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WE 640

Welding Production

Plant Location

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

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 70s
Attention on Finances in 80s & 90s

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?

Plant Location
POINTS TO CONSIDER

SOURCES OF HELP

Local State and Federal Industrial


Development Groups
Incubators
Bankers and Development
Companies
Small Business Bureau

Plant Location
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

SOURCES OF HELP

Local State and Federal Industrial


Development Groups
Incubators
Bankers and Development
Companies
Small Business Bureau

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

150 22 50 30 100 29 150 30 100 24


150 24 50 22 300 23 50 0 26,200

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

150 22 50 20 100 29 200 30 100 24


100 24 50 22 300 23 50 0 26,000

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

Air

Rail

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?