Aic Netbook

Executive Summary

Company Background

Advanced Integrated Circuitry, Inc. later known as AIC Systems was founded in Taichung, Taiwan in 1992 as a producer of printed circuit boards, focussing on motherboards and graphics for the personal computer industry. The company supplied branded manufacturers of desktop and laptop computers like Dell, HP and Compaq. It had evolved into an Original Design Manufacturer (ODM) and had played an active role in innovating and designing each new generation of components. Being successful in this segment the company is now thinking of capturing the new market of Netbooks. The new strategy aims at diversifying its product portfolio to include consumer electronics, with a particular focus on mobile technology.

Netbook

Netbooks are essentially inexpensive, lightweight computers.The trade off in the netbook was its functionality to achieve better portability (7 inch screen in ASUS Eee) and was affordable (Asus Eee cost $399 per netbook) for the middle class as an option to access internet apps like email and surfing the web.

Competitors in this segment were giants like ASUS, VIA.

Netbook and AIC

QuiN (Quick net) started as an outcome of the changes planned by the higher management to probe into new diverse areas of mobile industry. They wanted to develop a unique product and avoid the "me-too" product tag. Starting in March 2008 they wish to complete the launch by the third quarter of the year. Designed with new Intel Atom and circuitry the motherboard was named Koda. It had LCD screen, solid hard drive and an in built webcam.

Problem

The problems faced by the company were as follows:-

* The expected demand projected in near future is approximately 130000 units, which cannot be met with the present production capacity. Moreover, the 10 -12 hour shifts the company is presently running is not sustainable over a long span of time.

* The expected time at each station extends the planned time.

* The requirement of the labour at each station exceeds the planned labour per station.

ANALYSIS

Expected capacity

Expected - 700

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