Rationalising and revitalising

Abstract

Rationalising operations can dramatically boost performance. Indicators that a company might benefit from rationalisation include: a recent acquisition or merger, resulting in some duplication in operations; divestment of non-core business; rapid expansion of a business, requiring new sites and factories; the need to close down a loss-making division; imminent expiry of site leases; and availability of spare capacity, warranting the contraction to fewer factories or sites. The author describes how a properly planned rationalisation process can transform a good manufacturing business into an excellent one.