Are you planning to set up a new production plant from scratch? CMC’s specialists have managed this process multiple times in several countries and provinces and will help you to avoid common new factory setup pitfalls.
Putting up a new factory requires careful planning and execution (from construction to equipment installation to workforce training). It calls for a project management approach that involves experienced specialists. Everything has to come together at the right time.
China is a large and diverse country. You might want to be in a coastal area with lots of skilled labor, you it might make more sense to be far away from the ports and have a low-cost, stable workforce. The site selection also depends on the main suppliers’ location, and on the overall movement of material once the factory is functioning.
Thinking of the overall layout at this stage will help improve material flow and save a lot of internal logistics costs down the road. The number of levels might depend on the amount of real estate available, the size of the equipment to be used in production, the risk of floods in the area, and other such considerations.
This step dives deper into the details. We help our clients answer questions such as: What machines and equipment are needed, what level of equipment reliability and how much automation is called for, how to arrange the workstations, how to ensure processes are tightly linked for lower costs and shorter lead times, etc.
How many employees are needed at launch? What qualifications and experience should they have? How to hire them and evaluate them in time?
Depending on the type of workers that are hired (e.g. most of them have experience with direct competitors vs. they have never seen your product before), more or less training needs to be necessary. In any case, this is also the right time to create a company culture, as well as testing the equipment and checking some components coming from suppliers.
Many things can go wrong at this stage, and a lot of management attention is needed. For example the suppliers might not deliver on time, or some of the equipment might not be working as expected.
Good news — if steps 1 to 6 as outlined above are executed correctly, the launch is usually relatively smooth.
Our consultants have experience in the following industries: automotive, electronics, medical devices, aerospace, oil & gas, metal (die casting, machining…) and plastic , toys, furniture, food, battery & chemicals, and cut & sew.
We mostly work in the following provinces: Guangdong (Shenzhen, Dongguan, Guangzhou, Shantou), Zhejiang (Hangzhou, Ningbo, Wenzhou), Shanghai , Jiangsu (Kunshan, Suzhou, Wuxi, Nanjing), Fujian (Xiamen, Quanzhou, Fuzhou).