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    AIC Netbooks Optimizing Product Assembly

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    Tushar Singh
    AIC Systems, a manufacturer of netbooks, is unable to meet demand due to inefficient assembly line operations at its Kaizhi plant. The plant's current monthly output is below targets. To improve, AIC could increase shifts or assembly lines, but this would raise labor costs. The case evaluates how to optimize assembly line efficiency and effectiveness to lower costs and increase monthly output to the target level, in order to better meet demand. Recommendations will be provided to AIC's production manager on how to improve financial performance by reducing direct labor costs and achieving the target production cycle time.

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    AIC Netbooks Optimizing Product Assembly

    Uploaded by

    Tushar Singh
    466 views2 pages
    AIC Systems, a manufacturer of netbooks, is unable to meet demand due to inefficient assembly line operations at its Kaizhi plant. The plant's current monthly output is below targets. To improve, AIC could increase shifts or assembly lines, but this would raise labor costs. The case evaluates how to optimize assembly line efficiency and effectiveness to lower costs and increase monthly output to the target level, in order to better meet demand. Recommendations will be provided to AIC's production manager on how to improve financial performance by reducing direct labor costs and achieving the target production cycle time.

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    AIC Systems, a manufacturer of netbooks, is unable to meet demand due to inefficient assembly line operations at its Kaizhi plant. The plant's current monthly output is below targets. To improve, AIC could increase shifts or assembly lines, but this would raise labor costs. The case evaluates how to optimize assembly line efficiency and effectiveness to lower costs and increase monthly output to the target level, in order to better meet demand. Recommendations will be provided to AIC's production manager on how to improve financial performance by reducing direct labor costs and achieving the target production cycle time.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    466 views2 pages

    AIC Netbooks Optimizing Product Assembly

    Uploaded by

    Tushar Singh
    AIC Systems, a manufacturer of netbooks, is unable to meet demand due to inefficient assembly line operations at its Kaizhi plant. The plant's current monthly output is below targets. To improve, AIC could increase shifts or assembly lines, but this would raise labor costs. The case evaluates how to optimize assembly line efficiency and effectiveness to lower costs and increase monthly output to the target level, in order to better meet demand. Recommendations will be provided to AIC's production manager on how to improve financial performance by reducing direct labor costs and achieving the target production cycle time.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Netbooks-Optimizing-Product-Assembly.html

    AIC Netbooks Optimizing Product Assembly


    Case ID - 4245 Solution ID - 35758 1450 Words
    Abstract

    AIC Systems founded in 1992 was a printed circuit board producer for the
    personal computer industry. They specialized in motherboards and graphic
    cards. By the 2000s the company had grown into an Original Design
    Manufacturer (ODM) encouraging innovation and new generation designs. In
    2007 the company diversified into the production of Net books. However AIC
    is unable to meet the demand with the current operations. The production is
    neither efficient nor effective. The firm has a few options to improve the
    assembly line by either increasing the shifts or the assembly lines. Each of
    these options will increase the labor cost for the firm but facilitate in meeting
    the target production and cycle time.

    Excel Sheet

    Monthly Output

    Comparison of Planned and Actual Operating time on Work Stations

    Current Monthly Output(Units)

    Target cycle time

    Labor cost analysis

    Questions Covered

    1. How efficient is netbook assembly at the Kaizhi plant?


    1. What is the monthly output of the plant?
    2. What is the theoretical efficiency of the planned line, looking only
    at direct labor on the assembly line?
    3. What is the actual efficiency of the assembly line?
    2. How effective is the current operation?
    1. What are the right criteria by which to evaluate it?
    2. Is the operation designed appropriately to meet demand?
    3. What is the financial impact of bringing the operation closer to full
    potential and achieving planned production levels?
    1. What is the planned production level in terms of monthly output?
    2. What is the financial impact of achieving the target cycle time?
    3. How important is reducing direct labor as a means to improve
    financial performance? (Assume each assembly line worker costs
    $500 per month)
    4. What recommendations would you make to Elias Chen?

    Keywords
    Production management, Production planning, Manufacturing, Quantitative
    analysis, Performance management
    Status
    Available

    This case solution is ready. You can download it immediately after purchasing. Download link will be sent in payment
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