What are the key success factors for Motorola’s ASIC Division? 1. Motorola has ability to adapt changes in the industry and provide new products. 2. Motorola establishes Product Development time.
3. Motorola has a strict Quality assurance measures.
4. Motorola introduces production system and plant designed to fit the needs of the division. 5. Motorola has a shorter development to manufacturing cycle.
Does a traditional standard cost system address these key success factors? The traditional standard cost system was introduced for old style or traditional production system. Because of the dynamic changes, rapid volume production, number of different outputs of the ASICA, division doesn’t fit into the framework of the current accounting system. When we use the traditional system, it was a functional based accounting system. But when we use ASIC, it needs a product oriented accounting system. In some conditions, functional based accounting would not be a meaningful measure for ASIC division. Nowadays, variance was detected too late. It related the variance to a specific product or to look for the cause and correct the problems was not good under the traditional system. The wider time frame of monthly variance, production system will fail to account for the accumulation of positive and negative variance.
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What are good measures if these key success factors?
To decide on a measure or a scale for a success factors for any industry is a hard task to do. As an industry outsider, deciding on the base measure for success of a dynamic production plant is a daunting task. Particularly, setting a standard that is reasonable in terms achievability and reasonability is difficult. Industry specifics will vary for each and every measure and largely depend on each product.
Wider standards, defined by corporate strategy will be the best way to approach setting the measure for ASIC division. Setting the standard against which the division performance will be measured, it should not come from one group stakeholders alone. It resulted from technical and business branches of the ASIC working together. It should be a conscious agreement between the engineers that understand what the production needs and the managers that understand what the business needs. Flexibility is an obligation for these measures. A good measure always gives a feedback loop which helps to fine tune the set standards.
How would you control the plant using these measures and the current structure of the plant? The division was controlled along functional lines like Product Engineering Department, New Product Development Department, Production Planning Department, etc. Each division had clear defined roles given for it which would result in better controlling of the plant like Product Engineering Department was assigned the role to: * Deal with costumer complaints.
* Design the manufacturing process for existing products. * If a costumer wanted an additional manufacturing process. * Divide costs between non-recurring engineering expense and per unit cost of production. Market Department was assigned to:
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* Market Department was assigned the role to Exam the estimated product profitability report from Product Engineering Department. * Identify the initial prospects, Price product and forecast the market demand and so on which would help in exercising better control over various activities. The functional design of the factory resulted in large inventories and large batch sizes. JIT was used in ASIC division to implement in other divisions as well. The purpose is to reduce turnaround time of deliveries.