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AIC Netbooks

AIC Systems is a producer of printed circuit boards and motherboards that has decided to diversify into consumer electronics and netbooks. The production manager has created an assembly line in their Kaizhi plant in China to produce new netbooks. However, the line is facing problems like unsanctioned buffer inventories, inconsistent demand, non-standard operations, and bottlenecks at several workstations due to long shifts of 10-12 hours and firefighting approach to problems instead of finding root causes. Recommendations include changing the product design to reduce assembly time, adding another production line to address bottlenecks, and solving root causes of inconsistent demand and operations.

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Ashish Verma
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473 views

AIC Netbooks

AIC Systems is a producer of printed circuit boards and motherboards that has decided to diversify into consumer electronics and netbooks. The production manager has created an assembly line in their Kaizhi plant in China to produce new netbooks. However, the line is facing problems like unsanctioned buffer inventories, inconsistent demand, non-standard operations, and bottlenecks at several workstations due to long shifts of 10-12 hours and firefighting approach to problems instead of finding root causes. Recommendations include changing the product design to reduce assembly time, adding another production line to address bottlenecks, and solving root causes of inconsistent demand and operations.

Uploaded by

Ashish Verma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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AIC Netbooks

OPTIMIZING PRODUCT ASSEMBLY

Background and
Organization
AIC systems is a producer of printed circuit boards
Main focus on motherboards and graphics card for
personal computer industry
Competitive source: relentless focus on cost
management
AIC evolved in an ODM(Original Device Manufacturer)
Innovation and designing new generation of components

Background and
Organization
Decided to diversify its portfolio to include consumer
electronics with a particular focus on mobile technology
New netbook market provides opportunity for AIC
Systems to design and manufacture its own netbook
The production manager has created an assembly line for
producing new netbooks
Characters :
Elias Chen: Production Manager
James Ashley: Chief Industrial Engineer
Will Lupin: Process Engineer

Good Practices
Shifting of production to China(Kaizhi Plant) to take
advantage od low labor cost
AIC waited for new Intel Atom processors so as to have a
technological edge
Double check process in assembly line
Dedicated material handlers to ensure adequate supply
Encouraged Kaizen approach to netbook assembly
2 dedicated floaters to each assembly line
Quality assurance through diagnostic test and burn-in
test

Bad Practices
Firefighting attitude to tackle problem.
No new hiring despite requirement.
Some of the station remained idle between work.

Problems Faced
Unsanctioned buffer inventories
Inconsistent demand
Non standard operation
Unsustainable shifts of 10-12 hours doe to inconsistent
demand
High bottleneck time in workstation 2,4,6 & 7

Recommendation
Changing the product design(less screws)
Reduction in bottlenecks by improving design of the
netbook
Find solution to the root cause
Additional production line

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