Analog Devices, Inc.
1. Strategy in the second half of the 1980s: Having innovative, high-quality products and being a reliable, responsive supplier.
2. (1) Benefits of the “half-life”: it will encourage the company to reduce cost and defective rates. The total quality of the production has been improved.
(2) Limitations of the “half-life”: it focuses only cost, not revenues. The quality goals and the company’s goals were in conflict. Half-life made the whole company centered on the quality improvement, while other key factors were ignored.
(3) The half-life is not the same for all processes. It depends on the complexity of the process. There are two dimensions to complexity: technical and organizational. Technical complexity is high for new technologies, where part of learning process is related to understanding and refining that technology. Over time, as the technology matures and its use becomes more routine and familiar, technical complexity declines. Organizational......
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