Case for Analysis

by

Business Finance

Custom Chip, Inc. is a semiconductor manufacturer specializing in custom chips for use in radio frequency devices such as satellite transmitters. Cost reduction had become a priority because corporate growth had stopped from a downturn in the industry. Wafer fabrication takes 8 to 12 weeks and assembly takes 4 to 6 weeks. At each step, operations are subject to considerable operator and machine error, resulting in an average product yield of 60-70 percent. Note that “yield” refers to the ratio of finished products that meet specifications relative to the number that initially entered the manufacturing process. Whenever yield falls in the 35-50 percent range, the company runs the risk of not being able to complete the order on time or of having too much waste.

In this case, you will see the dynamics between product engineering, applications engineering, and manufacturing. Product engineers may stop their work to respond to six questions from the manufacturing floor and four calls to testing stations. Applications engineers, who feel that they get little recognition for solving manufacturing problems, are also called to manufacturing for re-design when there are problems. Manufacturing, under the gun for output, feels that they suffer for lack of adequate documentation of the manufacturing steps. Each department has its separate goals, although it is evident that those separate goals are not yet brought together in the form of unified corporate goals.

Complete a SWOT Analysis by using this template. This is a good exercise to apply critical thinking and apply studying habits. It will help you with in-depth research to find the Strengths, Weaknesses, Opportunities, and Threats of the Case Study.

In addition to the SWOT Analysis, answer the following questions in the same document:

  • Analyze any conflict problems or political processes to include power, politics, and collaboration in this case and provide recommendations for remedies.
  • Analyze workflow interdependence among departments.
  • Based on your analysis, what recommendations would you give to management?
  • What is the type of design used now at Custom Chip? What changes would you recommend for the organization’s structure?
  • Prepare a new organizational chart for the proposed new organizational structure.
  • Define in detail all roles, responsibilities, and reporting structures in the proposed organizational structures. If you add or change roles, identify the skills needed for each added or changed role.