The Goal … Double the capacity from $100,000,000 to $200,000,000 per year in terms of revenues in the Chanhassen plant. The owner, Tom Redmond wanted to increase their manufacturing volume to capture newly designed products sold in the discount store market.
In order to double the capacity previous discussions and designs had begun on a design/build project for a new $22,000,000 plant with an elaborate entrance and office space and basic box set aside for the production area. Redmond commissioned a study to verify if the production area in the design/build project was sufficient for the planned capacities.
VAA was recommended to Redmond and submitted a proposal. We were awarded the study. As preparation for the study, our team toured the existing plant and learned more about the future plans of the company.
It became apparent, after looking at the production plant, that in the existing plant it would be possible to double its capacity. The Chief Operating Officer of Redmond Shampoo modified the study assignment to not only verify the production lines and capacity to be accommodated in the new facility but also determine what we would have to do with the existing facility to accomplish the same thing.
We performed the study and laid out the existing facility with added production lines. The warehouse was high enough to add a mezzanine level for the conference rooms, cafeterias and additional support activities and additional corporate offices.
Warehouses were removed from the site and another industrial engineer was brought on board to do a separate study on off-site warehousing. Another subcontracted engineer performed a national transportation study on developing public warehouses where products would be brought to and smaller loads would be created to be sent out to stores and end sites.
The goal was to introduce a new logistic pattern of breaking bulk via off-site public warehouses. Through a collaborative effort with other consultants a comprehensive study was delivered to Redmond Shampoo. This study was selected to follow and worked very successfully. It was a capital project of approximately $8,000,000, significantly less than the previously discussed design/build effort. VAA provided services on the study, architectural, structural and civil engineering on the project.
