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ANALOG DEVICES INC Part  A
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Q1. WHAT WAS ADI’S STRATEGY IN THE 2 ND  HALF OF 1980’S?
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
TQM OUTCOME Parameter Measured improvement On time delivery Increased from 70% to 96% Cycle time Decreased from 15 weeks to 8 weeks Average yield Increased from 26% to 51% Defects in products shipped Decreased  from 500PPM to 50 PPM
Q2A. EVALUATE HALF-LIFE CONCEPT. Q2B. WHAT ARE ITS BENEFITS & LIMITATIONS? Q2C. HOW IS IT DEVELOPED FOR DIFFERENT PROCESSES? Q2D. HOW IS IT DIFFERENT FROM EXPERIENCE CURVE CONCEPT?
[object Object],[object Object],[object Object],[object Object],HALF-LIFE AS A TOOL BENEFIT Goal setting tool Rational determination of future performance Diagnostic tool Benchmarking improvement efforts against best practice for processes of similar complexity Measure of organizational learning To make comparisons with alternative methodologies.  
IMPLEMENTATION OF HALF-LIFE
Half Life Learning Curve Rate of decline of defect level is constant over time  With doubling of cumulative experience the unit cost drops by a constant percentage Concept generally deals with  defects Concept generally deals with  cost Defect reduction owing to a root cause being eliminated and subsequent tackling of the next root cause Cost reduction owing to the same action being performed repeatedly
Q3A. IDENTIFY THE CONFLICTS THAT EXIST BETWEEN QIP MEASURES AND THAT REPORTED BY FINANCIAL SYSTEMS? Q3B. WHICH NUMBERS SHOULD WE BELIEVE ? Q3C. CAN THEY BE RECONCILED ?
[object Object],[object Object],[object Object],[object Object],[object Object]
Q4A. CRITICALLY ASSESS THE USEFULNESS OF CORPORATE SCORECARD. Q4B. WHAT ROLE DOES EACH MEASURE PLAY IN STRATEGY EXECUTION? Q4C. WHAT SHOULD BE THE RELATIVE IMPORTANCE OF FINANCIAL VERSUS NON-FINANCIAL MEASURES?
[object Object],[object Object],[object Object],Financial Revenue  Help determine the financial performance of a company and also how effectively assets are employed  Revenue Growth  Profit ROA
[object Object],[object Object],New Products NP introduced Help determine the pace of innovation at ADI NP bookings NP breakeven NP peak revenue Time to market  QIP On time delivery Help measure the operational and human resource effectiveness of  ADI Cycle time Yield Defects Employee productivity Turnover
Q5. EVALUATE THE MANAGEMENT PLANNING & CONTROL SYSTEMS AT ADI DURING 1990-95 IN LIGHT OF ADI’S STRATEGY IN 1 ST  HALF OF 1990’S
[object Object],[object Object],[object Object],[object Object],[object Object]
Q6. DO YOU AGREE WITH THE COMPENSATION PHILOSOPHY OF ADI?
[object Object],[object Object],[object Object],[object Object],[object Object]
Q7A. DESCRIBE ADI’S STRATEGY AS OF 1996. Q7B.HOW SHOULD SCORECARD & OTHER MANAGEMENT SYSTEMS CHANGE IN 1996 TO BEST FIT THE STRATEGIC NEEDS OF THE COMPANY?
[object Object],[object Object],[object Object],[object Object],[object Object]
Managerial compensation can be linked to EVA.
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Analog Devices A Inc

  • 2.
  • 3. Q1. WHAT WAS ADI’S STRATEGY IN THE 2 ND HALF OF 1980’S?
  • 4.
  • 5. TQM OUTCOME Parameter Measured improvement On time delivery Increased from 70% to 96% Cycle time Decreased from 15 weeks to 8 weeks Average yield Increased from 26% to 51% Defects in products shipped Decreased from 500PPM to 50 PPM
  • 6. Q2A. EVALUATE HALF-LIFE CONCEPT. Q2B. WHAT ARE ITS BENEFITS & LIMITATIONS? Q2C. HOW IS IT DEVELOPED FOR DIFFERENT PROCESSES? Q2D. HOW IS IT DIFFERENT FROM EXPERIENCE CURVE CONCEPT?
  • 7.
  • 9. Half Life Learning Curve Rate of decline of defect level is constant over time With doubling of cumulative experience the unit cost drops by a constant percentage Concept generally deals with defects Concept generally deals with cost Defect reduction owing to a root cause being eliminated and subsequent tackling of the next root cause Cost reduction owing to the same action being performed repeatedly
  • 10. Q3A. IDENTIFY THE CONFLICTS THAT EXIST BETWEEN QIP MEASURES AND THAT REPORTED BY FINANCIAL SYSTEMS? Q3B. WHICH NUMBERS SHOULD WE BELIEVE ? Q3C. CAN THEY BE RECONCILED ?
  • 11.
  • 12. Q4A. CRITICALLY ASSESS THE USEFULNESS OF CORPORATE SCORECARD. Q4B. WHAT ROLE DOES EACH MEASURE PLAY IN STRATEGY EXECUTION? Q4C. WHAT SHOULD BE THE RELATIVE IMPORTANCE OF FINANCIAL VERSUS NON-FINANCIAL MEASURES?
  • 13.
  • 14.
  • 15. Q5. EVALUATE THE MANAGEMENT PLANNING & CONTROL SYSTEMS AT ADI DURING 1990-95 IN LIGHT OF ADI’S STRATEGY IN 1 ST HALF OF 1990’S
  • 16.
  • 17. Q6. DO YOU AGREE WITH THE COMPENSATION PHILOSOPHY OF ADI?
  • 18.
  • 19. Q7A. DESCRIBE ADI’S STRATEGY AS OF 1996. Q7B.HOW SHOULD SCORECARD & OTHER MANAGEMENT SYSTEMS CHANGE IN 1996 TO BEST FIT THE STRATEGIC NEEDS OF THE COMPANY?
  • 20.
  • 21. Managerial compensation can be linked to EVA.

Notas del editor

  1. As a goal setting tool it allows rational determination of future performance based on the use of state-of-the-art incremental improvement tools and methods.  As a diagnostic tool, it allows a team to benchmark its improvement efforts against best practice for processes of similar complexity.  As a measure of organizational learning , it is easily consolidated from the level of the team, through the business unit to an overall organization-wide metric.  As a specification for an improvement process, it allows potential users the ability to make comparisons with alternative methodologies.  
  2. Refer word document