Final Project of Competitive Advantage and Operations Strategy
Zijing Chen 661027591
December 3, 2015
Abstract
Lean is a systematic method to root out of Muda (waste), and thus increase efficiencies within a manufacturing system. During the production, values are added to the process. For example, when assembling a component, the final product is the value a customer is willing to pay for it. Lean is an important manufacturing philosophy that leads to improvement of processes. In class, there were several lean knowledge and tools introduced, such as lean manufacturing process stages, Ishikawa Diagrams, Kaizen, as well as some others. They will be studied in this report and applied to a semiconductor interconnects production process. The
…show more content…
On July 1 2015, GF quickly achieved scale as the worldwide second largest semiconductor manufacturer through the acquisition of IBM Microelectronics, including two fabs in East Fishkill, NY and Burlington, VT. The company now owns 10 fabs, including four 300mm fabs and six 200mm fabs, that provide the full range of process technologies from mainstream to the leading edge.
Fab 10 stands for the 300mm fab located in East Fishkill, New York. It became part of GlobalFoundries operations with the acquisition of IBM Microelectronics, and currently manufactures technology down to the 22 nm node. The plant was built on a 450-acre property in 1962 purchased by IBM. The plant includes a large fab for 300mm wafer production, and another small line for post-fab interconnect manufacturing (C4), research and development, and a mature supply chain management department. As the company faced high costs through technology development and updates to more advanced equipment, the return on investment is extremely low. In fact, IBM lost $130 Million in 2014 in the microelectronics division, and expect an equivalent loss in 2015. Hence, IBM decided to sell both East Fishkill and Burlington in order to initiate a partnership with Globalfoundries. Similar to their partnership with AMD, they are now designing the chips for their use. GF has become a contracted supplier for
Cambridge Behavioral Hospital currently uses a Change Theory. Strategy for most organizations is about change and focus. A firm strategy starts with knowing the external and internal forces that impact the organization’s ability to achieve its most important goals, and then steadily making the necessary changes to direct those forces. “A validation (or invalidation) of the strategic assumptions reinvigorates strategic thinking and provides a basis for investigating whether to change the strategy” (Swayne, Duncan & Ginter, 2008).
Over the years the importance of Asia in the electronics industry grew amazingly, especially China, which dominated the industry’s growth at greater than 20 percent
* Customers: Electronics manufacturers; IBM, AT&T, Digital Equipment are customers for large orders of simple boards or small orders of prototype boards: Specializes in making circuit boards for experimental devices and pilot production runs
The company markets its unique products to youth markets which it feels are underrepresented and inadequately reached by its competitors. The company uses innovative and creative, and it effectively set Jones Soda apart from the competition. By allowing consumers to assist in package design, Jones Soda became a brand that concerned itself more with the consumer than with the actual product. This has made consumers feel more relevant, has given them a sense of ownership over the brand, and has encouraged customer loyalty. Due the field is so competitive with several ways to stay competitive in their designated field. Through distribution, brand name, brand image, price, labeling and packaging, advertising, quality of the beverage, and new ideas they have accomplished this. Jones Soda competes for customer appreciation, retail shelf space and for marketing focus by their distributors, who also distribute other beverage brands. Jones Soda currently distributes their products in several retail outlets. These outlets include Barnes and Noble, Panera Bread Company, Cost Plus World Markets, Starbucks and Target Corporation. As well as these mature locations, Jones Soda also distributes to other independent vendors.
Lean is defines the manufacturing philosophy that reduces the time between the shipping and customer demand, which based on the systematic method by eliminating waste, that means giving the customer what they want when they want it, and don 't waste whatever. Rahmana, Sharif and Esa (2013) suggested lean production is mentioned to improve the company 's performance from the philosophy in reducing waste in order. That means, lean system destination is the decrease cost by removing the non-value activities, which they are applying a category of tools and techniques for checking and eliminating defective in the production process. In the Evenort Company should emulate the five overriding principles of lean thinking in terms of implementing lean that there is guarantee the company has been driving correctly in the lean manufacturing (Cardiff 2015) as can show in table 1.
