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Custom Chips Inc.

BUS 631

Matthew Pear

on 9 October 2012

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Transcript of Custom Chips Inc.

Group 2 Case Analysis 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.

Semiconductor manufacturer

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: Employee Morale
Duration of Time
Extra Costs (Cost Benefit Analysis)
Reduction of Bottlenecks
Priorities of tasks
Cost Constraints
Efficient Allocation of Resources
Collaborative & Communication Efforts Weekly Meeting Increase in collaborative efforts
More efficient use of resources
Prioritizes Tasks
Facilitates areas for organizational improvement Training Temporarily increases workers hours
Reduces the dependence on certain individuals
Enables employees to make decisions and increase morale
Increases collaborative efforts between departments Documentation 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 Next Steps 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
day-to-day issues
poor upper level management
low employee morale Option #1

Restructure the weekly meetings to focus more on documentation issues. Option #2

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. Option #3

Increase the training across all
departments and include
inter-disciplinary training. Option #4

Request that applications engineers spend more of their time trouble shooting the issues with production. Option #5

Bring in a consultant team to study the issues and recommend a solution. A R R I V E Company's High Priorities:

Cost Reduction

Market Share Increase The Aims of the Work Process Being Examined:

Increase Efficiency

Continually Reducing Costs

Increasing Product Standards and Decreasing Time

Controlling Yields

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:

Sales Increase

Productivity Growth

Cost-Effective Production

Positive Feedback from Employees and Customer Current Production Process Plan of Evaluation of Improvement Efforts should include as follows: Surveys


Focus Group

Polling Extensive product lines
Produce small production runs
Possible low average yields Plan for Evaluating the Solution Customer Expectations 1. Primarily concerned with design and manufacture of product
2. Product delivery on time
3. Pricing of product Application
Engineers 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: Application Engineers Product Engineers Manufacturing Personnel Redesign Products
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 Introductory Questions
Transition Questions
Key Questions
Ending Statements Product
Engineer Manufacturing Relevant Prospective
Change Restrictions and Constraints time constraints
lack of resources
shortage of employees
personal interest and issues Silo effect
Hierarchy within the company
Collaboration and Understanding
Full transcript