1220 Case Study

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Western University *

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1220

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Mechanical Engineering

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Jan 9, 2024

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What factors are important to brimstones customers? How would you rank these factors? Following Brimstone’s unimpressive year of sales figures, the newer initiatives priotized providing an increased quantity and level of services to be able to satisfy their customer’s needs. Brimstone’s inability to intake the loads of sulfur delivery from the surrounding gas plants at the same pace as their outflow is the clear cause of concern to Brimstone’s customers, emphasizing their need to increase their offloading capacities. By increased their capacities, not only will Brimstone be able to increase their outflow and productivity, time lost from stationary trucks not delivering their loads to the facility can also be reduced. In turn satisfying their main discrepancy, their innefiecnt rate of production in market with no limitation on demand. Calculate the current capacity at each step in tonnes per hour. What is the annual production of sulphur pastilles. Identify any bottlenecks in this system. Calculate days of storage at each of these two steps. The annual production of sulphur pastilles at Brimstone’s current state of outflow is limited to 1,515,480 Tonnes annually, with their bottleneck at step 1(Exhibit 1) . With the largest source being through Clarkes’s pipeline sending in an influx of 2,568 Tonnes daily, the other plants follow behind inefficiently offloading 1,584 Tonnes daily through their trucks. As the storage tanks and air silos do not limit capacity, total production of sulfer pastilles begin to cap out at 4,152 Tonnes daily x 365 days, totalling at 1,212,4800 annually.

How will capacity change when increasing offloading. Evaluate qualitative pros and cons and quantitative costs and benefits. Assume sulpher price remains consistent Following Brimstone’s decision to increase extra truck offloading, their new bottleneck will be 1,752,000 T annually at step 3 (Exhibit 1), with an exception of the first year’s production using both offloading centres, being limited to 50 weeks out of the 52 due to the construction of the offloading platform. With the first two weeks continuing along the production rate of one offloading centre, until the second becomes operational, totalling their first year’s production to 1,742,928 T annually. As Brimstone takes a 10% margin on their 91$/Tonne selling price, their profit annually at 9.1$/Tonne with the increased offloading for the initial year totals 15,860,644.8$. However, the total costs for Brimstone’s investment into building the additional offloading platform including the prices of construction and considering the 100% increase in fuel expenses for the initial year, due to the offleading platform, reaches 3,419,672$ (Exhibit 2). Should Brimstone choose to increase offloading, their total incremental benefit increases in the first year to 227,448 Tonnes (Exhibit 3) and 2,069,776.8$ (Exhibit 3). Their total incremental costs including construction and fuel costs of the additional offloading station reaches 1,816,592$ (Exhibit 3). Therefore, their net benefit, incremental benefits - incremental cost totals out to 280,184.8$ should Brimstone plan to increase their offloading. With a positive net benefit following the choice to increase their total bottleneck, Brimstone will be able to deliver on the important factors to the customers by increasing their total output and financial gain even though some of the incurred construction costs and 2 week productivity halt could seem discouraging to an already inneffiecnt line of production.

If Brimstone simultaneously increases truck offloading capacity and upgrades the pump; how will the capacity change? Evaluate qualitative pros and cons and quantitative costs and benefits. Assume sulpher price remains consistent Once Brimstone decided to increase truck offloading and to upgrade their pump’s simultaneously, their bottle neck will return to the first step (Exhibit 4) at 5,735 tonnes daily for 365 days totaling at 2,093,640 tonnes annually. However, due to the facility shutdown during the renovation for 7 days their initial year’s capacity will be 2,053,488 annually. By renovating their pipes, Brimstone’s total incremental benefit in the initial year will be 310,560 Tonnes (Exhibit 4) and 2,826,096 $ annually (Exhibit 4). Their total incremental cost including renovation, increased energy consumption and a 7 day cease of operations will be 874,784$ (Exhibit 4). Therefore, the net benefit will total to 1,951,312$ should Brimstone plan on following through. With their payback Through the upgrades, Brimstone will be able to almost double their initial production level with minimal risk, while being able to almost maximze their production capability and attain their goal of increased sales figures. While upgrading the pump would still drive production levels up susbtancially as a single solution, when combined with the extra offloading platform, Brimstone can only stand to gain.