“Competitive strategy involves positioning a business to maximize the value of the capabilities that distinguish it from its competitor’s” (Porter 1980:47). A successful business plan requires first and foremost the formation of an appropriate strategy. Through the implementation of a suitable strategy, the company is able to obtain its own industry niche and gain an understanding of its customers (Porter 1985). Whichever strategy is adopted it must be adequately integrated within the firms goals and missions to achieve a competitive advantage (Parker and Helms 1992).
I hope the week has gone well for you all!. As you will notice when reviewing these, we have rolled out an enhanced version of our Strategy Overview & Performance Monthly Report. The format of the report is one you have been accustomed to, with a similar “look & feel” however with additional details, like YoY and MoM percentage of difference.
In terms of individual manufacturers, such names as Acer, the world’s third largest producer of personal computers, Macronix International Co., Sunyen Co., and Sony Corporation stand out. Macronix International Co., who already has established three such facilities, is looking to construct a new semiconductor factory in the Hsinchu Science-Based Industrial Park. In addition, Sony Corporation has shown interest in Taiwan for the future. Sony plans to establish two computer chip design centers over the next three years in the heart
In 1972, Intel started creating central processing units (CPUs) and microprocessors. As the microprocessors improved, the industry expanded toward gaming and graphics that required stronger and faster processing chips. Later in the 1970’s, Intel also decided to go abroad by opening an assembly plant in Penang Malaysia. Intel’s internationalization process moved quickly in the following decades and these international locations promote its global growth to an even higher level. Currently, Intel is located in over 60 countries worldwide including Singapore, China, India, and Indonesia, which are all big supply-chain giants in the world.
In the deal, Lenovo, which is partly owned by the government’s Chinese Academy of Sciences, would help IBM gain entry into the promising China market. In return, IBM would sell Lenovo PCs through its sales force and distribution network. In addition, IBM would provide services and financing for Lenovo PCs and allow Lenovo to use the IBM brand name for five years.
Founded in June 1911, IBM has always been a leading company in the technology industry and at the forefront of innovation. It is a manufacturer of computer hardware and software, and also provides infrastructure, hosting and consulting services. Before the 2000s, IBM was the largest PC vendor in the world. However, the hardware sales have continually declined since 2000, and IBM sold its PC group to Lenovo in 2004, as well as its x86 Server Business in 2014. In the new era of the technology industry, IBM has faced the challenge to transit from a hardware manufacturer to a service company.
US Tech is considering discontinue the cooperation with its primary product supplier: TaiSource. The two main reasons that drive the company for doing so are (1) reducing cost and broaden the market by collaborating with a new Chinese supplier; (2) eliminating the threat of a future strong competitor who knows almost everything about US Tech’s products. After carefully examining the entire situation, we hold that US Tech should find an alternative Chinese supplier to cooperate while keeping the relationship with TaiSource.
Daifuku Co. Ltd is a Japanese company which assists Intel in work-in-progress logistic transporting and storage. KLA-Tensor Corporation processes capital equipment control and services for Intel. Furthermore, they partnered with Siliconware Precision Industries Co. Ltd., which they assist in business specializing semiconductor assembly test the services of products. Tokyo Electron Limited provides with dry etch and wet etch services and thermal and test systems. Tosoh SMD Inc. provides sputtering targets for physical vapour deposition. Veolia Environment assists Intel with waste management services, and lastly Moduslink Global Solutions Inc. provides integration and supply chain services for Intel customer
3. Identify the type of competitive advantage that the initiative enabled the organisation to achieve. Justify your answer. If you feel that there was more than one type of competitive advantage, identify (and justify) each of these that you think apply in
(Hill, 2009) state “Molex’s competitive advantage is based on a strategy that blends low costs, excellent customer service, and the mass production of standardized products that are sold globally”. Using a pre-requisite module like business strategy for competitive advantage, it can be assumed that Molex are using theoretical concepts from porters generic strategies like focused low cost and differentiation in order to gain an advantage over their competitors as previously mentioned in the case study.