Process location and layout decisions - Revision history

Ezhuang: /* Conclusion */

2016-02-22T02:44:41Z

Conclusion

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	=Conclusion=		=Conclusion=
	The location and layout of a plant can greatly impact its economic and operational success. Objectives such as cost minimization, distribution, room for expansion, and safety of the plant operators and local community play important roles in the site decision. The major factors affecting this decision are market and labor. National and regional environmental legislations impact the processes, and thus make some areas more desirable than others. Least important are land costs and financial incentives. When planning to build a new facility or expanding an existing site, companies utilize their site selection team to assemble a list of desirable locational characteristics and determine how the new facility will fit in with the overall company. Then with the help of consultants, a location is narrowed down and further analyses are done to justify the continuation of the project. The location should be obtained before design of the details of the process. Within the site itself, process units are arranged to allow for the most economical flow of people and material, optimal safety, and room for future expansion.		The location and layout of a plant can greatly impact its economic and operational success. Objectives such as cost minimization, efficient material distribution, room for expansion, and safety of the plant operators and local community play important roles in the site decision. The major factors affecting this decision are market and labor. National and regional environmental legislations impact the processes, and thus make some areas more desirable than others. Least important are land costs and financial incentives. When planning to build a new facility or expanding an existing site, companies utilize their site selection team to assemble a list of desirable locational characteristics and determine how the new facility will fit in with the overall company. Then with the help of consultants, a location is narrowed down and further analyses are done to justify the continuation of the project. The location should be obtained before design of the details of the process. Within the site itself, process units are arranged to allow for the most economical flow of people and material, optimal safety, and room for future expansion.

	=References=		=References=

Ezhuang: /* Environmental Considerations */

2016-02-22T02:43:23Z

Environmental Considerations

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	*'''The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or Superfund, 1980)''' - This legislation creates a tax on chemical and petroleum industries in order to cover the remediation of hazardous waste sites that are uncontrolled or abandoned. The CERCLA empowers EPA to remediate waste sites by short-term removal of material or long-term remediation actions, depending on the risk that the waste imposes on life.		*'''The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or Superfund, 1980)''' - This legislation creates a tax on chemical and petroleum industries in order to cover the remediation of hazardous waste sites that are uncontrolled or abandoned. The CERCLA empowers EPA to remediate waste sites by short-term removal of material or long-term remediation actions, depending on the risk that the waste imposes on life.

	*The Superfund Amendments and Reauthorization Act (SARA, 1986)
	*'''The Pollution Prevention Act (PPA, 1990)''' - This act promotes minimization of waste and pollution at their source. It encourages more efficient processing and raw materials and recycling through grants, technical assistant, and information.		*'''The Pollution Prevention Act (PPA, 1990)''' - This act promotes minimization of waste and pollution at their source. It encourages more efficient processing and raw materials and recycling through grants, technical assistant, and information.

Ezhuang: /* Site Layout Factors */

2016-02-22T02:42:11Z

Site Layout Factors

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	'''7. Safety:''' Escape routes for workers need to be in place at each level in process buildings. Blast walls must isolate equipment that pose hazards to confine potential explosions.		'''7. Safety:''' Escape routes for workers need to be in place at each level in process buildings. Blast walls must isolate equipment that pose hazards to confine potential explosions.

