Lecture 1: Introduction to the Design of an IP

Question 1

What is a plant/facility?

Answer 1

-coordinated set of means, designed and set up to exploit ressources to transform them with proceses to add value

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Question 2

What are Production Plants/Facilities?

Answer 2

• devoted to an object
• to work with a bigger system (e.g. Air conditioning, water delivery system and eletrical generation)

Question 3

What are the three phases of a plant lifecycle?

Answer 3

→ all three phases must be faced in a coordinated way

→ interactions are crucial, especially when there a changes over time (which will happen!)

Question 4

What are major problems of plants during their lifeclyce?

Answer 4

• overall engineering aspects
• technology
• Ancilariy services/facilities

-Economical/Financial issues
→ assumptions off markets change, so investments may have different result than reality

-Safety issues

Question 5

Explain the Economical principle of IP?

Answer 5

1. Economical result:
   Revenues (R) - Costs (C) = Margin (M) (needs to be maximized + can be negative sometime, but in the long run it should be positive → sustainability)
2. Referred to the running time of the plant
   (1€ is not worth as much as 1€ tomorrow → discounting rate)
3. Variable cost dreacrease when fixed costs increase (due to size/capability of the IP)
   → X: performance (units/min, kg/h(
   Y: Cost
4. IP are designed balancing the usage of resources (cost) to optimize financial state (minimize total cost= fixed + variable) along the expected life cycle of the plant

Question 6

DIscuss the Traffic (flow) principle

Answer 6

→ in all IP there are flows of materials, people, services and decisions.

Question 7

What are objectives of facility planning?

Answer 7

→ improve customer satisfaction (need to understand their need)

-increase ROI and ROA (return of assets)

-reduce costs and grow SC profability
→ integrate SC through partnerships/communication

-Sustainability through effective use of people, equipment, space and enery
→ two types:
1. financial
2. people

Question 8

What are the steps of the Facility planning process?

Answer 8

→ no optimal solution

1. Understand the model of succes/external and internal issues

Question 9

What are the three phases of the enginering design?

Answer 9

1. Define problem
2. Analyze the problem and generate alternatives + select prefereed design
3. Implement the design.

Question 10

On which parameter can IP be specified on?

Answer 10

• nature of prevailing transformation (mechanical, chemical)
• Kind of prevailing raw materials (food, texile)
• Size (large, medium, small. micro)
  → depends on the product/market
• Automation level
• Nature of process (continous vs repetitive)
• Kind of technological diagram (convergent, divergent, linear)
• Vertical integration
  → do i produce everything, or do it integrate someone vertical?

Question 11

What are anciallary services/facilities?

Answer 11

• power
• light
• gas
• heat

→ depends on the production