http://www.casetutors.com/35758/AICNetbooks-Optimizing-Product-Assembly.html AIC Netbooks Optimizing Product Assembly Case ID - 4245 Abstract
Solution ID - 35758
1450 Words
AIC Systems founded in 1992 was a printed circuit board producer for the personal computer industry. They specialized in motherboards and graphic cards. By the 2000s the company had grown into an Original Design Manufacturer (ODM) encouraging innovation and new generation designs. In 2007 the company diversified into the production of Net books. However AIC is unable to meet the demand with the current operations. The production is neither efficient nor effective. The firm has a few options to improve the assembly line by either increasing the shifts or the assembly lines. Each of these options will increase the labor cost for the firm but facilitate in meeting the target production and cycle time. Excel Sheet Monthly Output Comparison of Planned and Actual Operating time on Work Stations Current Monthly Output(Units) Target cycle time Labor cost analysis Questions Covered 1. How efficient is netbook assembly at the Kaizhi plant? 1. What is the monthly output of the plant? 2. What is the theoretical efficiency of the planned line, looking only at direct labor on the assembly line?
3. What is the actual efficiency of the assembly line? 2. How effective is the current operation? 1. What are the right criteria by which to evaluate it? 2. Is the operation designed appropriately to meet demand? 3. What is the financial impact of bringing the operation closer to full potential and achieving planned production levels? 1. What is the planned production level in terms of monthly output? 2. What is the financial impact of achieving the target cycle time? 3. How important is reducing direct labor as a means to improve financial performance? (Assume each assembly line worker costs $500 per month) 4. What recommendations would you make to Elias Chen? Keywords Production planning, Manufacturing, Quantitative management Status Available
management, Production analysis, Performance
This case solution is ready. You can download it immediately after purchasing. Download link will be sent in payment comfirmation email.
