62 = 5 + 55 +2.2
62
62.2
In this assignment, you will develop a widget flow balance equation using the widget flow balance diagram developed in the previous assignment. Then, you will use the equation to calculate the widgets in and widgets out.
Once you understand how to develop an equation using a flow balance diagram and understand how to use the equation to calculate a materials flow balance, you will have completed this assignment
How do you begin the calculations using the equation and the other information previously provided? From the abbreviated Wonderful World of Widgets narrative, you should have gathered the following:
From the purchases 62 tons of raw, unplated widgets each year.
Before manufacturing, 5 tons are sent to a scrap recycler.
The facility manufactures 57.2 tons of widgets each year: 110,000 pounds equal to 55 tons of plated widgets are sold and 2.2 tons of plated widgets are sent to scrap.
If you recall our widget equation from a previous assignment, it was as follows:
Widgets in by truck = Widgets out to scrap metal recycler + Plated widgets out to scrap metal recycler + Plated widgets out by truck
You would thus presume (incorrectly) that you can simply substitute the above data in to generate the following:
62 = 5 + 55 +2.2
62
And, though the percent difference between the two is only 0.3%, YOU WOULD BE COMPLETELY WRONG!
You forgot that the "widgets out" are plated widgets which have an additional weight associated with them as a result of plating. If you recall, each widget weighs 1 pound and each plated widget weighs 1.05 pounds. Meaning, in total, the Wonderful World of Widgets manufactures 108,952 widgets each year as per the following calculation:
Thus, in counting the widgets you would arrive at the following:
Widgets in by truck = Widgets out to scrap metal recycler + Plated widgets out to scrap metal recycler + Plated widgets out by truck
124,000 = 10,000 + 4,190 + 104,762
124,000
118,952
Therefore, 5,048 widgets are missing! This equates to 4% as per the following:
Granted, this is not a large number but given that widgets are expensive in the virtual world, the loss of 5,048 widgets each year is pretty costly. Thus, your knowledge that the black market for widgets is alive and well may behoove you, and result in your further tracking the widgets just a little bit better.
Now that we have determined that the widgets are going somewhere other than back to the manufacturer, what would this virtual industry calculation have to do with real world? Or, in sum, who cares? You should care, because the applications of this exercise apply to real world economics.
Say, for example, we decide to count the losses experienced by the Wonderful World of Widgets in actual dollars. To do so, we will use the following figures:
Raw widget purchase costs = $10 dollars/widget
Plated widget sale price = $40/widget
That means that a loss of the 5,048 unaccounted for widgets is equal to a $50,480 loss in raw materials and a $201,920 loss in potential revenues.
Additionally, the loss of 10,000 raw, unplated widgets each year due to handling in transport, storage and preparation for manufacturing that are sent to the scrap metal recycler is equal to a $100,000 loss in raw material and a $400,000 loss in potential revenue.
Further, the Wonderful World of Widgets is losing 4,190 plated widgets each year due to poor plating and evaluations which is equal to a $41,900 loss in raw materials and a $167,600 loss in potential revenues.
In sum, we have projected that the Wonderful World of Widgets is wasting/losing the following raw materials:
Missing widgets = $50,480
Broken widgets = $100,000
Unusable plated widgets = $41,900
Wasted raw materials = $192,380
We have also projected that the Wonderful World of Widgets is losing the following potential revenue:
Missing widgets = $201,920
Broken raw widgets = $400,000
Unusable plated widgets = $167,600
Lost Revenue = $769,520
It seems that the Wonderful World of Widgets should reevaluate their operations to recover at least part of the $961,900 dollars that they are losing, don't you agree? If the Wonderful World of Widgets were able to increase their efficiency by 10%, they could add an additional $96,190 in revenues. That would make for some great Christmas bonuses and would provide some wonderful employee incentives, don't you agree?
In sum, if industry didn't cares about the losses in raw materials and the losses in potential revenue, then industry would continue to throw money down the drain. But, that is not the case. Industrial operations are constantly trying to improve operations, and performing materials flow balances helps to pinpoint areas that need improvement.
Where do we go from here? From here, we'd like to hear from you. Send us any comments, good or bad, on the Wonderful World of Widgets free introductory exercise.
And, we'd like to offer you an extra incentive to take one of our courses by offering you a 10% discount on any course taken within the next year. Simply use the attached discount form.
If you liked this free introductory course, you might want to consider learning how to actually perform a materials flow balance using the real Wonderful World of Widgets, rather than this abbreviated version of it.
Or, if you are hooked on the Wonderful World of Widgets, but would like to find some other ways we help you learn to apply environmental regulations and other principles using a virtual industry, check out the Wonderful World of Widgets virtual industry applications exercise courses that we offer.
We aren't just widgets, however! We also offer courses which help your learn the environmental regulations (Our Learn ... series) if you need to expand or broaden you knowledge, as well as courses which help you tweak your environmental program (Our Observations of an Inspector ... series) if you are an old pro looking for a few pointers.
Or, if you are into free things, simply go back and check out more freebies.
Either way, thank you for registering with www.environmental-training.com and we look forward to having you as a future enrollee. We will send you updates from time to time as more courses become available in your areas of interest.
Have a great day!
Back to Course Beginning
