INSTITUTO TECNOLÓGICO Y DE ESTUDIOS

SUPERIORES DE MONTERREY

LAB-ACTIVITY Nº 1: PILOT COMPANY SELECTION & LOCALIZATION

Operations design and optimization laboratory

Prof. Myriam Sanchez

Team
José Antonio López A01372388
Hugo Flores Franco A01243949
Yoli Paola Prado Márquez A01375233
César Vázquez Arzate A01370849

Due date: Jan/28/2019

Objective:

The Lab-Activity No.1 purpose is that the students gets familiar with the general criteria
and steps to start up a company, its manufacturing processes, machinery, material
handling equipment and layout design. The student will also practice facility location
strategy.

Report instructions:

1. Company Description

a) Name:​ Vitro

b)​ ​Mission and Vision:

● Mission:​ Provide the best solutions related to glass in the industries we participate
in order to create value for our customers, shareholders, employees, suppliers and
the communities where we work.

​ e will improve our leadership in the business sectors in which we operate,

● Vision: W
and we will be recognized as a leading company in innovation.

c)​ ​Product line description (at least 2 products)

Vitro is a leading company in the manufacture of glass in Mexico, Vitro offers its products
and services to meet the needs of two businesses, flat glass and glass containers.

mentioned before, Vitro offers different kind of products, but definitely two of the most
important are the windshields and the flat glass containers. These products are produced
through different processes that will be described below.

● Windshields Production:

The windshields are produced by a sequence of different processes, everything

begins when they received the raw materials (flat glass sheets) in the plant. It is
important to mention that the windshields are formed by two flat glass sheets, one
should be larger than the other one, both sheets required some different
treatments, so they don’t follow a same path.
 Afterwards the sheets are transported to the Cutting Area, where they are cutted,
burred, polished, washed, and the short sheets are sprinkled with talcum powder to
avoid friction between the sheets once they are in a lift truck. Then the short sheets
are transported to a part of the plant where they are stored, and the large sheets
are transported to the Decoration Area.

In the Decoration Area, the large sheets are painted, then they are pre-dried, after
that they are joint with the short sheets that were stored to form the pairs and a
PVB sheet that will join both sheets. Once the pairs are formed, these ones are
taken to the Curving Area.

In the Curving Area the pairs are gotten inside of a mold that passes through an
industrial oven. The mold will give the sheets the required form of the windshield
that is being manufactured and the large sheet and the short sheet will get pasted
by melted PVB. When the processes taken in the Curving Area are finished, the
processed materials are transported to the Assembly Area.

In the Assembly Area some operators remove PVB residues from the windshield
and then they paste a support to it.

Then the windshield are taken inside of a an Autoclave, where the Windshields are
submitted to pressure to unify the sheets.

Finally the windshields are transported to an inspection area, and if after the
inspection they fulfilled the quality standards, they are packaged and transported to
a warehouse where they will be stored until they are delivered to the customers.

● Production of glass bottles

The process begins with the reception and control of the raw material. The main
resources used are silicon sand, glass hull (recycled glass), limestone, sodium
carbonate, among others. The material is stored until its use, and when the time
comes, the first stage begins. It is dosed, weighed and mixed according to each
oven.
 The second stage is ​the casting​, the automatic melting furnace is fed with the
mixture. Generally the fusion is carried out at 1500 ° C. When finished, the mass is
transported through cooling lines. Then the refining of the glass is carried out where
the molten mass is homogenized and its temperature is lowered to achieve the
molding temperature. Subsequently, it goes to the molding stage. First the cut is
made in drops of equal weight, and they are directed to the first mold where the
mouth of the container and the inner hollow is formed by pressing or blowing. In the
second mold the bottle acquires final shape.

Once the molding is finished, the bottles go through the first hot surface treatment
to improve their mechanical resistance. Then they go to the ​annealing stage​, where
they enter an oven that eliminates internal tensions. To do this, it raises its
temperature to 600 ° C and lets them cool down gradually. The product passes to
the second cold surface treatment to eliminate the risk of scratching.

