WE 640

Welding Production

Plant Location
 Arc Welding Processes

Lesson Objectives Learning Activities

When you finish this lesson you will 1. Read Course Notes
2. Look up
understand:
Keywords
• The importance of building site location and 3. View Slides;
building layout for manufacturing 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 70’s
        Attention on Finances in 80’s & 90’s
 
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 SOURCES OF HELP
        Market Proximity (freight costs, service,         Local State and Federal Industrial
etc.) Development Groups
        Raw Material Proximity
        Incubators
        Land/Building Costs (buy, build, or rent)
        Possible Expansion         Bankers and Development
        New Markets Companies
        Available Labor (availability, skill, training         Small Business Bureau
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
 Quantity
Plant Capacity Warehouse
Needed Transportation
A 200 1 150
B 100 2 300
Cost
C 400 3 100 Analysis
D 400 4 200
5 300 We make welded boxes in
Total 1,100 1,050 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
A $22 $30 $25 $20 $24
B $20 $29 $21 $25 $20
C $24 $30 $24 $24 $24
D $23 $28 $24 $24 $23
From To Warehouse
Plant 1 2 3 4 5 Ex Supply
A 22 30 25 20 24 0
200
150 50 0 0 0 0

B 20 29 21 25 20 0
100
0 100 0 0 0 0

C 24 30 24 24 24 0
400
0 150 100 150 0 0

D 23 28 24 22 23 0
400
0 0 0 50 300 50

Demand 150 300 100 200 300 50 1,100

150  22   50  30  100  29  150  30  100  24

 150  24    50  22    300  23   50  0   26,200
From To Warehouse
Plant 1 2 3 4 5 Ex Supply
A 22 30 25 20 24 0
200
150 0 0 50 0 0

B 20 29 21 25 20 0
100
0 100 0 0 0 0

C 24 30 24 24 24 0
400
0 200 100 100 0 0

D 23 28 24 22 23 0
400
0 0 0 50 300 50
Demand 150 300 100 200 300 50 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 Offices Tool Room Utilities
Aisles Cafeteria Dispatching Shipping
Elevators Dispensary Locker Rooms Receiving
Stairways Stock Room Rest Rooms Rework Area

Utility Considerations
Telephones Unpurified Water Tank Gas
Hot & Cold Water Natural Gas Electricity
Steam Ventilation Compressed Air
Heat Computer Network Lights
Intercom Air-conditioning Security

Outdoor Area
Parking Outdoor Storage

Transportation Methods

Truck Air Rail Water

SIN GLE vs . MU LTIP LE 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?