Case 3-5 Digital Equipment Corporation

Case Summary digital Semiconductor was a blood telephone tone unit of digital Equipment Corporation. lavatory Gavin, the DS group controller, measure outd the finance department to aline ways to add value and develop support the year because the DS business strategy had many changes over the prehistoric five years and the partition was still operating at a loss. History: The semiconductor division which was a part of Digital Equipment Corporation spread out rapidly in the 1970s. Digital was financially very winning in 1988. However, Digital faced spacious losses in 1990 through 1994. In 1997 Digital returned to advantageousness because of the reorganization of Digital into business units and overlap lines. Digital Semiconductor: Chip designers break down to consider terms along with pushing the envelope of science. In the new proceeds line organization, Digital units needed from twain DS and outside suppliers. Semiconductor Manufacturing: Silicon Wafers P robe manufacture Test It is important to bank note that the salute anatomical structure went from a cost per wafer to a cost per die during the look into process. Yield was very critical to the cost of the process. Product lines: A harvest-festival line was defined as the integration of the activities of marketing, harvest-home development, and product engineering to manage a set of expectedness products to achieve ROI. DS was divided into six product lines representing their major microprocessor.

Question 1. I think the new system is better than old one. prime(prenominal) of all, each(prenominal) product line woul d be metrical with full stop goals for pr! ofit contribution. Further more than, all the financial achievement would be measured individually (i.e. revenues, sales, spending, etc...). Therefore, each product line would be more responsible and active for making profit. And the product line would be charged a competitive manufacturing product cost for each of its products. So each product line would control the cost. As a potential... If you want to get a full essay, severalise it on our website: BestEssayCheap.com

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