compay abc
Transcript of compay abc
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Contents
Q1. What is the standard labor time for an order of 1 board? 8 boards? 200 boards?............................... 1
Q2. How is Donner doing? What problems do you see? Why do these problems exist?.............................. 3
Q3. What specific actions do you recommend Plummer take to address these problems?......................... 7
APPENDIX ...................................................................................................................................................... A
Labor Time for 1 Board Machine Processing .......................................................................................... I
Labor Time for 1 Board Manual Processing ........................................................................................... II
Labor Time for 8 Boards Machine Processing ....................................................................................... III
Labor Time for 8 Boards Manual Processing ........................................................................................ IV
Labor Time for 8 Boards Manual Drilling and CNC Router Profiling ...................................................... V
Labor Time for 8 Boards CNC Drilling and Punch Press Profiling .......................................................... VI
Labor Time for 200 Boards Machine Processing .................................................................................. VII
Labor Time for 200 Boards Manual Processing .................................................................................. VIII
Labor Time for 200 Boards Manual Drilling and CNC Router Profiling ................................................. IX
Labor Time for 200 Boards CNC Drilling and Punch Press Profiling ....................................................... X
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Q1. What is the standard labor time for an order of 1 board? 8 boards? 200
boards?Two operations, drilling and profiling can be either done manually or using CNC machines. Setup times
and run times are different for manual and machine operations. From the data given, it can be observed
that the run time required for the machine processing is lesser than that required for manual
processing. However, machine setup times are greater than the setup times required for manual
processing. Therefore, as the number of boards to be processed increases, machine processing time
decreases relative to manual processing time, notwithstanding the relatively higher machine setup
times. In order to ascertain the shortest time required to process boards, we calculate the minimum
number of boards, B at which it is optimal to employ machine processing.
Drill:
For orders with less than 6 boards, it is optimal to use manual drilling.
Profile:
For orders with less than 200 boards, it is optimal to use punch press.
Assuming that machine and manual processes can be employed independently for drilling and profiling
operations, the optimal (shortest) processing times are achieved when following processing
combinations are used:
Number of Boards Drill Profile
< 6 Manual Punch Press
6 200 CNC Drill Punch Press
> 200 CNC Drill CNC Router
The above combinations are verified by calculating the processing times using the setup and run times
given in Standard Process Flow. The calculations are shown in the Appendix. It can be observed from the
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processing time calculations for 200 boards, using CNC Drill with CNC Router or Punch Press results in
same processing time.
Number of BoardsOptimal Processing Time
(Hours)
1 6.39
8 10.25
200 30.67
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Q2. How is Donner doing? What problems do you see? Why do these problems
exist?
Donners annual sales have been growing steadily over the years from 1985. The accumulatedsales figure for 1987 has reached $595,000, which is more than the total sales for year 1986.
Donner has ensured that its employees have sufficient skill to handle all the processes; thisprovides Donner flexibility in improving utilization.
Period Net Sales Equivalent Monthly Sales
Sep 1987 $ 124.80 $ 124.80
Aug 1987 $ 144.40 $ 144.40
Jul 1987 $ 85.70 $ 85.70
Jan to Jul 1987 $ 327.90 $ 54.651986 $ 404.50 $ 33.71
1985 $ 246.00 $ 20.50
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
Sep 1987 Aug 1987 Jul 1987 Jan to Jul
1987
1986 1985
Sales
($)
Period
Equivalent Monthly Sales
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Problems at Donner and their probable reasons:
Productivity
1. Problem: Poor labor utilizationReason: From Exhibit 2
i. Total labor spent in the month of September87 is 1531.7 hoursii. Total no. of working days in September87 is 21 daysiii. Total man hours available in September87 is 3696 (21 days x 22 workers x 8 hours/day)iv. Hence labor utilization = 1531.7 hours/3696 = 41.44%
a. Labor hours spent on returned units is currently not accounted in the above calculationb. Transit time between tasks are not accounted for in the above calculation
2. Problem: Improved process methods could not be implementedReason: Mr. Plummer claims that new and improved methods cannot be implemented
because he assumes that the current labor capacity is fully utilized. However the above
computed labor utilization does not endorse his claims
3. Problem: Delayed job schedulingReason: Mr. Flaherty, on receiving new customer orders, waits for several days before
making his scheduling decision and this can ripple through the manufacturing process causing
further delays
4. Problem: Delay due to raw material procurementReason: Since there is no material inventory, the shop floor department does not start
work until the raw materials are procured. The purchasing agent also introduces delays in
looking out for a low cost vendor and this adds 2-3 days delay. In Made to Order (MTO),
emergency raw material procurement reduces bargaining power.
