1. What was Analog Devices' strategy in the second half of the 1980s? ADI had missed the Five year goals. Factory was missing 40% of is committed delivery dates Defect level was more than 20 PPM 15 out of 100 ICs manufactured by ADI were of acceptable quality which was below the industry standards Art Schneiderman as vice president of quality and productivity improvement was hired. Half Life Strategy Any defect level, subjected to legitimate QIP, decreases at a constant rate, so that when plotted on semi-log paper against time, it falls on a straight line. This means that over a period of time a process experiences a 50% reductions in defects. Find the Root cause of defects and rank them in the order of importance. Find solutions based on …show more content…
The ADI financial system was a traditional process-oriented system that tracked expenses to each of the major production cost centers and allocated cost center costs to products. The QIP identifies what matters to customers. Second, we develop metrics for these objectives, and third, the metrics to is analyzed to develop problem-solving activities. This captures the performance of the profit centers Financial Systems were more inclined towards revenue enhancement QIP measures were not given much importance as these are mere avenues to achieve higher financial measures Half-life measured defects whereas the Financial System measured cost Financial System was hindering shorted Cycle times and JIT implementation. Focusing on reducing waste using QIP. Hoshin kanri was to focus on improvement on one or two breakthrough objectives for the company and also introduced to generate increased revenue. 4. Critically assess the usefulness of the information contained in the corporate scorecard in Exhibit 3 as a way to implement Analog Devices' strategy. What role does each set of measures play in strategy execution? What should be the relative importance of …show more content…
QIP measures are Cycle time, On time delivery, Yield, Defects, Employee productivity, Employee productivity Non-financial measures are used at low levels for task control Financial measures are used at high levels for management control 5. Evaluate the evolution of the corporate scorecard and related management planning and control systems at Analog Devices during 1990–95 in light of Analog Devices' strategy in the first half of the 1990s. During the first half of the1990s the emphasis shifted from cost reduction (QIP) to wealth creation. New dynamic measures like Hoshin were introduced to measure performance. Complementing ADI’s scorecard, key success factors were introduced to measure milestones related to the company’s business plans. Planning by teams was done rather that it being done centrally. = as part of new planning strategy. 6. Do you agree with the compensation philosophy of Analog