	First, a conceptual flowsheet for the process is developed. The types of equipment and their connections with each other is described in a process flow diagram (PFD). Before the PFD is translated into detailed piping and instrumentation diagrams (P&ID) the layout of the process units must be planned.<sup>2,3</sup> Scale drawings are made to show the relationships between storage space and process equipment based on the flow of materials and people, and on future expansion. Three-dimensional visualization are the layouts are then carried out with cardboard cutouts of the equipment outlines or rectangular and cylindrical blocks. When a layout of the major process units has been decided, drawings of the plan and elevation are made, and design of the structural steelwork and foundations are done. Computer-aided design has also become increasingly popular.<sup>1,3,7</sup>		First, a conceptual flowsheet for the process is developed. The types of equipment and their connections with each other is described in a process flow diagram (PFD). Before the PFD is translated into detailed piping and instrumentation diagrams (P&ID) the layout of the process units must be planned.<sup>3,5</sup> Scale drawings are made to show the relationships between storage space and process equipment based on the flow of materials and people, and on future expansion. Three-dimensional visualization are the layouts are then carried out with cardboard cutouts of the equipment outlines or rectangular and cylindrical blocks. When a layout of the major process units has been decided, drawings of the plan and elevation are made, and design of the structural steelwork and foundations are done. Computer-aided design has also become increasingly popular.<sup>1,3,7</sup>

	=Environmental Considerations=		=Environmental Considerations=

Ezhuang: /* Site Layout */

2016-02-22T02:40:52Z

Site Layout

← Older revision		Revision as of 02:40, 22 February 2016
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	=Site Layout=		=Site Layout=
	The process units and buildings need to be arranged in such a way that allows for the most economical flow of materials and people. ~~Furthermore, dangerous~~ processes need to be a safe distance from other buildings, and the layout should be planned to allow for future expansion.		The process units and buildings need to be arranged in such a way that allows for the most economical flow of materials and people. Dangerous processes need to be a safe distance from other buildings, and the layout should be planned to allow for future expansion.

	Process units are usually laid out first in an arrangement that allows for smooth flow of materials between the process steps. The distance between equipment is usually at least 30 m. Next, the location of the principal ancillary buildings are sited as to minimize the time that it takes the workers to travel between buildings. Administrative offices and laboratories are located away from hazardous processes. Control rooms are next to the processing equipment. Utility buildings are located as to minimize piping between the process units. Storage is placed between the loading and unloading facilities and next to the process units that they serve. Tanks containing hazardous material are placed at least 70 m from the plant. An example of a typical site plan is shown below.<sup>1</sup>		Process units are usually laid out first in an arrangement that allows for smooth flow of materials between the process steps. The distance between equipment is usually at least 30 m. Next, the location of the principal ancillary buildings are sited as to minimize the time that it takes the workers to travel between buildings. Administrative offices and laboratories are located away from hazardous processes. Control rooms are next to the processing equipment. Utility buildings are located as to minimize piping between the process units. Storage is placed between the loading and unloading facilities and next to the process units that they serve. Tanks containing hazardous material are placed at least 70 m from the plant. An example of a typical site plan is shown below.<sup>1</sup>

Ezhuang: /* Biofuel Supply Chain Example */

2016-02-22T02:40:30Z

Biofuel Supply Chain Example

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	[[File:biofuelsupplychain.png\|400px\|thumb\|center\|'''Figure 1.''' The biofuels supply chain consists of three notes: biomass cultivation sites, biofuel production plants, and biofuel demand centers.<sup>1</sup>]]		[[File:biofuelsupplychain.png\|400px\|thumb\|center\|'''Figure 1.''' The biofuels supply chain consists of three notes: biomass cultivation sites, biofuel production plants, and biofuel demand centers.<sup>1</sup>]]

	[[File:Biofueloptimal.png\|300px\|thumb\|center\|'''Figure 2.''' A Great Britain biofuel supply chain design that minimizes cost. The plants are near areas with high ~~wheat cultivation and wheat straw collection rates~~. The ~~location~~ of the plants with respect to the demand centers is also optimized. The main modes of transportation are road, rail, and ship.<sup>4</sup>]]		[[File:Biofueloptimal.png\|300px\|thumb\|center\|'''Figure 2.''' An example of a Great Britain biofuel supply chain design that minimizes cost. The plants are near areas with high raw material supply. The locations of the plants with respect to the demand centers are also optimized. The main modes of transportation are road, rail, and ship.<sup>4</sup>]]

