Donner Company Case Study Pdfs
- Donner Company Case Study Pdfs Template
- Donner Company Case Study Pdfs Template
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Study Questions Question 1 The normal process flow for the production of printed circuit boards at Donner Company consists of three distinct stages: preparation, image transfer, and fabrication. Each stage is comprised of several steps of operations that require standard production in. The management of a small manufacturer of circuit boards faces a number of production and operations management problems. The first day on this case is used to analyze the production capacity of various stages in the process and to examine bottlenecks and key production flow decisions.
Preparation Stage
Imagine Transfer
Fabrication
2. What size orders would you schedule on the CNC drill? On the CNC router?
Time taken to process the orders depends on the selected drilling method either
a) Manual drilling or CNC OR b) Using CNC Drill
Assumption 1: Manual Drilling is not done on all the available Manual Drill Presses in parallel.
Calculating time taken for Manual drilling and CNC Drilling:
= Setup Time + Run Time (Per Hole) * No. of Holes drilled on each circuit board * No. of boards
Time taken for Manual drilling =15 + 0.08*500*x where x= number of circuit boards
Time taken for CNC drilling = 240 + 0.004*500*x where x= number of…show more content…
of Boards (n) Parallel Process allowed Manual Drill 6 < n ≤ 56 No Parallel Processing CNC Drill n > 56 CNC Drill
What Size orders can be scheduled on CNC Router?
Using the steps used in previous part, calculating the time taken by each method
Time taken for Punch Press =50 + x Time taken for CNC Router = 150+ 0.5x
To figure out whether CNC Router to be used,
50 + x ≥ 150+ 0.5x Hence x ≥ 200. [x= number of circuit boards]
Conclusion for CNC Router: n < 200 Use Punch Press
Total no. of Boards (n) n > 200 For Use CNC Router
3. Would you recommend adding another CNC drill? Perform a net-present value calculation to help make the decision. Price of the CNC machine is $80,000. The additional assumption we need to add to assumption already given is that:
Arthur Dief will run all the small orders (8 circuit boards or less) and other boards will be done on a CNC machine despite of the shop floor policy which states that only orders for more than 100 boards be drilled on a CNC machine.
The company is currently using a CNC machine for orders for equal or greater than 140 boards due to capacity of a CNC machine; however, they would be able to process all orders with CNC machines if they add one more machine.
In this case, if we calculate the current cost in drilling process:
Autor: Maryam • November 14, 2017 • 2,762 Words (12 Pages) • 363 Views
2.2 Layout problem
The shop floor layout was designed to efficiently utilize the space available. The plating processes which released large volumes of acid vapors had been located far from the machining operations to avoid the corrosion of the machine tools. Though this generated stellar results in the form of longer lifetime of the tools but it highly reduced the productivity of the plater. The plater had to simultaneously inspect panels as well as carry them to the plating tanks. The large distance between the operations consumed 15% of the plater’s time. She was also interrupted every 3 to 4 minutes to inspect the panels in the tanks. The productivity of the plater could be increased by decreasing the distance between inspection panel and the plating process. The two could be separated with highly insulating material to avoid the corrosion and increase machine life time along with plater’s productivity.
2.3 Operating problems
One major problem faced by the management was the shifting bottlenecks problem. This was caused due to varying order sizes and differences in circuit design.
25% of problems in job delay process were caused due to design problems encountered by engineers after placing the order. This once again led to bottlenecks as workers had to await further specifications of the new design. This shifts the bottlenecks to other operating procedures.
Also there was no quality specification for raw materials which may turn out to be defective. This may cause disruptions in the work of operators working on a specific project, they may require additional raw material (which takes about 1 – 2 days to locate, then a few additional days to be delivered to the company). Eventually there might be delay in the entire production cycle.
Donner promised a 4 day delivery to customers who placed rush orders. The company already suffered from bottlenecks on a daily basis but still promised a 4 day delivery system. Clearly this meant that, no matter what, rush orders were a priority (This was also due competitive pressures faced by Donner). If raw material was needed for rush orders, it was obtained from the existing inventory, which was originally bought to fulfil large orders. This causes shortages in inventory, which means that Donner’s purchasing has to locate and purchase additional material (which normally took 2 days). The result is possible stoppage of operation process until new raw material was obtained, which also meant down time for the operators (down time at one process, hence a bottleneck at a specific process).
2.4 Productivity problems
With so many operating problems, many productive problems were obviously expected. With frequent changes in orders size and designs, management noticed that machines were idle for many hours than was expected. In addition, standard labor time for each process was not accurate time as it did not include the time spent by workers on orders which required reworking. The management also faced a dilemma in using manual labor (for drilling and punch press) or the CNC machine for the same purpose. Evidently the management did not use the breakeven point to solve this issue.
2.5 Delivery problems
Since all the processes were interconnected, also there were high rates of re-works and customer returns (which increase from 1% to 3%), Donner failed to meet is delivery dates. However, rush orders remained unaffected causing bottlenecks as these orders were treated as special cases wherein raw materials, workers and other processes were fetched to fulfill these needs on a special basis.
Finally, the new sales manager for Donner stated his concerns that Donner’s sales may not be able to reach $2M in sales (in 1988) if it continued to have such productivity and delivery problems. So he believed Donner should continue bidding for low volume orders and improve their quality standards, so that sales reach $3M.
3. Standard Labor Time and Bottleneck
3.1 Break-even order size
As per the process described in the case, there are two options, viz. the process can be carried out either with CNC machine or without it. The break even size of order in terms of boards is calculated as follows:
Standard Production time
CNC
Punch press
Setup
150
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50
Run
0.5*
1*
*Run time per circuit board
Let the number of circuit boards in 1 order be N. (N is the order size)
Total time setup= Setup Time + Run time
Using the Break-even analysis, it is the point at which time consumed by CNC router is equal to taken by Punch Press.
Therefore,
150+0.5*N = 50+1*N
100= 0.5N
N =200
Inference:
- If number of circuit boards ordered is more than 200, Donner Company should go for CNC drills.
- If number of circuit drills ordered is less than 200, then Punch press shall be used,
- If it’s exactly 200, then either of the two can be used.
3.2 Standard labor time
Standard labor time for order size 1, 8 and 200 is as follows (Exhibit 2)
Order Size
1
8
200
SLT (min)
396.55 = 6.61 hr.
Donner Company Case Study Pdfs Template
799.4 = 13.23 hr.
Donner Company Case Study Pdfs Template
11849 = 197.48 hr. or 8.22 days
As calculated in the table in Exhibit 2, the bottleneck is as follows:
- Operations without using CNC machine