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Article Information:
Title:
Facility closure management: the case of Vauxhall Motors Luton
Author(s):
Michael J.R. Butler, Mike Sweeney, David Crundwell
Journal:
International Journal of Operations & Production Management
Year:
2009
Volume:
Issue:
Page:
670 - 691
ISSN:
0144-3577
DOI:
10.1108/01443570910971379
Publisher:
Emerald Group Publishing Limited
Acknowledgements:
The authors would like to thank all the senior managers and employees of Vauxhall Motors Limited who collaborated with the case study. The authors also wish to thank the editors and the referees for reviewing the paper and their considered suggestions for improvement. The authors have found these to be very constructive.
Document Access:
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.
Keywords:
Automotive industry, Downsizing, Operations management, Productive capacity, United Kingdom
Article Type:
Case study