5. Problem: Delay due to resource bottleneck (CNC Machine)Reason: Donner has to go for manual drilling operation even in case of more than 100
Printed Circuit Board (PCB) order size as the CNC machine is completely utilized in the month of
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September. CNC utilization is 160 hrs for September which is close to 100% (8 hrs x 21 days =
168hrs).
6. Problem: Bottleneck in utilization of floor spaceReason: Floor space is completely utilized; therefore, no addition of machines is possible
7. Problem: Delay due to transit between different process stagesReason: Floor plan is not optimized for minimal transit time from one process location to
another
Quality
1. Problem: Informal and insufficient inspectionReason: The employees are made to inspect items/units through the manufacturing
chain. This practice is ineffective in catching defects and results in loss of productive labor hours.
2. Problem: Increased percentage of defects and return of units from 1% to 3%Reason: Low quality inspection, several missed operations in the manufacturing process,
and adding 8 new people in the month of August who may be involved in quality checks.
3. Problem: Quality standards not definedReason: Customer driven quality checks rather than company imposed quality standards.
Donner should ensure that it maintains high standards and benchmarks for quality.
Delivery
1. Problem: Delayed delivery to customersReason: Shipments are stacked towards the end of month causing delayed delivery to
customers. This claim is confirmed from Exhibit 5 where most of the shipments happen towards
the last 5 days of September.
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Strategy/Policy
1. Problem: Mr. Searby and Mr. Plummer believe in targeting low volume, special circuitboard market
Reason: From Exhibit 2, 4, and 5 we can deduce that the majority of sales for September
is from few large volume orders for which the CNC machine is the optimal choice of operation
2. Problem: Shop floor policy on CNC usageReason: The higher productivity of CNC machine over manual drilling warrants its usage
at 6 boards rather than the stated 100 board policy. These calculations have been mentioned as
part of question 1.
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Q3. What specific actions do you recommend Plummer take to address these
problems?
Specific actions have been suggested as part of Donners goal to reach $3 Million sales by 1989.
This target can be achieved with production of approximately 11,500 boards per month.
Calculations:
Current production: 5761 Boards
Current sales: $124,800
For $3 Million per year we require monthly average sales of $250K ($3 Million/12 months). This
amounts to an average monthly production volume of 11500 boards.
1. Donner should rethink its strategy and go for large volume orders to maximize its economies ofscale
i. As can be interpreted from Exhibit 2, 4, and 5, Donners majority share of revenue isfrom large volume orders
ii. Small volume orders are ineffective because they use manual labor and create abottleneck in the manufacturing process
iii. For small volume orders, the CNC setup time is relatively large compared to the totaldrilling process time
iv. Shop floor policy must be modified to use CNC Drill for order size of greater than 6boards
2. Capacity expansioni. Add CNC machines: CNC resolves the bottleneck at the drilling process and increases
efficiency. The machine occupies just 25 sq ft. As per Exhibit 1, ()
()
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In the absence of CNC Drill, 4,825 x 0.08 x 500 = 193,000 minutes of manual labor
would have to be introduced in place of 4,825 x 0.004 x 500 = 9,650 minutes. The
associated cost increase would have been $26,680 ($8.73 x 183,350/60). Therefore,
$26,680 is the potential monthly cost savings realized by employing CNC machineinstead of manual labor.
ii. Add floor space: Purchase of new machine and future expansion requires additionalspace as the present floor space is completely utilized
iii. Add electroplating machine: The electroplating machine becomes the bottleneckwhen attempting to achieve the 11,500 board target. This can be resolved by adding
a new machine.