When finished, the bottles pass to the stage of quality control and automated
inspection where diameters, thicknesses and heights are evaluated. Defective
products will be removed and recycled. Finally, they go on to the stage of automatic
palletizing and packaging where the bottles are covered and finally stored.

d)​ ​Selected Production System

Workshop system for windshields and continuous production system for glass bottles.

e) Company age

The first glass container plant, begins in Monterrey, Nuevo León in the year 1909, so it is
110 years old now.

f) Organizational Diagram
g) Employees and roles

h) Available Capital (Assets​)

Its available capital is approximately 2,500 million dollars, according to the last report of
financial performance made in the year 2017.

i) Company Size according to the Mexican chamber of commerce (Small, Medium

etc.)

Vitro is a large company, leader in the manufacture of glass in Mexico and one of the
most important companies in the world in its industry. It has subsidiaries in the Americas
through which it offers its products and services to meet the needs of two businesses, flat
glass and glass containers.

j) List of Possible customers, competitors, and suppliers.

● Customers:

Windshields Glass bottles

- General Motors - Grupo Modelo

- Nissan - Pascual
- Toyota - Coca-Cola Company
- Ford - Pepsico
- Chrysler - Heineken México
- Volkswagen - Cuauhtémoc Moctezuma
- Kia
● Competitors:
- Compagnie de Saint Gobain
- Guardian Industries Corporation
- Grupo Pavisa

● Suppliers:
- FAMA
- 3M
- Eastman
- Dow
2. Process Flow Diagrams First Draft: Operations diagram (each product), Cross
functional process map(each product), Route diagram(Facility).

Production of Windshields

Diagram 1.1. Operations Diagram (Windshields)

 Production of glass bottles

Diagram 1.2. Operations Diagram (Glass Bottles)

 Production of glass bottles

Diagram 2.1. Cross functional process map (Glass Bottles)

 Production of Windshields

Diagram 2.2. Cross functional process map (Windshields)

 Route Diagram

Diagram 3. Route Diagram (Facility)

 3. Machinery and manufacturing equipment- list the most important equipment at
your company (at least 3).

Name Brand Quantity Function Model Capacity Dimensions Weight Process requirements
(year) (No. of (pipes, drains,
pieces electricity, water, gas
process etc.)
ed/unit
of time)

FMVE FAMA 2 Hot end defect 2000 440 W:185’’,P:381/ -It can work with Axial
detection, bottles / 4’’,I:653/8’’,A:1 Cooling in TG and DG
monitoring min 0223/32’’ , -Electricity
system and hot C:567/8’’
defect rejection
system. It can
produce glass
containers in
BB, PB and
NNPB

FMPR FAMA 2 hot defect 2000 440 W:2075/8”, -Axial cooling on the mold
detection, load bottles / P:431/2”, side and blank side to
fall off min I:653/4”,A:107 improve temperature
monitoring 7/8”,C:573/4”. control that provides lighter
system and hot containers and increases
defect rejection speed.
system It can -Electricity
produce BB
and NNPB
containers.

Perfume FAMA 1 Shape the 2000 from

mold piece 5 ml. to 5 l.

4. Material Handling equipment - list the most important equipment at your

company (at least 3).

Name Brand Quantity Function Model Capacity (No. Dimensions Weight

(year) of pieces
handled)

Container handling Taylor 2 The equipment 2018 41 tons 9,5-ft (2,9m) 4000 kgs
Machine carries 97-in (2464mm)
works containers
loaded with
merchandise

Packaging Velpak 4 Self-stable 2017 50 charges per (L) 895 mm // 180 kgs
equipment four-legged hour (W) x565 mm
wrapping model, (H) x740 mm
without conveyor,
for heavy loads.

Industrial Oven LandGlass 4 2013 25-28 charges per 1200xARC900 260 kg

Mainly used for hour.
tempering glass
with variable
curvatures.
5. Current Layout First Draft. Use professional software to create it (Autocad, MS
Visio, Corel Draw, etc). Indicate total area and main departments’ dimensions.

