Moon

Introduction

Donner Company, started in 1985, manufactures printed circuit boards (PCB) according to specifications of electronic manufacturers. It is one of the leading PCB manufacturers in United States. The industry is witnessing growth due to the increase in use of electronic appliances. The president of the company, Edward Plummer is reviewing the company position in October 1987, before deciding on plans for 1988. During the review he does in-depth study of how various process and operations are carried out and challenges.

The basic work process can be divided into three important stages – preparation, image transfer and fabrication. The detailed process flow chart is given in exhibit 1.

On receiving an order, price was quoted based on estimations of labour and material costs. Based on acceptance by the client, delivery time of 3 weeks was quoted for orders below 1000 boards and 5 weeks for rest. Rush orders were also accepted which needed to be served in four days

Process Flow Chart

Problems in production process design:

The major difficulty faced in production process design was frequently changing bottleneck process in the manufacturing system.

Reasons:

•Continuous change in the product specifications by client.

•Delays caused due to improper management and procurement policies for raw material requirements.

•Interference of rush orders with the process flows causing imbalances.

Problems in Productivity:

Reasons:

•Idle machines and incorrectly defined hours.

•Higher time estimates than competitors

Problems in Delivery System:

The company was frequently defaulting on delivery deadlines.

Reason:

•The policy of clearing all the work possible out of the shop prior to the end of each month resulting in more number of shipment in the second half of the month.

Serious Implications for loss of Revenue:

Searby has expressed serious concerns regarding present problems of the company and says these may cause a decrease in sales. He forecasts...