	=Site Layout=		=Site Layout=

Ezhuang: /* Biofuel Supply Chain Example */

2016-02-22T02:38:45Z

Biofuel Supply Chain Example

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	===Biofuel Supply Chain Example===		===Biofuel Supply Chain Example===
	Biofuels is a popular potential alternative to fossil fuels. Various biomass resources, including food crops, non-food crops, and agricultural residues, are converted into biofuels. The two most common biofuels currently are ethanol and biodiesel. The supply chain for biofuel is a network consisting of several nodes: biomass cultivation sites, biofuel production plants, and demand centers. The locations of these facilities, and the location of the demand centers with respect to the biofuel demand impact transportation costs, production resource, demand, etc., and thus affects and sets constraints to the cost minimization of the supply chain. The optimal supply chain design here minimizes the total cost, which is a sum of the total investment cost, production cost, transportation cost, and outsourcing and import cost. The total transportation cost captures the transportation of biomass and biofuel between areas and the local bio mass transfer.<sup>4</sup>		Biofuels is a popular potential alternative to fossil fuels. Various biomass resources, including food crops, non-food crops, and agricultural residues, are converted into biofuels. The two most common biofuels currently are ethanol and biodiesel. The supply chain for biofuel is a network consisting of several nodes: biomass cultivation sites, biofuel production plants, and demand centers. The locations of these facilities, and the location of the demand centers with respect to the biofuel demand impact transportation costs, production resource, demand, etc., and thus affects and sets constraints to the cost minimization of the supply chain. The optimal supply chain design here minimizes the total cost, which is a sum of the total investment cost, production cost, transportation cost, and outsourcing and import cost. The total transportation cost captures the transportation of biomass and biofuel between areas and the local bio mass transfer. Location of the facilities also sets constraints on the regional demand of biofuel and availability of local biomass. Sustainability constraints ensure that plants do not negatively affect the food production, sustainably use the land, and don't compete with other industries that use biomass.<sup>4</sup>

	[[File:biofuelsupplychain.png\|400px\|thumb\|center\|'''Figure 1.''' The biofuels supply chain consists of three notes: biomass cultivation sites, biofuel production plants, and biofuel demand centers.<sup>1</sup>]]		[[File:biofuelsupplychain.png\|400px\|thumb\|center\|'''Figure 1.''' The biofuels supply chain consists of three notes: biomass cultivation sites, biofuel production plants, and biofuel demand centers.<sup>1</sup>]]

Ezhuang: /* Biofuel Supply Chain Example */

2016-02-22T02:34:06Z

Biofuel Supply Chain Example

← Older revision		Revision as of 02:34, 22 February 2016
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	===Biofuel Supply Chain Example===		===Biofuel Supply Chain Example===
	Biofuels is a popular potential alternative to fossil fuels. Various biomass resources, including food crops, non-food crops, and agricultural residues, are converted into biofuels. The two most common biofuels currently are ethanol and biodiesel. The supply chain for biofuel is a network consisting of several nodes: biomass cultivation sites, biofuel production plants, and demand centers. The locations of these facilities, and the location of the demand centers with respect to the biofuel demand impact transportation costs, production resource, demand, etc., and thus affects and sets constraints to the cost minimization of the supply chain. The optimal supply chain design ~~minimize~~ the total cost, which is a sum of the total investment cost, production cost, transportation cost, and outsourcing and import cost. The total transportation cost captures the transportation of biomass and biofuel between areas and the local bio mass transfer.<sup>4</sup>		Biofuels is a popular potential alternative to fossil fuels. Various biomass resources, including food crops, non-food crops, and agricultural residues, are converted into biofuels. The two most common biofuels currently are ethanol and biodiesel. The supply chain for biofuel is a network consisting of several nodes: biomass cultivation sites, biofuel production plants, and demand centers. The locations of these facilities, and the location of the demand centers with respect to the biofuel demand impact transportation costs, production resource, demand, etc., and thus affects and sets constraints to the cost minimization of the supply chain. The optimal supply chain design here minimizes the total cost, which is a sum of the total investment cost, production cost, transportation cost, and outsourcing and import cost. The total transportation cost captures the transportation of biomass and biofuel between areas and the local bio mass transfer.<sup>4</sup>