Plant Dimensions

- 50m Wide
- 100m Large

Area Dimensions

- Windshields Production Area 60 x 25 m^2 → ​Cutting Area (¼), Decorating Area

(¼), Curvin Area (¼), Assembly Area (⅛) and Inspection Area (⅛)
- Glass Bottle Production 50 x 20 m^2
- Recreation Areas 20 x 15 m^2
 6. Location Evaluation & Selection (Weighted Scores Method).

a. Chose 2 possible locations for your company facility based on the preliminary
research and provide a brief explanation why does your team consider these
locations as viable options. (State, city & locality)

After doing some research based on the customers of the factory, we decide to apply the
technique known as center of gravity to determine based on the proximity of the
suppliers which place would suit best to the operation by being closer to them, we
decided to do an affinity diagram so it would help us see which of these 5 possible
locations would suit the best to satisfy our necessities based on the number of suppliers.
We considered the coordinates and the number of suppliers of each locality to determine
the optimal location.

Locality Coordinates Number of suppliers (dix * V i) (diy * V i)

( dix ; diy ) (V i)

Azcapotzalco 19.48311; 2 38.96622 -198.37344

-99.18672

Cuautitlán Izcalli 19.65122; 1 19.65122 -99.22406

-99.22406

Naucalpan de Juárez 19.46248; 1 19.46248 -99.2458

-99.24580

Tlalnepantla de Baz 19.53411; 3 58.60233 -297.58413

-99.19471

Tultitlán 19.63915; 1 19.63915 -99.16714

-99.16714

ΣV i = 8 Σ(dix * V i) Σ(diy * V i) =-793.59457

=156.3214

After applying the formula for each axis, we got these results that show us that the best
location for the company is in the locality of Tlalnepantla because the proximity to many of
the suppliers.
Σ(dix*V i) 156.3214
Cx = ΣV i
= 8
= 19.540175

Σ(diy *V i) −793.59457
Cy = ΣV i
= 8
=− 99.199321
b. Use the attached Weighted Scores table to evaluate the 3 location options. The
evaluation has to be performed based on real data and trustful sources (INEGI,
Secretaría del Trabajo, SEP, Industrial Chambers etc.). First assign a weight to
each factor, the total sum of weights must add up to 100. Then evaluate every
factor for each of the location options using the 1-6 scale (excellent-not
controllable). Finally total each factor by multiplying the assigned score of the
evaluation times its weight. Final score is the sum of all factors. Select the best
option according the following scale:

600 – 500 Location is quite adequate

499 – 400 Location is adequate, it may need some adaptations

399 – 300 Location needs to be reviewed

299 – 0 Location is not adequate

Azcapotzalco
Nº FACTOR Weight EXCE VERY GOOD REGULA BAD NOT Not TOTAL Write down facts and
% LENT GOOD R CONTROL applicable assumptions explaining your
ABLE evaluation

6 5 4 3 2 1

1 Raw materials 10 4 40 This zone has 2 suppliers

availability nearby to buy raw materials.
in the zone

2 Target Market 25 6 150 The distance between some

closeness of the customers and this
location is closer than others
locations.

3 Financial resources 5 3 15
availability

4 Land availability 5 3 15
(buy/lease)

5 Topography, its effect 5 3 15

on
buildings and
accessibility

6 Weather conditions 5 1 5 we can not control the

weather conditions.

7 Land Cost (buy/lease) 10 3 30

8 Local construction 5 4 20 We assume that the costs in

costs this area is not too expensive
because this area has not too
much capital gain.

9 Similar 5 4 15 There are some companies

companies/industry but not as big as our
closeness company so we don't have
too much competitors.

10 Local government 5 4 20
support/subsidies for
industry development

11 Transportation 10 4 40 In this area is easy for the

availability transportation to access
because it is a busy area.

12 workforce availability 10 5 50 There is a lot of workforce

in the zone nearby because this area is
also an habitacional zone.

100 TOTAL 435

499 – 400 Location is adequate, it may need some adaptations

Tlalnepantla de Baz
Nº FACTOR Weigh EXCE VERY GOOD REGULA BAD NOT Not TOTAL Write down facts and
t% LENT GOOD R CONTROL applicable assumptions explaining your
ABLE evaluation

6 5 4 3 2 1

1 Raw materials 10 6 60 This zone has 3 suppliers

availability nearby to buy raw materials.
in the zone

2 Target Market 25 6 150 The distance between some

closeness of the customers and this
location is very short.

