Teradyne is a 45 twelvemonth old corporation specialized in proving equipment for transistors and other electrical constituents of the semiconducting material industry. The company was founded in 1960 by two MIT alumnuss with a vision to convey a line of dependable. fast proving equipment to the industry. As the complexness and volume of constituents manufactured by their clients increased. so did Teradyne’s investing in research and development. By 2004 Teradyne had five concern units. including semiconductor trial. assembly trial. broadband trial. connexion systems. and diagnostic solutions. Semiconductor trial remained the largest concern operation for the company. bring forthing merely under two tierces of one-year gross in 2004. The company had six major technology operations across the United States. with three of those installations lodging fabrication operations. Teradyne had besides dispersed across the Earth with smaller technology operations set up in Japan. China. and Germany.
The Semiconductor Industry
Semiconductors cover a really wide scope of devices which can be classified by 2 chief classs: memory. and system on bit. Each type of device performs a different undertaking in an electronic system. with its ain set of complex uses that it performs on the electrical signals that come as inputs. As semiconducting materials grew over the old ages to go smaller and more powerful. minor defects in the production procedure could forestall an full device from working right. This resulted in a high demand for proving equipment that could find if a constituent was functional or non. This simple thought is rather a complex device. as devices frequently have a really broad scope of operations. This is where Teradyne comes in.
Teradyne’s merchandise performs the testing of constituents to guarantee that their behaviour lies within the specifications outlined by their industries. basically stating them if a constituent is good or bad before it leaves the mill. By 2004 Teradyne had become one of the world’s leaders in semiconducting material proving equipment with over 6000 employees worldwide. Their biggest competition came from Aligent. Advantest. and Credence. who held much smaller portions of the market.
Customers tended to be makers like Intel. IBM. Hitachi. and Samsung who were actively making new merchandises and were willing to pass about 3 million dollars on a machine. Over the old ages. the production procedure of Teradyne’s clients had dramatically changed. Since production volumes were traveling up. and monetary values coming down. it was imperative that the proving procedure non decelerate down production operations. Reliability was of great concern as testing was frequently considered a constriction in the production procedure and any downtime would be highly dearly-won. Therefore. client service was a major merchandising point every bit good.
As engineering of semiconducting materials became more advanced. the demand for more sophisticated testing equipment increased. So each new device frequently required buying a new specifically built piece of proving equipment. Therefore it was really common for clients to trust on Teradyne’s past experience with their merchandises in developing new equipment. Furthermore. it was really common that one time a company was chosen to develop proving equipment for a peculiar device. no other company would vie in that country. The rapid development of new semiconducting materials required every bit quickly development of proving machines. which proved to be a hard undertaking. It was going more of import that proving companies come up with equipment that was no longer limited to proving a individual device. but instead could be configured to prove multiple devices. This would in short provide equipment that was well more hard to develop. but would turn out much more cost effectual for the client.
Teradyne’s background was strongly focused on technology as many of the senior directors came from an technology background. Undertakings were driven chiefly by public presentation. concentrating on proficient competency. Engineers were motivated to plunge into undertakings. and encouraged to turn out themselves. The company emphasized the person. Many employees considered themselves at Teradyne for the long draw. Long hours were normal. In early 1990’s. Teradyne experienced a major alteration in leading with the new CEO Alex D’Arbeloff. Alex grew interested in the hazard of losing Teradyne’s competitory border due to quality and dependability concerns.
Although D’Arbeloff believed the squad was extremely competent. he believed there were major runing jobs sing coverage and public presentation measurings. To minimise these jobs. D’Arbeloff embraced entire choice direction ( TQM ) . After 5 old ages of intensive attempt. TQM rules were embedded into most facets of work at the company and resulted in noticeable betterment in fabrication quality and client service. However. the technology organisation was defying TQM because of the ensuing late and over budget undertakings.
In 2001. Teradyne senior direction decided to do a cardinal alteration in the scheme and aimed to make a individual flexible examiner platform. The undertaking named as Jaguar to stand for how critical it is to the company’s competitory scheme. It is noted that. “from the beginning. it was recognized that the undertaking had to put to death cleanly. ” So it is expected that the Jaguar undertaking will be. unlike the Teradyne’s traditional undertakings. more concentrating on executing scheme including increased accent on up-front planning and design. reorganisation of undertaking squad construction. the execution of undertaking direction prospective. and formalising undertaking direction tools to streamline the merchandise development activities.
It was decided that the technology squads in Boston. Agoura Hills. San Jose. Minneapolis and Portland to join forces and work on this undertaking. Each site was responsible for a nucleus subsystem. However. each of these squads had already their ain attacks and bequest tools they antecedently used. The squads were led by the O’Brien. a 24 old ages veteran of Teradyne’s technology organisation. A nucleus squad was formed by the leaders of each group. This nucleus squad used to run into on hebdomadal footing to discourse advancement. and to do critical proficient and organisational determinations. The top direction recognized the undertaking as polar and strategic to Teradyne’s hereafter success.
It was highly of import to hold the merchandise out in the market by mid-2004. That’s why the undertaking definition and range were one of the critical determinations. More clip was spent in the early phases of the development procedure. chiefly construct development and merchandise planning. The aim was chiefly to place what to make and what non to make to hit the market window. Teradyne was committed to the undertaking and provided all agencies of support and resources to guarantee that the undertaking gets delivered on clip. Whenever there were holds. senior direction were able to supply extra resources.