3. Improve floor plan: Currently lot of time is spent in shifting units between processlocations. This could be minimized with an optimal floor plan that is compatible with the
process flow.
4. Division of Labor specializationi. When the employees are specialized to handle individual process components (like
fabrication, image transfer, etc.),
a. efficiency and quality improvesb. mentoring and monitoring reduces
ii. Inspection should be developed as a specialization since the current process isinefficient
5. Scheduled shipmenti. Do not hold finished goods until the end of month, instead ship as soon as produced
6. Build up raw material inventoryi. Since the volume of business increases, this has to be supplemented with a raw
material inventory to avoid unnecessary procurement delays
ii. Reduce the cost of procurement
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7. Improved job schedulingi. Shop floor supervisor should start job scheduling as soon as he/she gets the make
order as opposed to waiting until raw materials arrive
8. Define quality standards and process checklistsi. Implement industry acceptable quality standards in order to reduces production
returns from customers
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Analysis of 1,000 board order processing:
Donner Company currently promises delivery in three weeks for orders less than 1,000 boards and five
weeks for orders more than 1,000 boards. Analyzing processing times, assuming sequential processing,
13.64 days are required to process an order of 1,000 boards. Accounting for factor of safety and
shipment time, a promise of 3-week delivery, is reasonable. However, assuming that parallel processing
can be adopted, the processing time can be brought down to 7.34 days and a promise of 10 day delivery
can be made to the customers. It should be noted, however, that parallel processing requires additional
manpower and machinery capacity.
Operation Setup Run Orders Board Sequential Setup By Racks
Mins Hours Mins Hours
PREPARATION
Artwork Generation 29 0 1 1000 29 0.48 29 29 0.48Inspect & Shear 20 0.5 1 1000 82.5 1.38 20 10 0.17
Punch Tooling Holes 10 0.5 1 1000 72.5 1.21 10 10 0.17
IMAGE TRANSFER
Drill
Manual
CNC Drill 240 0.004 1 1000 2240 37.33 240 320 5.33
Metallization 10 0.75 1 1000 103.75 1.73 10 15 0.25
Dry Film Photoresist
1. Panel Prep 5 0.2 1 1000 30 0.50 5 4 0.072. Laminate & Expose 20 2 1 1000 270 4.50 20 40 0.67
3. Develop 20 0.2 1 1000 45 0.75 20 4 0.07
Electroplate 25 8.5 1 1000 1087.5 18.13 25 170 2.83
Strip DFPR 5 0.2 1 1000 30 0.50 5 4 0.07
Etch & Tin Strip 10 0.2 1 1000 35 0.58 10 4 0.07
FABRICATION
Soldermask 45 1.5 1 1000 232.5 3.88 45 30 0.50
Solder Dip 30 0.5 1 1000 92.5 1.54 30 10 0.17
ProfilePunch Press
CNC Router 150 0.5 1 1000 650 10.83 150 80 1.33
Inspect, Test, Pack 45 1.5 1 1000 1545 25.75 45 240 4.00
