Feasibility Study and Brownfield Delivers $12M in Savings Per Year

A private equity-backed $350M automotive manufacturing company suffering from production constraints was looking to augment production operations in North America by expanding into Mexico

Focus

The client was interested in expanding production to Mexico to create a strategic cost advantage, but had limited experience in Mexican labor rates, laws, real estate practices, government incentives, and freight infrastructure.

TriVista was retained to conduct a multi-region feasibility study, design a strategic plan for relocation, and implement the proposed plan.

Approach

  • Conducted an analysis of 3 regions/11 cities in Mexico to determine the best location
  • Performed detailed cost-benefit analysis
  • Developed comprehensive Lean factory flow layouts, which include current and future state flow diagrams
  • Found suitable Brownfield facility and supported negotiation and infrastructure build-out
  • Provided recruitment support for the selection of key management
  • Conducted a robust risk analysis and developed extensive mitigation plans
  • Supported daily operations during transition process, helping to bridge the gap between client and new local management team
  • Designed and executed a program management transition plan to ensure sustainability of the organization after product line launch and TriVista handover

Outcomes

  • Project completed on time and within budget
  • 500K sq. ft. assembly plant, operational within 14 months with ~750 employees
  • New facility delivered $12M in savings per year
  • Received $3.5M in government economic incentives
  • Sourced over 75% of total product content, improving pricing and lead times, and identified ~10% savings through local sourcing and logistics

To find out how TriVista can help you achieve similar outcomes, email us today at Info@TriVista.com