American Connector Company - 1680 Words

Executive Summary: In order to make their plant globally competitive, American Connector Company’s Sunnyvale facility needs to improve on production, process, quality control and inventory control. They should optimize the production line to smoothen the process flow, increase the yield and reduce overall costs. They need to analyse and standardize their product mix. Also, schedule optimization will go a long way to minimize start-up and end costs and to avoid wastage. Work in process inventory needs to be controlled. Quality control measures and checkpoints should be introduced to reduce rejections. Indirect staff for monitoring and production control needs to be minimized to increase the overall productionunits per employee. Also,†¦show more content†¦Production and inventory control’s responsibility was to minimize yield and capacity losses. DJC’s goal with respect to their workforce was to gradually reduce direct production workers, support, and over head staff. As the processes matured and became more and more automated, fewer direct production workers would be required. American Connector Company’s Sunnyvale facility was divided into five separate production areas: terminal stamping and fabrication, terminal plating, plastic housing moulding, assembly and testing, and packaging. Typically, terminals were cut or stamped, then transported to a holding area to await plating. Concurrently, the mouldingdivision fabricated the plastic housings, which were then shipped to the work-in-process holding area to await plating of the terminals. Following plating, the batches of housings and plated terminals were shipped to assembly, where most of the units were assembled through an automated assembly process (10% of production we subjected to manual assembly). The completed batches of connectors were then tested and sent to packaging. Packaging incorporated many different methods, from a 10-piece bag to 1500-piece loaded reels. Furt hermore, Sunnyvale’s manufacturing was handicapped when production runs were slowed or stopped in order to inject a specialty orShow MoreRelatedAmerican Connector Company Analysis1661 Words   |  7 Pagesis the key to American Connector Company (ACC) success. ACC has lost market share to DJC over the recent years, which will be exacerbated if DJC opens a production facility in the United States. DJC has gained much knowledge from its Kawasaki plant and is going to enter the US market with factories that will be efficient. ACC is in trouble and needs to drastically change the way they do business if they want to survive. Looking and emulating DJC is the first step American Connector needs to followRead MoreAmerican Connector Company - 11588 Words   |  7 PagesAmerican Connector Company ASSIGNMENT #1: Answer the following questions based on the case study for American Connector Company. Write succinct responses and include supporting references, tables, or graphs where appropriate. 1. How serious is the threat of DJC’s entry into the U.S. market to the American Connector Co. (ACC)? Competitors are a treat to American Connector Company but ACC is its own biggest threat. ACC is very inefficient in its operations – Sunnyvale has an effective utilizationRead MoreAmerican Connector Company Case Study2531 Words   |  11 PagesAMERICAN CONNECTOR COMPANY CASE STUDY Q1 How serious is the threat of DJC to American Connector Company? Answer -  Ã‚   The threat of DJC to American Connector Company is very high. Following are the reasons: Ø   If DJC sets up manufacturing base in USA, as per the exhibit 7 and exhibit 8 the raw material cost for DJC in USA will drastically reduce. Current Raw material product and packaging cost is 14.89 which will reduce to 8.93 in USA.As the raw material cost is almost half of the total finishedRead MoreAmerican Connector Company Case Essay1309 Words   |  6 PagesAmerican Connector Company Case Severity of Threat by DJC The American Connector Company (ACC) should be extremely concerned with the im-pending entrance of DJC to the US landscape. Any new entrant will most likely be of the mentality to try and take as much market share as quickly as possible. This course of action usually involves a period of time when the new company will plan on operating at a loss, and will thereby be will-ing to price below market average with small margins. 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