Buffalo Alkali and Plastics Buffalo Alkali and Plastics, a prominent producer of soda ash, began operations...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Buffalo Alkali and Plastics Buffalo Alkali and Plastics, a prominent producer of soda ash, began operations in the United States in 1880 using the Solvay Process. Buffalo, New York, was selected as the site for the soda ash operation because of the close proximity of both brine wells (permitting solution mining of salt) and limestone deposits. The initial complex was later expanded for the production of chlorine, caustic soda, chlorinated solvents, industrial detergents, and polyvinyl chloride. Having experienced considerable success in this initial operation, Buffalo Alkali and Plastics built eight additional plants in the central and southern regions of the United States during the first half of the twentieth century. Even with this diversification and expansion, Buffalo Alkali and Plastics' principal product continues to be soda ash. Until the 1960s, soda ash was almost exclusively produced by the Solvay Process. However, huge deposits of trona, or natural soda ash, have been discovered in Wyoming. (Trona ore is mined directly and is purified by dissolution, evaporation, and recrystallization. Production costs for natural soda ash are much lower than those for synthetic soda ash produced by the Solvay Process.) Thus Buffalo Alkali and Plastics' plants remain competitive only because of their close proximity to markets. Freight charges incurred in shipping soda ash from Wyoming to markets served by the synthetic plants tend to offset the lower production costs of mining/purification operations. (Principally, soda ash is used in the manufacture of glass by combining certain ratios of sand and soda ash and fusing the mixture under high temperature.) THE CALCINERS Even when freight charges are considered, synthetic soda ash producers remain competitive with trona producers only if their plants maintain high volume operations. Synthetic plants have large investments in fixed costs and must sustain high production rates to remain above the breakeven point. Area markets support these high rates. Glass manufacturers and other users of soda ash consume the entire output of local synthetic plants and supplement this source of supply by purchasing higher priced trona ash. Production rates for the synthetic plants are usually dependent on the number of calciners (pronounced cal-ci-ners) available for operation. The Buffalo, New York, complex has 32 calciners, each with a daily capacity of 100 tons of soda ash. The plant's 32 calciners must be available for service to maintain maximum output. THE PROBLEM Because of the intense heat in the fire zone, the one-inch thick steel shell eventually is oxidized and cracks. When this occurs, the shell is pulled from the brick housing and the burned-cracked section (approximately 15 feet) is cut out and a new section is welded into place. The repaired shell is reinstalled in the brick housing; drive mechanisms are attached; and the calciner is returned to service. (Heat resistant alloys are judged to be impractical for this operation because of the enormous cost and prolonged delivery dates for such alloy shells.) The central problem for this operation is the determination of appropriate maintenance forces to effect calciner repairs. A large number of recent shell failures has reduced the number of calciners available for service to 25. A check of maintenance logs for the past ten years revealed 180 shell failures. Upon further examination of these logs, monthly failure probabilities were developed. These are included in Table 1. Repair procedures involve laying 100 feet of railroad track at the end of a failed calciner on which a crane rides to remove the cracked shell. The repair procedure averages three weeks (15 working days) with a standard deviation of three days. A schedule of repair time versus cumulative probability is in Table 2. (The dispersion is usually a result of working overtime.) The crane track cannot be permanently installed at each calciner because of obstruction of other equipment repairs. (Heat resistant alloys are judged to be impractical for this operation because of the enormous cost and prolonged delivery dates for such alloy shells.) TABLE 1 Monthly shell failure probabilities Failures Probability 0 0.22 1 or less 0.55 2 or less 0.80 3 or less 0.92 4 or less 0.96 5 or less 0.97 6 or less 0.98 TABLE 2 Repair time probabilities utilizing normal repair procedures (crane track) Time 6 days or less Probability 0.001 9 days or less 0.02 12 days or less 0.16 15 days or less 0.50 18 days or less 0.84 21 days or less 0.98 24 days or less 0.999 The central problem for this operation is the determination of appropriate maintenance forces to effect calciner repairs. A large number of recent shell failures has reduced the number of calciners available for service to 25. A check of maintenance logs for the past ten years revealed 180 shell failures. Upon further examination of these logs, monthly failure probabilities were developed. These are included in Table 1. Repair procedures involve laying 100 feet of railroad track at the end of a failed calciner on which a crane rides to remove the cracked shell. The repair procedure averages three weeks (15 working days) with a standard deviation of three days. A schedule of repair time versus cumulative probability is in Table 2. (The dispersion is usually a result of working overtime.) The crane track cannot be permanently installed at each calciner because of obstruction of other equipment repairs. Repairs may be expedited, however, by renting a large mobile crane. The rental cost of this crane is $1,500 per day