Manufacturing Plant Or Facility Closings PDF Download

Author: Richard J. Brittnacher
Publisher:
ISBN:
Category : Downsizing of organizations
Languages : en
Pages : 180

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Book Description
All too many companies, large or small, frequently have been forced to close offices, manufacturing plants, or facilities. Extensive literature exists that explains causes, effects, and results of downsizing or restructuring on corporations and employees. This paper focuses on actual plant closure activities, examining the processes and procedures needed to shut down a facility. It proposes a set of "best practice" facility closure guidelines that provides direction to an enterprise once it makes a decision to close a plant or facility. The paper also provides suggestions as to any counseling or career transition programs soon-to-be ex-employees could expect. The discussion begins after the actual decision is made to shut down a plant. The manuscript examines general activities that take place, from managerial, human resource, and employee perspectives to close a facility due to corporate restructuring. It assumes the company remains in business. Most of the concepts are similar whether the facility that closes is an office or a manufacturing plant. The first step in the plant shutdown process is to plan the closure strategy. The plan undertaken should be firm, yet flexible enough to provide for unforeseen circumstances. In an extended closure process, consistent communication from management is the most critical tool needed to achieve successful results. It must be truthful and honest and take place throughout the process. The financial picture should be considered with closure costs estimated in advance, accounted for during, and reported after the process has been concluded. Historically, providing extended benefits and retention bonuses have been valuable practices in successfully completing the unpleasant task of closing a company. They are important options in any plant closure strategy. Closure activities taken from three representative midsized organizations, Signetics, Siemens- Westinghouse, and U.S. Leather provide a range of successful, and not so successful, plant shutdown efforts.