TOTAL Hours 109.09 Hours 58.75
Days 13.64 Days 7.34
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A
APPENDIX
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Labor Time for 1 Board Machine Processing
1 Board
Operation Setup Run Orders Boards Total
Mins Hours
PREPARATION
Artwork Generation 29 0 1 1 29.00 0.48
Inspect & Shear 20 0.5 1 1 20.06 0.33
Punch Tooling Holes 10 0.5 1 1 10.06 0.17
IMAGE TRANSFER
Drill
Manual
CNC Drill 240 0.004 1 1 242.00 4.03
Metallization 10 0.75 1 1 10.09 0.17
Dry Film Photoresist
1. Panel Prep 5 0.2 1 1 5.03 0.08
2. Laminate & Expose 20 2 1 1 20.25 0.34
3. Develop 20 0.2 1 1 20.03 0.33
Electroplate 25 8.5 1 1 26.06 0.43
Strip DFPR 5 0.2 1 1 5.03 0.08
Etch & Tin Strip 10 0.2 1 1 10.03 0.17
FABRICATION
Soldermask 45 1.5 1 1 45.19 0.75
Solder Dip 30 0.5 1 1 30.06 0.50
ProfilePunch Press
CNC Router 150 0.5 1 1 150.50 2.51
Inspect, Test, Pack 45 1.5 1 1 46.50 0.78
TOTAL Hours 11.16
Days 1.40
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Labor Time for 1 Board Manual Processing
1 Board
Operation Setup Run Orders Boards Total
Mins Hours
PREPARATION
Artwork Generation 29 0 1 1 29.00 0.48
Inspect & Shear 20 0.5 1 1 20.06 0.33
Punch Tooling Holes 10 0.5 1 1 10.06 0.17
IMAGE TRANSFER
Drill
Manual 15 0.08 1 1 55.00 0.92
CNC Drill
Metallization 10 0.75 1 1 10.09 0.17
Dry Film Photoresist
1. Panel Prep 5 0.2 1 1 5.03 0.08
2. Laminate & Expose 20 2 1 1 20.25 0.34
3. Develop 20 0.2 1 1 20.03 0.33
Electroplate 25 8.5 1 1 26.06 0.43
Strip DFPR 5 0.2 1 1 5.03 0.08
Etch & Tin Strip 10 0.2 1 1 10.03 0.17
FABRICATION
Soldermask 45 1.5 1 1 45.19 0.75
Solder Dip 30 0.5 1 1 30.06 0.50
ProfilePunch Press 50 1 1 1 51.00 0.85
CNC Router
Inspect, Test, Pack 45 1.5 1 1 46.50 0.78
TOTAL Hours 6.39
Days 0.80
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Labor Time for 8 Boards Machine Processing
8 Boards
Operation Setup Run Orders Boards Total
Mins Hours
PREPARATION
Artwork Generation 29 0 1 8 29.00 0.48
Inspect & Shear 20 0.5 1 8 20.50 0.34
Punch Tooling Holes 10 0.5 1 8 10.50 0.18
IMAGE TRANSFER
Drill
Manual
CNC Drill 240 0.004 1 8 256.00 4.27
Metallization 10 0.75 1 8 10.75 0.18
Dry Film Photoresist
1. Panel Prep 5 0.2 1 8 5.20 0.09
2. Laminate & Expose 20 2 1 8 22.00 0.37
3. Develop 20 0.2 1 8 20.20 0.34
Electroplate 25 8.5 1 8 33.50 0.56
Strip DFPR 5 0.2 1 8 5.20 0.09
Etch & Tin Strip 10 0.2 1 8 10.20 0.17
FABRICATION
Soldermask 45 1.5 1 8 46.50 0.78
Solder Dip 30 0.5 1 8 30.50 0.51
ProfilePunch Press
CNC Router 150 0.5 1 8 154.00 2.57
Inspect, Test, Pack 45 1.5 1 8 57.00 0.95
TOTAL Hours 11.85
Days 1.48
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Labor Time for 8 Boards Manual Processing
8 Boards
Operation Setup Run Orders Boards Total
Mins Hours
PREPARATION
Artwork Generation 29 0 1 8 29.00 0.48
Inspect & Shear 20 0.5 1 8 20.50 0.34
Punch Tooling Holes 10 0.5 1 8 10.50 0.18
