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Optimizing Product Assembly Running head: AIC Netbooks

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Optimizing Product Assembly BALASUBRAMANIAN S

RAMAIAH INSTITUTE OF MANAGEMENT STUDIES

is a Taichung. the company has been able to foster exclusive. Taiwan based company established in the year 1992. For this purpose the production manager created an assembly line that can produce Netbook that meets the quality of the product. By doing in-house design and development. In order to expand its business. it decides to produce with the latest technology. The firm takes active interest in innovation and designing new generation components. . the company decides to enter a new market of consumer electronics by mainly focusing on mobile technology. The company function¶s based on Original Design Manufacturer (ODM).Optimizing Product Assembly 2 Abstract Advanced Integrated Circuitry. long-term relationships with its customers. Inc. By seeing a sudden increase in demand of the product. raises a situation to produce more units of Netbook that can reduce the cost and that can improve its time taken for producing the single Netbooks. By seeing the increasing demand for Netbook in future market. They are solid manufactures of producing Circuit boards and Graphics cards for Personal Computers.

The company can¶t force to run 10 or 12 hours shift. .  To lower the labour cost. Problem in the case:y y y The company should meet the expected demand for the month. Analysis :The following explanation should help in understanding whether or not to improve the existing assembly line or to invest a new line.Optimizing Product Assembly 3 Optimizing Product Assembly Objective  To able to produce more units meeting the demand.  To increase gross margin.  Analyze the existing assembly line and to improve its efficiency or to invest a new line. There is increase in labour cost in Shenzhen area. in order to generate more production units.  The cost of the product should not be increased.

 Increased gross profit margin.Optimizing Product Assembly 4 IMPROVING THE EXISTING ASSEMBLY LINE Merits: By improving the existing line will help in cost control  Can produce more units in lesser time.  Quality of Product will be stable. . when it arises. Proper coordination will not be there with operators. More pressure on labour leads to inefficiency.  Can meet the required demand. Drawbacks Problem in quality may arise.  Can meet the demand.  Workers can work with the allotted time given and reduces their pressure. Drawbacks Cost of production will be increased. INVESTING A NEW ASSEMBLY LINE Merits  New assembly line can be helpful in generating more outputs.

800 units Labour cost per production line = 650 * 4.30 = 650 units Production per month = 650 * 2 * 5 * 6 * 4 = 156.30 seconds Laptop per shift = 28800 / 44. 5 Interpretation Based on the quantitative part it can be explained in the following manner: Four Production Lines        Working hours per day = 8 hours 8 hours per day = 28800 seconds (8 * 3600) Average Actual Time Taken = 44.30 = 650 units Production per month = 650 * 2 * 4 * 6 * 4 = 124.995.396.30 seconds Laptop per shift = 28800 / 44.8 = $ 3120 Profit = 650*2*4*6*4*19.20 = $2.20 = $2.000 units Profit = 650*2*5*6*4*19.160 Five Production Lines       Working hours per day = 8 hours 8 hours per day = 28800 seconds (8 * 3600) Average Actual Time Taken = 44.200 .Optimizing Product Assembly By installing new assembly line can leads to more labour cost.

 By installing a new production line the company can afford to keep floaters in their production process who are very much essential. RECOMMENDATION On my analysis the company should go for another production line which can be helpful for the company for generating more outputs and increased profits.  The Quality check and their other process are not been affected while installing a new production line.  The working hours and the labour cost per production line cost of labour remains the same. By this now the company can meet the sudden increase in demand.  Compare to the four production lines the five production lines could able to generate more gross profit margin. .Optimizing Product Assembly 6 Based on the above quantitative measures we can say that  The fifth production line is able to produce more units that can meet the demand.

.  If it is seen futuristic point of view this new production line certainly leads the company towards the success.  Therefore installing a new production line irrespective of its increasing cost will be an ideal solution.  Though installing a new production line leads to increase in cost but at the same time it is very helpful in generating more revenue as well.  Now the production manager can able to produce more units without any harm in its quality and efficiency which is the important value focused by the company. because in order to speed up the work to generate more units can lead to loss of quality of the product.Optimizing Product Assembly 7 Conclusion  The company with its new production line now could able to achieve the targeted production unit for a month.  Similarly by this process the company now managed the time in meeting the targeted production units.