Jethro James M.
Hernandez
BSBA 2-2
MORTON SALT
1.
Morton salt is a subsidiary of Morton International, a manufacturer of specialty chemicals, air
bags and salt products. The Morton salt processing facility in Silver Springs, New York, between
buffalo and Rochester, is one of the six similar Morton salt processing facilities in the United
States.
The basic raw material, salt, is obtained by injecting water into salt caverns that are located some
2,400 feet below the surface. There, the salt deposits dissolve in the water. The resulting brine is
pumped to the surface where it is converted into salt crystals. The brine is boiled, and much of
the liquid evaporates, leaving salt crystals and some residual moisture, which is removed in a
drying process. This proves is run continuously for about six weeks at a time. Initially, salt is
produced at the rate of 45 tons per hour.
Annual round can production averages roughly 3.8 million cans, approximately 70 percent of the
output is for the Morton label, and the rest is for the private label, there are two parallel, high-
speed production lines. The two lines share common processes at the beginning of the lines, and
then branch out into two identical lines. Each line is capable of producing 9,600 cans per hour
(160 cans per minute).
2.
The operations are completely standardized; the only variable is the brand label that is applied.
One line requires 12 production workers, while both lines together can be operated by 18
workers because of the common processes. Workers on the line perform low-skilled, repetitive
tasks. The plant produces both the salt and the cans the salt is packed in. The cans are essentially
a cylinder with a top and bottom, they are made of cardboard. Finally, the cans are loaded onto
pallets and placed into inventory, ready to be shipped to distributors.
3.
Some of the possible reasons why the company continues to use the old processing equipment
instead of buying new, more modern equipment is because the company maintain its luck on
using vintage equipment, I think they believe that if they change their equipment to modern the
luck will not occur. Even though it is costly for the maintenance of their equipment, they believe
it is the best decision to use it as long as it is in good condition.
4.
In the product-process spectrum, I would place salt production as a repetitive production because
low-variety, high volume operation.
5.
3, 800, 000 cans per year x 26 ounces of salt per can = 98 800 000 ounces salt per year
98 800 000 ounces of salt per year / 16 ounces per pound = 6 175 000 pounds of salt per year
6 175 000 pounds of salt per year/ 2000 pounds per ton = 3,087.50 tons of salt per year
6.
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.
HELLO, WAL-MART?
The plan to open a Wal-Mart takes into account many factors that positively and negatively
affect the surrounding small town and its constituents. The small businesses, residents, and town
committee will look at all of the factors in order to make the decision. The following pros and
cons will outline the points made from each side at a town meeting. Ultimately, the board will
assess all the observations in order to make the decision in the best interest for the community. In
this case study, there are no in depth details on the small town, so in some situations the reactions
from the businesses or residents could vary.
Small businesses will be obligated to reduce their price to the minimum if they want to compete.
All the money that small businesses will generate goes to local banks and stays in the
community; in the case of Wal-Mart, this money goes to the main banks in other towns or cities
and the bottom line is this money does not stay in the area.
Another point to take in consideration is the possibility that Wal-Mart is doing monopoly of sales
in the small towns. With their aggressive campaign of reducing prices to the lowest minimum,
and disappearing small businesses, they are obligating the consumers to only go to Wal-Mart for
their needs. The disadvantages from the town residents and the residents nearby towns are also
several. Let’s start to mention the impact of a new Wal-Mart store in the life of these residents.
When these businesses close, residents will lose their livelihood. Many of these new Wal-Mart
stores get the land at very cheap price; they bring with them traffic, delinquency, and a big
reduction of price in the land of the residents surrounding these stores; all this translate as a big
reduction of taxes that these small towns will receive.
CLICKS OR BRICKS, OR BOTH?
1.
Retail outlets sellers can overcome that by having an online (clicks) with an exact detail of every
items that you are selling so that the consumers will have a choice on what and where to buy the
product that they want. It’s either they are satisfied on what they see online or they will check the
quality on the physical store.
2.
The impact that might have on the clicks, bricks, or both choices is that there will be a fair
competition depending on the price of the product because if they are both enacted on the laws to
pay taxes, the only competition is who has the best quality of product with a quality price.
In the product-process
spectrum, I would place salt
production as a repetitive
production
because low-variety, high
volume operation
In the product-process
spectrum, I would place salt
production as a repetitive
production
because low-variety, high
volume operatio
