The case describes the outsourcing of manufacturing services to a contract manufacturer and the subsequent focus on design of a MNC in the semiconductor industry. Challenges of execution in the outsourcing of such projects are discussed, and the need for close integration of design and manufacturing is explored.
The intent of this case is to investigate the efficiency and potential of contract manufacturing as a strategic option for a firm that is oriented towards product design. The case provides a rich framework to ask questions pertaining to sustainable competitive advantage in design if manufacturing is outsourced, and looks at effective ways of managing the design-contract manufacturing interface.
- Semiconductor industry
- Contract manufacturing
- Design for manufacturing
- Design for postponement
- Product and process alignment
- Mass manufacturing
- Outsourcing manufacturing