DONNER COMPANY CASE STUDY
SUPPLY CHAIN AND
OPERATIONS MANAGEMENT - 2015
Pr. Sam AFLAKI
Sophie LABBAN – MSIM 2015
The three-year old Donner Company has positioned itself within both the small volume, customized printed circuit boards market as well as the large volume printed circuit boards market. With 750 competitors in the US, and a market that is volatile, Donner’s engineering expertise to anticipate and resolve design problems enabled it to maintain its competitive edge. However, this competitive advantage is jeopardized by poor on-time delivery and high rate of product return, in addition to planning and manufacturing problems that caused unstable bottlenecks and improper utilization of labor. These problems began to impact the overall performance of the firm in terms of operations, productivity and quality.
Following is a detailed analysis of the current conditions of the company: its standard process flow, its capacity, its competitive edge and its biggest problems.
1. What is the normal process flow of the production system at Donner? What orders would you schedule on the CNC drill? On the CNC router?
Normal Process Flow:
I- Preparation Stage
Inspect and Gear
Punch Tooling Holes
II- Image Transfer
Pinning panel to drill table
Drilling Holes whether manually or with the CNC drill
Washing, scrubbing and coating with DFPR
Alignment of Customer Artwork and exposure to UV
Electroplating and Tin Plating
Chemical Etching of DFPR and Copper layer
Etching and Stripping of Tin
Soldermask Silk screening
Reduction to finished profile by CNC routingor punch press
Inspection, Testing, Packaging and Shipping
From the information provided in exhibit 2, we can identify and calculate the breakeven point (the number of orders) to decide when to use the CNC drill vs. manual drill and the breakeven point to decide when to use the automated CNC router vs. manual punch press. CNC drill
Consider Order size = Q
If manual press is used, then the time taken to drill the holes of Q orders is equal to
15 + Q x 0.08 x 500 = 15 + 40Q
If CNC is used, then time taken to drill the holes of Q orders is equal to
240 + Q x 0.004 x 500 = 240 +2Q
Hence it is clear that CNC should be used only when the time taken by CNC driller is less than the time taken manually, so we can determine the breakeven point when the use of CNC driller becomes more plausible.
15+40Q ≥ 240 + 2Q
This inequations yields Q = 5.92
Hence for Order sizes 6 or above, CNC drillig should be used and for order sizes below 6, manual drilling should be used. CNC router
Consider order size = Q
If punch press is used, then the time taken to reduce the size of Q orders is equal to 50 + 1 x Q
If CNC router is used, then the time taken to reduce the size of Q orders is equal 150 + 0.5 x Q
Hence it is clear that CNC should be used only when the time taken by CNC router is less than the time taken by punch press, so we can determine the breakeven point when the use of CNC router becomes more plausible.
50 + Q ≥ 150 + 0.5Q
This inequation yields Q = 200
Hence for Order sizes 200 or above, CNC routing should be used and for order sizes below 200, punch pressing should be used.
2. What design decisions did Plummer make in setting up the process? What operating decisions must be made on a daily basis?
The design decisions taken by Plummer in setting up the process are basically the replication of the Master Artwork with a standard panel size of 12” by 18” and 8 images per panel. On one hand, Plummer took the decision also to incorporate the computer numerically controlled (CNC) Micronic Jr. High Speed drill in the drilling and profiling processes. On another hand, an additionnal design decision that Plummer took is the use of the DFPR...
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