MGT 124 - Morton Salt Case Study PDF

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CASE STUDY: MORTON SALT Briefly describe salt production, from brine production to finished round cans. Water is injected into salt caverns where the salt deposits dissolve, the brine is then pumped, boiled, and dried until it is converted into salt crystals. The Salt is then stored in silos until it is used for production. Whereas, during round can production, two sheets of cardboard are glued together and rolled into a tube. The tube is then cut into smaller can sized pieces which are then assembled into cans. Conveyors then move the salt to round production. From there, the cans are loaded onto pallets, invoiced, and ready to ship. Briefly describe quality assurance efforts in round can production. During round can production, cans are visually inspected for correct assembly, correct weight, aligned labels, and attached spouts. The production line’s equipment is also sensitive to damaged cans, misshapen, and jams therefore it reduces the chance of a defective can getting through. What are some of the possible reasons why the company continues to use the old processing equipment instead of buying new, more modern equipment. Although there are many benefits of purchasing new, modern equipment it is also a very costly investment. Where would you place salt production in the product-process spectrum? In the product-process spectrum, I would place salt production as a repetitive production because low-variety, high volume operation. Determine the approximate number of tons of salt produced annually. Hints: One ton = 2,000 pounds; One pound = 16 ounces Step 1: 3,800,000 cans per year Step 2:

26 ounces of salt per can

98,800,000 ounces of salt per year

98,800,000 ounces of salt per year 6,175,000 pounds of salt per year 16 ounces per pound Step 3:

6,175,000 pounds of salt per year 3,087.5 tons of salt per year 2,000 pounds per ton What improvements can you suggest for the plant? They can introduce new, modern technology to reduce production cost and time. It is an expensive investment but it will save them money in the long run....