Lightwell Case Study
There is keen interest in innovation and designing of new generation components.
IAC yester embarked on a new strategy to diversify its product portfolio so as to Include consumer electronics with a particular focus on mobile technology due to a growing global market for ultramontane laptops. For this purpose the production manager created an assembly line to produce a new product Quinn Notebook.
By seeing a sudden Increase In demand of the product, raises a situation to produce more units of Notebook that can reduce the cost and that can Improve Its time taken for producing the single Notebooks. The notebook market is proving to be a tough competition and Quinn Notebook is alluding momentum to be a key player in the market. Their current concerns are: * Produce more units meeting the current demand of the month I.
E. Nits * Increase the gross margin * Keep the Cost of the Product same as before Decide whether the number of labors have to be Increased or not since the labor costs were rising * The shift time cannot be increased to 10 to 12 hours * It is not feasible to hire and train workers and supervisors required for a permanent third shift to meet spikes in demand So the current problem of the Quinn Notebook assembly line is to improve its efficiency peeping in mind the above concerns and decide whether to invest in new line or not.
Based on our analysis, we recommend that the company should go for another reduction line which can be helpful for the company for generating more outputs and increased profits. Though the capital expense increases in the short run, the IAC notebooks production Tacitly well Decode Telltale to meet ten Susanne Increase In demand. Since with the addition of new assembly line, we are able to produce more than the forecasted demand, this will reduce the excess pressure on the labor to maintain the output level.
In turn it will also remove the necessity to add floating workers in the assembly line, leading to increase in gross margin, since the labor cost is reduced considerably.