Legal/ Communication
The owner of this workstream ensures timely communication of appropriate content to all relevant stakeholders, such as Workers Council/ Unions, employees, suppliers, investors, press etc.
The owner of the workstream also ensures legal compliance throughout project execution by leveraging legal advisors' opinions.
Commercial
The owner of the workstream takes responsibility to convince customers to accept manufacturing relocation project while minimizing qualification costs and margin erosion. Qualification standards depend on industries, and qualification costs will usually be incurred if manufacturing locations are changed. Besides, customers often request a price reduction when manufacturing locations go to a Low Cost Country. The owner of the workstream shall leverage resources, either internal or external, in order to minimize both.
The other crucial responsibility is to design and operationalize to-be Sales Order To Cash (SOTC) process once manufacturing is relocated. The usual pre-requisites are IT system implementation (material/ customer/ supplier data transfer and BOMs/ BOLs transfer) and setup of inter-company transfer pricing practices and rules
Personnel
The owner of this workstream is in charge of the personnel change, namely the ramp-down of personnel at existing location and the ramp-up of personnel at new location, and the knowledge know-how transfer from existing location to new location.
It is generally easier to manage the personnel change process by phases. Once phases are defined, recruiting and training can interlink and cross reference with each other for planning purpose..
Assets
Two important aspects of this workstream are building and machinery. Building aspect ensures building readiness at new location to receive transferred production and machinery aspect ensures timely machinery transfer from existing location to new location.
In both of the aspects, Capex are likely to be incurred – either it is for building erection (in case of green field) or for a new machinery acquisition, it is the responsibility of the workstream owner to ensure right Capex are incurred at the right time. Under certain circumstances, cross-border machinery movements are regulated, which will need to be dealt with special care (e.g. government or customer approval).
Strategic Procurement
Strategic procurement workstream ensures continuous material supply, and synergy extraction.
Continuous material supply means material ready at existing site and new site for production when needed, while working capital minimized. Synergy extraction are usually generated through bundle purchasing and supplier consolidation.
Project Financials
The workstream owner assumes the responsibility to track and report actual incurred costs and savings of the project, and compare them with business case budgeted costs and savings, both under full transparency. The workstream owner works with other workstream owners to provide justifications of the differences.
Other financial related topics included in this workstream are inter-company transfer pricing practices and rules, considerations of tax burden/ credits from governments etc.
