AIC Netbooks : Optimizing Product Assembly

Presented By:Sonal Ram

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Introduction

Advanced Integrated Circuitry, Inc., now AIC System Founded in Taichung, Taiwan, in 1992 Produce printed circuit boards, motherboards and graphic

cards Now known as, Competed as low-cost manufacturer 2000 : Evolved as Original Design Manufacturer (ODM) 2001 : Kaizhi plant 2007 : Enters consumer electronic market

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Good Practices Manufacturing process style - Batch in a

line Gravity feed shelves, reducing re-

stocking and reset time Higher quality products, through division

of work Kaizen approach Assigning 2 dedicated floaters to each

line

Picture: Gravity Feed Shelves

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Bad Practices

Non standard operation on assembly line Unsanctioned buffer inventories between stations

Quick fixing the assembly line problem by supervisors

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Problems

How to improve productivity of existing capacityUnexpected spike in production demandCSO unwilling to invest on 3rd shift workersIncreasing shifts to 10 or 12 hours was not sustainable Even with 2 floaters per line, they were barely keeping

up Pressure from corporate office to improve current

performance and boost Gross Margin

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Solutions

Material productivity Plays important role in cost of productionDepends upon percentage of rejection, creation of scrap,

level of spoilage, obsolescence, work wastage etc. Increased skilled workers, adequate machine tools, good

design of product

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Contd.

Machine productivityConverts raw material into finished product through

mechanicalDepends upon availability of raw material, power, skill of

workers, machine layout etc.

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Contd.

Capital productivity Replacement of fixed assets brings down maintenance cost but

requires capital expenses Depends on how effectively assets are utilized C

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