IMAGE TRANSFER
Drill
Manual 15 0.08 1 8 335.00 5.58
CNC Drill
Metallization 10 0.75 1 8 10.75 0.18
Dry Film Photoresist
1. Panel Prep 5 0.2 1 8 5.20 0.09
2. Laminate & Expose 20 2 1 8 22.00 0.37
3. Develop 20 0.2 1 8 20.20 0.34
Electroplate 25 8.5 1 8 33.50 0.56
Strip DFPR 5 0.2 1 8 5.20 0.09
Etch & Tin Strip 10 0.2 1 8 10.20 0.17
FABRICATION
Soldermask 45 1.5 1 8 46.50 0.78
Solder Dip 30 0.5 1 8 30.50 0.51
ProfilePunch Press 50 1 1 8 58.00 0.97
CNC Router
Inspect, Test, Pack 45 1.5 1 8 57.00 0.95
TOTAL Hours 11.57
Days 1.45
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Labor Time for 8 Boards Manual Drilling and CNC Router Profiling
8 Boards
Operation Setup Run Orders Boards Total
Mins Hours
PREPARATION
Artwork Generation 29 0 1 8 29.00 0.48
Inspect & Shear 20 0.5 1 8 20.50 0.34
Punch Tooling Holes 10 0.5 1 8 10.50 0.18
IMAGE TRANSFER
Drill
Manual 15 0.08 1 8 335.00 5.58
CNC Drill
Metallization 10 0.75 1 8 10.75 0.18
Dry Film Photoresist
1. Panel Prep 5 0.2 1 8 5.20 0.09
2. Laminate & Expose 20 2 1 8 22.00 0.37
3. Develop 20 0.2 1 8 20.20 0.34
Electroplate 25 8.5 1 8 33.50 0.56
Strip DFPR 5 0.2 1 8 5.20 0.09
Etch & Tin Strip 10 0.2 1 8 10.20 0.17
FABRICATION
Soldermask 45 1.5 1 8 46.50 0.78
Solder Dip 30 0.5 1 8 30.50 0.51
ProfilePunch Press
CNC Router 150 0.5 1 8 154.00 2.57
Inspect, Test, Pack 45 1.5 1 8 57.00 0.95
TOTAL Hours 13.17
Days 1.65
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Labor Time for 8 Boards CNC Drilling and Punch Press Profiling
8 Boards
Operation Setup Run Orders Boards Total
Mins Hours
PREPARATION
Artwork Generation 29 0 1 8 29.00 0.48
Inspect & Shear 20 0.5 1 8 20.50 0.34
Punch Tooling Holes 10 0.5 1 8 10.50 0.18
IMAGE TRANSFER
Drill
Manual
CNC Drill 240 0.004 1 8 256.00 4.27
Metallization 10 0.75 1 8 10.75 0.18
Dry Film Photoresist
1. Panel Prep 5 0.2 1 8 5.20 0.09
2. Laminate & Expose 20 2 1 8 22.00 0.37
3. Develop 20 0.2 1 8 20.20 0.34
Electroplate 25 8.5 1 8 33.50 0.56
Strip DFPR 5 0.2 1 8 5.20 0.09
Etch & Tin Strip 10 0.2 1 8 10.20 0.17
FABRICATION
Soldermask 45 1.5 1 8 46.50 0.78
Solder Dip 30 0.5 1 8 30.50 0.51
ProfilePunch Press 50 1 1 8 58.00 0.97
CNC Router
Inspect, Test, Pack 45 1.5 1 8 57.00 0.95
TOTAL Hours 10.25
Days 1.28
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VII
Labor Time for 200 Boards Machine Processing
200 Boards
Operation Setup Run Orders Boards Total
Mins Hours
PREPARATION
Artwork Generation 29 0 1 200 29.00 0.48
Inspect & Shear 20 0.5 1 200 32.50 0.54
Punch Tooling Holes 10 0.5 1 200 22.50 0.38
IMAGE TRANSFER
Drill
Manual
CNC Drill 240 0.004 1 200 640.00 10.67
Metallization 10 0.75 1 200 28.75 0.48
Dry Film Photoresist
1. Panel Prep 5 0.2 1 200 10.00 0.17
2. Laminate & Expose 20 2 1 200 70.00 1.17
3. Develop 20 0.2 1 200 25.00 0.42
Electroplate 25 8.5 1 200 237.50 3.96
Strip DFPR 5 0.2 1 200 10.00 0.17
Etch & Tin Strip 10 0.2 1 200 15.00 0.25
