Donner company case study solution

One particular thing that Donner does is during the stage of image transfer.

Donner company case study solution

For example, during several months when the Donner Company was in operation, one tenth of the circuits boards that were returned were damaged, and the remaining nine tenth were returned because Donner failed to accomplish one or two the essential operations.

Rush orders Promised time of delivery for rush orders was 4 days and hence these orders were given priority and replaced existing orders which were in process; this lead to frequent bottlenecks at different stages. Plummer, was also concerned about the quality control of the raw materials from the beginning of the process all the way to the finished boards at the end of the process.

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About holes are drilled for each circuit board and then the boards are processed through a copper immersion bath. The rush orders had a frequency of three a week.

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For orders that are larger than circuits, Donner promises a shipment time of five weeks. Both these points highlight the need of specialized and organized quality check of boards after production phase.

Therefore, on orders of less than 6 boards, use the manual drill and punch press. It was essentially being managed by engineers, which meant that its core competence was its technical expertise. This stalled the production of the board as the modification needed to be worked upon into the design and approved which resulted in almost two weeks delay. This is probably because price is not something that Donner competed on. From the given manufacturing process there are some bottlenecks which require the modification 1 Breakeven point analysis to select CNC drill or manual drill. One of the major concerns may be because of procrastinating work till the end of the month where prior work needs to be dispatched by month end. The frequency of artwork modification requests ranged between per week. For orders that are larger than circuits, Donner promises a shipment time of five weeks.

The frequency of artwork modification requests ranged between per week. Wrongly estimated working time It was found that the labor hours did not correctly denote the additional time a resource spent on reworking on parts which failed inspection or were returned by customer.

Donner company labor utilization

Wrongly estimated working time It was found that the labor hours did not correctly denote the additional time a resource spent on reworking on parts which failed inspection or were returned by customer. Vertical integration, with an associated side payment from GM to Fisher, was the way in which this contractual hold-up problem was solved. Key Problems One of the dimensions that Donner competes on is its variety, and when the process it undertakes is efficient, it can also be very responsive to their customers needs. All these unfavorable aspects decrease customer satisfaction, making these companies less likely to work with the Donner Company again in the future. The president of Donner, Mr. This three-step process consists of the preparation stage, image transfer stage, and the fabrication stage. Donner focuses on gratifying all of its customers needs is a very flexible company to work with. Introduction damentally changed the way we look at economic institutions. From Exhibit 1, the net sales that Donner Company had were very irregular from and fluctuated from month to month. Return rework - The quality standards ranged from client to client and only an informal check was done at Donner manufacturing end this resulted in almost 9 out of 10 deliveries lacking in quality in terms of missed parts or other quality constraints. Afterwards, the panels are cleaned off and the customer artwork is duplicated onto the boards so that the copper surface that corresponds to the desired conductors is bare. These bare areas are then electroplated and by the end of the process, the desired circuit pattern is on both sides of the board. As a result of this shift in bottleneck, employees that are qualified in more than one department are usually shifted to different jobs throughout the day. The Donner Company faces problems with both the physical flow of production as well as information flow within the company.

It also deliver its products at an average of nine days late, more than a week later than it promises.

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