Case Study
Snack Foods Relocation
Case Study
Snack Foods Relocation
Due to the constraints that precluded site visits, the expertise of TEG’s project managers became crucial. Our experience allowed us to effectively estimate costs and create a budget without the need for direct on-site evaluation.
TEG Projects was engaged to project manage the consolidation of manufacturing and warehousing for a snack foods manufacturer’s acquisition into a single location and to integrate the manufacturing and packing operations to generate cost efficiencies.
Client Information
The Client is a privately held company based in Auckland, New Zealand, specialising in the production of breakfast cereals and snack foods. The company has established a robust export market, extending its reach to Australia, the Pacific Islands, and Asia, positioning itself as a significant player in the food manufacturing industry across these regions.
The other snack food manufacturer in Wellington, focuses on manufacturing and marketing wholefood snacking products. Their offerings include a range of tasty, nutritious snacks that are gluten-free and vegan, providing a natural and healthy alternative to traditional convenience snacks. The brand has successfully positioned itself as a category leader in both New Zealand and Australia, known for its commitment to quality and health-conscious products.
The merger between these two snack foods manufacturers presented a strategic opportunity to leverage strengths from both companies. This consolidation aimed to realise significant synergies, including optimising production processes, expanding distribution networks, and combining marketing efforts. The consolidation is expected to enhance operational efficiencies and drive growth, allowing the newly combined entity to innovate further and capture a larger market share in the healthy snack segment.
Goal
The strategic consolidation of the manufacturing and warehousing operations into a single location aims to streamline workflows and achieve cost efficiencies. By merging these operations, the company expects to leverage economies of scale, reduce overhead costs, and optimise resource allocation, including labour and machinery. This initiative is designed to bolster operational efficiency and strengthen the company’s competitive edge in the food manufacturing industry.
Why TEG Projects
TEG Projects was initially engaged to provide confidential remote assistance to the client, focusing on developing a high-level budget costing. Due to the constraints that precluded site visits, the expertise of TEG’s project managers became crucial. Our experience allowed us to effectively estimate costs and create a budget without the need for direct on-site evaluation. This strategic approach enabled the client to conduct a preliminary assessment of the project’s financial feasibility. The information provided was instrumental in helping the client decide whether to move forward with the project, ensuring they had a clear understanding of potential expenses before committing further resources. This remote engagement not only demonstrated TEG Projects’ capability in managing complex scenarios but also supported the client in making informed decisions about the project’s viability.
Solution
The project was constrained by a tight budget and timeline, necessitating meticulous planning to align with the client’s specific requirements. To facilitate this, detailed scope development was undertaken in collaboration with the client, alongside the preparation of precise budget estimations and equipment layouts. These comprehensive preparations were essential for presenting a well-defined proposal to the client’s board, aimed at securing the necessary capital expenditure approval.
Leveraging TEG’s knowledge, experience and industry connections, we were strategically positioned to identify and select the most suitable contractors for the project. TEG’s deep understanding of the project requirements and its network of reliable contractors allowed us to match the project with professionals who were not only highly skilled but also a perfect fit for the specific challenges and objectives of the work.
Challenges
This project presented unique challenges from the outset as it commenced under conditions of confidentiality, coupled with constraints on the ability to conduct site visits. The lack of direct physical access to the site posed significant difficulties in obtaining a comprehensive understanding of the environment and the specific needs that would influence the project’s execution. This scenario demanded a high degree of precision in planning and coordination, as the team had to rely heavily on existing documentation and remote communications. Without the usual onsite evaluations, the risk of overlooking critical details increased, necessitating more stringent checks and balances throughout the planning phase.
To overcome the challenge of scoping the project with limited site knowledge and accessibility, the team had to employ skilled assumptions based on experience and indirect data. Collaboration became a cornerstone of the process, involving a tightly integrated effort among TEG’s project managers and the potential contractors. This collective approach facilitated a more dynamic exchange of insights and hypotheses about the site conditions and project requirements. The contractors’ input was especially valuable, as their experience and expertise helped fill the gaps in information and contributed to a more accurate project scope.
Results
TEG Projects collaborated closely with the client to develop the project scope and budget, engaging experienced mechanical and electrical contractors who could meet the client’s stringent cost and timeframe constraints. This collaborative effort was crucial in tailoring the project specifics to align precisely with the client’s requirements.
The coordination among TEG Projects and the contractors fostered a robust framework for the project, setting a strong foundation for successful implementation. The implementation phase was marked by diligent management of the contractors, with TEG Projects maintaining a vigilant oversight on the budget, scope, and timeline. This close monitoring ensured that the project adhered strictly to the planned parameters, effectively mitigating potential overruns and delays.
The client expressed significant satisfaction with how costs were transparently presented and communicated throughout the project. Additionally, they appreciated the wealth of experience TEG Projects brought to the table, which was instrumental in navigating the complexities of the project and delivering results that not only met but exceeded their expectations.
