A Comparison of Operations Strategy between American Connector & DJC (The KawasakiPlant)

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A Comparison of Operations Strategy

between

American Connector & DJC (The Kawasaki Plant)

CAPACITY:

ACC        The plant maintains excess capacity (goal of 85%) utilization, with output of 510 million units per year).  In 1991, the plant is running at 70% of capacity producing

        420 million units per year.

DJC        The goal is to operate at 100% utilization, producing 800 million connectors per year.  In 1991, DJC/Kawasaki operated at 80-90%utilization and produced an estimated

700 million units.

FACILITIES:        

ACC        The plant is organized into five production areas – terminal stamping and fabrication, terminal plating, plastic housing molding, assembly and testing, and packaging with holding areas in between steps for work-in-process.

DJC        The plant is organized into 4 large cells – each of which produced one of the four general typed of connectors - with 4-6 production lines each.  Each cell is dedicated to running one basic connector type.  Shipping and plating areas are functionally specialized, and centrally located.  Plating was organized separately in order to fully utilize the high fixed cost equipment.

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        PRODUCT TECHNOLOGY:

ACC:        Design quality and product variety are emphasized.  ACC’s engineering group works with customers to design customized connector products.  Fifteen percent of the total volume is customized; other connector products are standard designs.  With the customized strategy, ACC is selling more than products - - it is selling technical expertise.

DJC        All products are standardized, resulting in a relatively low number of SKUs (640).  Product designs reflect the needs of most customers.

        PROCESS TECHNOLOGY:

ACC        The company relies on having state-of-the-art production equipment and processes, although no new equipment has been added at Sunnyvale since 1986.  Processes for ...

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