Custom Chips

Introduction

The case under discussion, "Custom Chips", is about a manager's inability to work effectively under organizational constraints and, how these can in turn lead to conflicts, effect productivity and lower employee satisfaction.

Problems & Issues

The issues & problems highlighted in the case relate to both the Product Engineering Manager, Frank Questin and to the company. These issues/problems have been classified below in relationship to the concerned parties.

Manager

* Lack of proper manufacturing documentation which has lead to delays in production, increase in inter-departmental conflict, shifting of the production department's focus and employee dissatisfaction. This has also shifted the production department's focus and they are more involved in solving day-to-day tasks rather than focusing on their primary objectives.

* Frank Questin's involvement in day-to-day tasks has increased to a level where he is unable to focus on the core issues. His job has decreased to solving day-to-day manufacturing and design issues, and facilitating co-ordination between different departments.

* He is also facing lack of support from higher management both in the matter of allocation of resources and inter-departmental conflict resolution.

* There is also a shortage of staff which has increased the load on the current employees. This is leading to a decrease in employee satisfaction as in the case of Sharon.

Company

In my opinion, the problems being faced by the Manager, Frank Questin, basically stem from the problems being faced by the company as a whole. These are:

* There is lack of communication and co-ordination between departments. This has lead to increase in inter-departmental conflicts and could also lead to decrease in productivity. The quality of the design of the product is also being affected.

* Various departments are facing a shortage of staff. The current employees are over burdened and employee dissatisfaction is on the rise. This is evident from the statements of Sharon Hart and Jerry West.

* Departmental objectives are mutually exclusive. This has lead to inter-departmental conflicts where one department's objective is being sacrificed or overlooked in favor of the others. This can be seen in the case of the manufacturing and production department where one department is concerned with the level of yield (Production department) and the other with the manufacturing timelines (Manufacturing department).

Description

Custom Chips, Inc. is a medium sized company specializing in the manufacture of customized chips and components. The company is also producing a high number of new/modified products which places higher burden on quality control. The customers of the company more concerned with the quality of the product and delivery time than the cost of the product. The manufacturing of the chips is a two stage process and is highly complex. The whole process is subject to both human and machine error, and products are rejected due to even the slightest of flaw. Effective functioning and production is a direct function of the ability of the various departments to work efficiently in co-ordination and communication with each other and especially on the engineers. The product life cycle required close co-ordination and co-operation between different departments at every stage of the life cycle (Exhibit A).

Constraints

The one constraint being faced by both Frank and the company is that of reduction in cost. This is due to the external market conditions. This has lead to a halt in further employment.

Assumptions/Inferences

It can be inferred from the case reading that Custom Chip's products have a high per unit cost. Also, I feel that the constraint being faced by the company is a superficial one and can be solved through more effective co-ordination between the various departments during all the three stages of the product life cycle. This is evident from the fact the company is manufacturing products with a high buffer which further increases the per unit cost. This is a fail safe mechanism and is being under taken due to lack of proper manufacturing documents and co-ordination between various departments during various stages of the product life cycle.

The Manager, Frank Questin

The case under discussion opens with the manager questioning his effectiveness as a manager and ends on the same note. Frank's approach to his job is very enthusiastic. His management style, as in all cases, has its pros and cons. His effectiveness or ineffectiveness can be gauged through his actions. He has been able to develop a calm atmosphere in his department. The employees in his department are comfortable with each other and this has been a direct result of the weekly departmental meeting he started on taking up the job. He has also developed a collaborative relationship with the Manager of the Applications department and can easily take up an issue with him. He also quick to take decisions and tries to solve the problem as soon as possible. Frank has developed a good rapport with his employees and they are comfortable in taking up their issues with him. Case in point is Sharon. He has also demonstrated that he is patient and persistent as evident from his dealings with the manager of the manufacturing department, Mr. Rob Cameron. However, there are a number of chinks in his management style. He is unable to complete is primary goal and is embroiled in solving day-today tasks. There is no delegation of responsibility to his employees as in the case of the 1210 chips where he had to sit through the meeting instead delegating the decision making responsibility to his engineer. There is also no clear agenda of the weekly meetings which can detract the team members from the primary discussion points. Frank is also unable to convince his boss in the matter of resource allocation and has not networked enough to able to resolve certain problems on his own. As seen from his inability to garner support from the manager of manufacturing for additional resources for working on the manufacturing documents.

If we look at his performance with respect to Henry Mintzberg's theory, his effectiveness as a manager can be determined more clearly. He is not a balanced manager when looked through Mintzberg's theory. He is effectively performing the Interpersonal