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Donner case

Extracts from this document...

Introduction

Operation Management Donner Company Case Analysis Submitted to Prof. Haritha Saranga Indian Institute of Management Bangalore Submitted by: Group No. 7 (Section E) Alok Kumar Jain (0911290) Mayank (0911319) Rajeev Kumar (0911333) Sunil Kumar (0911348) Tarun Kumar (0911349) Contents Introduction 2 Problems and Causes 2 Data Analysis 3 Process flow chart 5 Recommendations 7 Generic recommendations 7 Recommendations involving major changes 7 Recommendation 1: Concentrate only on producing small orders of SMOBCs. 8 Recommendation #2 - Concentrate on producing only large quantities of simple technology boards (order size >=200) only 10 Recommendation# 3: Use two separate production lines, one each for producing large and small quantities of simple technology boards 13 Conclusion 16 Introduction Donner Company, started in 1985, manufactures printed circuit boards, technically called as "soldermask overbare copper" boards, according to specifications of electronic manufacturers. It faces a competition from around 750 manufacturers in United States. With the increase in use of electronic appliances, the printed circuit board industry has witnessed growth. The firm has developed new processes and application and holds patents for these. The president of the company, Edward Plummer is reviewing the company position in October 1987, before deciding on plans for 1988. During the review he does in-depth study of how various process and operations are carried out and challenges The basic work process can be divided into three important stages - preparation, image transfer and fabrication. The detailed process flow chart is given in exhibit 1. The firm has three persons, Diane Schnabs, Bruce Altmeyer & David Flaherty who occupy supervisory roles in the company. Schnabs kept track of delays in the manufacturing process and made sure that clients were informed about possible delays. She also coordinated the serving of rush orders. Altmeyer was involved with the design of computer control and analyzing the customer requirements. He was responsible for locating the errors in customer artwork. David was responsible for overall manufacturing process until the final product was shipped to the client. ...read more.

Middle

Recommendation #2 - Concentrate on producing only large quantities of simple technology boards (order size >=200) only Unlike the previous case there is a huge obvious market for larger orders as 90% of the orders in September of Donner were greater than 200 in size. Therefore TAM is not a problem and top line should not be a problem till Donner can meet the TAT below 3 weeks. Currently, Donner holds a position in both the contract and captive manufacturing markets. The experience Donner has gained over the last three years would facilitate the firm to concentrate on the large quantities of Simple Technology boards(The current order size stands at 96.01 boards) This will enable Donner to utilize their current core competency and resources, and focus on gaining new strengths, yielding improved quality and on time delivery. Focusing on the captive market will mean that Donner will be in a position to further support its larger customers (i.e. IBM, AT&T, etc) with orders larger than 200 boards (90% of total orders received in September) Process & Strategic Implications * Labor Utilization: From the exhibit 3 we can see, significant time is saved per board when using the CNC Drill and Router (for orders over 200 boards); hence no requirements for manual drill or punch press. Employment could be reduced or workers could be re-deployed to work in other areas in the firm (Workers are well cross-trained and able to perform different functions throughout the manufacturing process). * Drilling Holes Let's calculate the board size for which the time taken by manual labor for drilling holes equals the time taken by CNC machine Equating, 240 + 0.004*500*y = 15+ 0.08*500*y Therefore, y=5.92 So for board size greater than equal to 6, using CNC machine would result in reduction of production time * Profiling (Size and shape) Either CNC router can be used or Punch press, Let's determine the board size when production time using punch press equals the time taken by CNC Router Equating, 150 ...read more.

Conclusion

Panel Prep 5 0.2 0.2 5.2 5.2 2. Laminate & Expose 20 2 2 22 22 3. Develop 20 0.2 0.2 20.2 20.2 Electroplate 25 8.5 8.5 33.5 33.5 Strip DFPR 5 0.2 0.2 5.2 5.2 Etch & Tin Strip 10 0.2 0.2 10.2 10.2 FABRICATION Soldermask 45 1.5 1.5 46.5 46.5 Solder Dip 30 0.5 0.5 30.5 30.5 Profile 0 Punch Press 50 1 8 58 CNC Router* 150 0.5 4 154 Inspect and pack 45 1.5 12 57 57 Total 694.05 711.05 Exhibit 3 Case II No of Boards = 200 Standard Production Time Times (in minutes) Operation Type Setup Run Total Run Time Operating Time (Using Manual Drilling) Operating Time (Using CNC machine) PREPARATION Artwork Generation 29 0 29 29 Inspect & Shear 20 0.5 12.5 32.5 32.5 Punch Tooling Holes 10 0.5 12.5 22.5 22.5 IMAGE TRANSFER Drill Holes Manual 15 0.08 8000 8015 CNC Drill 240 0.004 400 640 Metallization 10 0.75 18.75 28.75 28.75 Dry Film Photoresist 1. Panel Prep 5 0.2 5 10 10 2. Laminate & Expose 20 2 50 70 70 3. Develop 20 0.2 5 25 25 Electroplate 25 8.5 212.5 237.5 237.5 Strip DFPR 5 0.2 5 10 10 Etch & Tin Strip 10 0.2 5 15 15 0 FABRICATION 0 Soldermask 45 1.5 37.5 82.5 82.5 Solder Dip 30 0.5 12.5 42.5 42.5 Profile Punch Press 50 1 200 250 CNC Router* 150 0.5 100 250 Inspect and pack 45 1.5 300 345 345 Total 9215.25 1840.25 Exhibit 4 Total number of production employee = 22 Total number of working days in September = 20 Total number of working hours in September (8 hours/day)=22*20*8=3520 hours Time spent in instructing people = 10% of 4 employees' time = 64 hours Time available for production = 3456 hours Time spent in production in September = 1531.7 hours Average working hour per employee per day = 1531.7hours / (22*20) = 3.48 hours Labor utilization factor = 3.48/8 = 43.5% The excel sheet with detailed calculations is attached herewith. ?? ?? ?? ?? Donner Company - Case Analysis 1 ...read more.

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