Professional Documents
Culture Documents
Welding Production
Plant Location
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
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)?
Plant Location
POINTS TO CONSIDER
SOURCES OF HELP
Plant Location
POINTS TO CONSIDER
SOURCES OF HELP
Plant
Capacity
Warehouse
A
B
C
D
200
100
400
400
1
2
3
4
5
Total
1,100
From Plant
A
B
C
D
$22
$20
$24
$23
$30
$29
$30
$28
Quantity
Needed
150
300
100
200
300
1,050
Transportation
Cost
Analysis
We make welded boxes in
our plants A,B,C,D and ship
to our customers warehouses
1,2,3,4,5.
To Warehouse
3
4
$25
$21
$24
$24
$20
$25
$24
$24
5
$24
$20
$24
$23
From
Plant
A
2
22
150
B
0
50
24
25
0
29
100
Demand
30
20
To Warehouse
3
4
5
23
0
21
30
150
20
24
0
25
20
100
24
0
24
150
22
24
0
200
0
100
0
0
0
23
Supply
0
0
0
24
28
Ex
400
50
300
50
150
300
100
200
300
50
400
1,100
From
Plant
A
2
22
150
100
25
29
24
Demand
30
20
To Warehouse
3
4
5
23
50
21
30
200
20
100
28
24
0
25
24
24
100
22
200
0
24
0
0
100
0
0
0
23
Supply
20
0
24
Ex
50
300
50
150
300
100
200
300
50
400
400
1,100
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
Air
Rail
Water