Thats Sundaram

Case Analysis #2

MBA 8501

Motorola Inc -Case Analysis

  1. What are the key success factors for Motorola’s ASIC Division?
  • Ability to adapt changes in the industry and provide new products.
  • Product Development time.
  • Strict Quality assurance measures.
  • Production system and plant designed to fit the needs of the division.
  • Shorter development to manufacturing cycle

  1. Does a traditional standard cost system address these key success factors?

The  traditional standard cost system was designed for a  old style or traditional production system. The dynamic changes, rapid volume production, number of different outputs of the ASIC division doesn’t fit into the framework of  the current  accounting system. The traditional system was a functional based accounting system, while ASIC needs a product oriented accounting system. In many case functional based accounting would not be a meaningful measure for ASIC division. Currently, when variance was detected it was too late. Tied the variance to a specific product or to pinpoint the cause and correct the problem was not feasible under the traditional system. The larger time frame of monthly variance in this quick phase production system failed to account for the accumulation of positive and negative variance.

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  1. What are good measures of these key success factor?

Deciding on a measure or a scale for a  success factors for any industry a hard enough task.  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 measures and largely depend on each product.

Broader standards, defined by corporate strategy will be the best way to approach setting the measure for ASIC division. Setting the ...

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