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Custom Chips Inc.

BUS 631
by

Matthew Pear

on 20 July 2018

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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

Consulting

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

Interviews

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
Communication
Collaboration and Understanding
Full transcript