Tips For Constructing A Factory/Plant
Whether a novice or expert businessman who has been in the business for a little or very long time, when it comes to putting up a factory there can be huge implications and decisions to be made. Especially if there is huge machineries involved in the process. So, what are these factors that affect building up a factory? Let’s take a look at four of the most important ones.
Deciding on a budget to construct a factory is the first step. You have to plan and budget for its expenses way ahead of time. The initial set up cost of a factory may run into millions and so, the need to use up this finance in the most valuable way. Keep ample time for budgeting the costs. The premise cost, machinery cost and other set up fixed costs will be easy to budget. But deciding on the variables will be a much harder task. So it is best that you do some research with how the costs will vary like for instance the materials used for building the factory. These may change while the constructing is taking place. So it’s best you check for previous upsurges of building materials costs to see how the prices have risen in the previous years. It’s always best to keep a reserve of finance for unanticipated costs. A tip when building a factory is not tie up business cash entirely for constructing the factory. Try to obtain a loan of at least partially cover the construction cost and repay the loan on a monthly basis. That way you will get to reinvest any other cash you have without tying you up entirely. The budget plan will also be instrumental in getting you that bank loan especially if your product is well known in the market.
Time is a constraint when it comes to business, and in construction it carries double the pressure. Being able to finish all construction on time is almost an impossible task. There is always the lagging behind of some sort. Either the masons don’t finish by the expected time period or the materials get delayed to reach. For instance, if you are Air Conditioner manufacturer plant, you will need external regen resistors in place. The important thing is being able to negotiate the delivery time of the products exactly as and when you need them. You don’t want the products too early because storing them could be an issue so you have to maintain a lead time and make sure that you don’t exceed your lead time.
When constructing your new plant, one of the most difficult task that you will face is what machinery you are going to buy. Trying to decide the perfect one can be quite the task. As you will want everything that is best, but not everything will be affordable to you. But when purchasing machinery money should not be the only or the top concern. Durability, reliability, after sales services are all important factors to be considered. Make sure to hire a specialist in the technical field when buying machinery to your plant for consultancy purposes. Hiring a consultant would be costly but it’s more costly to exchange or repurchase faulty machinery. Getting a consultant wouldn’t hurt if you need to install a chamber scrubber to your factory too. If you are interested about single bell diving you can visit this website http://www.lexmar.com.sg/diving-bell/.
The most unreliable factor when it comes to the construction industry is the labour factor. Labourers are very unreliable, as they tend to take leave as when they feel like it. Some may not even turn up for work after a few days of hard work. So it is always best to outsource your factory construction to a well-recognized company that does construction. That way they have enough replacements in case of workers leaving or absenteeism. Also finding workers to your new factory or plant will be quite a task if this is an initial set up. If you are just shifting premises then it will not be much of a task, or simply adding a few workers would be ok. But hiring people for an entire factory would be very hard. The best time and money saver here would be to get a recruitment firm or job agency to do the job for you.
Make sure to consider these factors when opening up a new plant or factory. It’s important that you do everything in a timely and cost efficient manner to not only get a faster and better ROI but also avoid any unpleasant situations with your prospective customers and suppliers.