Motorrola Inc

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Motorola Inc.
1. What are the key success factors for Motorola’s ASIC division? * The opening of a new production facility in Chandler was an opportunity for them to make changes within the division. * New plant floor layout that was designed for a JIT philosophy. * Products were able to move from cell to cell instead across large distances on the production floor. * The fast turnaround time for new IC’s which allowed items to be shipped within 3 weeks from the time design was accepted. * The work flow was controlled through a pull system with designated areas where limited inventory was allowed between work stations. This kept excess inventory from piling up in the workstation. * Motorola involved the customer in the middle of the development cycle. This resulted in an involved customer relationship. Motorola focused on its customers rather than on its products.

2 Does a traditional standard cost system address these key success factors? Thetraditional standard cost system was designed for old style or traditional production system. The dynamic changes, rapid volume production, number of different outputs of the ASIC division don’t fit into the framework ofthe currentaccounting 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.

3 What are good measures of these key success factor?
* Deciding on a measure or a scale for asuccess factors for any industry a hard enough task.As an industry outsider, deciding on...
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