Title: Factory shutdown: a managerial approach

Authors: Russ M. Dabbas, Bruce Huling, Hung-Nan Chen

Addresses: Conexant Inc.,4311 Jamboree Road, Newport Beach, CA 92660, USA. Semiconductor Consultants, 217 W. Narramore Road, Buckeye, AZ 85326, USA. Arizona State University, PO Box 871203, Tempe, AZ 85287-1203, USA

Abstract: Similar to laws of nature, evolution in semiconductor design, manufacturing, and functionality has been influencing our everyday life. With ever decreasing costs per bit, microelectronics are steadily penetrating and revolutionising our lives. Examples range from desktop computers to pagers and mobile phones to name just a few. One key enabler and driver has been the continuous design shrinks of Integrated Circuit (ICs) devices. However, despite the frequent design shrinks and all the equipment and process innovation that comes with them, the added complexity of new chip manufacturing requires wafer size scaling to maintain a competitive cost to performance ratio demanded by the consumer market. To stay competitive is only possible by enhancing the number of die per wafer, or in other words, convert to the next diameter. As a result, Motorola has been consolidating its older 4|| factories into existing 6|| and 8|| factories to support newer technology and to continue to be cost competitive. Factory consolidation, however, is not a trivial matter. It requires the transfer and requalification of different product lines and processes from one factory to another, the redeployment of people as well as the transfer of equipment from one factory to another. In this paper, we will review the key challenges faced by management and the management|s approach and strategies practised in a recent factory shutdown at one of the Motorola manufacturing sites in Phoenix, Arizona.

Keywords: factory consolidation; defacilitisation; project management; customer relations; human resources; semiconductor manufacturing.

DOI: 10.1504/IJSTM.2003.003623

International Journal of Services Technology and Management, 2003 Vol.4 No.4/5/6, pp.408 - 423

Available online: 24 Sep 2003 *

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