Essay about Donner Company

1462 Words Mar 29th, 2005 6 Pages
Central Issues
When looking at the Donner Company in 1987, there are some initial concerns. The company as a whole does not have a true sense of how long it takes them to do what they do, and their process flow table is made up of "guesstimates", as throughput time at individual processes have not been formally taken. The company appears to be operating below capacity based on their need to rework their products often, find things for people to do, and meet deadlines that are based on fuzzy estimates, which only adds to the chaos. In short, there are three main issues facing the Donner Co.:
• iming and delivery discrepancies
• Lack of quality control
• Need for labor utilization improvements

The addition of a new building in
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Rationale/Analyses

Productivity: The total capacity and standard labor times with the given assumptions, can be seen in Exhibit XXQ5,Q6. Given this analysis, and supported by the labor utilization rate, it is evident that there is substantial room for improvement in the productiveness of this company. The layout of the plant could be improved to minimize the amount of time spent walking from one work space to another, but this should not be determined until discussions with workers on the amount of space needed to perform a task are conducted as overcrowding of work space would be counterproductive.
The bottleneck is located at the drilling portion of the process. It sets the cycle time at 16 minutes. It appeared to be moving constantly because of the differences in order size, the delays in waiting for artwork, the bypassing of some operations, the interruption of flow due to rework and rush orders, and the choppy assignment of staff. The push for end of month completion also proved problematic in that it kept people from focusing on the true delivery time and focused irrationally on completing projects with a calendar cycle.
Delivery: In the last 3 months, actual deliveries had averaged ten, eight, and nine days late. The sales department is concerned that it will not achieving its sales goals. The fact that the sales manager is

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