with a minimum charge of $12,000 per rental. With the rented crane, two calciners may be repaired simultaneously. Moreover, the average time for repairs using the rented crane is reduced from three weeks to two weeks (ten working days) with a standard deviation of two days. A schedule of repair times versus cumulative probability is included in Table 3. Other maintenance material and labor costs for these two repair approaches (rented crane and installed crane) are estimated to be equal. Profit and overhead contribution from a ton of soda ash is estimated to be $12.00. TABLE 3 Repair time probabilities utilizing accelerated procedures (rental crane) Time 4 days or less Probability 0.001 6 days or less 0.02 8 days or less 0.16 10 days or less 0.50 12 days or less 0.84 14 days or less 0.98 16 days or less 0.999 1. As a maintenance manager, develop a plan of action for the restoration of the failed calciners and present a policy that will be implemented in the future. Buffalo Alkali and Plastics Buffalo Alkali and Plastics, a prominent producer of soda ash, began operations in the United States in 1880 using the Solvay Process. Buffalo, New York, was selected as the site for the soda ash operation because of the close proximity of both brine wells (permitting solution mining of salt) and limestone deposits. The initial complex was later expanded for the production of chlorine, caustic soda, chlorinated solvents, industrial detergents, and polyvinyl chloride. Having experienced considerable success in this initial operation, Buffalo Alkali and Plastics built eight additional plants in the central and southern regions of the United States during the first half of the twentieth century. Even with this diversification and expansion, Buffalo Alkali and Plastics' principal product continues to be soda ash. Until the 1960s, soda ash was almost exclusively produced by the Solvay Process. However, huge deposits of trona, or natural soda ash, have been discovered in Wyoming. (Trona ore is mined directly and is purified by dissolution, evaporation, and recrystallization. Production costs for natural soda ash are much lower than those for synthetic soda ash produced by the Solvay Process.) Thus Buffalo Alkali and Plastics' plants remain competitive only because of their close proximity to markets. Freight charges incurred in shipping soda ash from Wyoming to markets served by the synthetic plants tend to offset the lower production costs of mining/purification operations. (Principally, soda ash is used in the manufacture of glass by combining certain ratios of sand and soda ash and fusing the mixture under high temperature.) THE CALCINERS Even when freight charges are considered, synthetic soda ash producers remain competitive with trona producers only if their plants maintain high volume operations. Synthetic plants have large investments in fixed costs and must sustain high production rates to remain above the breakeven point. Area markets support these high rates. Glass manufacturers and other users of soda ash consume the entire output of local synthetic plants and supplement this source of supply by purchasing higher priced trona ash. Production rates for the synthetic plants are usually dependent on the number of calciners (pronounced cal-ci-ners) available for operation. The Buffalo, New York, complex has 32 calciners, each with a daily capacity of 100 tons of soda ash. The plant's 32 calciners must be available for service to maintain maximum output. THE PROBLEM Because of the intense heat in the fire zone, the one-inch thick steel shell eventually is oxidized and cracks. When this occurs, the shell is pulled from the brick housing and the burned-cracked section (approximately 15 feet) is cut out and a new section is welded into place. The repaired shell is reinstalled in the brick housing; drive mechanisms are attached; and the calciner is returned to service. (Heat resistant alloys are judged to be impractical for this operation because of the enormous cost and prolonged delivery dates for such alloy shells.) The central problem for this operation is the determination of appropriate maintenance forces to effect calciner repairs. A large number of recent shell failures has reduced the number of calciners available for service to 25. A check of maintenance logs for the past ten years revealed 180 shell failures. Upon further examination of these logs, monthly failure probabilities were developed. These are included in Table 1. Repair procedures involve laying 100 feet of railroad track at the end of a failed calciner on which a crane rides to remove the cracked shell. The repair procedure averages three weeks (15 working days) with a standard deviation of three days. A schedule of repair time versus cumulative probability is in Table 2. (The dispersion is usually a result of working overtime.) The crane track cannot be permanently installed at each calciner because of obstruction of other equipment repairs. (Heat resistant alloys are judged to be impractical for this operation because of the enormous cost and prolonged delivery dates for such alloy shells.) TABLE 1 Monthly shell failure probabilities Failures Probability 0 0.22 1 or less 0.55 2 or less 0.80 3 or less 0.92 4 or less 0.96 5 or less 0.97 6 or less 0.98 TABLE 2 Repair time probabilities utilizing normal repair procedures (crane track) Time 6 days or less Probability 0.001 9 days or less 0.02 12 days or less 0.16 15 days or less 0.50 18 days or less 0.84 21 days or less 0.98 24 days or less 0.999 The central problem for this operation is the determination of appropriate maintenance forces to effect calciner repairs. A large number of recent shell failures has reduced the number of calciners available for service to 25. A check of maintenance logs for the past ten years revealed 180 shell failures. Upon further examination of these logs, monthly failure probabilities were developed. These are included in Table 1. Repair procedures involve laying 100 feet of railroad track at the end of a failed calciner on which a crane rides to remove the cracked shell. The repair procedure averages three weeks (15 working days) with a standard deviation of three days. A schedule of repair time versus cumulative probability is in Table 2. (The dispersion is usually a result of working overtime.) The crane track cannot be permanently installed at each calciner because of obstruction of other equipment repairs. Repairs may be expedited, however, by renting a large mobile crane. The rental cost of this crane is $1,500 per day with a minimum charge of $12,000 per rental. With the rented crane, two calciners may be repaired simultaneously. Moreover, the average time for repairs using the rented crane is reduced from three weeks to two weeks (ten working days) with a standard deviation of two days. A schedule of repair times versus cumulative probability is included in Table 3. Other maintenance material and labor costs for these two repair approaches (rented crane and installed crane) are estimated to be equal. Profit and overhead contribution from a ton of soda ash is estimated to be $12.00. TABLE 3 Repair time probabilities utilizing accelerated procedures (rental crane) Time 4 days or less Probability 0.001 6 days or less 0.02 8 days or less 0.16 10 days or less 0.50 12 days or less 0.84 14 days or less 0.98 16 days or less 0.999 1. As a maintenance manager, develop a plan of action for the restoration of the failed calciners and present a policy that will be implemented in the future.
Expert Answer:
Answer rating: 100% (QA)
To determine the appropriate maintenance forces for the calciners we need to calculate the expected ... View the full answer
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date:
Students also viewed these economics questions
-
Swenson Corporation has four independent manufacturing divisions. The following data apply to the divisions for the year just ended Required: 1. For each of the four divisions, calculate: a. Applied...
-
Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
-
You start driving east for 14 miles, turn left, and drive north for another 10 miles. At the end of driving, what is your straight line distance from your starting point? Round to the nearest tenth...
-
What absorbed dose (in rads) of a particles (RBE = 15) causes as much biological damage as a 60-rad dose of protons (RBE = 10)?
-
In October, Claire's Gallery purchased four original paintings for resale for the following amounts: Painting 1, $1,000; Painting 2, $2,000; Painting 3, $3,000; and Painting 4, $4,000. Paintings 3...
-
What are the basic audit differences between an E.DP and a manual system?
-
Determine the inventory order quantity for Pharrs distributor. Compare the optimal order quantity with a seasonally adjusted forecast for demand. Does the order quantity seem adequate to meet the...
-
Determine the maximum average shear stress developed in each 5/8" diamter bolt: 10a) Is this an example of single or double shear? 10b) If the bolt is an A325 with threads excluded, is it sufficient?...
-
The Alfredo Fragrance Company produces only one product, a perfume called Hint of Elegance. Hint of Elegance consists of two secret ingredients blended into an exclusive fragrance, which is marketed...
-
Disney debt was rated Double-A (similar to that of McDonalds, the hamburger chain). McDonalds had recently issued 40-year bonds at 75 basis points (0.75%) above the 30-year Treasury bond yield. The...
-
in regards to disney world why should an organization be concerned about labor relations? Contrast the style of labor unions in the U.S. to that found in another country? Also, briefly discuss ways...
-
Do you see any longer-range pitfalls in the approach used by David's company to carry out its HR policy to attract the most qualified expatriates?
-
has anyone ever evaluated the effectiveness of your staffing and selection process in terms of quality of hire or retention?describe the evaluation process and the outcome. what did you change in...
-
A crackle test can show the presence of emulsified water in oil quite dramatically. When the amount of emulsified water becomes extreme, what are two ways to detect it visually?
-
Thoughts on Extreme outlier ?
-
The data below shows percentage of children under 18 who had lived below the poverty level between August 2007 and August 2008 in different states of the US. a Construct an appropriate frequency...
-
Avatar Financials, Inc., located on Madison Avenue, New York City, is a company that provides financial advice to individuals and small- to mid-sized businesses. Its primary operations are in wealth...
-
Who are the key stakeholders for Bayonne Ham, Feta Cheese, and Champagne?
-
What is e-business?
-
What is meant by a change agent in export marketing? Give examples of each type of change agent.
-
(a) Describe the distinguishing characteristics of production systems where: (i) job costing techniques would be used, and (ii) process costing techniques would be used. (b) Job costing produces more...
-
(a) While the ascertainment of product costs could be said to be one of the objectives of cost accounting, where joint products are produced and joint costs incurred, the total cost computed for the...
-
South Africa is one of the top gold producers in the world, holding about 40 per cent of global reserves. According to Statistics South Africa, a government statistics agency, the value of gold sales...
Study smarter with the SolutionInn App