Operations Management

Term-2

Case Analysis

DONNER COMPANY

Submitted to
Prof. Jishnu Hazra

Submitted by:
Group No. 4 (Section C)
ABHISHEK BAID (1111164)
BHARGAV DEORI (1111177)
MERBEN JAYAKARAN.M (1111190)
PANKAJ KUMAR YADAV (1111203)
NIKHIL SABNIS (1111217)
KARTHEEK THUMATY (1111231)
Operations Management Donner Company
Section- C, Group 4 Page 1

Contents

Introduction ................................................................................................ 2
Process flow chart ....................................................................................... 2
Issues faced by Donner ............................................................................... 4
Problems in production process design ........................................................................................ 4
Problems in Productivity .............................................................................................................. 4
Problems in Delivery System ....................................................................................................... 5
Data analysis ............................................................................................... 5
Question 2 .................................................................................................................................... 5
Question 3 .................................................................................................................................... 6
Question 4 .................................................................................................................................... 7
Conclusion ................................................................................................... 7


Appendix 1 ................................................................................................................................... 8













Operations Management Donner Company
Section- C, Group 4 Page 2

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

















Panels alignment (Drilling, Imaging, and Routing)

Punching of location holes

Sheets sheared into 12 X 18 panels

Purchase of 2 sided copper clad epoxy sheet and inspection for visual defects
Preparation Stage
Master artwork

Donner Company Production Process

Operations Management Donner Company
Section- C, Group 4 Page 3





























Pinning of panel to drill
CNC (Automatic)
Drilling
500 holes

Manual Drilling
DFPR (panels are washed, scrubbed, and coated with
dry film photo resist)
Metallization (Copper immersion bath)
Placement of customer artwork on panels
Passed through DFPR developing machine
Electroplatation
Flash plantation of Tin over copper plating
Chemical exposure of UV light
IMAGE TRANSFER STAGE
Operations Management Donner Company
Section- C, Group 4 Page 4













Issues faced by Donner

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.


Molten solder bath
Reduction to required finished
profile
FABRICATION STAGE
Two Methods
CNC Routing Visual Inspection
Operations Management Donner Company
Section- C, Group 4 Page 5

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 that present system may restrict sales to $2
million which can be increased to $3 million if the processes are improved.
Data analysis
Question 2

Scheduling of order sizes in drilling
Time taken depends on the drilling process chosen: Manual drilling or CNC.
Manual drilling: Time taken= 15 + x *0.08* 500
CNC: Time Taken = 240 + x* 0.004*500, x= number of boards
For CNC drill to be used,
15 +x *0.08* 500 240+x* 0.004*500
This gives x 5.92 as a solution. Thus, if number of boards are more than or equal to 6, CNC
drill would be used (Assumption: Parallel use of Manual Drills is not possible)
If parallel use is possible then, seven drill presses can be operated simultaneously so that 7
panels can be worked on at once.
Time taken for drilling 56 circuit boards (7 panels * 8 boards each)
When using manual drilling: 15 + 0.08*500*8 =335 min.
When using a CNC machine: 240 + 56*500*0.004 = 352 min.
However, for values larger than this, CNC produces a smaller time owing to additional time
required for processing holes in manual drilling operation. If we take the case for 57 circuit
boards, we get the following times for the two drilling processes:
Time taken for manual drilling= 335 +0.08*500*1= 375 min
Time taken if using CNC = 240+ 57*500*0.004=354 min.
Operations Management Donner Company
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Therefore, up to an order size of 56 circuit boards, manual drilling is preferred if parallel
processing can be done on the presses, but beyond this, CNC needs to be employed.
Our Decision Rule:
For
n <= 6 Manual Drilling
6 < n <=56
If parallel processing on manual drill allowed Manual Drill
Else CNC Drill
N > 56 CNC Drill
Scheduling of order sizes in Profiling
If number of circuit boards is x,
For Punch press: 50 + x; For CNC Router: 150 + 0.5x
For CNC router to be used, 50+x >= 150 + 0.5x x >= 200
Our Decision Rule:
For
n <= 200 Punch Press
n > 200 CNC Router

Question 3

Standard Labour Times obtained (For Normal Process Flow) for
(a) 1 Board : 396.55 min.
(b) 8 Boards: 615.05 min
(c) 200 Boards: 1840.25 min.
*Please refer to Appendix 1 for detailed tabulated calculation


Operations Management Donner Company
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Question 4

Capacity of Dry-film photo-resist area for order size = 8
a) Panel preparation: 5 + 0.2 = 5.2 min.
b) Laminate and expose: 20 + 2 = 22 min.
c) Develop: 20 + 0.2 = 20.2 min.
Bottle-neck process is Laminate and expose with a time of 22 min.
Thus, capacity = 1/22 per minute = 60/22 = 2.72 circuit boards per hour.

