Exhibit 1 Donner Company Summary of Profit and Loss ($000)

September August July Jan-July 1986 1985

1987 1987 1987 1987
Net Sales $124.8 100.0% $144.4 100.0% $85.7 100.0% $327.9 100.0% $404.5 100.0% $246.0 100.0%

Cost of Goods Sold

Materials 42.6 34.1 49.9 34.6 29.1 34.0 110.3 33.6 138.0 34.1 77.2 31.4
Direct Labor 32.3 25.9 32.7 22.6 19.7 23.0 91.9 28.0 109.0 26.9 67.2 27.3
Indirect Wages, Salaries 8.2 6.6 8.8 6.1 4.8 5.6 23.3 7.1 36.7 9.1 26.0 10.6
Manufacturing Overhead 25.9 20.8 25.8 17.9 13.8 16.1 48.4 14.8 58.8 14.5 38.0 15.4

Total Cost of Sales 109.0 87.3 117.2 81.2 67.4 78.6 273.9 83.5 342.5 84.7 208.4 84.7

Gross Profit 15.8 12.7 27.2 18.8 18.3 21.4 54.0 16.5 62.0 15.3 37.6 15.3

Selling Expense 4.5 3.6 4.3 3.0 4.1 4.8 14.5 4.4 25.4 6.3 26.2 10.7
Administrative Expense 8.2 6.6 8.1 5.6 7.8 9.1 30.3 9.2 34.5 8.5 18.3 7.4
Total Selling & Administrative 12.7 10.2 12.4 8.6 11.9 13.9 44.8 13.7 59.9 14.8 44.5 18.1

Net Profit Before Tax $3.1 2.5% $14.8 10.29% $6.4 7.5% $9.2 2.8% $2.1 0.5% $(6.9) -2.8%
Exhibit 2 Standard Process Flow *

Standard
Production Times September's September's Total
(min.) Production Standard Production
Total
Operation Setup Run Orders Boards Setup Run (in min) (in hrs.)

PREPARATION
Artwork Generation 29 0.000 50 799 1,450 0 1,450 24.2
Inspect & Shear 20 0.500a 60 5,761 1,200 360 1,560 26.0
Punch Tooling Holes 10 0.500a 60 5,761 600 360 960 16.0

IMAGE TRANSFER
Drill
Manual 15 0.080b 51 936 765 37,440 38,205 636.8
CNC Drille 240c 0.004b 9 4,825 2,160 9,650 11,810 196.8
Metallization 10 0.750a 60 5,761 600 540 1,140 19.0
Dry Film Photoresist
1. Panel Prep 5 0.200a 60 5,761 300 144 444 7.4
2. Laminate & Expose 20 2.000a 60 5,761 1,200 1,440 2,640 44.0
3. Develop 20 0.200a 60 5,761 1,200 144 1,344 22.4
Electroplate 25 8.500a 60 5,761 1,500 6,121 7,621 127.0
Strip DFPR 5 0.200a 60 5,761 300 144 444 7.4
Etch & Tin Strip 10 0.200a 60 5,761 600 144 744 12.4

FABRICATION
Soldermask 45 1.500a 55 5,744 2,475 1,077 3,552 59.2
Solder Dip 30 0.500a 55 5,744 1,650 359 2,009 33.5
Profile
Punch Press 50 1.000d 47 1,223 2,350 1,223 3,573 59.6
CNC Router 150c 0.500d 6 4,331 900 2,166 3,066 51.1
Inspect, Test, Pack 45 1.500d 60 5,761 2,700 8,642 11,342 189.0

Total 21,950 69,954 91,904 1,531.7

aPer panel; typical panel consists of eight circuit boards.

bPer hole; typical circuit board has 500 drilled holes.

cThis setup time is almost entirely the preparation of the required computer control.

dPer circuit board.

eShop floor policy dictates that only orders for more than 100 boards be drilled on this equipment.

