Donner Company Case Analysis Essay

1480 Words Nov 14th, 2010 6 Pages
Zachary Harris (#112177795)
11.09.2010
Donner Company
FIT Analysis I. Opportunity * Customers: Electronics manufacturers; IBM, AT&T, Digital Equipment are customers for large orders of simple boards or small orders of prototype boards: Specializes in making circuit boards for experimental devices and pilot production runs * Costs: * Variable costs: raw materials, direct labor, selling expense * Fixed Costs: manufacturing overhead, indirect labor, administrative expense * Competition: * 750 printed circuit board manufacturers in U.S. * Classified as captive or contract manufacturers * Context: Circuit board industry growth parallels computer, telecom &
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As seen in Exhibit 3, the breakeven order number for equal production times is approximately 5.92 boards. Thus, for orders of 6 or more circuit boards, Donner Company should use the CNC drill. The manual drill should be used on all orders of less than 6 circuit boards.
For the profiling operation comparison, a breakeven analysis was also conducted to determine the minimum order size needed for the CNC routing production time to become less than the punch press production time. As evidenced in Exhibit 4, the breakeven order number for equal production times is 200 circuit boards. At this point, both profiling methods require 250 minutes production time. Thus, for orders of more than 200 circuit boards, Donner Company should use the CNC router. The punch press should be used for orders of less than 200 circuit boards.
Question 3
The dry film photoresist (DFPR) operation is an integral step in the image transfer stage. It is comprised of three sub-steps: panel prep, laminate & expose, and develop. This operation has been identified as a potential bottleneck in the production process based upon supervisor observations. An effective method to test to see if the DFPR operation is causing operating problems is to examine how its current daily capacity changes based upon order

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