This PPT slide, part of the 106-slide Complete Guide to Post-merger Integration (PMI) PowerPoint presentation, addresses the complexities involved in managing production across either a single site or a network of plants. It emphasizes that the decision-making process is influenced by various factors, including sector-specific requirements, technical constraints, and geopolitical risks. The text suggests that these elements can significantly impact a company's operational strategy and overall business viability.
The slide outlines several guiding principles for production and network design. The first principle advocates for establishing a global plant for each major part or product. This approach aims to enhance scale, operational efficiency, and cost reduction by minimizing redundant investments in tooling and facilities across different regions.
Next, it discusses the importance of having final assembly and service capabilities on at least 2 continents. This strategy is intended to improve market proximity, meet local requirements, and mitigate political risks, thereby ensuring smoother operations.
The third principle highlights the need for collocation of manufacturing for new apparatus components and spare parts. This can lead to better asset utilization and increased process stability, which are crucial for maintaining operational effectiveness.
The slide also mentions a joint global and regional approach to new products, which involves unifying global design strategies while accommodating regional product differences. This dual focus can help companies adapt to diverse market needs.
Lastly, it touches on the production of transition products at existing sites, emphasizing the avoidance of unnecessary capital expenditures and the importance of maintaining product integrity during transitions. Overall, the slide underscores the necessity for strategic considerations in production network design, rather than focusing solely on cost.
This slide is part of the Complete Guide to Post-merger Integration (PMI) PowerPoint presentation.
This framework is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants and details a robust framework to managing the complete Post-merger Integration process.
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PMI Post-merger Integration Cost Reduction Post-merger Integration Manufacturing Production
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