This paper is built on six longitudinal case studies of knowledge transfer in manufacturing relocation. By focusing on tacit and explicit knowledge the paper introduces a model for identification of knowledge in relation to four task situations on the shop floor in a manufacturing environment. The paper discusses and suggests how the transfer of tacit and explicit knowledge can be improved. Further the paper discusses two dramatic shifts in organizational settings i.e. from operations management and to project management in the sending unit before a transfer and reverses in the receiving unit after relocation. Finally the paper discusses how “dispatching capacity” and “absorptive capacity” can improve the process.