Toshiba: Ome Works

7/23/2019 Toshiba: Ome Works

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Outline

List ofFact(s)/Issu(e

s)

PossibleSolution(s)

FocusProblem(s)

Recommendation(s)


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Background

Began operate in 1968

Produced : - Personal computers

- PC Boards

- Word processors- Hard disk drives

- Optical character readers

- Computer and communications system

4 Catergory of employees: - Full time - Temporary- Part time - Affiliated

2600 employees in 1995 : - 440 direct factory workers

- 1050 design engineers


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Fact/ Issue (1) Trouble in finishing the installation of floppy disk drive

COMPETITION in notebook PC market was FIERCE/strong

LIFETIME of a notebook model : 6 months MISSING crucial product cycle/ DELAYING introduce new product large LOSSES

in market share

PC assembly PROCESS :

1) two 60-meter assembly conveyors 45 operators each

2) three 27-meter lines 14 operators each

3) three 14.4-meter lines 10 operators each (Exhibit 7)

Total 7 PC assembly line :

- 4 IDLE use only if demand increased)- 3 lines DAILY operation 1 overseas, 2 domestic market

Previously, Ome produced 8 different models 6 different features COMBINATION

each models


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1995: SHORT LIFE TIME of each model

- 300 units per line 3 to 10 different model per line per day

- 504,000 units per yearASUMMPTION 7 lines used

(7 lines) x (300 unit per line) x (20 daily lots) x (12 months)

EACH PC model sequentially assembled

EMPLOYEES on notebook assembly line in November 1995 :

- 50% full-time,

- 25% part-time,

- 25% affiliated companies.

Characterized word processor for Japanese market adjacent to PCnotebook assembly lines :

- high product variety

- low volume

- no longer expanding.

Fact/ Issue (2)


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Exist. Ome`s PC assembly line process

Word Processor

Assembly

R

S/T

Notebook

Assembly(3 lines active,

4 lines idle)

PKG

R

S/

T

PKG

Operator

Conveyor Belt

Parts

Repair Area

Pre Install software & test

Racks for burn-in

Packaging

Pallets of finished Product

Computer Displayed


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Existing PC Assembly Line Process Flow Chart

START

Computer displayeddaily productionschedule

1st operator laid outmajor component

2nd operatorentered barcode

Modelchanged?

1st operator placecontainer of small

parts on the blank

space

2nd operatorscanned the barcode

The rest of operatorpick up the smallerpart they need onshelv above theirwork area

NO

YES

Portable computer displayed theoperations realted to eachstation

Snapping connector together or

attaching parts with small screws

HW

test

Shock-

Test

Burn-InDone

shock test?

NO

YES

Softwarepre-installed

Packaging &placed on pallets

EN

D

Note:

1)Supporter per line to replace break operator or assist if problem occured.

2)Supervisor, qulity assurance, Supporter and Repair worker often worked during

early morning and late afternoon. The speed of conveyor also decreased during this time.


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Focus Problem

LIFETIME of a notebook model : 6 months Competitor can minimize production & sales cost, lower

product price:

*refer to Exhibit 2

Technology appliance (e.g Notebook)create best on both

quality assurance and after sales service is critical.

1993 1994Market Share 10.8 % 13.8 %

Unit 663 1,192


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Solution(s)1) Improving INNOVATION of new model in design process

with sufficient speed of time

2) Increasing product demand improving itsMANUFACTURING PROCES increase speed of assemblyline + cutting production cost lower product price thancompetitor.

3) Increasing QUALITY CONTROL of product & after salesservice

4) Reduce the RESOURCES to process word processor productto improve capacity ofPC Notebook product.

5) Creating system for DISTRIBUTING channel to reach biggermarket


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Recommendation(s)1) Improving INNOVATION of new model in design process with sufficient

speed of time

2) Increasing product demand improving its MANUFACTURING PROCES

increasing speed of assembly line + cutting production cost lower

product price than competitor.3) Increasing QUALITY CONTROL of product and after sales service

Analysis Process + Job Design + WorkMeasurement


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ecommen at on

Improving INNOVATION of new model

Inside OUTSIDE

INSIDE Outside

CUSTOMER

Hardware Type/Model ?

Feature?

Improving both of hardware andsoftware for adaption to market

demand


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ecommen a on

Increasing production unit with low production cost (1)

Increase quality controlling of product & after sales service

No Scenario sort by Priority + -

1. REGULAR worker to work additionalovertime

(+) low cost(+) more responsible(+) skillfull

(-) fatigue employee(-) short term(-) empty post

2. Reevaluate the work load of the entireplant, SHIFTING worker intoassembly area

(+) low cost(+) more responsible

(-) empty post(-) short term(-) less skillfull

3. Obtain help from AFFILIATEDcompanies

(+) medium cost(+) more responsible

(-) empty post(-) short term(-) training needed

4. Hiring TEMPORARY or PART-TIMEworkers

(+) long term (-) high cost(-) high risk(-) less responsible(-) unskill , training

needed

Table of Increasing Worker Scenario based on Strength & Weakness


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Increasing production unit with low production cost (2)

R

S/T

Notebook

Assembly(3 lines active,

4 lines idle)

PKG

R

S/

T

PKG

Operator

Conveyor Belt

Parts

Repair Area

Pre Install software & test

Racks for burn-in

Packaging

Pallets of finished Product

Computer Displayed

1. NO EXTEND LINE : 3 op. + 4 idles

possible COMBINATION ofincreasing worker is scenario

2/3/4/ mix of them

(refer table on previous slide)

3. REDUCE S/T timeNo need toincrease worker, but INCREASE

SKILL NEEDED for worker in thissection

(refer to table on exhibit 1)

2. EXTEND LINE : operate > 3 op.

possible COMBINATION ofincreasing worker is scenario

1/2/3/4/mix of them

(refer table on previous slide)

4. Improving TECHNOLOGY

on assembling line in order

to improve manufacturing

process


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Increasing QUALITY ASSURANCE of product & AFTER SALES service

START

Computer displayeddaily productionschedule

1st operator laid outmajor component

2nd operatorentered barcode

Modelchanged?

1st operator placecontainer of small

parts on the blank

space

2nd operatorscanned the barcode

The rest of operatorpick up the smallerpart they need onshelv above theirwork area

NO

YES

Portable computer displayed theoperations realted to eachstation

Snapping connector together or

attaching parts with small screws

HW

test

Shock-TestBurn-InDone

shock test?

NO

YESFinal Quality

TestPackaging &placed on pallets

STOP2) increase step in QUALITY CONTROL section before packaging(Shock Check, HW Check, SW Pre Installed Check) increase worker

Softwarepre-installed3) After Sales Service: FAST service

assure AVAILABILITY ofsensitive spare part on outlet (eg.Floopy disk drive, hardisk drive,

LCD, keyboard & mouse)

1) Developing INDIVIDUAL SKILL of employees directed to

specific characteristic of product


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Thank You

Toshiba: Ome Works

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