30-04-2014, 10:49 AM
Building Construction and Equipment
Building Construction .pdf (Size: 1.42 MB / Downloads: 467)
Prerequisite Data, Decisions,
and Documentation
The decision to build or buy an individual plant is made by the com-
pany’s senior executives. It involves the commitment of large sums of
money and is properly based on major considerations: need for addi-
tional production capacity; introduction of a new product; entering new
markets; availability of new and/or better technology and machinery;
building a new plant to replace an existing inefficient one or refurbish-
ing and tailoring the existing plant for new production processes and
cycles; relocation to a different area, especially if closer proximity to
markets and availability of specialized labor are involved; making
products in house which were previously bought for resale. Studies,
analyses and projections provide input data to help determine the proper
site, size, shape, and specifications of a plant. Economic analyses, tech-
nological forecasts, and market surveys are used to justify the invest-
ment in a plant and to calculate the approximate amount of money
required, break-even point, payback period, and profitability. Detailed
product design and engineering documentation includes drawings, parts
lists, test points, inspection standards, and specifications. Product varia-
tions, models, sizes, and options are defined. Sales forecast data ad-
dresses expected unit volumes, seasonality, peaks and valleys, growth
projections, and other patterns. In addition to projections, constraints on
the plant must also be understood at the outset. These may include
location restrictions, budgetary limitations, timing deadlines, degree of
mechanization, the type of building and its appearance, limits on its
effluents, exhaust fumes, and noise, and other effects on the neighbor-
hood and environment.
Activities and Contents
The determination of the activities and contents of a plant is facilitated
by a series of analyses and management decisions. Make/buy decisions
determine which items or component piece parts are to be made in the
plant and which are to be purchased and stored until needed. Some
purchased items are used as received, others need work, (painting, plat-
ing, cutting to size). Parts purchased on a just-in-time basis will reduce
the amount of in-process storage space required.
INDUSTRIAL PLANTS
sales forecast, builds as little inventory as possible without risking
shortages, and allows for rejects, equipment breakdowns, vacations, bad
weather, and other interruptions and inefficiencies. This will result in a
plant with less production equipment and space but with more inventory
space (and associated material handling equipment) to accumulate fin-
ished product to meet shipping demands in response to sales. Obvi-
ously, the warehouse and other storage areas must accommodate the
maximum amount of inventory expected to be stored.