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CASE STUDY ON TOSHIBA:OME WORKS
Submitted by:Charan Kamal Singh
Gagandeep Singh DhillonVishal Katoch
Mayank Katoch
INTRODUCTION
Formed in 1939 Merger(Shibaura Seisakusho Works,
Tokyo Electric Company) In 1985,Toshiba became the first in the
world to produce one MB DRAM Chip In 1995, Toshiba was 3rd electronics giant
in Japan after Hitachi and Matsushita In 1995 Toshiba was leader in US PC
market with 19% Share
THE WORLD FIRST LAPTOP COMPUTER T3100
C:\Users\Sony\Desktop\Old_Toshiba_Laptop.mp4
STRENGTH
Aggressive pricing Technologically Superior Product
CHALLENGES Strong yen Dependence on Japanese plant The average lifetime of notebook model
was only 6 months
ADVANTAGE OVER COMPETITORS
Huge Investment in Technologies such as TFT(Thin-film transistors),hard disk drives, lithium ion batteries and CD Rom drives
Partnership and joint ventures with other industries Giants
High automated factories and sophisticated communication networks
OME WORKS BACKROUND
Operations began in January 1968
CONTINUED
PRODUCTS: PC’S World Processors Optical Character readers PC boards Hard disk drives Computer and communication’s systems
and other computer systems
CONTINUED
Sophisticated computer network linked OME with other domestic and overseas Toshiba development and production sites
Large R&D laboratories in the Plant It allowed the engineers to work closely
with the manufacturing divisions throughout the design and development of new model
OME WORKFORCE
There were some 2600 employees working in August 1995
TYPES OF WORKERS: Full time(7.5 hrs/day+overtime
wage30%higher than regular wage) Part time(usually housewives) Temporary(external agengy-1month
contract) Affiliated(Affiliated companies
employees)
CONTINUED
17% of full time workers and 100% part time workers were women
POSSIBLE ACTIONS FOR INCREASE DEMAND:
Either affiliated companies increased their own production or send in workers to OME
Hire more temporary or part time workers or ask regular workers to work additional overtime
Revaluating the work load and shift workers from lesser work load area to PC assembly
OME’S PC ASSEMBLY LINE PROCESS
In 1986,First laptop computers were assembled on two 60-meters assembly conveyors, each staffed with 45 operators
In1990,by reorganizing the workspace it had been transformed into three 27-meters line each staffed by 14 operators
In 1995,it transformed into 14.4 meter lines each staffed by 10 operators which had decreased the labor required in manufacturing process
CURRENT ASSEMBLY LINE
Three Assembly lines at OME Fourth always idle – only used when
sudden increase in demand 8 different models of computer were
produced at any given time Each model had 6 combinations - 6*8=48
different model At the head of each Assembly line a
computer displayed daily production schedule
Sub-components to OME were delivered by Fujihashi parts collection and distribution centre
Fujihashi having all production information of OME delivered the parts within two hours
Each line had a material handler taking care of material distribution to workers
Assembly line consisted 14.4 meter conveyor belt separated at 1.2 meter intervals by white stripes on the belt
A “supporter”was assigned to each line who took care of proceeding and solved difficulties
On an average 1 notebook assembled in every 2 minutes by 10 line workers
ASSEMBLY PROCESS
First operator laid out major components of the notebook computer between two white lines on the conveyor.
Second operator entered bar codes on these components by scanning them with hand held scanning wand
Above each shelf there were computers displaying instructions updated instantly by central computers
When the model change the first operator placed the containers of small parts of new model on “blank” space of the conveyor
CONTINUED
The last two operations : Hardware test-an operator inserted
a diskette containing software to test different components of the computer into the floppy drive(4 min)
Shock test-to test the ability of the computers to withstand vibrations and minor impacts
Then the computers were put in the racks for 24 hour 35degree”burn-in”
WORKER TRAINING AND PROCESS IMPROVEMENT
Workers were continuously cross-trained to increase the breadth and depth of their skills
Five highly skilled workers called”pack-men”on all model were available to replace absent workers
Workers skills were displayed on wall chart in the assembly line
WORKERS SKILL CHART
Quality of work was checked at every stage of the process
Each worker was responsible for error committed along with checking the previous operators mistake
In case of operator error,the supporter stopped the assembly line to discuss the error
Only 5% repairs were due to operator error and overall 2% of total production failed the quality checks and was rejected
Four workers were directly responsible for each notebook computer assembled
1.The second assembly line operator(who scanned bar codes)
2.The last Assembly line workers(who performed the shock test)
3.The worker who pre-installed software4.The final workers in the packaging area
Workers were encouraged to give their ideas for improvement in the assembly line or production process
THE END