INTRODUCTION

AIC Systems which was founded in 1992 as a producer of Printed Circuit Boards started to
expand its business. In early 2000s, the firm has established itself as an Original Design
Manufacturer (ODM) which means that the company took an active role in innovating and
designing new generation of the various components. In fall 2007 company took a decision to
expand it’s product portfolio and to involve consumer electronics particularly Mobile technologies.
This expansion lead to the development of QuiN - 816 Netbook.

AIC Systems started development of QuiN – 816 in March 2008 and Product Manager Elias Chen was
given the responsibility to bring the Product in the market by the Third quarter of the Year. With Will
Lupin, the Process Engineer of the firm Elias developed a 16-Meter assembly line that will be staffed
by a team of 10 Operators. With four of these lines they designed the line so as to produce 700
Netbooks per nine hours shift with two shift per day working for six days in a week.

For the four assembly lines two material handlers were assigned who will ensure the adequate
supply of the material. Each assembly line has its own supervisor and two floaters that will ensure
the proper working of that particular assembly line.

With all the resources in place, the firm was all set for the development of the netbook. But the
initial few months have been frantic for the firm as the new assembly line design needs refinement
and the initial orders had been unpredictable. These are some initial problems which were solved as
the production moved forward. Some of the problem still persisted in the process which were yet to
be solved. The case focuses on these various problems faced during the production of QuiN – 816
and urge us to find ways to improve current performance and to increase the gross margins.