Donner Company

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Donner Company Donner Company is a contract manufacturing company. It is into the business of production of printed circuit boards. The company basically has two kinds of orders: 1. Standard PCB’s: These orders have same kind of large number of PCB’s. 2. Specialized circuit boards for experimental designs and for pilot production runs: These have lesser number of PCB’s per order. However, Donner charges a high premium on these orders. The market is very competitive with number of companies operating in the same field. Donner enjoys the reputation of producing highly complex and quality PCB’s. The Company has quality overall manpower. Also Donner has a MLT of approximately 4 weeks on special orders, which sets it apart from its competitors. The specialization for Donner was to produce circuit boards for experimental devices and for pilot production runs. The president and the design engineer at Donner believed that “Donner was more adept then its competitors at anticipating and resolving the problems inherent in new designs and prototype production techniques.” We could imply the above statement as the major competitive advantage of Donner Company. Despite the competitive advantage that Donner had, the company was facing with operating problems concerned with three aspects of its operation: productivity, quality, and delivery. These problems resulted in unstable gross profit in percentage as seen in exhibit 1 “Donner Company Summary of Profit and Loss” in the original case. The quick look at the current production reveals that it is more like a production line with a sequence of tasks to b... ... middle of paper ... ...the smaller orders as it has been noticed that company get more profit on the smaller orders than that of larger ones. Recommendations: We as a group suggest that Donner should make changes in the organization structure and hire a specialized Purchase manger by doing this the company will not only save on purchasing cost but will also allow design engineer to focus on his jog=b and duplication of job will be reduced. We also think that if company is doing well and have money to invest Installation of ERP system will be a good idea by this company will save a lot on man power and the change of error will also drastically go down, but as we all know that change in the most difficult part in any organization, it will face difficulties in changing from traditional method to the electronic method. (Exhibit 4).

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