: Group Case Memo Harvard Case Solution & Analysis

Subject:   Decision Making regarding Emergency Orders

            An emergency order has been received by Taiwan Semiconductor Manufacturing Company.The customer had ordered that as this was going to be one of the complex orders for the company to date which required a 65 nm design to be made, therefore, as a result of that two additional inter metal layers need to be incorporated in the production process of the company.

However, after hearing this voicemail, LC had become a little apprehensive as he was not aware what would be the impact of the two additional inter-metal layers on the production schedule which was already in place.

Therefore, the challenge for LC was to deliver the product on time to the customer as this was a key customer of the company and also how to get the job done in Fab 12.

            It is not the case that some of the emergency orders are easier to accommodate as compared to routine orders. When the seasonal demand would be low at TSCM, then the capacity would be high and it would be much easier for the management to accommodate emergency orders.

Furthermore, some of the recipes are less repetitive and those emergency order, which are more similar to the mass produced recipes on a regular basis are easier to handle. However, when demand is not seasonal then the demand is most likely to exceed the highest capacity of the company. Along with this, the company also faced the problem of machines as some machines have limited set of functions and the requirements are out of the line of machine functions.

            The same situation is currently being faced by TSCM however, LC needs to optimize certain things and tools before he begins to accommodate the emergency order received by TSCM. LC needs to focus entirely on his customer and he needs to give high importance to emergency orders and also consider compensation in such situations. In order to aid flexibility in the production schedules of the company, LC needs to consider to adjust the capabilities of the tools used in the production process and he could also consider to make certain investments in more useful tools and multi-functional machines.

LC needs to create a trade off between the production costs and customer satisfaction by incorporating full help from the sales department of the company and also balancing the use of manipulating the capacity and demand in full tandem...........

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