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Production Challenges in Danshui Case

The Danshui plant is facing four main problems: 1) An inability to meet the monthly iPhone production quota of 200,000 units due to an underproduction of 20,000 units. 2) A lack of qualified labor as wages are very low, though wages have increased by 30-35% at Danshui and Foxconn. 3) Flash memory installations for Samsung phones are easily damaged by heat. 4) Inexperienced management is struggling to control all plant costs such as materials, labor, overhead due to inefficiencies, waste, damage and theft.

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Thanaa Lakshimi
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5 views5 pages

Production Challenges in Danshui Case

The Danshui plant is facing four main problems: 1) An inability to meet the monthly iPhone production quota of 200,000 units due to an underproduction of 20,000 units. 2) A lack of qualified labor as wages are very low, though wages have increased by 30-35% at Danshui and Foxconn. 3) Flash memory installations for Samsung phones are easily damaged by heat. 4) Inexperienced management is struggling to control all plant costs such as materials, labor, overhead due to inefficiencies, waste, damage and theft.

Uploaded by

Thanaa Lakshimi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

PROBLEMS

IN THE
DANSHUI CASE

PROBLEM 1: Unable to meet the


expectation of production
Contract : 2.4
million
iPhones
Expected
monthly
production :
200,000 units
iPhones

Actual monthly
production :
180,000 units
iPhones

Underproduct
ion 20,000
units iPhones

PROBLEM 2: Lack of Qualified Labor


Semiskilled labor
( Pay: less than one
dollar an hour)
Face problem of hire
enough qualified labor

Dhansui Increase wages


by 30%
FoxconnIncrease wages
by 35%

PROBLEM 3: Trouble with Samsung


Flash Memory Installation

Easily damaged by
heat during
installation

One thousand flash memories were damaged


& need o be replaced after inspection

PROBLEM 4: Lack of Experience to


Manage Operation

Control all
costs of the
plant

HEAVY
TASKS

Costs either
caused by use
waste, damage,
theft or
inefficiencies

Materials, labor
and overhead

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