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Donner Case Partial Essay

2235 words - 9 pages

Introduction:
Donner Company, a customized printed circuit board manufacturer is facing three main problems: productivity, quality issues and delayed deliveries. We start analyzing with a diagram showing information flow beginning from the customer placing the order to the delivery of that order can be represented as below.
Customer places order
Customer places order
Estimate Labour and Material costs
Estimate Labour and Material costs

Prepare and submit bid
Prepare and submit bid
Check & Verify Design
Check & Verify Design

Detailed specifications and factory order by Altmeyer
Detailed specifications and factory order by Altmeyer
Normal
Normal
Customer accepts bid?
...view middle of the document...

Assumptions:
1. Even though it is mentioned that some orders may follow different sequence of process and may even skip some of the processes, we assume that every order goes through each process mentioned in Exhibit 2.
2. Proportion of order size and the no. of orders will be the same in future months; same as September given in Exhibit 4.
3. Each order requires separate setting up of equipment. So, when the next order arrives, the equipment must be setup once again in each process (artwork, inspect, etc.)
The time required in each process for different size orders will not be the same because of the presence of two components-setup time (common for one order) and run time (varies with the number of boards in each order). As the order size increases, the time spent in the setup time is shared among all the circuit boards and hence time required per board is reduced.
The amount of time required to be spent per order in each of the processes is calculated for each of the order sizes from 1 to 1050 as given in Exhibit 4. For all order sizes, the drilling process (manual drilling up to order size 5 and CNC drill for order size above 5) takes the maximum amount of time per order. So, the drilling process is the bottleneck in the system. We assume that only one of the seven drill presses is used. The time taken in drilling process per order is shown in Appendix A.
The time taken per order for manual drilling is less than the time taken for CNC drilling up to order size of 5. Hence, manual drilling should be done if order size ≤ 5 and CNC drilling otherwise. The bottleneck time is taken accordingly.
As can be seen from the table, different order sizes lead to different capacity for the plant. If the order size which the company receives is always 1, the company has the capacity to manufacture 8.7 PCBs/day. However, if the order size is always 1050, the company can produce 215.4 PCBs per day. This value is arrived at considering that only one of the seven drilling presses is used in the case of manual drilling. Since different order sizes are mixed and considering the same proportion of order size mix will be followed in the future, the average capacity of the plant is found out by calculating the weighted average of capacities for different order sizes. The weightage given is the no. of boards produced per month belonging to that particular order size to the total no. of boards produced per month. In this way, the average capacity of the plant is found out to be 180.36 boards/day.
CNC Drill
Assuming order size is ‘n’, we have to find the value of n where the rate of producing of CNC drill is greater than manual drill. For the manual drill, setup time is 15 mins, each hole takes 0.08 mins and each board has 500 holes, hence the equation for total time taken can be written as 15+0.08*500*n. Similarly, for the CNC drill setup time is 240 mins, each hole takes 0.004 mins and each board has 500 holes, hence the equation for total time...

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