Texas instruments Essay

795 Words May 17th, 2014 4 Pages
After thoroughly analyzing the information available on TI, I have identified three critical issues that need immediate attention. These include the capacity crunch in meeting forecasts, expectation to reduce the cost per watch, and a lack of efficiency of the workers. In order to tackle these issues, I recommend reducing the cycle time, increasing capacity in subsequent years, and increasing worker efficiency. These recommendations will enable you to achieve the targets and put TI on the path of success

ISSUES

Capacity crunch: As per the forecasts for world market demand for electronic watches, the current capacity at TI is insufficient. In order to cater to this increasing demand, the capacity needs to be enhanced. The
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Increasing capacity: By reducing the cycle time the present annual capacity will increase from 1.3M to 1.5M watches i.e. producing with two assembly lines in two shifts. In order to cater to the demand forecasted for the world market for electronic watches, TI needs to increase the number of shifts to 3 per day from the beginning of 1978, without increasing the number of assembly lines. In 1980 and 1983 the number of assembly lines need to be increased to 5 and 6 respectively and continue with 3 shifts per day.

Improve worker efficiency: Presently the number of operators working on the assembly line is 10 greater than the ideal number of workers required. In the long run, the workers’ efficiency need to be improved in order to reduce the labor cost per unit. When this is achieved, the number of workers would be reduced to 38 per assembly line and the labor cost per unit will go down to $0.55 (refer Appendix 2). Reduction in this cost will lead to huge savings for TI and therefore greater profits. There also needs to be an additional material handler who can supply raw materials. This will help address the problem constant supply of raw materials to the assembly line. A sense of healthy competition needs to be encouraged amongst workers that will make then strive for greater efficiency.

IMPLEMENTATION PLAN

Reduce cycle time:
• The supervisor of the assembly line needs to