Industrial Plant Distribution and Economic Principles

1. Plant Distribution

According to workflow: By product, process, and fixed position.

According to production system functions: Storage design, marketing, and project.

According to material flow: Patterns such as U, L, O, and S shapes.

2. Elements and Size for Plant Distribution

• Location: Where the space will be distributed.
• General Product Distribution: How the areas and activities will be organized.
• Plan developed for distinction: The specific place where each unit, machinery equipment, or service item will be located.
• Control: Physical movements and locations of elements in accordance with the detailed plan.

3. Economic and Social Interests

Economic interest: Focused on production and lowering monetary costs.

Social interest: Focused on security and worker satisfaction.

Production Costs

• Production expense: Light and machinery.
• Raw material: Aluminum (containers), liquid dyes, and caffeine water.
• Direct Labor: Workers directly involved in the process.
• Indirect Labor: Managing directors and carriers.

4. Breakeven Point

The breakeven point is the point where total revenue received is equal to the costs associated with selling the product.

Formula for the equilibrium point:

PE = Fixed Cost / (Selling Price - Variable Cost)

5. Demand

The quantity of goods that can be purchased from various processes by an individual or all individuals of a society (Buying).

6. Law of Demand

As long as conditions do not vary, the quantity demanded of a good in the market varies inversely with its price.

7. Factors Affecting Demand

• Income
• Wealth
• Prices of related goods
• Population
• Expected price
• Taste

8. Supply

The amount of goods that producers are willing to offer (Selling).

9. Law of Supply

As long as conditions remain unchanged (production costs and technological level), the amount of goods offered on the market varies in direct proportion to its price.

10. Factors Affecting Supply

• Input prices
• Real alternatives
• Technology
• Number of businesses
• Expected price
• Climate change

11. Quality Management

Father of Quality: Edward Deming

12. Definition of Quality

Perceptions about the product to satisfy specific needs.

The concept of quality emerged in 1945 at the end of the Second World War, when the U.S. influence reached Japan.