03-08-2013 Panama Canal Case Study

Operations in Panama Case study

Submitted by: Amit Tilak

Prof. Harry G. Chernoff & Prof. Kristen A. Sosulski

ate: !"#!$#%!"

1) Prepare Prepare a process process flow flow diagram that that tracks the the service service flow of a ship ship through through the canal. It will be necessary to estimate the cycle times at each stage.

Ship Arrial 

&'1

Ships piloted to lo"$s  )arine

*a"i-i" Side

*ilots!Tug oats# ,ul- o-  *anama  8.2 miles  7.5 mph/ Cycle time = 1.! hr

)ira-lores o"$s (2  Stage% )ira-lores a$e

1.1 1.1 miles miles  1.5 1.5 mph

1.1 mile miless  7.5 7.5 mph mph

Cycle "ime = .#$ hr

C cle "ime "ime = .1( .1( hr

&levation ' ($

&'2

*edro )iguel o"$s (1  Stage%

)oe through hannels

hagres 6ier 

0.87 miles  1.5 mph

7.8 miles  7.5 mph

,atun la$e

Cycle "ime = .(8 hr

C cle "ime "ime = 1.$ 1.$ hr

 20. miles  7.5

%&levation ' 8()

mph Cycle "ime =

,atun o"$s (  Stage%

&'

*.#1 hr

1.2 1.2 miles miles  1.5 1.5 mph mph Cycle "ime = .8 hr %&levation ' +ea level)

Total throughput time = 1.09+0.74+0.15+0.58+1.04+2.71+0.80+0.99 = 8.1 hrs eparture  mph% Atlanti" Speed Side hannel  imon 3a= 7.5 mph# SpeedShip (Assume in rier!"hannel in lo"$s = 1.5 7.4 miles  7.5 mph

Atlanti" Side

=

Pa'e 1 of 6

Operations in Panama Case study

Submitted by: Amit Tilak

Prof. Harry G. Chernoff & Prof. Kristen A. Sosulski

ate: !"#!$#%!"

*) ,ow many ships can pass through the canal in one *$ hour period-

Assumptions/ •

)ultiple ships "an pass through and!or ait in the "hannels  riers

•

nl one ship "an pass through the lo"$s at an gien time

The ""le time -or the sstem is the ""le time -or the ottlene"$. Sin"e multiple ships "an stand!ait in the "hannels and riers# the ottlene"$ ould e e-ore the lo"$s. :t "an  e seen -rom the pro"ess -lo diagram aoe that the ottlene"$ ould e e-ore )ira-lores lo"$s ith a ""le time o- 0.74 hrs. Thus# in 24 hour period# e ill hae 24!0.74 or 2.4 ships or aout 2 ships pass through. ppro/imately 0* ships can pass through the canal in one *$ hour period  (Assuming

a "ontinuous pro"ess; i- e are starting -rom a shut don aout 2 ships "an pass through in the -irst 24 hour period%.

0) escribe briefly2 the mechanism of the locks that allows the ships to be raised or lowered over 8 feet. 1

The lo"$ "hamers are 110 -t. ide  1#050 -t. long# ith a usale length o- 1#000 -t.

These dimensions determine the maa"h lo"$ "hamer re?uires 2@#700#000 S gal to -ill it -rom the loered position to raised position and the same amount o- ater must e drained -rom the "hamer to loer it again. >medded in the side and "enter alls are three large ater "ulerts# hi"h are used to "arr ater -rom the la$e into the "hamers to raise them# and -rom ea"h "hamer  don to the neast "oast  ta$ing the longer route around the horn oSouth A-ri"a

6) 7hat factors affect the costs of these alternative routes described in uestion (•

Ship the produ"t to Eest "oast o- the S and then ship to >ast "oast using Train or  Tru"$s/ Aerage distan"e to Eest "oast is 7#000 miles and G0.25!mile!T> "ost# e?uals to aout G7 million -or 4000 T>Hs. The aerage "ost -or 1 T> -or tru"$ is aout G2!mile# and -or 4000 T>Hs (*anama< "apa"it ith 80D utiliation% going 1500 miles# "omes to around G12 million. Thus# the total "ost "omes to around G19 million. omparing the alternatie route ith *anama anal route# e hae 12000 miles < G0.25!mile!T> < 4000 T>Hs +G00$ toll "omes to around G12. million.

•

Ship the produ"t to the >ast "oast  using the Sue anal/ The trael through the Sue anal ta$es aout 22 das (Ag. time -rom hina to S >ast "oast through *anama anal ta$es aout 21. das% and roughl "osts slightl less amount omone than *anama anal tolls.  This option does not proide an signi-i"ant "ost saings as an alternate to using *anama anal.

•

Ship the produ"t to the >ast "oast  ta$ing the longer route around the horn oSouth A-ri"a/ :- the *anama< ta$es the longer route around the horn o- A-ri"a# it adds aout 8#000 e