Conclusion

Donner Company has to increase its productivity and reduce delivery time to capture the
opportunities in the market. Optimal conditions for minimizing production and labour time
have been calculated showing that Donner company can ensure faster delivery of printed
circuit boards to its customers and thus minimizing its delays. Achieving this will lead to
better customer satisfaction, resulting in better sales growth and revenues as well.













Operations Management Donner Company
Section- C, Group 4 Page 8


Appendix 1

Case I No of Boards = 1

Standard
Production Time
Times (in minutes)
Operation Type Setup Run
Total Run
Time
Operating
Time
PREPARATION
Artwork Generation 29 0 29
Inspect & Shear 20 0.5/panel 0.5 20.5
Punch Tooling Holes 10 0.5/panel 0.5 10.5

IMAGE TRANSFER
Drill Holes
Manual 15 0.08/hole 40 55
Metallization 10 0.75/panel 0.75 10.75
Dry Film Photoresist
1. Panel Prep 5 0.20/panel 0.2 5.2
2. Laminate &
Expose 20 2/panel 2 22
3. Develop 20 0.2/panel 0.2 20.2
Electroplate 25 8.5/panel 8.5 33.5
Strip DFPR 5 0.2/panel 0.2 5.2
Etch & Tin Strip 10 0.2/panel 0.2 10.2

FABRICATION
Soldermask 45 1.5/panel 1.5 46.5
Solder Dip 30 0.5/panel 0.5 30.5
Profile
Punch Press 50 1.0/board 1 51
Inspect and pack 45 1.5/board 1.5 46.5
Total 396.55






Operations Management Donner Company
Section- C, Group 4 Page 9


CASE II 8 Boards


Standard
Production Time
Times (in minutes)
Operation Type Setup Run
Total Run
Time
Operating
Time
PREPARATION
Artwork Generation 29 0 29
Inspect & Shear 20 0.5 0.5 20.5
Punch Tooling Holes 10 0.5 0.5 10.5

IMAGE
TRANSFER
Drill Holes
CNC Drill 240 0.004 16 256
Metallization 10 0.75 0.75 10.75
Dry Film
Photoresist
1. Panel Prep 5 0.2 0.2 5.2
2. Laminate &
Expose 20 2 2 22
3. Develop 20 0.2 0.2 20.2
Electroplate 25 8.5 8.5 33.5
Strip DFPR 5 0.2 0.2 5.2
Etch & Tin Strip 10 0.2 0.2 10.2

FABRICATION
Soldermask 45 1.5 1.5 46.5
Solder Dip 30 0.5 0.5 30.5
Profile
Punch Press 50 1 8 58
Inspect and pack 45 1.5 12 57
Total 615.05







Operations Management Donner Company
Section- C, Group 4 Page 10


CASE III 200 Boards


Standard
Production Time
Times (in minutes)
Operation Type Setup Run
Total Run
Time
Operating
Time
PREPARATION
Artwork Generation 29 0 29
Inspect & Shear 20 0.5 12.5 32.5
Punch Tooling Holes 10 0.5 12.5 22.5

IMAGE TRANSFER
Drill Holes
CNC Drill 240 0.004 400 640
Metallization 10 0.75 18.75 28.75
Dry Film Photoresist
1. Panel Prep 5 0.2 5 10
2. Laminate & Expose 20 2 50 70
3. Develop 20 0.2 5 25
Electroplate 25 8.5 212.5 237.5
Strip DFPR 5 0.2 5 10
Etch & Tin Strip 10 0.2 5 15

FABRICATION
Soldermask 45 1.5 37.5 82.5
Solder Dip 30 0.5 12.5 42.5
Profile
Punch Press or CNC
Router 50 1 200 250
Inspect and pack 45 1.5 300 345
Total 1840.25