Plant Capacity and Location
According to Cambridge Dictionaries, the capacity is defined as “ the total amount that can be contained or produced, or (especially of a person or organization) the ability to do a particular thing. Where in plant designation, the plant capacity is the rate of producing output within a specific duration. On the other hand, the location is where the plant will be build up under with certain constrains such as cost budget, physical and chemical limitation, regulation and etc. Before deciding the plant capacity and location, the isopropyl acetate production plants which existed globally must be studied and analysed properly based on the existing plants capacity and location.
Plant Capacity of Existing Plant …show more content…
The design capacity is the maximum amount of product obtained under an ideal condition. However, in realistic ideal condition is unable to achieve. The resulted output usually is less than the design capacity, and this is called as “Effective capacity”. The effective capacity is affected by factors such as realities of changing product mix, scheduling difficulties, periodic machine maintenance and etc (B. Allen & C. Lisa). Most of the output of plant result the “actual output” which is the rate of output usually achieved. The actual output will not exceed the effective capacity and often less than effective capacity due to equipment breakdown, defective output, shortage of materials and so on. These shows that the resulted output will be lower than the design capacity designed by engineers and most of the manager of the plant will be focused on the efficiency measure system of the plant which defined as . In some cases where the effective capacity is very low compared with design capacity, the manager will use utilization measure system instead of efficiency, the utilization is defined as . Moreover, comparing the efficiency and utilization can determine what is constraining the effective capacity. Therefore, these must be added into consideration …show more content…
Capacity is set to be 5000 MT per annum is because even there is many other suppliers already exists, but the demand is still increasing, which means there is still a market for investment. Nevertheless, demand for isopropyl acetate in inks tend to be more recession resistant, and it has a wide variety of manufacturing uses. From the above, it shows that currently the market has not reach the equilibrium, the potential opportunity for isopropyl acetate is still
According to Cambridge Dictionaries, the capacity is defined as “ the total amount that can be contained or produced, or (especially of a person or organization) the ability to do a particular thing. Where in plant designation, the plant capacity is the rate of producing output within a specific duration. On the other hand, the location is where the plant will be build up under with certain constrains such as cost budget, physical and chemical limitation, regulation and etc. Before deciding the plant capacity and location, the isopropyl acetate production plants which existed globally must be studied and analysed properly based on the existing plants capacity and location.
Plant Capacity of Existing Plant …show more content…
The design capacity is the maximum amount of product obtained under an ideal condition. However, in realistic ideal condition is unable to achieve. The resulted output usually is less than the design capacity, and this is called as “Effective capacity”. The effective capacity is affected by factors such as realities of changing product mix, scheduling difficulties, periodic machine maintenance and etc (B. Allen & C. Lisa). Most of the output of plant result the “actual output” which is the rate of output usually achieved. The actual output will not exceed the effective capacity and often less than effective capacity due to equipment breakdown, defective output, shortage of materials and so on. These shows that the resulted output will be lower than the design capacity designed by engineers and most of the manager of the plant will be focused on the efficiency measure system of the plant which defined as . In some cases where the effective capacity is very low compared with design capacity, the manager will use utilization measure system instead of efficiency, the utilization is defined as . Moreover, comparing the efficiency and utilization can determine what is constraining the effective capacity. Therefore, these must be added into consideration …show more content…
Capacity is set to be 5000 MT per annum is because even there is many other suppliers already exists, but the demand is still increasing, which means there is still a market for investment. Nevertheless, demand for isopropyl acetate in inks tend to be more recession resistant, and it has a wide variety of manufacturing uses. From the above, it shows that currently the market has not reach the equilibrium, the potential opportunity for isopropyl acetate is still