NewCapacity

NewCapacity - PlantConstructionand Expansion...

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Plant Construction and  Expansion The Americas Business Game
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Prof. Nathan Globus Shows You  How Prof. Globus will show you  how new factories can be  built and how the  configurations or  capacities of an  established factory can be  changed in  The Americas  Business Game. His explanations are based  on a plant already  operating in Mexico.
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A Factory’s Basic Components All factories, regardless of how configured,  start with a basic size.  The smallest sized  plant that can be built must accommodate  at least 30 workers.  This is designated as  Base Capacity = 30 on the company’s  Operations Report. Workers can be replaced by automated  equipment or Automatons.  These are  called Auto1s and Auto2s.  Each have  different machining and accuracy rates.   Auto2s have a higher original cost but are  more productive.
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Automaton Differences An Auto1 has the following Labor Hour  productivity, accuracy and purchase price: Productivity-- 32 hours/day Accuracy-- 94.5% Purchase Price– MXN2,500,000 The Labor Hour output, accuracy and  purchase price of an Auto2 is: Productivity-- 41 hours per/day Accuracy-- 98.5% Purchase Price-- MXN4,000,000
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New Automaton Purchases All new Autos are purchased from an Italian machine tool manufacturer  in Turin. Shipping charges for Automatons are capitalized and depreciated along  with the original investment. Turin, Italy Country Cost Mexico 5,090 Colombia 850,100 Canada 360 United States 395 Brazil 845 Argentina 1,550
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New Plant Construction Costs New plants can be built in any Country that is “in play” in the  simulation. It takes two quarters to build a plant and to install new Automatons.
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This note was uploaded on 03/30/2012 for the course BUS M 490 taught by Professor Robbjense during the Winter '11 term at BYU.

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NewCapacity - PlantConstructionand Expansion...

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