Donner Company - Operations Management

1. 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

2. 1) Draw a process flow diagram of Donner’s 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
Step 2
Step 3
Step 4
Step 5
Step 6
• Estimate labor and material cost for bidding
• If bid accepted, delivery promised within deadline
• Prepare detailed material specification and factory order
• Order details sent to purchasing agent
• Order entered into a log. Blueprint and factory order sent to supervisor
• Schedule preparatory work
2) What order size would you schedule on the CNC router? On the punch press?
Breakeven pointis used to decide whether to use the automated CNC router or
manual punch press.

3. CNC Router
Punch Press
Set up time for 1 order
50
150
Run time for 1 circuit board
1
0.5
Number of circuit boards in 1 order (order N
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 usedfor 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 usedfor order size is greater than 200
Operation
Setup Run
Time Time
1. Preparation
Artwork
29
0
Generation
Total Time
(order size = 8)
Total Time
(order size = 80)
Total Time
(order size = 800)
= (29*1)+(0*8)
= 29
= (29*1)+(0*80)
= 29
= (29*1)+(0*800)
= 29

4. Inspect
20
andShear
Punch
10
Tooling
Holes
2. Image Transfers
a) Drill Holes
Manual Drill 15
0.5
0.5
0.08
= (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

5. 4. List three specific actions to reduce the average flow time of jobs. Explain why
they would achieve their outcome.
1) The Platerworked 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 customer’s
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.

6. 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.