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| Author: | Finkin, E. F. |
| Title: | Avoid hidden expenses when moving a plant |
| Journal: | Journal of Business Strategy
1991 : JUL-AUG, VOL. 12:4, p.60-61 |
| Index terms: | RELOCATION PLANT LOCATION MANAGEMENT TECHNIQUES CAPACITY OVERHEAD COSTS |
| Language: | eng |
| Abstract: | Plant consolidation is a painful process that has to be considered when a company has permanent significant excess capacity. Combining plants will have a significant initial cost, but thereafter , the duplicated overhead is permanently eliminated, and it forces one to face the psychologically difficult task of pruning the product line. A successful variation can be making one plant a satellite of the other with production limited to a single high-volume product. But any move should bring with it a change in management methods, approaches , and perspectives. |
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