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When National Semiconductor couldn't find a planning system to help it maximize capacity in its factories and improve responsiveness to customers, it decided to develop its own. In doing so, the chipmaker opted for a regional system that lets it capitalize on factories' local experts who know how to save time and money.
The new factory planning system is an example of how creativity drives innovation at National. "If we don't find a solution in the commercial space, and we think that the commercial solutions aren't really satisfactory, then we don't shy away from doing it ourselves," says Ulrich Seif, CIO and senior VP of National's supply chain services unit. The company, which makes semiconductors for wireless handsets, displays, and a variety of electronic devices and had revenue of $1.9 billion last year, has a unique organizational structure that has a lot to do with how it gets things done. A supply chain services unit that Seif oversees includes purchasing and planning operations, and is a single channel for company-wide information services. It's a cross-functional group that shares the same sense of purpose. "The goals and objectives line up for the whole group, so there are no excuses," Seif says. IS managers and staff get a deep understanding of each business unit's processes and challenges, through talking informally with their business-unit counterparts and attending their meetings. The unit's 304-person staff provides consulting and IT to business units across the company.
A BETTER WAY
In addition, the centralized system meant managers far from the factory floor made decisions, and they weren't always aware of the many opportunities to optimize the factories, says Hoo-Hin Tan, manufacturing operations director at National's Melaka plant. To take advantage of such opportunities, factory managers had to deviate from the central plan, which meant extra communication and overriding the system. |
