Danshui Plant No.2 is a contract manufacturer locating in southern China and was assembles electronic products for companies wishing to save labor costs and they are using semiskilled labor for less than 1 dollar an hour. In August 2010, Danshui Plant No.2 in southern China has a 1 year contract in the period between 1 June 2010 and 31 May 2011 with Apple incorporation to assemble the Apple iPhone 4. Based on the contract, Danshui need to assemble 2.4 million iPhones within 1 year. However, Wentao Chen, manager of Danshui Plant No.2 was anxious about the plant is not able to assemble 2.4 million as their expected and is operating at a loss when the third month of the contract. Their current production was only 180,000 units per months compared to their planned monthly budget is 200,000 units. Therefore, manager was called the plant controller to analyze the budget and request a summary of monthly operations for August as soon after the end of the month as possible in order to identify the source of performance problem.
Problem statement
In the contract between Apple and Danshui Plant No.2, Danshui need to assemble 2.4 million iPhone within 1 year. This means that Danshui need to produce 200,000 units iPhone 4 per month but now in the third month of the contract they only produce 180,000 per month. Therefore, there are unable to assemble the iPhone 4 within 1 year this may because of they are lack of qualified labor. Danshui Plant No.2 are employs those semiskilled labor and just pay for less than one dollar an hour. This might cause those labors do not have motivation to work, they will feeling lazy, bored and tiring so lead to unable complete 200,000 unit per month. Besides that, Danshui are assembly of hard drives before they assembly of iPhone, which means there are totally two different things. Although Danshui Plant No.2 are confident that its workers would adapt to the new assembly tasks but it still cause mistake to be
Bibliography: TermPaper Warehouse. (n.d.). Termpaper warehouse. Retrieved November 28, 2013, from Danshui Plant No2: http://www.termpaperwarehouse.com/essay-on/Danshui-Plant-No-2/151412 Yuli, T., & Rui , Z. (n.d.). Termpaper Warehouse. Retrieved November 28, 2013, from Danshui Plant No.2 Case Study: http://www.termpaperwarehouse.com/essay-on/Danshui-Plant-No-2-Case-Study/191691