by Dennis D. Knutz ASA, CMIRF
A plant closure is generally an extremely complex project and requires the assembly of a team dedicated to achieving project safety, environmental responsibility and maximum financial recovery. Because of the complexity of the process and many team members involved, a useful tool for the plant closure team is “The 3 ‘R’s’ of Plant Closures”, a document that clearly states the roles, responsibilities and relationships of each of the team members.
A list of recommended team members and their roles is as follows:
UNIT/BUSINESS MANAGER: Act as project sponsor and provide scope of work, time line and critical issues for project. Provide support and staff resources to IR department to complete the project successfully.
INVESTMENT RECOVERY MANAGEMENT: Lead development and implementation of asset disposition and demolition projects.
PROJECT MANAGER: Plan, schedule and direct all activities related to the project in accordance with project scope. Provide day-to-day coordination and oversight of all project activities.
PROJECT ENVIRONMENTAL: Ensure compliance with environmental requirements throughout project, likely participating in environmental contractor selection process. Proactively provide counsel to the Project Team on environmental issues and processes. Monitor environmental compliance during the course of the project and take corrective action if necessary.
PROJECT SAFETY: Ensure compliance with safety requirements throughout the project. Proactively provide counsel to the Project Team on safety issues/ processes. Monitor safety compliance during the course of the project and take corrective action where necessary.
PROJECT ENGINEERING: Provide engineering and technical information and resources to support project activities.
PROJECT ACCOUNTING: Implement accounting structure and processes to enable proper identification, execution and tracking of asset disposition and demolition project cost while complying with GAAP (generally accepted accounting principles).
PROJECT SECURITY: Provide security plans and resources to support project activities.
LABOR RELATIONS: Define and resolve potential labor relation issues that may affect or be affected by project activities of the plant closure.
PUBLIC RELATIONS: Develop and coordinate local communication plan on project activities.
LEGAL: Review all contracts relative to the project. Provide legal advice as requested on all phases of the project.
PURCHASING & STORES: Provide prchasing processes and support for the project. Manage the orderly disposition of surplus stores inventories.
PROJECT CONTRACTORS: Execute the plan developed by the project manager. Comply with all applicable local, state and federal laws.