Case Study
Finding the right level to invest
Comparing three factory layouts at different levels of capital investment to find the best balance of cost, labour and output.
The Challenge
A modular housing manufacturer needed to increase output from its factory. The real question was not whether to invest, but how much.
A light reconfiguration might free up some capacity for modest cost. A full reworking of the line would deliver more, but at a far higher capital outlay and a longer payback. Without seeing the options side by side, any decision risked being made on instinct rather than evidence.
The brief was to analyse the alternatives and set out, in one report, what different levels of capital investment would actually deliver on the factory floor.
Our Approach
We focused on giving the manufacturer a clear basis for the decision, not a single recommendation handed down without the workings.
Understanding the current line
We started with the existing operation. Where time was lost, where labour was concentrated, and where throughput hit its ceiling. This baseline gave every option a common reference point.
Three conceptual layouts
We developed three conceptual factory layouts, each tied to a different level of capital investment. These ranged from a lighter-touch reconfiguration through to a fully reworked production line.
Measuring the trade-offs
Each layout was analysed against the same three measures: capital cost, reduction in labour, and improvement in throughput. Holding the measures constant meant the manufacturer could compare three genuine alternatives rather than three options described in different terms.
The Outcomes
The work produced a single report setting out three routes to higher output, with the cost and the return of each laid out on the same basis.
The strongest option cut line labour by 55% and brought TAKT time down from 120 minutes to 80 minutes. That is a third off the time to produce each unit, and roughly 50% more output from the same line. The decision moved from a general sense that the factory needed investment to a clear, costed view of what each level of spend would deliver in labour saving and throughput.
