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MM5004 Toshiba: Ome Works

Syndicate 2 MBA Executive 46
29111311 29111328 29111329 29111338 29111344 29111384 29111387 29111393 Haidir Afesina Hendra Winata Mita Listyatri Andek Prabowo Aprian Eka Rahadi Chairunnisa Mirhelina Franciscus Xaverius Kresna P Agung Indri Pramantio

Outline
List of Fact(s)/Issu(e s)

Focus Problem(s)

Possible Solution(s)

Recommendation( s)

Background
• Began operate in 1968 • Produced : - Personal computers - PC Boards - Word processors - Hard disk drives - Optical character readers - Computer and communications system • 4 Catergory of employees: - Full time - Temporary - Part time - Affiliated • 2600 employees in 1995 : - 440 direct factory workers - 1050 design engineers

Fact/ Issue (1)
• • • • Trouble in finishing the installation of floppy disk drive COMPETITION in notebook PC market was FIERCE/strong LIFETIME of a notebook model : ± 6 months MISSING crucial product cycle/ DELAYING introduce new product  large LOSSES in market share • PC assembly PROCESS : 1) two 60-meter assembly conveyors  45 operators each 2) three 27-meter lines  14 operators each 3) three 14.4-meter lines  10 operators each (Exhibit 7) • Total 7 PC assembly line : - 4 IDLE  use only if demand increased) - 3 lines DAILY operation  1 overseas, 2 domestic market • Previously, Ome produced 8 different models  6 different features COMBINATION each models

Fact/ Issue (2)
• 1995: SHORT LIFE TIME of each model - ± 300 units per line  3 to 10 different model per line per day - ± 504,000 units per year  ASUMMPTION 7 lines used (7 lines) x (300 unit per line) x (20 daily lots) x (12 months) • EACH PC model sequentially assembled • EMPLOYEES on notebook assembly line in November 1995 : - 50% full-time, - 25% part-time, - 25% affiliated companies. • Characterized word processor for Japanese market adjacent to PC notebook assembly lines : - high product variety - low volume - no longer expanding.

Fact/Issue (3)
Exist. Ome`s PC assembly line process
Word Processor Assembly Notebook Assembly (3 lines active, 4 lines idle)

Computer Displayed Operator Conveyor Belt Parts R Repair Area Pre Install software & test Racks for burn-in
PKG

S/ T
R S/ T
PKG

Packaging Pallets of finished Product

Fact/Issue (4)
Existing PC Assembly Line Process Flow Chart
STAR T
Computer displayed daily production schedule
1st operator laid out major component 2nd operator entered barcode Portable computer displayed the operations realted to each station The rest of operator pick up the smaller part they need on shelv above their work area

2nd operator scanned the barcode

1st operator place container of small parts on the “blank” space

YES

Model changed?

NO
HW test

Burn-In

ShockTest

NO

Done shock test?

Snapping connector together or attaching parts with small screws

YES

Software pre-installed

Packaging & placed on pallets

Note: 1)“Supporter” per line to replace “break operator” or assist if problem occured. 2)Supervisor, qulity assurance, Supporter and Repair worker often worked during early morning and late afternoon. The speed of conveyor also decreased during this time.

EN D

Focus Problem
• LIFETIME of a notebook model : ± 6 months • Competitor can minimize production & sales cost, lower product price: 1993 Market Share Unit 10.8 % 663 1994 13.8 % 1,192

*refer to Exhibit 2 • Technology appliance (e.g Notebook) create best on both quality assurance and after sales service is critical.

Solution(s)
1) Improving INNOVATION of new model in design process with sufficient speed of time 2) Increasing product demand  improving its MANUFACTURING PROCES  increase speed of assembly line + cutting production cost  lower product price than competitor. 3) Increasing QUALITY CONTROL of product & after sales service 4) Reduce the RESOURCES to process “word processor” product to improve capacity of “PC Notebook” product. 5) Creating system for DISTRIBUTING channel to reach bigger market

Recommendation(s)
1) Improving INNOVATION of new model in design process with sufficient speed of time 2) Increasing product demand  improving its MANUFACTURING PROCES  increasing speed of assembly line + cutting production cost  lower product price than competitor. 3) Increasing QUALITY CONTROL of product and after sales service

Analysis Process + Job Design + Work Measurement

Recommendation
Improving INNOVATION of new model
Hardware Type/Model ? Feature?

INSIDE  Outside Inside ← OUTSIDE

Improving both of hardware and software for adaption to market demand

CUSTOMER

Recommendation
Increasing production unit with low production cost (1)
Table of Increasing Worker Scenario based on Strength & Weakness No
1.

Scenario sort by Priority
REGULAR worker to work additional overtime

+ (+) low cost (+) more responsible (+) skillfull

(-) fatigue employee (-) short term (-) empty post

2.

Reevaluate the work load of the entire plant, SHIFTING worker into assembly area Obtain help from AFFILIATED companies quality controlling Increase
Hiring TEMPORARY or PART-TIME workers

(+) low cost (+) more responsible

(-) empty post (-) short term (-) less skillfull

3.

(+) medium cost (-) empty post of(+) more responsible sales service product & after (-) short term (-) training needed
(+) long term (-) high cost (-) high risk (-) less responsible (-) unskill , training needed

4.

Recommendation
Increasing production unit with low production cost (2)
1. NO EXTEND LINE : 3 op. + 4 idles  possible COMBINATION of increasing worker is scenario 2/3/4/ mix of them (refer table on previous slide) Notebook Assembly (3 lines active, 4 lines idle)

Computer Displayed Operator Conveyor Belt Parts R Repair Area Pre Install software & test Racks for burn-in
PKG

2. EXTEND LINE : operate > 3 op.  possible COMBINATION of increasing worker is scenario 1/2/3/4/mix of them (refer table on previous slide) 3. REDUCE S/T time No need to increase worker, but INCREASE SKILL NEEDED for worker in this section (refer to table on exhibit 1) 4. Improving TECHNOLOGY on assembling line in order to improve manufacturing process

S/ T
R S/ T
PKG

Packaging Pallets of finished Product

Recommendation
Increasing QUALITY ASSURANCE of product & AFTER SALES service
STAR T
Computer displayed daily production schedule
1st operator laid out major component 2nd operator entered barcode Portable computer displayed the operations realted to each station The rest of operator pick up the smaller part they need on shelv above their work area

1) Developing INDIVIDUAL SKILL of employees directed to specific characteristic of product 1st operator place container of small parts on the “blank” space

YES

2nd operator scanned the barcode

Model changed?

NO
HW test

Burn-In

Shock-Test

NO

Done shock test?

Snapping connector together or attaching parts with small screws

YES
3) After Sales Service:  FAST service  assure AVAILABILITY of sensitive spare part on outlet (eg. Floopy disk drive, hardisk drive, LCD, keyboard & mouse)

Software pre-installed

Final Quality Test

Packaging & placed on pallets

2) increase step in QUALITY CONTROL section before packaging STOP (Shock Check, HW Check, SW Pre Installed Check)  increase worker

Thank You