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If Michelle Beauchesne implements the piping upgrades and pours to block, how many days of block storage will Brimstone have? Assuming block pouring is pursued once a year. Evaluate qualitative pros and cons and quantitative costs and benefits. Michelle’s decision to implement the piping updates pours to block will address the external issues facing Brimstone, legally and environmentally alike. As pouring to block does not influence overall capacity and only provides a contingent service, it will alleviate a fundamental concern of service for Brimstone’s customer’s as to ensure Brimston’s continuation in production in a worse case scenario. With a pour to block volume of 764,400 tonnes, it will have 133.28 days of block storage assuming the bottleneck remains at step 1, 5,735 tonnes daily, following the piping upgrades. Assuming block pouring only occurs once a year,

Exhibit 1: Current Capacity OffLoading Capacity Pipeline: 107 Tonnes x 1 Hour = 107 Tonnes Per Hour 107 Tonnes x 24 Hours = 2,568 Tonnes Per 24 Hours (Day) OffLoading Truck: 20 Minutes x 3 Trips = 1 Hour 22 Tonnes x (3 Trips / 1 Hour) = 66 Tonnes Per Hour 66 Tonnes x 24 Hours (Day) = 1,584 Tonnes Per 24 Hours (Day) Pipeline + OffLoading Truck: Bottleneck 2,568 Tonnes + 1,584 Tonnes = 4,152 Tonnes Per Day (24 Hours) Annual Production: 4,152 Tonnes x 365 Days = 1,515,480 Tonnes Annually Storage Capacity: Days of Storage; Storage Tank 20 000 Tonnes (Storage) / 4,152 Tonnes (Bottleneck Production) = 4.81 Days of Storage Centrifugal Pumps: 4 Pumps (In Operation) x 50 Tonnes (Production Rate) = 200 Tonnes Per Hour 200 Tonnes x 24 Hours (Day) = 4,800 Tonnes Per Day (24 Hours) Rotoforming: 46 Machines / 2 (In Operation) x 0.80 (In Operation) x 13 Tonnes (Per Hour) = 239.2 Tonnes (Per Hour) 239.2 Tonnes x 24 Hours (Day) = 5,740.8 Tonnes Per Day (24 Hours)

Storage Capacity: Days of Storage; Air Silos 62,500 Tonnes (Storage) x 2 (Air Silos) = 125,000 Tonnes (Capacity) 125,000 Tonnes (Capacity) / (270 Tonnes (Per Hour) x 24 Hours (Day)) = 19.29 Days of Storage Exhibit 2: Current Capacity OffLoading Capacity Pipeline: 107 Tonnes x 1 Hour = 107 Tonnes Per Hour 107 Tonnes x 24 Hours = 2,568 Tonnes Per 24 Hours (Day) OffLoading Truck: 20 Minutes x 3 Trips = 1 Hour 22 Tonnes x (3 Trips / 1 Hour) = 66 Tonnes Per Hour 66 Tonnes x 2 (2 OffLoading Trucks) x 24 Hours (Day) = 3,168 Tonnes Per 24 Hours (Day) Pipeline + OffLoading Truck: 2,568 Tonnes + 3,168 Tonnes = 5,736 Tonnes Per Day (24 Hours) Centrifugal Pumps: Bottleneck 4 Pumps (In Operation) x 50 Tonnes (Production Rate) = 200 Tonnes Per Hour 200 Tonnes x 24 Hours (Day) = 4,800 Tonnes Per Day (24 Hours) Annual Production: 4,800 Tonnes x 365 Days = 1,752,000 Tonnes Annually After Inital Year 4,152 Tonnes x 14 Days (2 Week Halt) = 58,128 Tonnes For 2 Weeks 4,800 Tonnes x 351 Days (New Bottleneck) = 1,684,800 Tonnes For 50 Weeks

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58,128 Tonnes + 1,684,800 Tonnes = 1,742,928 Tonnes Anually Initial Year Rotoforming: 46 Machines / 2 (In Operation) x 0.80 (In Operation) x 13 Tonnes (Per Hour) = 239.2 Tonnes (Per Hour) 239.2 Tonnes x 24 Hours (Day) = 5,740.8 Tonnes Per Day (24 Hours) Exhibit 3: Trade Off Analysis: