have been recorded in a 2-day scan. Using a Sankey-diagram, this could easily
be visually demonstrated. With this diagram as basis, the benefits and disadvantages have been worked out. Comparison the present situation and a “Green field” layout, the managers choice has been made insightful.
Dankey-diagram
RESULTS
The location is kept, because it was utilized quite optimal already, in terms of material flow and layout, despite the height differences. The number of logistical movements has been reduced by some methodical adjustments. This resulted in a saving of over 15%. Moving into another building, with higher ceilings, would result in an extra saving of 6% only.
Remark:
Possible moving expenses are therefore no longer viewed. These additional costs would in any case reduce the benefits, or even abolish.