AIC Systems, situated in Taichung, Taiwan, is a producer of printed circuit boards, largely for motherboards and video cards for PCs. The company is thought to be an original design manufacturer (ODM) and is actively involved in the inventing and modeling of each novel batch of the products. With internal design and development, the firm has accomplished to build loyal and long-term relations with its clients. The company has contemplated over broadening its portfolio to comprise of consumer electronics with a specific attention given to mobile technology. The purpose is to shift from producingparts for different computer firms to starting the company’spersonal product line of branded consumer electronics. The novel "net book" industryallows a chance for AIC Systems to model and produce a branded item in the mobile electronics business. The manufacturingsupervisor has made an assembly line for manufacturing the novel net books, and following three months of manufacturing he must take into account alternative methods to enhance productivity and lessen manufacturing costs. Studnets must complete a quantitative evaluation of the current assembly-line design and make proposals to reach optimal productivity.
Comparison of Planned and Actual Operating time on Work Stations
Current Monthly Output(Units)
Target cycle time
Labor cost analysis
How efficient is netbook assembly at the Kaizhi plant?
What is the monthly output of the plant?
What is the theoretical efficiency of the planned line, looking only at direct labor on the assembly line?
What is the actual efficiency of the assembly line?
How effective is the current operation?
What are the right criteria by which to evaluate it?
Is the operation designed appropriately to meet demand?
What is the financial impact of bringing the operation closer to full potential and achieving planned production levels?
What is the planned production level in terms of monthly output?
What is the financial impact of achieving the target cycle time?
How important is reducing direct labor as a means to improve financial performance? (Assume each assembly line worker costs $500 per month)
What recommendations would you make to Elias Chen?