Comparative Analysis of a Remodeled Versus a New Dairy Products Processing Plant

Excerpts from the report: The purpose of this study is to provide information, based on 1976 data, to aid dairy plant operators in improving their facilities and operating methods and to show how such improvements can affect production labor cost. Production labor was selected for in-depth analysis because it represents one of the major costs in processing and handling dairy products and is where the greatest savings are possible. An actual dairy products processing plant, typical of many others in the industry, was selected for study. It provides the basic data needed for comparing the following alternatives available to plant operators for improving their facilities and operations and for accommodating future growth: • Evaluate existing facilities and determine changes needed to efficiently handle the present volume. • Remodel existing facilities to efficiently handle a 50-percent increase in the present volume. • Build new facilities to efficiently handle the 50-percent increase in present volume. In this report, estimated labor requirements, investment costs, and potential benefits are determined for each of these alternatives. Layouts are provided along with detailed descriptions of the existing, remodeled, and new facilities.