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Aic Netbooks Executive Summary

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AIC Netbooks

Executive Summary
AIC systems ( previously named Advanced Integrated Circuitry, Inc.), is a Taichung, Taiwan based manufacturing company, founded in 1992, that produces printed circuit boards ( PCBs), focusing on motherboards and graphics cards for the personal computer industry. By early 2000s, the company had evolved into an original design manufacturer (ODM) by taking active role in innovating and designing new generation components. The company relentlessly focuses on cost management and indigenous design. In 2001, the company shifted all its production volume to china that enhanced learning and provided low cost labour. In 2007, the company embarked on a new strategy to diversify its product portfolio by including …show more content…

Thus,
New Cycle Time at station 2 is 44 secs.
New Cycle Time at station 3 is 45 secs. * At Station 6, move operation 21 to station 5. Thus,
New Cycle Time at station 6 is 44 secs.
New Cycle Time at station 5 is 45 secs. * At Station 7, move operation 25 to station 8. Thus,
New Cycle Time at station 7 is 43 secs.
New Cycle Time at station 8 is 43 secs.

Thus, after redistribution we have new cycle time to be 48 secs. And the efficiency of the line can be increased to 89%.
Recommendations
The problem eventually boils down to the cost trade off between: a little extra working hours and setting up a new line.
Scenario 1- Extra working time * Post the redistribution of tasks into workstations there is increase in production per shift. Now the increase in demand will be equalled by this increased efficiency with an extra time of .35 hours per shift. * Thus, we do not have to get a new assembly line to combat the extra demand for the time being (next two months). * Thus no extra shift is needed.
Scenario-2- New assembly Line * With a new line installed, we would be able to expand for the future. Now with the bottleneck cycle time impossible to come down by rearranging, the only option of expanding would be by building a new assembly line. * This would have a high setup cost, but to ensure to be ready for the increasing demand and to not lose out on any opportunity cost due to sudden spikes it

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