Operations Management

Term-2
Case Analysis

DONNER COMPANY
Submitted to Prof. Jishnu Hazra

Submitted by: Group No. 4 (Section C) ABHISHEK BAID (1111164) BHARGAV DEORI (1111177) MERBEN JAYAKARAN.M (1111190) PANKAJ KUMAR YADAV (1111203) NIKHIL SABNIS (1111217) KARTHEEK THUMATY (1111231)

Operations Management

Donner Company

Contents
Introduction ................................................................................................2 Process flow chart .......................................................................................2 Issues faced by Donner ...............................................................................4
Problems in production process design ........................................................................................ 4 Problems in Productivity.............................................................................................................. 4 Problems in Delivery System....................................................................................................... 5

Data analysis ...............................................................................................5

Question 2 .................................................................................................................................... 5 Question 3 .................................................................................................................................... 6 Question 4 .................................................................................................................................... 7

Conclusion ...................................................................................................7

Appendix 1 ................................................................................................................................... 8

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Operations Management

Donner Company

Introduction
Donner Company, started in 1985, manufactures printed circuit boards (PCB) according to specifications of electronic manufacturers. It is one of the leading PCB manufacturers in United States. The industry is witnessing growth due to the increase in use of electronic appliances. The president of the company, Edward Plummer is reviewing the company position in October 1987, before deciding on plans for 1988. During the review he does in-depth study of how various process and operations are carried out and challenges. The basic work process can be divided into three important stages preparation, image transfer and fabrication. The detailed process flow chart is given in exhibit 1. On receiving an order, price was quoted based on estimations of labour and material costs. Based on acceptance by the client, delivery time of 3 weeks was quoted for orders below 1000 boards and 5 weeks for rest. Rush orders were also accepted which needed to be served in four days.

Process flow chart

Donner Company Production Process

Preparation Stage

Master artwork

Purchase of 2 sided copper clad epoxy sheet and inspection for visual defects

Sheets sheared into 12 X 18 panels

Punching of location holes

Panels alignment (Drilling, Imaging, and Routing)

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Operations Management

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IMAGE TRANSFER STAGE

Pinning of panel to drill

Drilling 500 holes

CNC (Automatic)

Manual Drilling

Metallization (Copper immersion bath)

DFPR (panels are washed, scrubbed, and coated with dry film photo resist)

Placement of customer artwork on panels

Passed through DFPR developing machine

Electroplatation

Flash plantation of Tin over copper plating

Chemical exposure of UV light

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Operations Management

Donner Company

FABRICATION STAGE
Molten solder bath

Reduction to required finished profile

Two Methods

CNC Routing

Visual Inspection

Issues faced by Donner

Problems in production process design: The major difficulty faced in production process design was frequently changing bottleneck process in the manufacturing system. Reasons: Continuous change in the product specifications by client. Delays caused due to improper management and procurement policies for raw material requirements. Interference of rush orders with the process flows causing imbalances.

Problems in Productivity: Reasons: Idle machines and incorrectly defined hours. Higher time estimates than competitors.

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Operations Management

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Problems in Delivery System: The company was frequently defaulting on delivery deadlines. Reason: The policy of clearing all the work possible out of the shop prior to the end of each month resulting in more number of shipment in the second half of the month.

Serious Implications for loss of Revenue: Searby has expressed serious concerns regarding present problems of the company and says these may cause a decrease in sales. He forecasts that present system may restrict sales to $2 million which can be increased to $3 million if the processes are improved.

Data analysis Question 2

Scheduling of order sizes in drilling Time taken depends on the drilling process chosen: Manual drilling or CNC. Manual drilling: Time taken= 15 + x *0.08* 500 CNC: Time Taken = 240 + x* 0.004*500, x= number of boards For CNC drill to be used, 15 +x *0.08* 500 240+x* 0.004*500 This gives x 5.92 as a solution. Thus, if number of boards are more than or equal to 6, CNC drill would be used (Assumption: Parallel use of Manual Drills is not possible) If parallel use is possible then, seven drill presses can be operated simultaneously so that 7 panels can be worked on at once. Time taken for drilling 56 circuit boards (7 panels * 8 boards each) When using manual drilling: 15 + 0.08*500*8 =335 min. When using a CNC machine: 240 + 56*500*0.004 = 352 min. However, for values larger than this, CNC produces a smaller time owing to additional time required for processing holes in manual drilling operation. If we take the case for 57 circuit boards, we get the following times for the two drilling processes: Time taken for manual drilling= 335 +0.08*500*1= 375 min Time taken if using CNC = 240+ 57*500*0.004=354 min.
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Operations Management

