AIC Netbooks Optimizing Product Assembly Case Solution

Case Solution

AIC Systems, located in Taichung, Taiwan, can be a manufacturer of printed circuit boards, mainly for motherboards and video cards for PC's. The firm is known as a genuine design manufacturer (ODM) and takes a dynamic role to find and creating each new generation of components. By doing in-house design and development, the business has already established the opportunity to promote exclusive, extended-term associations having its clients. The firm decides to broaden its portfolio to include electronic products getting a specific focus on mobile technology. The goal is always to vary from manufacturing components for other computer companies to developing the firm's own type of high quality electronic products. The completely new internet book computer market provides an opportunity for AIC Systems to produce and manufacture a high quality product inside the mobile electronics industry. The expansion manager has created an setup line for allowing the completely new internet book computer systems, after three several days of production she must consider techniques to enhance efficiency minimizing production costs. Students must perform quantitative research in to the existing setup-line system making recommendations to attain optimal efficiency.

Excel Calculations

Monthly Output

Comparison of Planned and Actual Operating time on Work Stations

Current Monthly Output(Units)

Target cycle time

Labor cost analysis

Questions Covered

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?