Are you looking to renovate your factory space? Are you unsure on how to decide the aspects that should be taken into consideration? Worry not! We have got you covered! There are many factors that you should consider before renovating your factory. Here are a few to be named:
First and foremost you need to draw up a budget of the estimated costs. To find the estimation you will need to consult a construction company and get their estimation. Onto that you will need to add up an extra miscellaneous cost to provide for unexpected expenses that may occur. You should then draw up a forecasted cash flow statement indicating the inflows and outflows. Then you will be able to identify if you can have a smooth cash flow while and post renovation. It is very important to have a smooth cash flow to avoid liquidation.
The opportunity cost of renovating a factory space would be the better utilization of the financial resources and the cost of time being wasted by employees during the renovations. Even if the workers were made to work during the renovations they would not be working up to their optimum levels because of the disturbance from the renovation activities. For instance, if a repairing within the factory is being carried out by some welding engineering consultants that offers real value, the noise pollution and the sparks being created will be a disturbance and safety hazard to the workers. Workers will either be idling or not working up to their fullest potential.
While the renovations are taking place, there might be many new procedures to be implemented and more supervisors employed. For instance, if there is a welding procedure Newcastle taking place, the employees may need to be taken to a safe zone or give the necessary PPE (Personal Protective Equipment) to be worn. PPE’s can be expensive and sometimes be rejected by the workers. Most of the factory workers are skilled but uneducated workers. This makes them more likely to reject the idea of PPE’s.
Is it necessary?
Finally, you should check to see if the renovations are absolutely necessary in this time frame. If there is an option to postpone it because it would be better for the company then you should do it. But if you feel the factory needs an urgent make over then it is ok to go ahead with the renovation given that all other aspects are positive. Also make sure to inform your workers of the renovations beforehand. And get their input on how the renovations should take place. This will prepare the workers better and make them more willing to offer their support for the renovation.