Implications for process and repetitive styles of company

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Reference no: EM1378497

I am certain that based on the information, I have collected the use of a process organization would be best, not repetitive organization.

I know it needs three sections to make a new product. I have an empty shell of a building waiting for me to set up as either repetitive or process environment, and both can be completed at the same cost. I have 100 days to make the choice, and my company uses a process organization.

The process, shows three departments.
This organization proposal requires the process to be sent through three departments:
Electronic Assembly
Unit Assembly
Test Area

All circuit boards are loaded and surface mounted in Electronic Assembly then tested in the Test Area. Everything else is done in Unit Assembly.

The organization's process revolves around the following tasks:
assembling electronic units such as the transmitter and receiver and the test units
assembling components such as the power pack and the probe unit
installing components in the case
testing

I also, know the following to be true.
There are a number of factors to consider:
ensure that the existing management and workforce understand process organization
demand and demand trends are highly uncertain
there is only one product, but it does come in five variants of test routines
working capital investment is to be kept at reasonable levels
responsiveness to customers is important

The time also indicates, a setup in a repetitive environment may be a bad idea.

Initially, work will be performed in batches of 20 handsets or base units. Circuit boards will be in batches of 24.
A method study indicates that total build time for the base unit will be 12 minutes, of which 4.5 minutes are in Electronic Assembly. The build time for the handset will be 11.5 minutes, of which four minutes are in Electronic Assembly. The longest cycle for the base unit is 4.5 minutes in Electronic Assembly; the longest cycle for the base unit in Unit Assembly is two minutes for assembling the test module. The longest cycle for the handset is the four minutes in Electronic Assembly; in Unit Assembly, two minutes are needed for assembling the handset test unit. However, this latter task is delicate and the time is highly variable; trials have shown that assemblers can take up to four minutes.

Testing completed units consists first of matching base units and handsets to ensure a completed unit can be tested for functionality. Matching involves pairing up random handsets and bases so that their electrical resistance is within the range of the tester. This can take 30 seconds to four minutes, although the mean time is approximately one minute. The units are then tested for functionality, electrical resistance in particular. This takes another 90 seconds.

Using these statistics, the Electronic Assembly department will require one surface mounting machine and one wave solder unit, plus one test set for the first few months; this requires two operators in Electronic Assembly. Given the cycle times on assembly, the Unit Assembly department will require one person to assemble electronic units, one person to assemble components, one person to install components in cases, and one person to match and test completed units. A materials handler will be required. No robot assembly will be required at these volumes. There is plenty of room available for expanding the departments.

The key is each task varying amounts of time, not a good choice for a repetitive organization.

Reference no: EM1378497

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