Facility closure management: the case of Vauxhall Motors Luton

Abstract

Purpose-The purpose of the paper is to present the findings of a study of factory closure management. It details the sequence and the results of the key strategic manufacturing management decisions made from the time of the announcement of the plant closure to the cessation of operations. The paper also includes an analysis of the human resource management (HRM) actions taken during this same time period and their consequences upon all those involved in the closure management process. Design/methodology/approach-The case study methodology consisted of two initial site visits to monitor closure management effectiveness (adherence to plan and the types and frequency of closure management communications). During these visits, documentary evidence of the impact of the closure decision upon production performance was also collected (manufacturing output and quality performance data). Following plant closure, interviews were held with senior business, production and HRM managers and production personnel. A total of 12 interviews were carried out. Findings-The case study findings have informed the development of a conceptual model of facility closure management. Information obtained from the interviews suggests that the facility closure management process consists of five key management activities. The unexpected announcement of a factory closure can cause behavioural changes similar to those of bereavement, particularly by those employees who are its survivors. In addition, similar reactions to the closure announcement may be displayed by those who choose to remain employed by the factory owner throughout the phased closure of the plant. Originality/value-Facility closure management is an insufficiently researched strategic operations management activity. This paper details a recommended procedure for its management. A conceptual model has also been developed to illustrate the links between the key facility closure management tasks and the range of employee changes of behaviour that can be induced by their execution.

Groupthink and Project Performance: The Influence of Personal Traits and Interpersonal Ties

“…, Butler et al. ). Indeed workers' behaviors in operating conditions have an impact on the nature (both quantity and quality) of the work they contribute to, and in turn on the profitability of firms that critically rely on the effectiveness of these workers (Bendoly , Brah et al.…”

Production Phase-out During Plant Shutdown

“…Butler et al [12] studied the case of Vauxhall Motors Luton when it was closed in 2002. The authors develop a facility closure management model containing a five stages approach including stage activities: (1) managing corporate brand name / legacy, (2) managing communications, (3) managing closure, (4) managing investment in employees, and (5) managing continuity of operations.…”

“…The realization stage is related to stages 4 and 5 (managing investment in employees, and managing continuity of operations) [12]. Furthermore, we add the process stages of control and finalization, because monitoring supports achievements reflection and after the end of production, the finalization takes place, which indicates the end of all support activities.…”

“…Nevertheless, companies, despite already having accomplished several plant shutdowns, do not have any structured approach, nor even a contact person with knowledge and experience giving advices [12]. Companies need an ending-competence, including managerial skills beyond day-to-day business [11].…”

How inventory consignment programs can improve supply chain performance: a process oriented perspective

“…The unstructured interviews were conducted both on-site and over the phone with purchasing, operations, materials handling and accounting managers over a period of approximately 8 months. Consistent with the method of Butler et al (2009), we guarded against reliability and validity concerns by interviewing a number of different managers within firms.…”