11/11/2013

OPERATIONS MANAGEMENT 1 ASSIGNMENT

DONNER COMPANY

GROUP V1 (SEC 4)
NAME ANINDYA GANGULY ANURAG BOTHRA HARISH B PRAGATI CHAUHAN RENJIT THOMAS ROLL NO 13406 13411 13419 13435 13440

1) Draw a process flow diagram of Donners order processing process (from bids to releasing the order to the shop floor)? STEPS: 1. Plummer, President and Altmeyer, Design Engineer estimated labour and material cost in preparing a bid for customer order 2. If the customer accept the bid, deliver in three weeks for order of less than 1000 boards and five weeks for greater than 1000 boards. 3. Prepare detailed material specifications and factory order showing material specifications, delivery date, no of circuits and sequence of operations 4. Sent the order details to purchase agent for procuring raw materials at low price in about 4 days for normal order and just a day for rush orders 5. Enter the order in log and send a blueprint and factor order to supervisor. 6. Schedule the order based on estimation of labour, raw materials, worker shift and other critical requirements.

Step 1

Estimate labor and material cost for bidding

Step 2

If bid accepted, delivery promised within deadline

Step 3

Prepare detailed material specification and factory order

Step 4

Order details sent to purchasing agent

Step 5

Order entered into a log. Blueprint and factory order sent to supervisor

Step 6

Schedule preparatory work

2) What order size would you schedule on the CNC router? On the punch press? Breakeven point is used to decide whether to use the automated CNC router or manual punch press.

CNC Router Set up time for 1 order Run time for 1 circuit board 50 1

Punch Press 150 0.5 N

Number of circuit boards in 1 order (order N size) Total time (Setup time + Run time) 50+(1)*(N)

150+(0.5)*(N)

Breakeven point is the point at which the time consumed for CNC router and punch press would be equal: 50 + 1 * N = 150 + .5 *N 0.5N = 100 N = 200 Conclusion: If order size is more than 200, Donner Company should go for CNC Drill. If order size is less than 200, Donner Company should go for Punch Press. If order size is exactly 200, either CNC Drill or Punch Press could be used. 3. Assuming a normal process flow, how many minutes per board are needed to produce an order of 8 circuit boards? Of 80 circuit boards? Of 800 circuit boards? Conditions used in below calculations: Drilling Process: (a) Manual Drill is used for order size less than 100 (b) CNC Drill is used for order size is greater than 100 Profiling Process: (a) Punch Press is used for order size is less than 200 (b) CNC Router is used for order size is greater than 200

Operation

Setup Run Time Time 1. Preparation Artwork 29 0 Generation

Total Time (order size = 8) = (29*1)+(0*8) = 29

Total Time (order size = 80) = (29*1)+(0*80) = 29

Total Time (order size = 800) = (29*1)+(0*800) = 29

Inspect and 20 Shear Punch 10 Tooling Holes 2. Image Transfers a) Drill Holes Manual Drill 15

