Abstract
Semiconductor manufacturing companies in Taiwan are characterized by multi-layer organizations with complex communication systems and complicated manufacturing technologies in order to achieve commitment from its board of directors. Senior management has always focused on operation efficiency in the past to fulfill their business needs. The traditional productivity improvement approaches, such as downsizing, employee layoffs, or organization restructuring used in the semiconductor industry, lack a systematic approach to achieve corporate objectives. The challenge now comes from an uncertain or fluctuating market demand. It is thus important to maintain flexibility in labor applications. In other words, productivity is a key index for assessing business performance.This paper presents a productivity improvement case study by using a systematic model, the Identification, Diagnosis, Execution, Analysis and review (IDEA) model, to conduct a successful organization change and improve labor productivity of the case company. A two-stage approach was applied to obtain a smooth implementation. This approach was successfully implemented in the case company and labor productivity was improved by 6% over a three-year period.
Published Version
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