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Operations Optimization Costs
3 Months Ended
Nov. 30, 2019
Operations Optimization Costs  
Operations Optimization Costs

Note 15 — Operations Optimization Costs

 

IT Studies Related to the Upgrade of the Company’s Worldwide ERP System

   

During the first quarter of fiscal 2020, third-party-led studies regarding the potential upgrading of the Company’s current worldwide ERP system were conducted. Chase is currently reviewing the data and recommendations provided by the study and may further utilize third-party engineering, IT and other professional services firms in the future for similar work, as well as work around our facilities rationalization and consolidation initiative. The Company recognized $150 in expense related to these services in the first quarter of fiscal 2020. Given the ongoing nature of the review, an estimate of future costs, including those that may be capitalized, cannot currently be determined.

 

Relocation of Pulling and Detection Manufacturing to Hickory, NC

 

During the third quarter of fiscal 2019, Chase began moving the pulling and detection operations housed in its Granite Falls, NC location to its Hickory, NC facility. This is in line with the Company’s ongoing initiative to consolidate its manufacturing plants and streamline its existing processes. Currently, the pulling and detection operations are the only Chase-owned production operations in Granite Falls, NC, with the remaining portions of the building being either utilized for research and development or leased to a third party. The process of moving has continued subsequent to the end of fiscal 2019 and is anticipated to be completed during the first half of fiscal 2020. The Company recognized $499 in expense related to the move in the three-month period ended November 30, 2019, having recognized $1,260 in expense during the second half of fiscal 2019. Future costs related to this move are currently anticipated to be approximately $200, and the Company plans to disclose these amounts separately on the condensed consolidated statement of operations in future periods.

 

Closure of Pawtucket, RI Facility

 

On June 25, 2018, the Company announced to its employees the planned closing of its Pawtucket, RI manufacturing facility effective August 31, 2018. This is in line with the Company’s ongoing efforts to consolidate its manufacturing plants and streamline its existing processes. The manufacture of products previously produced in the Pawtucket, RI facility was substantially moved to Company facilities in Oxford, MA and Lenoir, NC during a two-month transition period.  In the fourth quarter of fiscal 2018, the Company expensed $1,272 related to the closure. The Company also recognized $260 in expense related to the move in the three-month period ended November 30, 2018, with no additional expense recognized in fiscal 2019. Future costs related to this move are not anticipated to be significant to the condensed consolidated financial statements.