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Iphone Danshui plant 2 underproduction problem
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Transcript of Iphone Danshui plant 2 underproduction problem
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Danshui Plant No. 2
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Overview
1. Recognition of Decision Requirement2. Diagnosis and Analysis of Causes3. Development of Alternatives4. Selection of Desired Alternative5. Implementation of Chosen Alternative6. Evaluation and Feedback
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Decision Requirement
Low production Required to produce 200000 iphone 4 units Currently producing 180000 iphone 4 units
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Analysis of causes
Inadequate qualified labor Time factor Technical trouble with the samsung flash
memory installation The process was labor intensive
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Development of Alternatives
Outsourcing• Skilled labor• Finished products
Adaption of Capital intensive Recruiting more labor(30-35%) Relocate the plant to an area where
unemployment is high Give incentives to increase working hours Increase supervision
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SWOT analysis
StrengthAssembly line technique according to
specification of international companiesLow labor costs/semi-skilled laborDanshui Plant No.2 was known as a
profit center
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SWOT Analysis
WeaknessesExcess capacityComponents of assembly sourced
internationallyWrong budget estimation Production based on labor intensiveProblem of hiring enough qualified
workers
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SWOT Analysis
OpportunityIt would be a great opportunity to show
the company’s abilities in order to secure future assembling jobs for apple and other companies
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SWOT Analysis
ThreatsDelay in meeting required capacity of
200000 units per monthNot fulfilling contract requirementLoosing trust of Apple to be able to
successful produce the required amount of phones(Threatens future tenders)
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Desired Alternative
Production 180000 iphones on our own
Outsourcing finished products from Foxconn
@month 26667 iphones to be outsourced
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Implementation of Chosen Alternative
Persuasion• Convincing Foxconn to produce the
iphone 4 at the lowest possible priceContract
• Signing contract with FoxconnPayment
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Evaluation and Feedback
Outsourcing of finished iphone units to Foxconn proved to be a successIt was the fastest, most efficient solution to meet the agreed contractThe factory was able to cut down the cost and keep a reasonable profit margin
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THANK YOU!
~the end