FABRICATION
Soldermask 45 1.5 1 200 82.50 1.38
Solder Dip 30 0.5 1 200 42.50 0.71
ProfilePunch Press
CNC Router 150 0.5 1 200 250.00 4.17
Inspect, Test, Pack 45 1.5 1 200 345.00 5.75
TOTAL Hours 30.67
Days 3.83
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VIII
Labor Time for 200 Boards Manual Processing
200 Boards
Operation Setup Run Orders Boards Total
Mins Hours
PREPARATION
Artwork Generation 29 0 1 200 29.00 0.48
Inspect & Shear 20 0.5 1 200 32.50 0.54
Punch Tooling Holes 10 0.5 1 200 22.50 0.38
IMAGE TRANSFER
Drill
Manual 15 0.08 1 200 8015.00 133.58
CNC Drill
Metallization 10 0.75 1 200 28.75 0.48
Dry Film Photoresist
1. Panel Prep 5 0.2 1 200 10.00 0.17
2. Laminate & Expose 20 2 1 200 70.00 1.17
3. Develop 20 0.2 1 200 25.00 0.42
Electroplate 25 8.5 1 200 237.50 3.96
Strip DFPR 5 0.2 1 200 10.00 0.17
Etch & Tin Strip 10 0.2 1 200 15.00 0.25
FABRICATION
Soldermask 45 1.5 1 200 82.50 1.38
Solder Dip 30 0.5 1 200 42.50 0.71
ProfilePunch Press 50 1 1 200 250.00 4.17
CNC Router
Inspect, Test, Pack 45 1.5 1 200 345.00 5.75
TOTAL Hours 153.59
Days 19.20
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IX
Labor Time for 200 Boards Manual Drilling and CNC Router Profiling
8 Boards
Operation Setup Run Orders Boards Total
Mins Hours
PREPARATION
Artwork Generation 29 0 1 200 29.00 0.48
Inspect & Shear 20 0.5 1 200 32.50 0.54
Punch Tooling Holes 10 0.5 1 200 22.50 0.38
IMAGE TRANSFER
Drill
Manual 15 0.08 1 200 8015.00 133.58
CNC Drill
Metallization 10 0.75 1 200 28.75 0.48
Dry Film Photoresist
1. Panel Prep 5 0.2 1 200 10.00 0.17
2. Laminate & Expose 20 2 1 200 70.00 1.17
3. Develop 20 0.2 1 200 25.00 0.42
Electroplate 25 8.5 1 200 237.50 3.96
Strip DFPR 5 0.2 1 200 10.00 0.17
Etch & Tin Strip 10 0.2 1 200 15.00 0.25
FABRICATION
Soldermask 45 1.5 1 200 82.50 1.38
Solder Dip 30 0.5 1 200 42.50 0.71
ProfilePunch Press
CNC Router 150 0.5 1 200 250.00 4.17
Inspect, Test, Pack 45 1.5 1 200 345.00 5.75
TOTAL Hours 153.59
Days 19.20
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Labor Time for 200 Boards CNC Drilling and Punch Press Profiling
8 Boards
Operation Setup Run Orders Boards Total
Mins Hours
PREPARATION
Artwork Generation 29 0 1 200 29.00 0.48
Inspect & Shear 20 0.5 1 200 32.50 0.54
Punch Tooling Holes 10 0.5 1 200 22.50 0.38
IMAGE TRANSFER
Drill
Manual
CNC Drill 240 0.004 1 200 640.00 10.67
Metallization 10 0.75 1 200 28.75 0.48
Dry Film Photoresist
1. Panel Prep 5 0.2 1 200 10.00 0.17
2. Laminate & Expose 20 2 1 200 70.00 1.17
3. Develop 20 0.2 1 200 25.00 0.42
Electroplate 25 8.5 1 200 237.50 3.96
Strip DFPR 5 0.2 1 200 10.00 0.17
Etch & Tin Strip 10 0.2 1 200 15.00 0.25
FABRICATION
Soldermask 45 1.5 1 200 82.50 1.38
Solder Dip 30 0.5 1 200 42.50 0.71
ProfilePunch Press 50 1 1 200 250.00 4.17
CNC Router
Inspect, Test, Pack 45 1.5 1 200 345.00 5.75
TOTAL Hours 30.67
Days 3.83