Management and Key Success Factors

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Question 1
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.

Question 2
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.

Question 3
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...
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