Challenge: EWA's initial task was to understand the client's manufacturing process, quality requirements, capital equipment needs, manpower requirements, and other aspects of their operation using EWA's Critical Planning Factors as a guide. Especially critical in this analysis was an in depth understanding of the supply chain dynamics given the high cost of shipping heavy and 'bulky' form factor products. Additionally, it was necessary to understand and incorporate real world, Vietnam based facts, in the Business Case.

Solution: As is our practice, EWA approached this client’s needs by developing a ‘Phased Approach’. This phasing approach allowed the client to understand the total effort required in the overall project but broke the overall effort into ‘bite sized’, logical steps. Such an approach permits a clearer definition of deliverables and affords the client the opportunity to make ‘Go-No Go’ decisions throughout the process minimizing expense and wasted time for all parties. The 2 Phases in this project were Site Selection and Business Case Assessment / Development. A Sr. EWA consultant accompanied the client to Vietnam coordinating the Site Selection effort. This resulted in the identification of 2 candidate locations with detailed information on all related costs (construction, utilities, labor, support / administrative, legal, etc).
EWA’s consultants spent time in the client manufacturing facility in the U.S. understanding all facets of the client’s business. During a 3-4 week period, EWA consultants combined the manufacturing review with the client’s original business case assumptions and the Vietnam based information gathered during the site selection effort. This resulted in a ‘Base Business Case’ which did not yield a satisfactory business scenario. EWA subjected the base case assumptions to a detailed sensitivity analysis resulting in a series of alternatives. Working closely with the client, a most optimal Business Case was developed displaying a realistic business approach, with acceptable risk / reward levels and identification of key financial / operational ‘levers’ which could be manipulated by the client to provide an even better results once the project was implemented.
This was all done within the context of the Vietnam manufacturing environment. Supporting the overall Business Case, spread sheets were developed displaying financial status on a monthly / quarterly / yearly basis for 6 years following business establishment. The spread sheets displayed all elements of operational costs, capital injections, revenue projections, tax implications, depreciation and other important financial information.
Cash flow implications for the company as a whole (combining both U.S. and Vietnamese operations) were developed, charted and folded into the resulting preferred Business Case. Additionally, pro-forma P&L statements were developed for the Vietnamese entity for a period of 6 years following initiation of operations. This is important to model the enterprise as a stand alone in order to plan for tax treatment, payment of royalties to the parent company and to further ‘fine tune’ the preferred Business Case.

Result: The client is now poised to begin the final stages of Project Planning for their proposed Vietnamese operations and then Project Implementation.

THIS CLIENT IS SERVING AS A REFERENCE FOR EWA. PLEASE CONTACT EWA FOR CLIENT CONTACT INFORMATION.