Case ID: 4245
Solution ID: 35758
Words: 1450
Price $ 75

AIC Netbooks Optimizing Product Assembly Case Solution

Case Solution

AIC Systems, established in 1992, was a printed circuit board maker for the PC business. They had some expertise in motherboards and realistic cards. By the 2000s, the organization had developed into an Original Design Manufacturer (ODM) empowering advancement and new era outlines. In 2007, the organization broadened into the generation of Net-books. In any case, AIC can't take care of the demand with the present operations. The generation is neither proficient nor viable. The firm has a couple of alternatives to enhance the sequential construction system by either expanding the movements or the mechanical production systems. Each of these choices will expand the work cost for the firm yet encourage in meeting the objective generation and process duration.

Excel Calculations

Monthly Output

Comparison of Planned and Actual Operating time on Work Stations

Current Monthly Output(Units)

Target cycle time

Labor cost analysis

Questions Covered

  1. How efficient is netbook assembly at the Kaizhi plant?
    1. What is the monthly output of the plant?
    2. What is the theoretical efficiency of the planned line, looking only at direct labor on the assembly line?
    3. What is the actual efficiency of the assembly line?
  2. How effective is the current operation?
    1. What are the right criteria by which to evaluate it?
    2. Is the operation designed appropriately to meet demand?
  3. What is the financial impact of bringing the operation closer to full potential and achieving planned production levels?
    1. What is the planned production level in terms of monthly output?
    2. What is the financial impact of achieving the target cycle time?
    3. How important is reducing direct labor as a means to improve financial performance? (Assume each assembly line worker costs $500 per month)
  4. What recommendations would you make to Elias Chen?