Circuit Board Fabrication Inc. (CBF) is a small company that has a process flow structure similar to an assembly line. They manufacture circuit boards that are composed of 40-50 components connecting hundreds of traces on a 4x6 inch board. They run a tight schedule and can have little allowances for careless work. At the current time they should be able to run 1000 boards a day through the plant. They have one shift and employee work 8 hour days, 5 days a week. An average order from a customer is 60 boards. CBF tends to increase every order by 20%, giving themselves a cushion for errors.
In an assembly line, the production process is where parts move from one workstation to another at a constant rate and the product is assembled in a sequential manner. This type of process flow is highly automated and needs constant management to ensure proper regulations are followed. Assembly lines are most used when needing to assemble a large amount of similar items at a continuous flow. One of the positives of an assembly line is it can be highly efficient and extremely cost effective. Every worker focuses on their task and is highly proficient at their part.
Impact of losses during an inspection process can be financially significant to the company. Failure rates have a significant effect on the overall end cost and can impact your reputation. For example, CBF has a 20% total loss rate which means that if they have an average order size of 60 boards they must assume they need to build 75 boards to meet there customer requirements. During the first inspection 15% of the boards are rejected. While another 5% fail the final inspection. During the first inspection you have to decide if those 15% are really scrap or should you send then through for another at ...