Text Box: Mergers & Acquisitions: Asset Redeployment Opportunity After the financial and legal challenges are overcome, there is the uncertainty in assimilating the new entity and getting the full value out of the newly acquired assets. It is the effective redeployment and effective utilization of those assets that ultimately solidify the success of the venture. Challenges and Solutions The asset redeployment phase of a merger or acquisition is unquestionably resource intensive. We can significantly mitigate some of these common pitfalls: The financial burden on the organization and impact on personnel are strong destabilizing forces. We identify those areas most sensitive to disruption and those capable of to absorbing operational demands. Disengaging and re-engaging assets is done with the proper planning and resources. And we challenge the business plan for asset reallocation to assure that the assets will meet the business objectives. Overly optimistic time frames for newly acquired assets to become revenue producing. A result of top down planning and the pressures to meet tight financial objectives, this mind set can have disastrous financial and personnel implications. Our structured phased approach is designed to avoid crash programs for asset redeployment. Management expectations are guided by clear delineation of resource requirements. The redeployed asset doesn't meet required performance objectives. This is symptomatic of a process / application mismatch or inadequate engineering to align the asset with the need. We clearly define the operational need and structure our plan to meet it. Production ramp-up time and resources are excessive This disruption to timely return on the asset can arise due to inadequate planning. The operational plan is part of the asset redeployment and must be integrated into the total plan thereby assuring adequate resources to account for operational demands. Services Successful asset redeployment demands sound planning for the multidisciplinary activities and complex logistics typical of these projects. We account for: Business plan support that justifies the investment in the redeployment. Thorough project planning with emphasis on the communication process and assessing areas of risk in the project. Sound decommissioning designed to expedite re-installation and system startup. Correction of system deficiencies that will improve production performance. Re-engineering of the process and equipment to accommodate specific production demands at the new operation. Complete facility engineering for the new installation Planning of personnel training. Production commissioning planning that accounts for operational needs that assures that the redeployed asset becomes a revenue producer upon project completion. Examples include development and implementation of maintenance programs and process control quality systems. Auditing follow-up to assure that the asset continues to meet the performance objectives achieved at re- commissioning. Benefits To Working With Us We objectively assess resource requirements for asset redeployment. Our recommendations are geared toward asset productivity on the operational end, not just minimizing cost. And our independence enables separating project activities from ongoing operational activities. Experience has shown that using common resources for both leads to excessive workloads and compromised outcomes. Asset redeployment projects, being highly multidisciplinary and requiring extensive contact with external resources, demand strong project leadership. Having over 50 years of experience in manufacturing operations, process engineering, and project management enables us to provide that leadership. Industries Served Aerospace Automotive Agricultural and Construction Equipment Consumer Products Industrial and Commercial Equipment Plastics Case Study: Plastics Processing Production System Redeployment Problem / Situation: This redeployment was performed under the duress of a plant closure. The equipment had been run hard for 13 years and maintenance had deteriorated significantly. The state of the equipment upon decommissioning had multiple components and control systems that were non-functional or operating erratically. The complete production cell comprised some manual operations that were very labor intensive. The new installation would require re-engineering to improve the efficiency of the operation along with the addition of some automation. The specialized nature of the equipment required that experienced resources be obtained to support the installation and re-commissioning of the system. The tight schedule put pressure on precise management of the outsourced electrical, mechanical and control systems resources. The project required that the system operate as per the original specifications under the constraints of a tight schedule and restricted funding. Solution / Approach: The urgency and tight time frame for this project created the tendency to bypass good project management practices. But clear objectives were established along with consistent performance reporting to keep the project on track. The procurement process was streamlined to expedite material acquisition. Critical path materials were identified at the project initiation to prevent schedule delays. Results / Outcomes: System Performance: Due to close attention to the de-commissioning process and aggressive procurement activities, the deficient components were replaced and the control systems performance and software deficiencies corrected. The total system performance was tested and achieved the original performance specifications. Schedule: By successfully orchestrating the needed specialized resources, the on-stream schedule was achieved. Operational Results: The system was producing quality product at the end of the re-commissioning phase. Operating and critical maintenance procedures were also developed and reviewed with the facility personnel. Safety: The working environment was congested with mechanical and electrical activities occurring at various elevations within the work space. However, the installation was completed with no lost time accidents or safety violations.

opportunity management specialists

Apogee Management Group

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