In January 2020, the interim manager was commissioned by a medium-sized group of companies in the toy industry in Austria as project manager for a comprehensive relocation of production to Asia. At the beginning of the assignment, the company produced model trains at three locations in Europe. Half of the production was to be relocated to Vietnam. The company had already established a branch in Asia for this purpose and staffed it with a small workforce.
Relocation planned and driven forward without jeopardizing the ability to deliver
In order not to jeopardize the toy manufacturer's ability to deliver, the interim manager planned the relocation in carefully selected steps. In close coordination with the affected plants, he developed the relocation steps for machines and technologies. At the same time, he drove forward the staffing of the new site in Vietnam. More than 150 employees were recruited there in a short space of time. A training team from Europe ensured the transfer of know-how.
Supply chain established in Vietnam and suppliers qualified
In parallel, the interim manager advanced the procurement of raw materials and semi-finished products such as injection molded parts, electronics, motors and other goods in Asia and ensured quality by establishing supplier qualifications. The largest sub-project in this context was the qualification project for an innovative paint system supplier.
In order to further improve the cost situation, the interim manager decided, in consultation with the client, to discontinue the production of motors for the model trains in Europe and source the drives from a supplier that the interim manager had found in the Far East.
Massive restrictions caused by the coronavirus pandemic successfully overcome
One of the particular challenges of this mandate was the massive restrictions caused by the coronavirus pandemic, which affected Europe and Vietnam in equal measure. The interim manager set up a daily supply chain tracking system to avoid material bottlenecks or identify them as early as possible. This made it possible to react at an early stage. As a result, it was possible to avoid significant material bottlenecks.
Test concepts avoid closures and VR applications enable remote support
In order to avoid infection-related production downtimes in the European plants, the interim manager had the company's own COVID-19 test stations set up. Obstacles caused by travel restrictions were offset by consistent video work. Modern virtual reality applications proved their worth in setting up and maintaining the technology in Vietnam, enabling European experts to provide targeted support to the staff in Vietnam.
Relocation realized without restricting delivery capability with major cost reductions
Despite all the adversities, the interim manager and his teams succeeded in relocating the targeted half of production to Vietnam on schedule and meeting delivery obligations in full. As a result of the relocation, the railroad model construction company has a significantly better cost situation. The consolidation of large production parts in just one plant has significantly eased the complexity of parts logistics and made a significant contribution to reducing costs.
