SigmaX is the latest generation of equipment for integrated circuits (semiconductor chips). SigmaX used to run one of the production operations is called etching. As is typical with Applied Materials, and the lack of time and complexity of the technology involved, any other considerations - including the cost of production - pales in its development. But when SigmaX reaches the production stage (worldwide manufacturing operations), management of production costs is key to ensure an adequate profit. At this point, Bill Finday and his team is responsible for product management costs. To achieve their goal, they first need to understand why the actual costs higher than expected costs. Further, they must examine the various alternatives open to them to manage costs in the initial stage to the planned level and below in an effort to save the fields as competition drives prices down. In addition, the new generation of etching equipment will be developed in the near future, and Bill and his team to make recommendations on how to change the product development process to increase the visibility of costs. "Hide
by Antonio Davila, Mark Waters Source: Stanford Graduate School of Business 17 pages. Publication Date: May 22, 2000. Prod. #: A164-PDF-ENG
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