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AIC Netbooks Optimizing Product Assembly
Case ID - 4245
Abstract

Solution ID - 35758

1450 Words

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
planning, Manufacturing, Quantitative
management
Status
Available

management, Production
analysis, Performance

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