New Product Development Department

‡ Responsible for Translation of customer product specification into manufacturable design. ‡ Responsible for production of prototypes. ‡ Provided estimate of manufacturing cost to marketing group. ‡ Initial product produced in the development fabrication area.

. ‡ 70 percent learning curve implies 30 percent decrease in unit cost.New Product Development Department ‡ Learning curve estimated to be 70 percent for most products. ‡ Helped in capital planning by the finance department. ‡ Department provided updated forecast of future capital expense.

supervisors. ‡ Engineers monitor production process and methods.Manufacturing Department ‡ Department consisted of hourly workers. . and engineering staff. ‡ Hourly workers directly involved in operating machinery and inspecting work in progress. ‡ Main focus on manufacturing process than on specific product.

‡ Motorola provided design services to customers and maintained customer relationship.ASIC Market ‡ ASIC-Application Specific Integrated Circuit. ‡ Motorola focused on customers rather than on products. ‡ ASIC provided for ³building blocks´ for creating new design by customers. .

‡ Customers wanted high quality. . ex. quick development time and ability to achieve volume production.ASIC Market ‡ Customers usually computer manufacturers. Hp developed JIT ‡ Price was of secondary importance.

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