1a1 plant location

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1a1 plant location

  1. 1. WE 640 Welding Production Plant Location
  2. 2. Arc Welding Processes Lesson Objectives When you finish this lesson you will understand: • The importance of building site location and building layout for manufacturing Learning Activities 1. Read Course Notes 2. Look up Keywords 3. View Slides; 4. Listen to lecture 5. Do on-line workbook 6. Do homework Keywords: Plant Location, Transportation Costs, Building Layout
  3. 3. Food for Thought: Have US Manufacturers lost sight of Fundamental Values? • Produce something of value • At low cost • Of high quality • Make it available when it is demanded Possible Reasons: • Decline in the Work Ethics • Attention Captured by Marketing in 70’s • Attention on Finances in 80’s & 90’s
  4. 4. Some of the Strategies We will Consider This Quarter Production Systems How do we match our production system designs to meet the needs of the market? How flexible should the system be? Capacity/location Decisions Should increased capacity be added in large or small units? When do we add capacity? Where? What are the effects of excess capacity? Technology Can we effectively use technology (CAD/CAM, robotics, automation)? Can engineers make the link to get these technologies into manufacturing? Workforce Management Can we keep our workforce productive without “giving away the farm”? Can we promote ethics in the workforce? Can we develop flexibility in the workforce? Operating Decisions How do we maintain quality and keep control of our manufacturing systems? How do we implement Total Quality Management (TQM)? Suppliers and Distribution How do we implement Just-in-time delivery? Where do we locate our plants?
  5. 5. Plant Location POINTS TO CONSIDER SOURCES OF HELP • Local State and Federal Industrial Development Groups • Incubators • Bankers and Development Companies • Small Business Bureau
  6. 6. SOURCES OF HELP • Local State and Federal Industrial Development Groups • Incubators • Bankers and Development Companies • Small Business Bureau POINTS TO CONSIDER • Market Proximity (freight costs, service, etc.) • Raw Material Proximity • Land/Building Costs (buy, build, or rent) • Possible Expansion • New Markets • Available Labor (availability, skill, training facilities, unions) • Taxes (tax incentives) • Grants (state, federal) • Labor Laws • Energy Costs (water, electric, gas) • Zoning laws • Environmental Considerations • Schools • Medical Services • Cultural and Recreational Services Plant Location
  7. 7. Plant Capacity Warehouse Quantity Needed A 200 1 150 B 100 2 300 C 400 3 100 D 400 4 200 5 300 Total 1,100 1,050 To Warehouse From Plant 1 2 3 4 5 A $22 $30 $25 $20 $24 B $20 $29 $21 $25 $20 C $24 $30 $24 $24 $24 D $23 $28 $24 $24 $23 Transportation Cost Analysis We make welded boxes in our plants A,B,C,D and ship to our customer’s warehouses 1,2,3,4,5.
  8. 8. To WarehouseFrom Plant 1 2 3 4 5 Ex Supply 22 30 25 20 24 0A 150 50→ 0 0 0 0 200 20 29 21 25 20 0B 0 100 0 0 0 0 100 24 30 24 24 24 0C 0 150 100 150 0 0 400 23 28 24 22 23 0D 0 0 0 50 300 50 400 Demand 150 300 100 200 300 50 1,100 ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) 200,2605023300225024150 241003015029100305022150 =⋅+⋅+⋅+⋅+ ⋅+⋅+⋅+⋅+⋅
  9. 9. To WarehouseFrom Plant 1 2 3 4 5 Ex Supply 22 30 25 20 24 0A 150 0 0 50 0 0 200 20 29 21 25 20 0B 0 100 0 0 0 0 100 24 30 24 24 24 0C 0 200 100 100 0 0 400 23 28 24 22 23 0D 0 0 0 50 300 50 400 Demand 150 300 100 200 300 50 1,100 ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) 000,2605023300225024100 241003020029100205022150 =⋅+⋅+⋅+⋅+ ⋅+⋅+⋅+⋅+⋅
  10. 10. Turn to the person sitting next to you and discuss (1 min.): • We just considered transportation costs as one of the major components in location of our manufacturing facility. There was a list of other points to consider given as well. What do you think is the next couple of most important considerations in building location?
  11. 11. BUILDING LAYOUT CONSIDERATION Space Allocation Work Area Aisles Elevators Stairways Offices Cafeteria Dispensary Stock Room Tool Room Dispatching Locker Rooms Rest Rooms Utilities Shipping Receiving Rework Area Utility Considerations Telephones Hot & Cold Water Steam Heat Intercom Unpurified Water Natural Gas Ventilation Computer Network Air-conditioning Tank Gas Electricity Compressed Air Lights Security Outdoor Area Parking Outdoor Storage Transportation Methods Truck RailAir Water
  12. 12. SINGLE vs. MULTIPLE STORY ADVANTAGES OF SINGLE STORY • Easier to move load horizontally than up & down • Floors on second story may not hold loads • High ceilings - for overhead conveyors • No support column restrictions • No need for elevators • Cheaper to build DISADVANTAGES OF SINGLE STORY • More land space needed • More costly to heat
  13. 13. Turn to the person sitting next to you and discuss (1 min.): • You can not always get the exact building type you want, particularly if you decide to rent. If you rent a two story building, from the list of “Building Layout Considerations” what might you locate on the second floor?

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