3 Financial resources 5 3 15
availability

4 Land availability 5 3 15
(buy/lease)

5 Topography, its effect 5 3 15

on
buildings and
accessibility

6 Weather conditions 5 1 5 we can not control the

weather conditions.

7 Land Cost (buy/lease) 10 3 30

8 Local construction 5 4 20 We assume that the costs in

costs this area is not too expensive
because this area has not too
much capital gain.

9 Similar 5 5 25 There are some companies

companies/industry but not as big as our
closeness company so we don't have
too much competitors.

10 Local government 5 4 20
support/subsidies for
industry development

11 Transportation 10 6 60 In this area is easy for the

availability transportation to access
because it is a busy area.

12 workforce availability 10 6 60 This location has too much

in the zone workforce nearby because
this area is also an
habitacional zone.

100 TOTAL 475

499 – 400 Location is adequate, it may need some adaptations

Naucalpan
Nº FACTOR Weight EXCE VERY GOOD REGULA BAD NOT Not TOTAL Write down facts and
% LENT GOOD R CONTROL applicable assumptions explaining your
ABLE evaluation

6 5 4 3 2 1

1 Raw materials 10 3 30 This zone has only 1

availability suppliers nearby to buy raw
in the zone materials.

2 Target Market 25 4 150 The distance between some

closeness of the customers and this
location is very short.

3 Financial resources 5 3 15
availability

4 Land availability 5 3 15
(buy/lease)

5 Topography, its effect 5 3 15

on
buildings and
accessibility

6 Weather conditions 5 1 5 we can not control the

weather conditions.

7 Land Cost (buy/lease) 10 3 30

8 Local construction 5 4 20 We assume that the costs in

costs this area is not too expensive
because this area has not too
much capital gain.

9 Similar 5 4 20 There are some companies

companies/industry but not as big as our
closeness company so we don't have
too much competitors.

10 Local government 5 3 15
support/subsidies for
industry development

11 Transportation 10 4 40 In this area is easy for the

availability transportation to access
because it is a busy area.

12 workforce availability 10 5 50 This location has too much

in the zone workforce nearby because
this area is also an
habitational zone.

100 TOTAL 405

499 – 400 Location is adequate, it may need some adaptations

c. Print out a map of the final location selected (Google maps).

7. Write down the lessons learned from this Lab Activity .

By working with the team in this lab activity, we applied many techniques that we have
seen in previous classes we have had and by doing this we had a much simpler time to
realize this activity.

We also learned from scratch some things we need to have for us to start a company by
knowing the processes and machinery that the company needs to have so it accomplishes
the goal.

At first we didn’t knew which aspects we needed to know to start a new company from
scratch, but as we worked in the research we found out that it is not that easy to begin a
company without the proper knowledge of the business turn.
8. Document all sources and bibliography using APA format .

❖ Vitro. (2017). Nuestra Compañía. Enero 26,2019, de Vitro La Compañía del

Vidrio Sitio web: ​http://www.vitro.com/

❖ LandGlass (2014). ​Horno de templado curvado,​ recuperado de

http://es.landglass.net/Productos/templado-para-curvatura-variable/LD-DJ.html?gcli
d=CjwKCAiAyrXiBRAjEiwATI95mdjn2qm0-NWJiaDCl5qVWC33N574DWJER4LsFA
NaBO_8OnltRC6V1BoCz-YQAvD_BwE​ el 27 de enero del 2019.

❖ Velpak (2019). ​Envolvedora industrial,​ recuperado de

http://grupovelpak.mx/tienda/velpak/envolvedora-de-tarima-wrta-200/ el 27 de enero
del 2019.

❖ Taylor machine works (2019). ​Equipo de manejo de contenedores, recuperado de

http://www.taylormachineworks.com/es/products/loaded-container-handlers/ el 27
de enero del 2019.