	[[File:biofuelsupplychain.png\|400px\|thumb\|center\|'''Figure 1.''' The biofuels supply chain consists of three notes: biomass cultivation sites, biofuel production plants, and biofuel demand centers.<sup>1</sup>]]		[[File:biofuelsupplychain.png\|400px\|thumb\|center\|'''Figure 1.''' The biofuels supply chain consists of three notes: biomass cultivation sites, biofuel production plants, and biofuel demand centers.<sup>1</sup>]]

Ezhuang: /* Location Decision Factors */

2016-02-22T02:31:15Z

Location Decision Factors

← Older revision		Revision as of 02:31, 22 February 2016
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	'''8. Local community considerations:''' State and local planners are typically motivated by the desire to create jobs and improve the tax base. Introduction of facilities to an area is usually viewed as the most direct way to stimulate the area's economy. However, recent studies have found that communities with high-growth are already characterized by the fast growth of businesses that are already there. It is rare for a plant to completely close in one area and relocate to another, and if plants do relocate, the majority is over short distances and often within the same community. Therefore, local policymakers favor the expansion of existing plants. The opening of a new plant at a location should impost no additional risk to the local residents. For example, they should be downwind of the residential areas. Local communities also need to be able to accommodate the plant personnelles. For example, traffic, housing, and facilities must be able to accommodate the influx of workers. Additional factors are property taxes and water consumption.		'''8. Local community considerations:''' State and local planners are typically motivated by the desire to create jobs and improve the tax base. Introduction of facilities to an area is usually viewed as the most direct way to stimulate the area's economy. However, recent studies have found that communities with high-growth are already characterized by the fast growth of businesses that are already there. It is rare for a plant to completely close in one area and relocate to another, and if plants do relocate, the majority is over short distances and often within the same community. Therefore, local policymakers favor the expansion of existing plants. The opening of a new plant at a location should impost no additional risk to the local residents. For example, they should be downwind of the residential areas. Local communities also need to be able to accommodate the plant personnelles. For example, traffic, housing, and facilities must be able to accommodate the influx of workers. Additional factors are property taxes and water consumption.

	'''9. Climate:''' The climate of the area may affect processes and costs. For example, plants in cold areas need more insulation and special heating. Facilities in earthquake areas need to be seismically sound. Plants in areas with high ambient humidity will usually use air cooling instead of water cooling.		'''9. Climate:''' The climate of the area may affect processes and costs. For example, plants in cold areas need more insulation and special heating. Facilities in earthquake areas need to be seismically sound. Plants in areas with high ambient humidity will usually use air cooling instead of water cooling. More detailed information about the effects of weather can be found in the [[Site condition and design]] page.

	'''10. Political and strategic considerations:''' Government sometimes gives capital grants, tax concessions, and other incentives to encourage plants to be built in specific areas. Physical assistance such as roads, water, and other public infrastructure are more popular than financial assistance. Companies can also globalize and take advantage of areas with preferential tariff agreements. The tax policy of an area is inversely related to growth. High personal income sometimes hinder employment growth. Personal income does not affect the cash flow of the company, but it reduces the after-tax income of its managers, and thus high personal income tax can be classified as a personal region. High state corporate taxes has also and detrimental effects on growth, but that is not always the case. Corporate tax is more important to firms with high capital expenditures.		'''10. Political and strategic considerations:''' Government sometimes gives capital grants, tax concessions, and other incentives to encourage plants to be built in specific areas. Physical assistance such as roads, water, and other public infrastructure are more popular than financial assistance. Companies can also globalize and take advantage of areas with preferential tariff agreements. The tax policy of an area is inversely related to growth. High personal income sometimes hinder employment growth. Personal income does not affect the cash flow of the company, but it reduces the after-tax income of its managers, and thus high personal income tax can be classified as a personal region. High state corporate taxes has also and detrimental effects on growth, but that is not always the case. Corporate tax is more important to firms with high capital expenditures.

