Donner Company Case Analysis
Zachary Harris (#112177795)
11.09.2010
Donner Company
FIT Analysis I. Opportunity * Customers: Electronics manufacturers; IBM, AT&T, Digital Equipment are customers for large orders of simple boards or small orders of prototype boards: Specializes in making circuit boards for experimental devices and pilot production runs * Costs: * Variable costs: raw materials, direct labor, selling expense * Fixed Costs: manufacturing overhead, indirect labor, administrative expense * Competition: * 750 printed circuit board manufacturers in U.S. * Classified as captive or contract manufacturers * Context: Circuit board industry growth parallels computer, telecom & defense industry growth rates * Key Success Factors: 1. Increase manufacturing productivity 2. Improve product quality 3. Determine actual manufacturing time by tracking boards through production system * Hope to better predict production time so delivery dates can be accurately estimated and met 4. Price orders by required delivery date (charge premium for rush orders) II. People * Edward Plummer – President – intimate understanding of production process (helped create it); believes in superiority of the company’s designs and production processes * Bruce Altmeyer – Design Engineer – also very knowledgable of production process; also in charge of locating design errors, preparing CNC equipment, identifying & solving production problems * Diane Schnabs – Expediter – tracks orders, investigates production problems * David Flaherty – Supervisor – in charge of manufacturing from order until shipment; supervisers 22 production employees (large responsibility) * Shop Employees – qualified (often in 1+ areas), experienced, must exercise skill & care * Managers & Engineers have ample experience & intelligence in
11.09.2010
Donner Company
FIT Analysis I. Opportunity * Customers: Electronics manufacturers; IBM, AT&T, Digital Equipment are customers for large orders of simple boards or small orders of prototype boards: Specializes in making circuit boards for experimental devices and pilot production runs * Costs: * Variable costs: raw materials, direct labor, selling expense * Fixed Costs: manufacturing overhead, indirect labor, administrative expense * Competition: * 750 printed circuit board manufacturers in U.S. * Classified as captive or contract manufacturers * Context: Circuit board industry growth parallels computer, telecom & defense industry growth rates * Key Success Factors: 1. Increase manufacturing productivity 2. Improve product quality 3. Determine actual manufacturing time by tracking boards through production system * Hope to better predict production time so delivery dates can be accurately estimated and met 4. Price orders by required delivery date (charge premium for rush orders) II. People * Edward Plummer – President – intimate understanding of production process (helped create it); believes in superiority of the company’s designs and production processes * Bruce Altmeyer – Design Engineer – also very knowledgable of production process; also in charge of locating design errors, preparing CNC equipment, identifying & solving production problems * Diane Schnabs – Expediter – tracks orders, investigates production problems * David Flaherty – Supervisor – in charge of manufacturing from order until shipment; supervisers 22 production employees (large responsibility) * Shop Employees – qualified (often in 1+ areas), experienced, must exercise skill & care * Managers & Engineers have ample experience & intelligence in