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Second Visit - Huntsman Plant considerations Highlights

Second Visit - Huntsman Plant considerations Highlights. 13 September, 2004. Reasons of success. Normal, traditional manufacturing of pre-stressed concrete construction elements. This is important, since the production in former Soviet Union was not conforming to the simplest standards.

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Second Visit - Huntsman Plant considerations Highlights

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  1. Second Visit - Huntsman Plant considerations Highlights 13 September, 2004

  2. Reasons of success • Normal, traditional manufacturing of pre-stressed concrete construction elements. • This is important, since the production in former Soviet Union was not conforming to the simplest standards. • Remember the Earthquake in Gumri and Spitak.

  3. Reasons of success • The technology of the pre-stressed concrete. • Introducing the roof tiles.

  4. Reasons of success • Correct management. • Correct salary policy. • This is very important since the production in former Soviet Union was not securing safety even in terms of construction.

  5. Plant Specifics • Huge capacity • Local resourses • Rather big inventory • One-month production cycle.

  6. Plant Specifics • Inventory. This gives opportunities for optimization of raw material order quantity.

  7. Economic Order Quantity - EOQ • Q – quantity to order • D – demand, or rate of use • P – period, P = Q/D, e.g. in days • h – holding cost per unit for the period P • H – total holding cost for P, H = h·(Q/2) ·P • C – ordering effort cost • I – inventory cost, I(Q) = H(Q) + C(Q) I(Q) = h·Q/2 ·P + C Iday = h·Q/2 + C/P Iday = h·Q/2 + C·D/Q

  8. EOQ, Iday(Q) = h·Q/2 + C·D/Q

  9. EOQ = 2CD/h

  10. Plant Specifics • Different aspects of transportation… • Cutting the slabs (panels).

  11. Plant Specifics – New productions • The idea of profitability of new productions is not certain, especially when there are no concrete suggestions. • As in the case of the bottle production in the YBC, need for more investigation in this issue.

  12. Research • Plant has a laboratory, where the new types of concrete are developed. • However, there is a need for: • More technological research to use typical Armenian raw materials e.g. perlytes for lighter better production that will have e.g. better heat insulating characteristics; • Marketing! The bottleneck is in the market!

  13. Infrastructure • What does this plant add to Armenian infrastructure? • Positive example of success in general and particularly in the area of production of construction materials. • Experience of specialists, knowledge. • Strict quality issues, as peoples’ lives depend on the quality of construction materials.

  14. You have to pay attention to: • %-age of the used capacities; • Times, • Yields, also: • PLEASE LOOK AT POTENTIAL IE PROBLEMS. E.G.: • EOQ; • TRANSPORTATION; • SCHEDULING.

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