Long-range Facility Strategy

Issue: 

A major international pharmaceutical company experiencing significant growth, realized that it may outgrow their facilities.

Objective: 

Forecast the company’s long-term space and functional requirements, analyze the options to provide its facility needs and recommend the way forward.

Deliverable: 

The most significant challenge usually faced when developing space and functional requirements of multi-disciplined organizations is that long-term business plans usually spans five to ten years, while the life expectancy of facilities is at least 25 to 50 years.  The task is further complicated by the impact of unknown future changes in technology.

Starting with long-term sales projections and working with key representatives of all departments, a software model was developed to project a range of functional and space requirements for each department and the overall organization over the next 50 years and beyond.  In work sessions with executives and key representatives of each department, these requirement projections were then rationalized and refined into three scenarios namely; most optimistic, most pessimistic and most likely.

Next, the company’s existing facilities were assessed to determine their ability to accommodate (with changes and additions) the most likely requirement projections as well as the marginal impact of the most optimistic and pessimistic requirements projections.  A further analysis was also done to assess the impact of creating changes and additions to the facilities while continuing with normal business operations.

A financial model was developed to analyze and compare the above option of changing the company’s existing facilities to creating all or some new facilities on a green field site.  This model took into account the impact of issues such as: continuation of operations in existing facilities during changes and additions, transition to new facilities, capital costs, projected long term operational cost, etc.

The company’s final decision was to develop an entire new campus for its head office, manufacturing, and research and development requirements with enough land to allow for future growth.  Some functions, including distribution, remained in other locations.