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Aic Systems Essay

959 words - 4 pages

AIC Systems located in Taichung Taiwan, was a manufacturer of printed circuit boards, primarily motherboards and graphic cards. In the early 2000, the company evolved into an original design manufacturer by innovating and designing new generations of components. They also took the opportunity of opening a plant outside Shenzhen, when the restrictions on investment in mainland china were relaxed by the government. In 2007 AIC Systems decided to get involved in the fast-growing market of mobile technology, specifically ultra-portable laptops. The new netbook market as a competitive market provided an opportunity for AIC Systems to design and manufacture a branded product in the mobile ...view middle of the document...

Anyway, after a short time they began to face unpredictable spikes in demand occasionally. To keep the costumers happy, they had to meet their demands as much as possible. The Chen’s solution was to increase the hours of work per shift at the peak times. Therefore at that times, the workers had to work more and their efficiency might have dropped, and also there wouldn’t be enough time for repairing and applying changes to the production lines because the production lines were busy almost 24 hours a day. I think they could have produced netbooks a little more than required each month and store the extra netbooks for the time of peaks in demands. This way, the production process could be more smooth and controllable. Moreover Chen will probably have to add more assembly lines sooner or later, because of the growing demand for netbooks. At the beginning the planned monthly output was about 145,000 units, while the estimated demand was 130,000, but the demand is increasing and they’ll eventually have to increase the production. So it is not a bad idea for him to invest in a new production line in order to increase the output of the plant.
Although a low-cost strategy is a good way to make your way into the market, you’ll have to provide your costumers with good quality products in order to keep them. To reduce the number of possible mistakes in the assembly line, Lapin designed the line such that each worker had to count the number of parts required for the assembly operations at the next station, thus they built a double check into the process. One other way of reducing the number of mistakes by workers is to give each worker the responsibility of checking the work that has been done in the previous station. This is...

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