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Group 8_Donner Solution

Group 8_Donner Solution

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Published by Mayank Mishra

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Published by: Mayank Mishra on Oct 23, 2012
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09/26/2013

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1.
 
What is the standard labor time for an order of 1 board? 8 boards? 200 boards?STANDARDPRODUCTION TIMELABOUR TIME FOR 1BOARDLABOUR TIME FOR 8BOARDSLABOUR TIME FOR 200BOARDSOPERATION SET-UP RUN SET-UP RUN TOTAL SET-UP RUN TOTAL SET-UP RUN TOTALPHASE I:PREPARATION
ArtworkGeneration29 0 29 0 29 29 0 29 29 0 29Inspect & Shear 20 0.5 20 0.0625 20.0625 20 0.5 20.5 20 12.5 32.5Punch ToolingHoles10 0.5 10 0.0625 10.0625 10 0.5 10.5 10 12.5 22.5
PHASE II:IMAGETRANSFER
DrillManual 15 0.08 15 40 55 15 320 335 15 8000 8015CNC 240 0.004
CNC Drill cannot be used CNC Drill cannot be used 
240 400 640Metallization 10 0.75 10 0.09375 10.09375 10 0.75 10.75 10 18.75 28.75Dry FilmPhotoresistPanel Prep 5 0.2 5 0.025 5.025 5 0.2 5.2 5 5 10Laminate &Expose20 2 20 0.25 20.25 20 2 22 20 50 70Develop 20 0.2 20 0.025 20.025 20 0.2 20.2 20 5 25Electroplate 25 8.5 25 1.0625 26.0625 25 8.5 33.5 25 212.5 237.5Strip DFPR 5 0.2 5 0.025 5.025 5 0.2 5.2 5 5 10Etch & Tin Strip 10 0.2 10 0.025 10.025 10 0.2 10.2 10 5 15
PHASE III:FABRICATION
Solder Mask 45 1.5 45 0.1875 45.1875 45 1.5 46.5 45 37.5 82.5Solder Dip 30 0.5 30 0.0625 30.0625 30 0.5 30.5 30 12.5 42.5ProfilePunch Press 50 1 50 1 51 50 8 58 50 200 250CNC Router 150 0.5 150 0.5 150.5 150 4 154 150 100 250Inspect, Test,Pack45 1.5 45 1.5 46.5 45 12 57 45 300 345
Assumptions
Profiling through Punch Press Profiling through PunchPressDrilling through CNC Machine
Labor Timein minutes383.38125 694.05 1840.25Labor Timein hours6.3896875 11.5675 30.67083333
 
2.
 
How is Donner doing? What problems do you see? Why do these problems exist?
Donner has to improve its production methods in order to compete effectively with other printed circuit boardmanufacturers. It has to reduce the delay period of deliveries and percentage of orders rejected or returned due tooperational mistakes. It is growing rapidly with increase in net sales. But it needs to address the productionproblems in order to achieve the desired growth targets (3 million US$ by 1988).We see following problems with the company
(i) Raw Material Related
 a.
 
Dependent upon outside suppliers for raw material supply.b.
 
No definite estimates as different orders need different raw materials.c.
 
Several days delay between order reaching a supervisor and raw materials reaching him.
(ii) Order Process Related
a. Different order sizes from different customers.b.
 
Four day rush orders disrupt other work flows. These gain priority over existing work flow and createbottlenecks as they hold up operators working on previous orders.c.
 
Re-working of orders rejected by customer or requiring minor changes
. This eats into operator’s time and takes
them away from normal work.d.
 
Work delayed due to late delivery of customer artwork modification or design changes (caused 1/4
th
of delayed jobs in a process)
(iii) Production Related
a.
 
Operators disrupted frequently on the job (6-12 times) to secure more work from an upstream process, to seekadvice on a problem and to deliver completed work.b.
 
Flaherty delayed scheduling decision until the arrival of raw materials.c.
 
Work piles up with some operators even as others are free. The bottleneck keeps shifting for each differentproduct or work flow.d.
 
