Case ID: 4245
Solution ID: 35758
Words: 1450
Price $ 75

AIC Netbooks Optimizing Product Assembly Case Solution

Case Solution

AIC Systems, situated in Taichung, Taiwan, is really a manufacturer of printed circuit boards, mainly for motherboards and video cards for PC's. The firm is recognized as an authentic design manufacturer (ODM) and takes an energetic role in finding and creating each new generation of components. By doing in-house design and development, the organization has had the ability to promote exclusive, lengthy-term associations using its clients. The firm decides to broaden its portfolio to incorporate electronic devices having a particular concentrate on mobile technology. The aim would be to change from manufacturing components for other computer companies to developing the firm's own type of top quality electronic devices. The brand new net book computer market offers an chance for AIC Systems to create and manufacture a top quality product within the mobile electronics industry. The development manager has produced an set up line for creating the brand new net book computers, after three several weeks of production he or she must consider methods to improve efficiency and lower production costs. Students must execute a quantitative research into the existing set up-line system making recommendations to achieve 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?