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Custom Chips Inc.
Transcript of Custom Chips Inc.
Custom Chips Inc.
Step 1: AIM
Step 2: Reality / Restrictions
Step 3: Root-Cause Analysis
Step 4: Improvement Options
Step 5: Value-Added Implementation
Step 6: Evaluation & Continuous Improvement
Custom Chip, Inc.
Has overseas facilities in Europe and the Far East
Most of the company’s 300 employees located in Silicon Valley
Company's growth has come to a standstill
Criteria Used for Comparing Options:
Duration of Time
Extra Costs (Cost Benefit Analysis)
Reduction of Bottlenecks
Priorities of tasks
Efficient Allocation of Resources
Collaborative & Communication Efforts
Increase in collaborative efforts
More efficient use of resources
Facilitates areas for organizational improvement
Temporarily increases workers hours
Reduces the dependence on certain individuals
Enables employees to make decisions and increase morale
Increases collaborative efforts between departments
Increases interdepartmental collaboration
Increases employee moral (especially engineers)
Reduces amount of time engineers spend solving issues
Increases the efficiency of distributing resources
Temporarily will increase costs and may cause overtime
Have Frank develop a format for his weekly meetings that facilitates enhancing operations
Authorize overtime for workers to develop documentation and be trained
Current Reality in Organization
lack of inter department communication
no incentive to coordinate efforts
poor manufacturing documentation
poor upper level management
low employee morale
Restructure the weekly meetings to focus more on documentation issues.
Increase the emphasis on completing documentation sets for the different product lines.
Suggest or require overtime as necessary to allow the engineers time to work on the documentation packages.
Increase the training across all
departments and include
Request that applications engineers spend more of their time trouble shooting the issues with production.
Bring in a consultant team to study the issues and recommend a solution.
Company's High Priorities:
Market Share Increase
The Aims of the Work Process Being Examined:
Continually Reducing Costs
Increasing Product Standards and Decreasing Time
Enhancing Chip Design Abilities
Effective Internal Communication including:
Building effective relationships
Having Business focus
Coaching and Listening
Writing, design, innovation and creativity skills
Process is improved if there are as follows:
Positive Feedback from Employees and Customer
Current Production Process
Plan of Evaluation of Improvement Efforts should include as follows:
Extensive product lines
Produce small production runs
Possible low average yields
Plan for Evaluating the Solution
1. Primarily concerned with design and manufacture of product
2. Product delivery on time
3. Pricing of product
Process Gaps - What is supposed to happen,
and what really happens
Documentation guides production - In actuality documentation is vague, confusing, and deficient.
Application and Product engineers work cohesively together to improve manufacturability - Reality is politics, lack of cooperation, poor incentive structure.
Time to complete necessary tasks - In actuality all departments have cut back, lack of organization and task focus.
Are there close links between reality and aim?
Documentation - making it a priority
Collaboration - Enhance what already exists, through other channels
Time - Efficiency increase, training.
Core assumptions revealed
Compensation and recognition:
Innovative New Designs
Control Yields on assigned Prod.
Meet productivity standards
and time schedules
Data Collection & Analysis
Focus Group Interview Results
Survey Results/Employee feedback
Ways to Measure:
Plant to Meet Aim
Create Meetings Schedule Sheet
Give employees a clear vision of their role in the company and scope of the responsibilities.
Include concrete steps to be taken to tackle a particular issue
Any meeting should include a specific agenda, for example, specific topics for discussion, plan of action, etc.
Training for employees to stimulate communicative skills, effective collaboration
No recognition of 5 years
Not really addressing employee moral
Friendliness with upper management
No sourcing issues (materials or international facilities)
External pressures or factors/environment
Missing needs to be addressed?
Refer back to re-structure of meetings
The new process in place for documentation and collaborative efforts
B/c its a custom chip company, there will always be new issues
How to ensure that people see this as part of a never-ending process of continuous improvement?
Focus Group Interview Questions Types
Restrictions and Constraints
lack of resources
shortage of employees
personal interest and issues
Hierarchy within the company
Collaboration and Understanding