Client Case Study – Facility Design


What type of facility is necessary?

A major automotive manufacturer was in need of a new expanded warranty parts return center where parts re-placed under warranty could be evaluated and then sal-vaged or destroyed. Management was presented with three alternatives for the new facility, a greenfield solution, the purchase of an existing facility, or to retrofit an existing facility.

The initial stage of the project was to develop a conceptual operating design that could be used to evaluate the three alternatives, before developing a detailed design and a building or retrofitting plan.
Data was gathered on the forecast volumes to be processed (storage, throughput, etc.) and other planning factors and constraints to be considered in the conceptual design. It included:

  • Process flows
  • Block layouts
  • Operating outlines
  • Staffing estimates
  • Cost/benefit estimates
  • Implementation plans


After developing the conceptual design and comparing esti-mates for the three different building alternatives, it was determined that the most cost effective solution was to ret-rofit and existing distribution location and that recommen-dation was acted upon.

The focus of the conceptual design was on operational per-formance to include the efficient recycling of packaging Ma-terial and on inventory control. The conceptual design was then transformed into a detailed design.

Implementation and Start-up.

After detailing the process flows, layouts, operating descrip-tions, and staffing requirements; the facility needed to be retrofitted to the new plans.
Specifications for the new equipment and services were developed, RFQ’s written and distributed to vendors by product/service type. The quotations were then evaluated and the appropriate vendors were selected, and final pric-ing and installation contracts were developed.
The implementation plan was prepared to monitor the im-plementation process. It incorporating each vendor’s spe-cific delivery/installation plans to report deviations, and develop corrective actions as needed. A final performance/compliance report was developed to detail the final installa-tion and recommend any future improvement opportuni-ties. The facility opened on time and on budget.


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Case Study – Facility Design