Questions for Donner Company Case
Class topic
• Diagnosis of the problems at a printed circuit board manufacturer.
Your case analysis should be limited to 4 pages double-spaced, 12 pt. font, 1 inch margins all around. A cover page with the names of the group members and the group number does not count toward the 4-page limit, nor does a single page with the process flow diagram. You can assume that Donner is operating a single 8-hour shift per work day. Answer the following questions in your case analysis.
1. Draw a process flow diagram of the production system at Donner (there is no pre-specified flow diagram format).
2. What size orders would you schedule on the CNC drill? On the CNC router?
3. Would you recommend adding another CNC drill? Perform a net-present value calculation to help make the decision (yes, you have to use some analysis from your finance course). Make the following assumptions for the calculation:
• A 5 year life for the CNC machine.
• 16% cost of capital.
• Direct labor cost for manual drilling or running the CNC is $15 per hour
• Labor cost for programming the CNC drill is $20 per hour.
• All boards other than those run by Dief will be done on a CNC machine.
• September’s production is indicative of monthly demand.
4. Comment on the value of Dief to the organization.
5. Recommend actions that Plummer can take to improve the situation at Donner.
