This activity refers to the process of describing the building and facilities of the project and including land location and estimation of area size, building drawing, building facilities (e.g., utilities, furniture, internet services, cooling and ventilation, and safety and security), building schedule, and total costs. The building and facilities are critical for the business’s success and impact the production cost, efficiency of operation, productivity and more.
Step-By-Step Process
- Determine the manufacturing needs: review the project concept, corporate strategy, production requirements, and production technology.
- Zoning and regulatory requirements: ensure that the building and facilities meet all zoning and regulatory requirements, including building codes, environmental regulations, and permits needed for manufacturing operations.
- Estimate the land size of the project.
- Decide on the location of the project.
- Decide on whether to lease the land and building or construct the project.
- Prepare a building drawing showing the distribution of the area.
- List all the building facilities necessary to operate the project.
- Prepare the building schedule.
- Estimate the cost of the land, building and facilities.
- Prepare the document as per the above outcomes, and share it with your team and experts.
Example
Let us consider the example of a company that wants to start manufacturing electric vehicles (EVs). Here are some steps that the company may take to identify the right building and facilities:
- Determine manufacturing needs: The company will need a facility that can accommodate the assembly line, machinery, and equipment required for EV manufacturing. They may need separate areas for battery assembly, motor assembly, and final vehicle assembly.
- Location: The company may consider locations that are close to suppliers of raw materials, such as batteries, motors, and other components. They may also look for a location with easy access to transportation infrastructure, such as highways or rail lines, for the transportation of finished products.
- Zoning and regulatory requirements: The company will need to ensure that the building and facilities meet all necessary zoning and regulatory requirements, such as building codes, environmental regulations, and permits for manufacturing operations.
- Accessibility: The company will need to ensure that the building and facilities have sufficient space for parking, loading docks, and accessibility for employees and customers.
- Infrastructure: The company will need to ensure that the building and facilities have the necessary infrastructure, such as electrical, plumbing, HVAC, and telecommunications systems, to support manufacturing operations.
- Condition of the building and facilities: The company will need to assess the condition of the building and facilities, including the roof, walls, flooring, and other structural components, to ensure that they are in good condition and can support EV manufacturing operations.
- Expansion potential: The company may consider the potential for expansion of the building and facilities in the future, in case their manufacturing operations grow.
- Cost: The company will need to consider the cost of the building and facilities, including the purchase or lease price, as well as ongoing operating costs such as utilities and maintenance.
Useful Tips
- Estimate the area size after careful studying of the project, its requirements, and future expansion.
- Consult a building contractor to develop the building drawing, estimate the building cost, and supervise the building project.
Things To Avoid
- Decide on the location, the building and the facilities without careful studying of the manufacturing needs.
- Using personal judgement to identify the project building and facilities.
Final Note
This article is sourced from my new book- Your Guide For Preparing An Industrial Feasibility Study.
For more information about the book: https://growenterprise.co.uk/book-your-guide-for-preparing-an-industrial-feasibility-study/
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Or email us at: maldawood@growenterprise.co.uk
The author: Munther Al Dawood- Industrial Enterprise Expert
Grow Enterprise 