Final Examination Flashcards
3 factors that depend on plant site
- cost of energy and raw materials
- type of transportation to be used
- availability of labor
3 major site selection factors
- Location of Markets
- Location of Raw Materials
- Transportation
_________ often are delivered in small shipments to a large number of customers. They also involve packaging in small attractive containers that decrease the amount of product per unit volume and add mass.
Consumer products
The least expensive method of shipping is usually by _____
water
the most expensive method of shipping is by ______
truck
In between of water and truck as method of shipping are _____ & _____
pipelines and trains
_______ costs: When the transport company obtains full load on the return trip.
lower
_____ costs: When the carrier returns empty.
Higher
The difference in costs between various forms of transportation may be expected to __________ with increase in energy costs because those forms of transportation that are now the cheapest require the least amounts of energy and manpower.
increase
Logical extrapolations are often ________ because the government often subsidizes various transportation industries
faulty
While shipping firms must charge everyone having the same circumstances similarly, they can make certain types of _____.
deals
The rates given in the tables are not ____ because the final rate is negotiated with the transportation company.
exact
In these negotiations, _______ may be granted. It is a preferential allowance or rate given by an organization
concessions
It a tax or duty to be paid on a particular class of imports or exports
tariffs
A ______ is the cheapest form of transportation to operate, but it requires a large capital investment and therefore a large throughput.
pipeline
Until 1969 the long-distance pipelines carried almost exclusively __________ products.
natural gas or petroleum
In that year a pipeline running 850 miles (1,370 km) from Texas to Iowa began carrying __________ to markets in the Midwest.
anhydrous ammonia
Three factors favored construction of ammonia pipelines.
- Over 50% of this country’s agricultural nitrogen is used in the Midwest and between 40 and 65% of this total is applied directly to the soil as anhydrous ammonia.
- The low price of natural gas needed for the production of ammonia favored a Gulf Coast plant site or one near a large gas field.
- Much of the Midwest is inaccessible to cheap barge transportation
The railroads have introduced the ______
unit train.
This is a single train consisting of 75 or more cars periodically going from one source to a specific destination.
unit train
The train merely follows the most direct route between two points. It can cut freight costs by as much as ________%
30%
The railroads have also introduced the ______, which can hold 43,000 gallons.
jumbo tank car
The cargo ships have also begun using ______. These prepackaged standardized boxes have slashed handling charges by over 50%.
containerized cargos
Since all tank cars must be individually charged and discharged, increasing the ____ reduces the number of manual operations per unit volume of material and reduces costs.
size
They can be loaded directly on trucks or trains, thus eliminating the need for expensive dock storage facilities and greatly reducing loading and unloading charges.
containerized cargos
One of the highest costs in ocean shipping is _______.
docking
To eliminate the high cost, some ships are carrying the cargo on barges that can be removed from the ship without its _____. The barges are then ready for transportation up the various rivers to inland cities.
docking
The trucking industry has convinced some states that a _____ can haul two cargo units on interstate highways. The result is that each truck driver can transport twice as much per man-hour. The interstate highway system itself has sped up trucking service.
tractor trailer
In 1971 there were over 10,000 train accidents, many of which involved hazardous chemicals. There were also similar accidents involving barges, pipelines, and trucks. As a result, the federal government and many state governments considered _________.
stringent safety regulations
17 Other Site Selection Factors
- Transportation
- Sources and costs of raw materials
- Prospective markets for products
- Corporation long range planning
- Water source-quality and quantity
- Special incentives
- Climatic conditions
- Pollution requirements (Waste disposal)
- Utilities-cost, quantity and reliability; fuel-costs, reliability and availability
- Amount of site preparation necessary (site conditions)
- Construction costs
- Operating labor
- Taxes
- Living conditions
- Corrosion
- Expansion possibilities
- Other factors
9 Signs of Successful Layout
- Directed flow patterns
- Predictable processing time
- Little WIP in the facility
- Open Floors: allow communication and easy tracking of work & employees
- Bottleneck operations under control
- Work stations close together
- Orderly handling and storage of raw materials and finished products
- No extra handling or unnecessary handling of materials
- Can easily adapt to changing conditions
2 signs of a successfullayout gas with Directed flow patterns
- Straight line or other smooth patterns of movement
- Backtracking kept to a minimum
Little’s Law formula
L = λ x W
*Work in Progress (L) is the number of items in process in any system.
*Throughput (λ) represents the rate at which items arrive in/out of the system.
*Lead time (W) is the average time one item spends in the system.
3 considerations for changing conditions in a layout
- Considers demand growth or decline
- Considers product change over time
- Considers technological change
Its main objective consists of organizing equipment and working areas in the most efficient way, and at the same time satisfactory and safe for the personnel doing the work.
Plant Layout
The feeling of being a unit pursuing the same objective.
Sense of Unity
4 consideration for a Plant Layout
- Sense of Unity
- Minimum Movement of people, material and resources
- Safety
- Flexibility
It is dictated by the number and size of facilities, buildings, etc. and required spacing. It is usually based on the number of personnel or vehicles
Plant Layout
8 Factors Affecting Plant Layout
- Materials
- Machinery
- Labor
- Material Handling
- Waiting Time
- Auxiliary Services
- The building
- Future Changes
Factors Affecting Plant Layout:
The layout of the productive equipment will depend on the characteristics of the product to be managed at the facility, as well as the different parts and materials to work on
Materials