Learn how a strategic feasibility study helped avoid a USD60M overbuild in palm oil manufacturing—saving capital, optimizing operations, and validating founder pain points. Discover how MES tools can streamline future decisions.

💡 The $60M Temptation: When Gut Feel Drives Expansion

A Senior Manager at a major palm oil producer projected that future harvest volumes would overwhelm their current CPO mill. The proposed solution? Build a new second CPO mill. The initial cost estimate: USD60 million.

But the Board resisted the massive capital expenditure (capex). They consulted Andreano Ng, a neutral party, specializing in operational efficiency and strategic clarity, for an outside perspective.

🧠 The Power of a Strategic Pause: The Feasibility Study Question

Andreano listened and asked one critical question:

“Was there any feasibility study done to validate these assumptions?”

The answer was no. The decision was based on forecasts and gut feeling.

Andreano’s advice: “Let’s pause and analyze the situation with real data first.”

📊 From Assumption to Clarity: The Feasibility Study Results

After gathering harvest forecasts, mill specs, and peak season throughput data, the study revealed:

• The existing mill could be upgraded to handle peak loads

• No need for a new mill

• Cost of upgrade: USD10 million

• Savings: USD50 million

•  Outcome: Strategic optimization, not asset bloat

Metrics analyzed included production capacity, equipment uptime, and peak season bottlenecks—all critical for validating manufacturing expansion.

🚀 4 Key Takeaways to De-Risk Your Next Expansion

✅ Validate Assumptions

Gut feel ≠ strategy. Always back decisions with data.

✅ Optimize Before Expanding

Lean into upgrades before committing to capex-heavy builds.

✅ Align Stakeholders

Board resistance can be a signal—not a setback.

✅ Protect Capital

Avoid “white elephant” assets that drain ROI and morale.

🧩 How an MES (Manufacturing Execution System) Prevents Overbuilding

The feasibility study was manual and time-consuming. While it saved millions, it also exposed a critical vulnerability: lack of real-time operational data.

This is where modern tools like a Manufacturing Execution System (MES) change the game.

What MES Enables:

• Real-Time Visibility: Track throughput, equipment utilization, and inventory instantly

• Data-Driven Decisions: Simulate expansion scenarios with centralized operational data

• Quality & Compliance: Built-in traceability ensures regulatory alignment

• Team Empowerment: Role-based access improves cross-functional clarity

MES transforms disconnected tools into a unified, scalable system—ideal for SMEs navigating growth.

If you're navigating expansion, don't fly blind.

Explore smart factory tools that give you real-time clarity, operational confidence, and scalable control—so your next feasibility study isn’t just accurate, it’s effortless.

Planning your next expansion? Book a complimentary 15-minute strategy call to see how a data-first approach can de-risk your investment.

Explore more articles on My Little Sharing's Learning Hub:

• Digital Tools & Platform Independence 

• Financial Clarity for SMEs