Case Analysis of Donner Company and Eiic

Topics: Insurance, Chief Inspector, Economics Pages: 6 (2420 words) Published: December 2, 2011
The Donner Company manufactured printed circuit boards to specificaiton of a variety of electronics manufactures. It produces and sells goods to its customers. While EIIC is an insurance company which focus mainly on engineering insurance. It produces and sells service to customers.

Problems for Donner Company:
1.For operation problem, there is a production bottleneck exist in company’s operation, the shifting bottleneck. The shifting of process changed frequently from one to another in the manufacturing system. Every individual orders of different customers always change details because variable request or unqualified items. That will definitely bring our workers and workload a lot of trouble. At the same time, we have the pattern of four-day rush orders. This item will delay the process as it sometimes needs rework at one or two operations. It is due to workers are shifted from one operation to another one as demand’s changing so that some workstations are overloaded. But this situation only happened during bulk orders, while in short orders such as less than 8 circuit boards, Arthur Dief can finish it solo and perfect. Also, when the customer’s engineers have design problems, they are permitted to make a call to operation part which can interrupt normal production. That can be one problem which bothered the process. There is a policy that the shipment should be finished before end of a month, which directly lead to the big amount of shipment at the end of the month. This will not only bring big pressure to transportation office, but also has a bad effect on sales. At the same time, workers are hurrying up for finishing shipment, they would not care more about products’ quality. Also, standards of order keep changing frequently will also bring us the same result. 2.Plummer found that some machines are idle very often, which definitely low down our output. This is related to the frequently moving. Because, the time workers wasted on moving from one station to another can be counted as the idle time, which is equal to shorten the time for producing. According to these we can see, the job strategies are not as well performed as it should be. Also, we need to develop new ideas which can be used to improve our strategy, such as rescheduling orders and reassigning workers, which can bring up our productivity in further days. 3.For managerial problem, I don’t think company did good job on inspection of products’ quality because their returns and reprocessing are keeping increasing. Although it is very difficult to inspect stricter as their orders are different from each other, they still need an effective policy to keep their products’ good quality. As in September, because of incomplete operations and reworking of circuit boards, company’s preshipment reject rates increased and lead to a 6% loss on profit. Also the company as fewer shipments due to production delayed for 9 days and reworking increased. Although hired 8 new workers for helping former work, the company still need to train them and it would take some time for them to getting familiar with this work. Recommendations:

1.IN order to solve the problem of production bottleneck, the work pile up and run out in the operation system, the company should only be accepting orders that are feasible to do and those can be delivered on time. So that the company can focus on the special demands or detailed request of customers, also build up their reputation by finish order without delay. In this situation, the idle times can be reduced as all workers need to finish their task. The most important is, they must reduce the shifting of workers from one operation to the next. Even though every worker knows more than one skill, it is better for them to stay in one station and finish one single process as it can stop waste so much time and reduce turnover. 2.For the producing process, we should pick up a better and more economic way as several process has two or more...
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