Donner Company

Therefore, up to an order size of 56 circuit boards, manual drilling is preferred if parallel processing can be done on the presses, but beyond this, CNC needs to be employed. Our Decision Rule: For n <= 6 Manual Drilling 6 < n <=56 If parallel processing on manual drill allowed Manual Drill Else CNC Drill N > 56 CNC Drill Scheduling of order sizes in Profiling If number of circuit boards is x, For Punch press: 50 + x; For CNC Router: 150 + 0.5x For CNC router to be used, 50+x >= 150 + 0.5x x >= 200 Our Decision Rule: For n <= 200 Punch Press n > 200 CNC Router

Question 3
Standard Labour Times obtained (For Normal Process Flow) for (a) 1 Board : 396.55 min. (b) 8 Boards: 615.05 min (c) 200 Boards: 1840.25 min. *Please refer to Appendix 1 for detailed tabulated calculation

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Question 4
Capacity of Dry-film photo-resist area for order size = 8 a) Panel preparation: 5 + 0.2 = 5.2 min. b) Laminate and expose: 20 + 2 = 22 min. c) Develop: 20 + 0.2 = 20.2 min. Bottle-neck process is Laminate and expose with a time of 22 min. Thus, capacity = 1/22 per minute = 60/22 = 2.72 circuit boards per hour.

Conclusion
Donner Company has to increase its productivity and reduce delivery time to capture the opportunities in the market. Optimal conditions for minimizing production and labour time have been calculated showing that Donner company can ensure faster delivery of printed circuit boards to its customers and thus minimizing its delays. Achieving this will lead to better customer satisfaction, resulting in better sales growth and revenues as well.

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Operations Management

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Appendix 1

Case I

No of Boards = 1
Standard Production Time
Times (in minutes)

Operation Type PREPARATION

Artwork Generation Inspect & Shear Punch Tooling Holes IMAGE TRANSFER Drill Holes Manual Metallization Dry Film Photoresist 1. Panel Prep 2. Laminate & Expose 3. Develop Electroplate Strip DFPR Etch & Tin Strip FABRICATION Soldermask Solder Dip Profile Punch Press Inspect and pack Total

Setup
29 20 10

Run
0 0.5/panel 0.5/panel

Total Run Time

Operating Time
29 20.5 10.5

0.5 0.5

15 10 5 20 20 25 5 10

0.08/hole 0.75/panel 0.20/panel 2/panel 0.2/panel 8.5/panel 0.2/panel 0.2/panel

40 0.75 0.2 2 0.2 8.5 0.2 0.2

55 10.75 5.2 22 20.2 33.5 5.2 10.2

45 30 50 45

1.5/panel 0.5/panel 1.0/board 1.5/board

1.5 0.5 1 1.5

46.5 30.5 51 46.5 396.55

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Operations Management

Donner Company

CASE II

8 Boards
Standard Production Time
Times (in minutes)

Operation Type PREPARATION

Artwork Generation Inspect & Shear Punch Tooling Holes IMAGE TRANSFER Drill Holes CNC Drill Metallization Dry Film Photoresist 1. Panel Prep 2. Laminate & Expose 3. Develop Electroplate Strip DFPR Etch & Tin Strip FABRICATION Soldermask Solder Dip Profile Punch Press Inspect and pack Total

Setup
29 20 10

Run
0 0.5 0.5

Total Run Time

Operating Time
29 20.5 10.5

0.5 0.5

240 10

0.004 0.75

16 0.75

256 10.75

5 20 20 25 5 10

0.2 2 0.2 8.5 0.2 0.2

0.2 2 0.2 8.5 0.2 0.2

5.2 22 20.2 33.5 5.2 10.2

45 30 50 45

1.5 0.5 1 1.5

1.5 0.5 8 12

46.5 30.5 58 57 615.05

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Operations Management

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CASE III

200 Boards
Standard Production Time
Times (in minutes)

Operation Type PREPARATION

Artwork Generation Inspect & Shear Punch Tooling Holes IMAGE TRANSFER Drill Holes CNC Drill Metallization Dry Film Photoresist 1. Panel Prep 2. Laminate & Expose 3. Develop Electroplate Strip DFPR Etch & Tin Strip FABRICATION Soldermask Solder Dip Profile Punch Press or CNC Router Inspect and pack Total

Setup
29 20 10

Run
0 0.5 0.5

Total Run Time

Operating Time
29 32.5 22.5

12.5 12.5

240 10 5 20 20 25 5 10

0.004 0.75 0.2 2 0.2 8.5 0.2 0.2

400 18.75 5 50 5 212.5 5 5

640 28.75 10 70 25 237.5 10 15

45 30

1.5 0.5

37.5 12.5

82.5 42.5

50 45

1 1.5

200 300

250 345 1840.25

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