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“The PA team managed to meet the needs of the Swedish management team, and to provide the required transparency, leadership and motivation for the involved Draka staff across all geographies.”

Will Hendrikx, VP Operations E&I Europe, Draka

Draka – adjusting global manufacturing footprint to market downturn

A highly effective project infrastructure hand-over below budget and ahead of time

Draka is a premium cable manufacturer headquartered in the Netherlands with a global factory footprint. In the wake of the crisis Draka’s management launched an initiative to improve the cost of the factory footprint in Western Europe. The key objectives of the project were closing down Ystad, transferring products to other Draka sites and at the same time meeting customer demand anytime as top priority for not losing any customer.

The benefit envisaged by the management was to stop cash bleeding by better utilisation of capacity within a consolidated manufacturing footprint, delivering a considerable EBIT return within a payback period of roughly 2.8 years. Draka selected PA to support the project based on a successful implementation of a similar factory consolidation led by PA.The knowledge transfer that took place between PA and the Siemens team enabled Siemens to implement its plans successfully, ahead of schedule and with a saving estimated at €1 million.

PA engaged a small but very experienced team providing product relocation expertise, methods and tools for the management of factory migration projects. Agility and inter-cultural skills were vital for driving such a complex project to successful delivery. PA introduced an approach with three steps: developing the management plan, creating detailed planning of their activities for implementing urgent activities and finally the hand-over to the client's project office.

The attitude and skills of PA’s consultants accelerated the creation of a highly motivated team cooperating across locations and cultural barriers, and maintained high momentum from the beginning to the end of the project. The results of the joint Draka-PA effort were a detailed, ready-to-use plan, working project management infrastructure incl. tools for planning and controls, and an educated team. The project was handed over with spending plan slightly below budget, and timeline ahead of the original plan by six months.

To find out how PA can relocate your production more efficiently, please contact us now.