0.5 0.5

= (20*1)+(.5*1) = 20.5 =(10*1)+(.5*1) =10.5

= (20*1)+(.5*10) = 25 =(10*1)+(.5*10) =15

= (20*1)+(.5*100) = 70 =(10*1)+(.5*100) =60

=(15*1)+(.08*8*500) =(15*1)+(.08*80*500) NA = 335 = 3215 CNC Drill 240 0.004 NA NA =(240*1)+(.004*800*500) =1840 Metallization 10 0.75 =(10*1)+(.75*1) =(10*1)+(.75*10) =(10*1)+(.75*100) =10.75 =17.5 =85 b) Dry Film Photoresist (DFPR) Panel 5 0.2 =(5*1)+(.2*1) =(5*1)+(.2*10) =(5*1)+(.2*100) Preparation =5.2 =7 =25 Laminate 20 2 =(20*1)+(2*1) =(20*1)+(2*10) =(20*1)+(2*100) and Expose =22 =40 =220 Develop 20 0.2 =(20*1)+(0.2*1) =(20*1)+(0.2*10) =(20*1)+(0.2*100) =20.2 =22 =40 Electroplate 25 8.5 =(25*1)+(8.5*1) =(25*1)+(8.5*10) =(25*1)+(8.5*100) =33.5 =110 =875 Strip DFPR 5 0.2 =(5*1)+(.2*1) =(5*1)+(.2*10) =(5*1)+(.2*100) =5.2 =7 =25 Etch and Tin 10 0.2 =(10*1)+(.2*1) =(10*1)+(.2*10) =(10*1)+(.2*100) Strip =10.2 =12 =30 3. Fabrication Solder Mask 45 1.5 =(45*1)+(1.5*1) =(45*1)+(1.5*10) =(45*1)+(1.5*100) =46.5 =60 =195 Solder Dip 30 0.5 =(30*1)+(0.5*1) =(30*1)+(0.5*10) =(30*1)+(0.5*100) =30.5 =35 =80 4. Punch Press Punch Press 50 1 =(50*1)+(1*8) =(50*1)+(1*80) NA =58 =130 CNC Router 150 0.5 NA NA =(150*1)+(0.5*800) =550 Inspect and 45 1.5 =(45*1)+(1.5*8) =(45*1)+(1.5*80) =(45*1)+(1.5*800) Pack =57 =165 =1245 TOTAL 695.05 3890 5369 (mins) Minutes per 86.88 48.625 6.71 board

0.08

4. List three specific actions to reduce the average flow time of jobs. Explain why they would achieve their outcome. 1) The Plater worked at a desk inspecting panel was kept 18 away from plating tanks. Altmeyer found that 15% of the time was spent walking between the desk and the tanks. So the Plater can be placed closer to Plating tank so that the walking time can be reduced. 2) Assign the workers into various process depending on the nature of the job. This action will make the processes to be carried out in a more organized manner and prevent the wastage of time by moving from one job task to another. The process becomes more efficient and hence saves lot of time in average work flow 3) Employ a separate team to address telephone calls from the customers engineers who had encountered design problems. Either employ them from the existing pool of employees or hire/contract new employees. Since one fourth of the jobs got delayed due to telephone calls, this would help in reducing job delay and also improve the productivity of employees who are handling operations job as they can concentrate exclusively on production process. 5. Is Donner doing too much by accepting small and large orders? What is the effect of this on the shop floor and various performance measures? Donner is taking up more orders than what they are capable of handling due to the varying nature of order size. Effect on Shop floor: a) Each order had different circuit designs and order size that lead to workers being assigned randomly in different activities depending on the work load. This led to inefficiency and scheduling problems. b) Workers engaged in manual drilling being run out of work. This is due to large order sizes of more than 100 boards where CNC drilling is used. It requires less man power required and many workers remain idle. This leads to loss of productivity. c) The return of circuit board by customers had increased from less than 1% to about 3% due to incomplete operations. This reflects the incapability of Donner in operating larger order size. d) Increased number of order returns leads to more reprocessing and shipping of returned orders. It requires more employees involved in these activities which will reduce the productivity and affects the operational efficiency of Donner. e) Smaller order are supervised by senior employee directly, so its operations are smooth compared to the larger orders.

f) Since the workers do not have clarity on the exact kind of work they are expected to do and the time of work, it will become extremely difficult to assess their performance based on work type and duration of work. Effects on performance measures: (a) Average flow time for larger order is more comparable to smaller orders. Considering 3 weeks for less than 1000 boards, 5 weeks for more than 1000 and 4 days for urgent orders. It implies the incapability of Donner in handling larger order size. (b) Shipments for larger order size were delayed by an average 9 days. (c) Quality of the product has been affected due to large orders. Percentage of customer returns increased from less than 1% to 3% due to incapability in handling larger order size. (d) The time standards used by Donner were substantially above the standards used in competing firms and it is based on judgement of Plummer and Altmeyer.