*This represents the "typical" flow. The design of the circuit board often requires some deviation from this path, and special boards often require operations
not shown here.
 ActualSize
Exhibit 4 Order Order Size: September 1987
(Number of Circuit Boards Base Stock Number of Total Number of
In Each Order) Code Letters Orders Circuit Boards
1 A, B, D, E 7 7
2 A, B, F, H 7 14
3 B, D 2 6
4 A, B, C, F, H 7 28
5 A, D 2 10
6 B, C 2 12
10 B, D, E 3 30
11 D, F 2 22
12 A, J, K 6 72
14 A, E, G 3 42
20 D 1 20
40 B, K 2 80
50 C, E 2 100
60 C 1 60
84 J 1 84
100 C 1 100
113 E 1 113
136 C 1 136
140 F 1 140
154 A 1 154
200 D 1 200
229 E 1 229
252 A 1 252
800 G 1 800
1000 D, M 2 2000
1050 A 1 1050
60 5761
Exhibit 5 Value of Actual Shipments in September (in dollars)

Date Daily Cumulative

1 $11,118 $11,118
4 (1,188) 9,930
5 4,057 13,987
6 1,696 15,683
7 2,226 17,909
8 8,430 26,339
11 2,395 28,734
12 (684) 28,050
13 2,560 30,610
14 5,926 36,536
15 (147) 36,389
18 3,952 40,341
19 13,216 53,557
20 10,070 63,627
21 5,561 69,188
22 2,275 71,463
25 176 71,639
26 (1,327) 70,312
27 (7,975) 62,337
28 17,939 80,276
29 44,560 124,836
Exhibit 2 Sequence of Operations, Standard Times, and Production Records
for September, Year Three (refer to the case for more detail)
Standard Production September's September's Total Standard Production
Times (in minutes) Production ( in minutes ) (in hours) September 21 days
Operation Setup Run Orders Boards Setup Run Total Total Utilization 8 hours per day
PREPARATION
Artwork Generation 29 0 50 799 1,450 0 1,450 24.2 14.38
Inspect & Shear 20 0.5/panel 60 5,761 1,200 360 1,560 26.0 15.48
Punch Tooling Holes 10 0.5/panel 60 5,761 600 360 960 16.0 9.52

IMAGE TRANSFER
Drill Holes
Manual 15 0.08/hole 51 936 765 37,440 38,205 636.8 54.15 7 machines
CNC Drill 240 0.004/hole 9 4,825 2,160 9,650 11,810 196.8 117.16
Metallization 10 0.75/panel 60 5,761 600 540 1,140 19.0 11.31
Dry Film Photoresist
1. Panel Prep 5 0.2/panel 60 5,761 300 144 444 7.4 4.41
2. Laminate & Expos 20 2/panel 60 5,761 1,200 1,440 2,640 44.0 26.19
3. Develop 20 0.2/panel 60 5,761 1,200 144 1,344 22.4 13.33
Electroplate 25 8.5/panel 60 5,761 1,500 6,121 7,621 127.0 75.61
Strip DFPR 5 0.2/panel 60 5,761 300 144 444 7.4 4.41
Etch & Tin Strip 10 0.2/panel 60 5,761 600 144 744 12.4 7.38

FABRICATION
Soldermask 45 1.5/panel 55 5744 2,475 1,077 3,552 59.2 35.24
Solder Dip 30 0.5/panel 55 5744 1,650 359 2,009 33.5 19.93
Profile
Punch Press 50 1.0/board 47 1223 2,350 1,223 3,573 59.6 35.45
CNC Router* 150 0.5/board 6 4331 900 2,166 3,066 51.1 30.41
Inspect and pack 45 1.5/board 60 5,761 2,700 8,642 11,342 189.0 112.51
Total 21,950 69,954 91,904 1,531.7
Source: Prepared by casewriter from company production records and standard times estimates
Assumptions: 8 circuit boards per panel and 500 holes per circuit board.
* There is a typo in the case, run time in minutes = 0.5*4,311 = 2,166 and not 2,266 as given in the
case.

Capacity Computations

Table 1 Donner Company Data Entry Template.

