Due Diligence: Production Due Diligence

Mar 27

THIS IS THE FREE, REDACTED VERSION OF THE TASKS IN THE M&A REFERENCE MODEL  AND IT IS LICENSED UNDER Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International THE FULL SET OF DATA HAS TO BE LICENSED COMMERCIALLY.  HERE is a full model example for one task.

The task has the following goal(s):

Production of the target company: analyzed

Draft production integration plan: prepared

Risk: analyzed

The task has the following objectives:

Risk: minimized

Integration success: maximized

Target business: continued

Information asymmetry: minimized

Short description of task Production Due Diligence:

Production due diligence comprises the examination of all production sites, production facilities, production processes and the human and material resources used.

The task uses the following business object types:

Shipping application in production, Risk of target production, Production capacity of the target, Shipping of production, Analytical applications of production, Control application system of production execution, Control of production execution, Design application for products, Design of products, Draft production integration plan,

Questions to be used during the execution of the task

The task is executed with the following questions, among others:

How is the production at the target organized?

Which locations exist in which countries?

How is production at the target planned?

How is product development organized at the target?

What is the warehouse concept?

Are there additional warehouse systems (forklift control system, stacker crane control, linked external systems)?

Is warehouse management decentralized?

Which suppliers are critical and how is the production of the target secured against supplier risks?

Is it possible to track parts throughout the supply chain?

Which production control is used for the target?

What is the production capacity of the target and what is the utilization rate?

Which quality products are available at the target?

Is there a maintenance backlog at the target?

Which capital-intensive machines need to be replaced in the near future?

How is internal production logistics organized and how is it controlled?

Which application systems are used to control internal production logistics?

How is product logistics to customers organized and how is it controlled?

Which application systems are used to control product logistics to the customers?

What is the utilization and capacity of the production sites?

How is maintenance and repair organized?

Which application systems are used to control maintenance and repair?

Energy consumption: Is production energy intensive?

Public attitude: Is there environmental resistance to the company's products/production?

Rationalisation; review, current situation, project plans, how are the goals achieved?

Digitization; review, current situation, project plans, how are the goals achieved?

Goals and measures - what are the detailed goals (e.g. per department) and measures related to the inventories ?

Is the concept of 'digital thread' implemented at the target ?

Which application systems are used for production control at the target?

Is the R/3 warehouse activity monitor used?

Which modules of the WC are used and to what extent?

THIS IS THE FREE; REDACTED VERSION OF THE TASK IN THE M&A REFERENCE MODEL: THE FULL SET OF DATA HAS TO BE LICENSED

Karl Popp www.drkarlpopp.com