Resources are tied up in bottlenecks, which is not definite and hence a mitigation strategy cannot be workedout without changing the current workflow process.
(iv) Quality Related
a.
 
Differing quality expectations with different ordersb.
 
Boards were returned because of failure to perform all the required operations.c.
 
Pre-shipment reject rates of 7%, which consists of total losses (15% of reject) and incomplete operations (85%of reject). This was probably because of bottleneck tying up some operations and some boards missing theseoperations in the confusion.d.
 
All these issues have led to recent failures in maintaining quality standards and meeting delivery deadlines.Customer returns have increased to 3% from 1% and shipments are 9 days delayed on average.
(v)
 
Delivery Related
a)
 
4 of Donner’s competitors are promising 4
week delivery on small orders (<1000), and if Donner performancedelivery continues to fall then it will fail to reach its sales target of 3 million US$, as it will lose its competitivestrength of promising delivery in 3 weeks (pre-August performance).
(vi)
 
Layout and Plant Design Related
a)
 
Different processes of the work flow are separated (in order to extend the equipment lifetime) and this causesa lot of operator time to be wasted in walking between the different work stations.
(vii)
 
Labor Efficiency Related
a)
 
No defined role, work flow requirements lead them to different stations, causing significant loss of productivitycompared to a situation where one worker was handling only one defined task.
 
3. What specific actions do you recommend Plummer take to address these problems?Regarding Raw materials:
a)
 
Holding common raw materials(copper foils, dielectric insulators, leads) inventory to reduce lead time, try to
forge contracts with those suppliers who supply raw materials during “rush orders” for general orders
as well.
 
b)
 
Donner should open a Purchase department and employ a purchase manger instead of asking a purchase agentfor raw materials supply.
Regarding order process related:
a)
 
After employment of purchase manager, the process engineer (Altmeyer) can concentrate on making differentchecks to stop skipping of some process steps. As well as , he can ensure design at the start of the process fromcustomers and reducing re-work due to change in designb)
 
By observing table 1, we can say that drilling holes is the bottleneck of the process as per general flow:If we calculate the No. of boards in a single order, for which time taken by CNC machine is equal to manual drills:240+ 0.004*500*y=15+ 0.08*500*yy=5.92So for batch order size >= 6, Donner should use CNC machines. (The current policy is to use CNC machine only inthe case of order size > 100). It will also increase utilization of CNC from current level and decrease dependency onmanual drills.Also, we need to use CNC router for batch size>=200 for profiling. (Clear by Ans. To question 1)
For batch size<6 For batch size>=6and <=200For Batchsize>200Drilling
Manual CNC CNC
Profiling
Punch Press Punch Press CNC Router
Regarding Order size
Currently, Donner is fulfilling low size orders as well as high size orders (From batch size 1 to 1050). Diversification
may be a desirable options but it is hampering Donner’s current capacity by creating randomness in system.
Itmight go for high batch size orders with simple technology boards (batch size>=100). There it will be saving set uptimes
. Even in September’87, 88% boards belonged to high batch size orders. It shows that Donner has gainedsufficient trust in its’ customers for supplying high bat
ch size orders. As well as, Donner may also operate in lowbatch sizes (Batch size<=8) and charge premium for those batches. The smaller batch sizes will ensure quality andall process steps maintained as well as rush orders can also be included there. Donner should stop taking ordersbetween batch size of 8 and 100. It will reduce randomness in system. This part along with revised plan for drillingand profiling will tackle shifting of bottlenecks
Regarding Production:
a) The scheduling should be started as soon as blue print of order is received by Flaherty. He should not wait forarrival of raw materials as arrival will be ensured by Purchase manager. A supervisor should also be employed to
assist Flaherty in scheduling of “Rush Orders”.
 
Regarding Quality:
The new scheme of production manager, Purchase manger and selected batch sizes will automatically tackle quality
issues related to skipping of process. Further, Donner may use some international standards in its’ inspectionstation and train its’ em
ployees for the same.

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