How does the production process occur in PCC?  Use the model of the transformation system to create products that have value for the consumer.

High level managers give the direction and state the plan (goals, targets, budgets, etc) and the control of the plan for the PCC.

Medium/low level managers should plan, organize, schedule and control the resources, the transformation and connection activities and the products and services.

The transformation system start with resources (land, capital, labour, material), followed by the connection and transformation activities, and finishes with the products in the case of PCC (also services for other industries)


What are the kinds of utility that potato chips create for the consumer?

Potato chips could satisfy a human want, it could give something of value. It is not a essential product, but without a doubt it provide value to human.

It could have time utility, making the product available at a time when consumers want it. Place utility making the product available in a place convenient for consumers. Ownership utility because the product could take pleasure in owning; finally, form utility presenting the product in a particular shape and flavour.


Determine the factors that you need to consider in planning the capacity of production at PCC. What is the impact of under- or over-capacity?

Planning the capacity of production needs to take into consideration many factors of production in the resources and transformation activities and the final product as well. The factors to be described have different impacts in planning the capacity of production at PCC, not only in intensity, but also in timing (start, finish, period).

To operate over capacity could work for a short period of time. If the company is working over its capacity, it is decreasing its marginal return and it is operating with overcharge. This means for example that maintenance of machinery or rest for labour is delayed. This could work for short period of time, but it could be counteractive in the long term.

Working under capacity is inefficient, having excess of fix cost. This mode of work also has negative implication in short and medium terms.


Some of the factors are:

1.    Demand of the product

2.    Strategic plan at PCC

3.    Seasonal demand

4.    Cyclical demand

5.    Forecast demand

6.    Forecast production

7.    Price forecast; especially natural resources which could have the higher variation, but also fuel, labour, technology.

8.    Competence strategy at local, regional and global markets.

9.    Labour demand


What location factors need to be considered when planning the location of a production facility for PCC?

PCC transform raw material to a final product.

The most important location factors that they need to be considered are those that could have a direct correlation with the production chain:

-       Raw material: the proximity to the source of raw material.

-       Labour: the availability of labour (line and staff), training availability.

-       Technology: the availability to technology, training.

-       Resources (energy, water): the easy and cheap access to resources.

-       Transportation (highways, ): accessibility, costs.

-       Taxes, incentives, subsidies: the availability to subsidies, incentives and the different taxes in place.

-       Regulations: competence, labour, environment, transportation, use of natural resources, agrochemicals, energy, genetically modified resources, health and safety.

-       Markets: access to the market (consumers)

Which layout will generate the most efficient production at PCC?

The most efficient production layout at PCC will depend of the technology that PCC is using. In a general view, PCC process is a sequential process which the Production Layout Assembly Line looks to be the better for this process.


Using the layout you designed above, determine if it can be changed in some way to improve efficiency.

It could be smoothly improved according to the product that is being produced. PCC produces different potato chips flavors, shapes, etc. So, the layout could be improved according to the different options in the potato chips. Example, flavor section could operate as Cellular Layout if we consider all the possible flavors and mix of them for a kind of potato chip that PCC could produce.


Create a supply chain chart to illustrate the steps involved from the purchase of potatoes from your upstream suppliers to final sale by the retailer to the consumer.