Dti
INTRODUCTION & CASE SUMMARY
Display Technologies Inc (DTI) is facing explosive demand growth for their new 9.5 inch matrix liquid crystal displays.
The company’s strategy is to be the first in the industry to introduce new technology & innovations.
In order for DTI to accomplish their strategy they have to increase output from 40,000 units per month to 100, 000 unites per month as quickly as possible or risk losing their market share.
To accomplish this DTI has three options available to them:
- replicate the existing manufacturing line
- continue to improve yields on the existing line through improvements
- invest in a new line using a promising new technology which us still unproven
As well as the time constraints, when DTI decides which option to implement they must also take factors such as production disruption, time for implementation completion & costs of each option into consideration before making their final decision.
CASE ANALYSIS
- DTI’s production departments are arranged into work cells & use a current batch system, this has an impact on how the business must be operated
- DTI must increase their output of TFT-LCDS to 100,000 units per month. Toru Shima must choose which of the three options below he will use, taking into consideration, cost of implementing, production disruption & time to implement.
1) Continue to focus on improving output on the existing line:
Shima believed that the existing line was capable of producing double the current output by getting the current operators of the machines along with 30 new engineers & technicians to increase yield & throughput. The implementation of the new improvements to the process would take 6 months & the lost production will be 10% per month.
2) Duplicate the existing production line:
Another option available to Shima is to replicate the existing...
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