Ezhuang: /* Location Decision Factors */

2016-02-22T02:27:39Z

Location Decision Factors

← Older revision		Revision as of 02:27, 22 February 2016
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	Initially, economists viewed the plant location decision as a cost-minimization problem. The optimal location was one where the transportation costs of raw material to the plant and product to the market was minimized. Between the early 1900s and post World War II period, most industries were sensitive to the cost of transportation. As transportation costs became less of an obstacle, the approach to the problem developed with considerations of trade-offs between transportation and factors such as wages, energy, local regulations, etc. If lower wages could balance the higher transportation costs of building the plant in a low-wage area, the low-wage location may be more desirable.		Initially, economists viewed the plant location decision as a cost-minimization problem. The optimal location was one where the transportation costs of raw material to the plant and product to the market was minimized. Between the early 1900s and post World War II period, most industries were sensitive to the cost of transportation. As transportation costs became less of an obstacle, the approach to the problem developed with considerations of trade-offs between transportation and factors such as wages, energy, local regulations, etc. If lower wages could balance the higher transportation costs of building the plant in a low-wage area, the low-wage location may be more desirable.

	Although location is a long-term investment, a firm does not decide on a location with the sole objective of maximizing its profits or minimizing its costs. Managers may choose a “safer” location that is more likely to produce higher profits rather than a riskier location that yields the maximum investment return. Personal factors of the people involved are also influences. For example, new businesses tend to locate where the ~~founder lives~~.<sup>2</sup>		Although location is a long-term investment, a firm does not decide on a location with the sole objective of maximizing its profits or minimizing its costs. Managers may choose a “safer” location that is more likely to produce higher profits rather than a riskier location that yields the maximum investment return. Personal factors of the people involved are also influences. For example, new businesses tend to locate where the founders live.<sup>2</sup>

	In the current age, a plant's site is chosen based on several factors. These include:<sup>1,2,3,8</sup>		In the current age, a plant's site is chosen based on several factors. These include:<sup>1,2,3,8</sup>

Ezhuang: /* Conclusion */

2016-02-22T02:07:34Z

Conclusion

← Older revision		Revision as of 02:07, 22 February 2016
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	=Conclusion=		=Conclusion=
	The location and layout of a plant can greatly impact its economic and operational success. Objectives such as cost minimization, distribution, room for expansion, and safety of the plant operators and local community play important roles in the site decision. The major factors affecting this decision are market and labor. National and regional environmental legislations impact the processes, and thus make some areas more desirable than others. Least important is land ~~cost~~. When planning to build a new facility or expanding an existing site, companies utilize their site selection team to assemble a list of desirable locational characteristics and determine how the new facility will fit in with the overall company. Then with the help of consultants, a location is narrowed down and further analyses are done to justify the continuation of the project. The location should be obtained before design of the details of the process. Within the site itself, process units are arranged to allow for the most economical flow of people and material, optimal safety, and room for future expansion.		The location and layout of a plant can greatly impact its economic and operational success. Objectives such as cost minimization, distribution, room for expansion, and safety of the plant operators and local community play important roles in the site decision. The major factors affecting this decision are market and labor. National and regional environmental legislations impact the processes, and thus make some areas more desirable than others. Least important are land costs and financial incentives. When planning to build a new facility or expanding an existing site, companies utilize their site selection team to assemble a list of desirable locational characteristics and determine how the new facility will fit in with the overall company. Then with the help of consultants, a location is narrowed down and further analyses are done to justify the continuation of the project. The location should be obtained before design of the details of the process. Within the site itself, process units are arranged to allow for the most economical flow of people and material, optimal safety, and room for future expansion.

	=References=		=References=