WE 640Welding Production

Plant Location

Arc Welding Processes

Lesson ObjectivesWhen you finish this lesson you will understand:• The importance of building site location and building layout for manufacturing

Learning Activities1. Read Course Notes2. Look up

Keywords3. View Slides; 4. Listen to lecture5. Do on-line

workbook6. Do homework

Keywords:Plant Location, Transportation Costs, Building Layout

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

 

Some of the Strategies We will Consider This Quarter  Production SystemsHow do we match our production system designs to meet the needs of the market? How flexible should the system be? Capacity/location DecisionsShould increased capacity be added in large or small units? When do we add capacity? Where? What are the effects of excess capacity? TechnologyCan we effectively use technology (CAD/CAM, robotics, automation)? Can engineers make the link to get these technologies into manufacturing? Workforce ManagementCan 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 DecisionsHow do we maintain quality and keep control of our manufacturing systems? How do we implement Total Quality Management (TQM)? Suppliers and DistributionHow do we implement Just-in-time delivery? Where do we locate our plants?

Plant Location

POINTS TO CONSIDER SOURCES OF HELP        Local State and Federal Industrial Development Groups        Incubators        Bankers and Development Companies        Small Business Bureau

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

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.

To Warehouse From Plant 1 2 3 4 5 Ex Supply

22 30 25 20 24 0 A 150 50 0 0 0 0

200

20 29 21 25 20 0 B 0 100 0 0

0 0

100

24 30 24 24 24 0 C 0 150 100 150 0

0

400

23 28 24 22 23 0 D 0 0 0 50 300 50

400

Demand 150 300 100 200 300 50 1,100

200,2605023300225024150

241003015029100305022150

To Warehouse From Plant 1 2 3 4 5 Ex Supply

22 30 25 20 24 0 A 150 0 0 50 0 0

200

20 29 21 25 20 0 B 0 100 0 0

0 0

100

24 30 24 24 24 0 C 0 200 100 100 0

0

400

23 28 24 22 23 0 D 0 0 0 50 300 50

400

Demand 150 300 100 200 300 50 1,100

000,2605023300225024100

241003020029100205022150

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?

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 Rail

Air

Water

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

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?