(Please refer to the instructions on page 1. All run times are per board.)
Standard Production Times (in minutes)
Set-up Run AvailableRun Time Usage Available Hasmukh: Capacity
Operation Time Time Time per board Factor RunThese
time values
in Boards
PREPARATION are assumed
Artwork Generation 29 0 9,600 0 1.000 3,800.0 1,000,000
here. i.e. 11.1%
Inspect & Shear 20 0.5/panel 9,600 0.0625 1.000 5,600.0 89,600
of orders will
Punch Tooling Holes 10 0.5/panel 9,600 0.0625 1.000 7,600.0 121,600
be assigned to
IMAGE TRANSFER
CNC Drill and
Drill Holes
remaining
Manual 15 0.08/hole 67,200 40 0.889 orders will be
64,533.3 3,747
CNC Drill 240 0.004/hole 9,600 2 0.111 assigned to 7
4,266.7
Metallization 10 0.75/panel 9,600 0.09375 1.000 manual drill
7,600.0 81,067
Dry Film Photoresist machines
1. Panel Prep 5 0.2/panel 9,600 0.025 1.000 8,600.0 344,000
2. Laminate & Expos 20 2/panel 9,600 0.25 1.000 5,600.0 22,400
3. Develop 20 0.2/panel 9,600 0.025 1.000 5,600.0 224,000
Electroplate 25 8.5/panel 9,600 1.0625 1.000 4,600.0 4,329
Strip DFPR 5 0.2/panel 9,600 0.025 1.000 8,600.0 344,000
Etch & Tin Strip 10 0.2/panel 9,600 0.025 1.000 7,600.0 304,000
Hasmukh:
FABRICATION
These values
Soldermask 45 1.5/panel 9,600 0.1875 1.000 600.0 3,200
are assumed
here.
 Hasmukh:
These values
are assumed
Solder Dip 30 0.5/panel 9,600 0.0625 1.000 3,600.0 57,600
Profile
here.
Punch Press 50 1.0/board 9,600 1 0.750 2,100.0 6,300
CNC Router 150 0.5/board 9,600 0.5 0.250 2,100.0
Inspect and pack 45 1.5/board 19,200 1.5 1.000 10,200.0 6,800
Note: We assume that inspect & pack has a lot of capacity (workers can chip in when idle.)

Table 2 Donner Company Capacity to Order Size function.

NUMBER OF ORDER 200 CALCULATED CAPACITY: 3,200

Number ofCapacity
Orders in Boards Name of Bottleneck Process
1 6,466 Drill
10 6,343 Drill
20 6,207
30 6,070
40 5,933
50 5,797
100 5,113
150 4,430
197 3,788
198 3,680
200 3,200 Soldermask
212 320
213 80
214 0
S h op C a pa c ity ( no. of boa rd s)

7000

6000

5000

4000

3000

2000

1000

0
1 10 20 30 40 50 100 150 197 198 200 212 213

No. of Orders
Exhibi 4 Actual Order Size: September 1987
Order Size Base Stock Total
(# boards/order) Code Letters # Orders #Boards A B C D E F G H J K M
1 A,B,D,E 7 7 1 1 1 1
2 A,B,F 7 14 1 1 1
3 B,D 2 6 1 1
4 A,B,C,F,H 7 28 1 1 1 1 1
5 A,D 2 10 1 1
6 B,C 2 12 1 1
10 B,D,E 3 30 1 1 1
11 D,F 2 22 1 1
12 A,J,K 6 72 1 1 1
14 A,E,G 3 42 1 1 1
20 D 1 20 1
40 B,K 2 80 1 1
50 C,E 2 100 1 1
60 C 1 60 1
84 J 1 84 1
100 C 1 100 1
113 E 1 113 1
136 C 1 136 1
140 F 1 140 1
154 A 1 154 1
200 D 1 200 1
229 E 1 229 1
252 A 1 252 1
800 G 1 800 1
1,000 D,M 2 2,000 1 1
1,050 A 1 1,050 1
Total 60 5,761 58.33 50.00 23.33 33.33 28.33 28.33 6.67 11.67 11.67 13.33 3.33 % of total orders
28.28 3.07 7.57 39.84 9.04 3.54 14.62 0.49 2.71 2.64 34.72 % of total boards
% of total orders
% of total boards