Executive Summary
AIC systems ( previously named Advanced Integrated Circuitry, Inc.), is a Taichung, Taiwan based manufacturing company, founded in 1992, that produces printed circuit boards ( PCBs), focusing on motherboards and graphics cards for the personal computer industry. By early 2000s, the company had evolved into an original design manufacturer (ODM) by taking active role in innovating and designing new generation components. The company relentlessly focuses on cost management and indigenous design. In 2001, the company shifted all its production volume to china that enhanced learning and provided low cost labour. In 2007, the company embarked on a new strategy to diversify its product portfolio by including mobile technology. By march 2008, they began development of QuiN 816 Netbook( an Atom-based netbook). The process involved a Koda board design and subsequent production assembly line. The major criterion for the assembly line was to have enough capacity to meet peak monthly demand. The netbooks were assembled, done with thermal test, packaged and shipped. The unexpecteddemands for the product lead to over-work. Efforts were put in for installing and operating additional assembly line. After a period of smooth operation, with expectation of further increase in demand, there is a need to find out if demanded production can be managed with existing system or another assembly line needs to be installed.
Problem Statement
After the launch of AIC Notebooks into the market, there has been a sudden spike in demand. The assembly line design requires some refinement to improve overall efficiency. The demand is expected to increase to 1,30,000 units a month. The management is not in favour of running a permanent third shift as it does not want to invest in hiring and training. This is forcing them to run 10 or 12 hour shifts, which is not The company needs to solve the following issues in order to meet the growing demand:
a) Are the