The Morrison Company
MBA513 Operations Management
Team 2
Chong Zhu, Ziqing Lin, Zifei Wang, Xiawei Yang, Hugang Guo
Part 1 Analysis of Donner Company:
The Donner Company manufactured printed circuit boards to the specifications of a variety of electronics manufacturers. It was a production line. Even though in the first stage of manufacturing process, the artworks were provided by customers and the company would configure the boards according to customer specifications, the company would then produce the boards on a large scale. The company was a factory because it manufactured a large quantity of circuit boards. It was also in batch flow because the stages of manufacturing process were discrete. (shown in Exhibit 1)
The Donner Company now had problems in productivity, quality and delivery.
First, the production bottleneck was very perplexing because it shifted almost daily from one operation to another without pattern. The cause was differences in order size, design and operations. The shop supervisor Flaherty didn’t when work would pile up or run out.
Second, the standard labor hour didn’t include time which was spent reworking parts which failed inspection or were returned by customers and time which was required to move boards from one operation to another. In addition, the standard didn’t reflect improvements which could be made in the shop. While the president Plummer could not change the standard for now because he was afraid that new problems would be created.
Third, the qualities of boards decreased. The main cause were incomplete operations and subsequently reworking. In addition, actual deliveries in August, September and October had averaged ten, eight and nine days late.
According to the problems below, I have five suggestions for Mr. Plummer:
First, the Donner Company can provide several template boards for customers. Because in 1987 the technology of drawing and designing was far behind, it would take a long time for