Verta Life Sciences and Strategic Partners help our clients to develop long-term facility strategies that support their business strategies.

Depending on the size and complexity, facilities can be costly and require long lead times to create, commission and validate. Without the necessary strategic thinking, there is no assurance that the right facilities will be available when required.

A facility strategy will provide answers to questions such as:

  • What are the types and sizes of space required over time to support our business needs?
  • When are the different types of spaces required?
  • Where should our facilities be located?
  • What are the capital and operating costs of the facilities that we require?
  • Should we modify or add to our existing facilities?
  • Should we rent, buy, build or consider another model?
FACILITY STRATEGY CASE STUDY
Issue:

A major pharmaceutical company experiencing significant growth realized that it may outgrow their facilities.

Objective:

Project the company’s long term space and functional requirements, analyze the options to meet its facility needs and recommend the way forward.

Deliverable:

The most significant challenge usually faced in the development of space and functional requirements of multi-disciplined organizations is that long term business plans usually look out from 5 to 10 years, while the life expectancy of facilities is at least 25 to 50 years. The task is further complicated by the impact of unknown future technology changes.

Starting with the long term sales projections and working with key representatives of all departments, a software model was developed to project a range of functional and space requirements for each department and the overall organization over the next 50 years and beyond. In work sessions with executives and key representatives of each department, these requirements projections were then rationalized and refined into three scenarios namely; most optimistic, most pessimistic and most likely.

Next, the company’s existing facilities were assessed to determine their ability to accommodate (with changes and additions) the most likely requirements projection as well as the marginal impact of the most optimistic and pessimistic requirements projections. A further analysis was also done to assess the impact on the business of creating the changes and additions to the facilities while continuing with normal business operations.

A financial model was developed to analyze and compare the above option of changing the company’s existing facilities to creating all or some new facilities on a green field site. This model took into account the impact of issues such as: continuation of operations in existing facilities during changes and additions, transition to new facilities, capital costs, projected long term operational cost, etc.

The company’s final decision was to develop an entire new campus for its head office, manufacturing, research and development requirements with enough land to allow for future growth. Some functions, including distribution, remained in other locations.