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Superior testing is a company that manufactures testing equipment used to test a

ID: 414704 • Letter: S

Question

Superior testing is a company that manufactures testing equipment used to test asphalt and metal specimens. Superior has a 30,000 square foot facility and does fabrication work such as shearing, welding and machining in addition to assembly of their test devices. Thus, they receive some raw materials such as bar stock and sheet steel that they process in addition to electrical components and other parts that they assemble. They ship approximately 40 units per month, have a work force of about 75, and annual revenues of approximately $18 million. Given this brief background, list and discuss possible layout objectives for Superior. (13 pts)

Explanation / Answer

Superior testing company mainly manufacturers testing equipment to be used to test Asphalt and metal specimens.

Let us begin by analysing data given for superior testing company.

Facility area - 30000 Sq Foot

fabrication work done - shearing, welding and machining

Assembly of the test devices

Raw materials received- bar stock, sheet steel and electrical components

Shipments per month - 40 Units

Work force - 75

Annual revenues - $18 Million

Superior testing is a mid-sized company.

The main purpose of a plant layout to maximize profits by optimising the arrangement of plant facilities to efficiently manufacture the end product.

The concept of plant layout is not static but a dynamic one.

Plant layout may be required to change due to technological advancements and changes in machines and processes.

The possible layout objectives for Superior can be listed as follows -

1. Reduce the amount of work in progress

2. To Economically manage raw materials

3. Streamline bottlenecks in production processes for greater efficiency

4. To have a system of production control in place

5. motivate the workers constantly and have their loyalty to host company

6. Videos accidents possibility activities and ensure safety guidelines

7. Workout possible future expansions of the plant facility

8. to optimally manage the inventory to minimise inventory handling costs

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