Donner Case

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Question 1: What is the normal process flow of the production system at Donner? Draw a process flow diagram. Question 2: What orders would you schedule on the CNC drill? On CNC router? Operation Setup Time (min) Run Time/board Manual Drill 15 0.08*500 = 40 CNC Drill 240 0.004*500 = 2 Punch Press 50 1 CNC Router 150 0.5 a) CNC Drill vs Manual Drill Let x be order size than – 15 + 40x = 240 + 2x; x = 5.92; From this equation we get x approximately equal to 6. So Donner Company should use the CNC Drill for orders of more than or equal to 6 boards. The Manual Drill process should be used for all orders of less than 6 boards. This is because production time for CNC is less than manual for order size of…show more content…
In spite of huge increase in sales in large quarter, the profit and loss summary of the company shows that net profit before taxes decreased considerably from $14,800 in August of 1987 to $3,100 in September of the same year. Also net sales and gross profit margin decreased in this period. All this can be attributed to huge inefficiencies that exist in the manufacturing processes of Donner. Major issues are – • Poor Quality - Items returned by customers increased from 1% to 3%. One tenth of the boards returned to the Donner Company were damaged or out of tolerance while the rest were returned due to the company not completing one or two different required operations. • Process Flow - One of Donner's major problems lies in their process flow. There are many bottlenecks and employee downtime which arise from poor process flow setup and unforeseen problems. • Low Productivity – For example Plater spent 15% of her time walking between her desk and the plating tank. Also, plating and etching processes were located far form the machining operation. • Late Deliveries - In 1987, Donner was faced with problems in meeting delivery schedules and growing customer returns. Question 6: What are the information

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