To acquire the needful support. elaborate analysis of the merchandise demands. specifications and architecture were done and presented to senior direction foregrounding critical subsystems. mark public presentation and undertaking executing programs. This was a challenge for the package group to supply elaborate specifications and do major architectural determinations at this early phases in the undertaking taking into consideration tonss of uncertainnesss associated with the nature of package development. During executing of the undertaking. the nucleus squad utilized the following undertaking direction tools:
Work dislocation construction
Critical way analysis
Earned value analysis
However due to the different teams’ backgrounds and degree of experience utilizing these tools. the nucleus squad spent more clip debating the tools and how the info is presented in the tools and how much this reflected world. It was obvious in the nucleus squad meetings that the squads responsible for the hardware subsystems were presenting on clip maintaining all major activities on path. On the other side. the package groups were running at merely 50 % earned value each month finishing merely half of the undertakings originally planned. However the groups were on denial stating that they would catch up. but it ne’er happened. In Sept 2003. the undertaking marks were farther stretched when Alphatech. one of the biggest clients. was approached by one of Teradyne’s rivals.
The undertaking has to be delivered to Alphatech by terminal of March 2004 instead than terminal of June. In add-on. Alphatech introduced alterations in the demands to fit their specific demands. Teradyne had no option but to follow with the new mark because the loss of AlphaTech history would intend a loss of more clients who might follow the tendency. As the deadline approached. with the increased force per unit area on the package groups. more characteristics were coming out the door before they were really ready. However. after the bringing. the package groups spent more clip repairing bugs to acquire an tolerably operational package. Thingss were now acquiring worse. there was a immense burn-down but there was no development advancement.
Lack of Experience
The package group lacked the needful experience on the IG-XL operating system. as most of the system experts were involved in other undertaking development ( FLEX ) . Jaguar’s squad lacked the adequate experience that would let them to develop the new system upon this operating system. as most of the developers had ne’er worked with IG-XL before.
Because of the inordinate burden that was put on the development squad. the squad members were burnout. the emphasis degrees were tremendous. which lead to developing a roadster package for AlphaTech. To repair the package issues. the squad took more than six months in the bug repair phase. the squad stopped developing new characteristics and they merely shifted to firefighting manner. and the development procedure was ignored in this phase.
Although package squad end product was running at about 50 % earned value per month. the direction didn’t act to repair this issue. and it is known. the more you postpone work outing the issues. the more clip it would take to be solved. In add-on. the directors were more skeptic around the metric and didn’t wage attending to the squad holds
Escalation of Committedness
When senior direction and the nucleus squad realized the big hold in the package subsystems. they added more resources to the undertaking several times without even analysing grounds why the groups are behind agenda. In add-on. there were no step for the impact of the excess resources on the undertaking agenda and how it will convey that forward
Project Management tools use
Although the undertaking direction tools provided the direction with adequate utile informations. they direction didn’t respond to it. In add-on. the package squad kept playing with the Numberss to set the undertaking program. but the things done on the tool were non practical plenty to be implemented successfully in the existent life. Others became more acute to do the prosodies look good. instead than making what’s more of import to the undertaking.
What should hold been done?
Learning curve should hold been estimated decently. as sometimes the package development squads tend to undervalue the larning curve of the new tools ( which happened at Teradyne ) . and expect that the squad would work expeditiously from the first twenty-four hours. which is a managerial common mistake. Teradyne could hold assigned some of the system experts within the Jaguar squad. as this would assist the squad overcome the experience issue Extensive preparation should hold been delivered to Jaguar’s squad Teradyne should hold recruited more resources from the beginning of the undertaking to the package development squad to avoid firing out its resources and be able to present the undertaking on clip ; this could hold been reached by better appraisal of the undertakings. and doing certain that the squad has the needed cognition to accomplish its ends
The direction should hold interfered every bit early as possible to minimise the consequence of the early holds. they could hold got Consultancy Company that could assist them. and they should hold analyzed the root cause of the hold and seek to repair it. Although we agree that the undertaking prosodies are of import. they shouldn’t be the end. they are merely indexs of the undertaking position. people should work to acquire the occupation done. non merely seeking to set the prosodies The prosodies should non be the lone manner to measure team’s public presentation. other competencies should be taken into consideration such as squad work. positiveness and being accountable. In add-on. the undertaking directors should exhaustively analyse the informations extracted from the tools sporadically. to be able to take speedy actions in instance of any divergences that could go on.
Manner to travel frontward
Now. holding the merchandise delivered to clients. the undermentioned actions need to be taken: Supply developing for cardinal package developers to keep and heighten the merchandise Recruit expert package applied scientists to take the package development procedure Document the current undertaking position. the execution inside informations and all other activities that still need to be done in footings of bugs. new characteristics or sweetenings.
Unify the undertaking direction tools and supply the needful preparation on how to utilize them. and the information provided to and extracted from these tools Prioritize the list of bugs to place the major and critical 1s that need to be fixed instantly Prioritize the list of characteristics to be completed and place the 1s offering a minimal feasible solution Since the merchandise is now in the market. the undertaking squad needs to be after a new release with the range defined as the lower limit feasible list of characteristics and the major and critical bugs.