Donner Company Case Analysis
Donner Company Case Analysis
Operations Management
Indian Institute of Management Bangalore
PGSEM 2012
Introduction
Donner Company manufactures printed circuit boards (PCB) according to specifications of electronic manufacturers. It is one of the leading PCB manufacturers in United States. It started in 1985. The president of the company, Edward Plummer is reviewing the company position in October 1987, before deciding on plans for 1988.
CNC Vs Manual Drill Decision Rules
As per our analysis we recommend CNC or Manuals drill as per the decision login depicted in the table below. (Please refer to Appendix for calculation details).
Figure 3: CNC Vs Manual Drill Decision Table
CNC Router Vs Punch Press Decision Rules
Table below depicts the decision rule for scheduling CNC router or punch press.
Figure 4: CNC Router Vs Punch Press Decision Table
Capacity Analysis of DFPR
Let us assume an order size of 8.
As shown in table below, bottleneck is “Laminate & Expose” process with time = 22 mins.
Hence the capacity = 1/22 per min = 60*8/22 per hour = 21.818 boards per hour.
Figure 5: Capacity Analysis of DFPR (Order Size of 8)
Also, we see that the bottleneck will always be “Laminate & Expose” even if we vary the order size from 1 to 1050 or even more. This is because the run time is much higher than the other 2 steps.
The graph below depicts the capacity of DFPR with varying order sizes.
Figure 6: Capacity of DFPR Vs Order Size
Problems Faced by Donner Company 1. Delay in delivery (Average of 9 day delay) a. Deliveries not consistently spread throughout the month 2. Quality issues b. Returns increased from 1% to 3% c. 90% of the returns because of operations misses d. 7% pre-shipment reject rate 3. Other challenges e. Lack of well-defined processes and difficulty of scheduling orders faced by supervisor
Our Analysis
Our analysis shows that this is the current operational
Operations Management
Indian Institute of Management Bangalore
PGSEM 2012
Introduction
Donner Company manufactures printed circuit boards (PCB) according to specifications of electronic manufacturers. It is one of the leading PCB manufacturers in United States. It started in 1985. The president of the company, Edward Plummer is reviewing the company position in October 1987, before deciding on plans for 1988.
CNC Vs Manual Drill Decision Rules
As per our analysis we recommend CNC or Manuals drill as per the decision login depicted in the table below. (Please refer to Appendix for calculation details).
Figure 3: CNC Vs Manual Drill Decision Table
CNC Router Vs Punch Press Decision Rules
Table below depicts the decision rule for scheduling CNC router or punch press.
Figure 4: CNC Router Vs Punch Press Decision Table
Capacity Analysis of DFPR
Let us assume an order size of 8.
As shown in table below, bottleneck is “Laminate & Expose” process with time = 22 mins.
Hence the capacity = 1/22 per min = 60*8/22 per hour = 21.818 boards per hour.
Figure 5: Capacity Analysis of DFPR (Order Size of 8)
Also, we see that the bottleneck will always be “Laminate & Expose” even if we vary the order size from 1 to 1050 or even more. This is because the run time is much higher than the other 2 steps.
The graph below depicts the capacity of DFPR with varying order sizes.
Figure 6: Capacity of DFPR Vs Order Size
Problems Faced by Donner Company 1. Delay in delivery (Average of 9 day delay) a. Deliveries not consistently spread throughout the month 2. Quality issues b. Returns increased from 1% to 3% c. 90% of the returns because of operations misses d. 7% pre-shipment reject rate 3. Other challenges e. Lack of well-defined processes and difficulty of scheduling orders faced by supervisor
Our Analysis
Our analysis shows that this is the current operational