Quantitative Analysis-MBA-521-50A-202235

MBA 521 – Dr. Solomon

Advanced Intelligent Devices Case

Microprocessor Manufacturing Process Evaluation

Case Description

Advanced Intelligent Devices (AID) is a manufacturer of microprocessors for a variety of video

game consoles. Their clients include Nintendo, Sony and Microsoft. AID is rolling out its latest

family of microprocessors which will be used in the next generation of video game consoles.

This current family of microprocessors have been designed (and marketed) as ultra-low power

consumption devices while also providing a 50% improvement in processing capability over the

previous generation. AID has used a new and innovative manufacturing process that enabled its

engineers to pack more processor cores onto a single chip while providing excellent thermal

management to keep the unit cool under maximum operating conditions. If it all goes well, this

new microprocessor will be a turning point for the company. The company has been slowly

edging its way up the crowded semiconductor market and is quickly closing the gap on its main

rival.

The first batch of the processors are due for customer delivery soon and top management’s

nerves are high. Their main manufacturing facility in Edwardsville, IL have been collecting data

of the first batch of finished processors. The Edwardsville facility’s throughput is 15,000

processors per day, provided the assembly lines are operating under normal conditions. Their

quality engineers draw 30 random samples per day to test processor speeds, to ensure that

minimum expected benchmark levels are met. For each sample, 100 processors are randomly

pulled from the assembly line and their speeds are measured. If the benchmark is met, that

processor’s test results are marked as “Pass”; if not, the results are marked as “Fail” for that

processor. The results of the first day of testing are included in the “Processor Speed Test”

worksheet of the attached Excel document.

Additionally, adequate thermal management is a main concern for AID’s customers, who want

their game consoles to smoothly play the next generation of video games without overheating.

The current customer contracts have been bought with the lure of both excellent processing

capability and consistent thermal management. To ensure that peak processor temperatures do

not exceed set operating temperature levels, AID’s engineers have designed the processor’s max

temperature 5.5 degrees less than the set operating temperature (which is specified in the

customer contracts). This 5.5-degree temperature zone is internally referred to as the “Twilight

Zone”. Due to the highly innovative nature of the new manufacturing process and the fact that

this is a new family of microprocessors with no historic data to fall back on, AID’s engineers are

betting on the Twilight Zone to keep maximum operating temperatures in check. The “Twilight

Zone Temperatures” worksheet in the attached Excel document lists a random sample of the

Twilight Zone temperatures from the first completed batch of processors, obtained by running

the samples at maximum speeds.

MBA 521 – Dr. Solomon

Writing the Memo

The purpose of the assignment is to allow you to practice three course learning goals. First, you

will need to identify the business problem outlined in the case, including the objective of the

analysis and data you will use in your analysis. Then, you will identify and apply the appropriate

analytical technique. Finally, you will communicate your analysis and results in a professional

manner, recognizing the needs of the audience.

The attached memo describes the specific issues to be addressed. This document discusses the

memo format and requirements.

For the memo, you will assume the role of a consultant for Cougar Consulting. Mr. Matteo

Guendouzi, the Manager for Quality Assurance at AID has shared with you the data from the

samples collected and has asked you to analyze it and provide him feedback on some concerns

he’s been having on the manufacturing process (the questions are included in the memo that

follows).

Your memo should be addressed to Mr. Guendouzi as the audience for your work, using a

standard memo format. The format of the attached memo can serve as a guide. You may also

want to consult a style manual like the Scott Foresman Handbook for Writers. (I will also supply

you with some web links on formatting memos) Your memo should not exceed three pages (not

including attachments).

One note about the audience, you should not assume that the recipient of the memo has taken

MBA 521. This means that you should not assume he/she is familiar with technical terminology

and the methods we use in the course. This means that you must present your work and explain

it in layman’s terms.

Organizing the Memo

Your memo should include a beginning, middle and end. The beginning section of the memo

should serve as an opening summary of the contents of your memo. It should be clear and

concise and lay out the goal of the analysis that is presented in the memo. The main purpose of

the opening is to allow the manager, in this case Mr. Guendouzi, to make a quick scan and

determine the subject of the memo.

The middle section of the memo should describe the current situation, the data used in the

analysis, the method of analysis, the model used to analyze the questions and the results that

were found. The discussion of the current situation should be brief, providing a context for the

analysis, but not rehashing a lot of the information that the audience for the memo would already

know. (For example, in the case you do not need to include the entire history of the business.)

In describing the data, you should indicate which data you used and why you used it (and why

you did not use some of the data), and where you obtained the data. The description of the

analytical method used should discuss, in lay terms, what the method does and why it is

appropriate for the current analysis. In discussing your analysis you should indicate any

assumptions you made and why you made them. The middle section of the memo will probably

consist of several paragraphs in order to clearly and systematically present your work. This

MBA 521 – Dr. Solomon

section should also make clear references to your attachments so that the reader knows where to

look to view your calculations.

In the final section of the memo you will need to interpret the results of your analysis and

provide a recommendation based on your analysis. In providing your recommendation, you

should also indicate any shortcomings of the analysis and the benefits and risks, quantitative and

qualitative, associated with implementing your recommendation. You should also identify

alternative or additional courses of action the reader might take based on your evaluation of the

results.

Attachments

Your memo should also include attachments that support your analysis and results. Your

attachments might include examples of calculations, graphs and tables. Each attachment should

be numbered and have a title and be referred to by number in the text of your memo.

Five additional notes:

• Descriptive headings should be used to separate sections of your memo.

• The attachments showing your analysis must be word-processed.

• Do not include duplicates of exhibits included in the case as memo attachments.

• Do not include raw computer output as attachments.

• Number your attachments and refer to the attachments by number in your analysis.

• Do not attach a cover page to the report.

Checking Your Work

In order to present your work in a professional manner, you should make a final check using the

following checklist.

1. The project contains all of the required parts.

2. The memo does not exceed three pages.

3. The memo is typed in an easy-to-read font (no smaller than 12 pt.), using a standard memo

format, single-spaced (double-spaced between paragraphs), with page numbers, appropriate

margins, etc.

4. The entire project is professional looking: the analysis is neatly and clearly presented, and

graphs follow proper format.

5. The entire project has been carefully proofread and contains no fatal errors.

Submitting Your Work

Memos must be submitted electronically via Blackboard’s TurnItIn function by the specified due

date on Blackboard. Late assignments will not be accepted. The TurnItIn function ensures that

all papers are consistent with the SIUE Student Academic Code. Please note, TurnItIn will not

allow you to submit more than one file. Therefore, the file that you submit must include the text

of your memo as well as all attachments. A hard copy of the memo does not need to be

submitted.

MBA 521 – Dr. Solomon

Memorandum

To: Cougar Consultants (aka, MBA 521 Students)

From: Matteo Guendouzi, Manager of Quality Assurance, Advanced Intelligent Devices

Date: October 20, 2019

RE: Microprocessor Speed & Thermal Data

As you read in the report that you received, Advanced Intelligent Devices has made good

progress on the production of our newest Microprocessor family. However, I would like you to

take a closer look at the samples from our initial batch of microprocessors and analyze the speed

and thermal data that I have shared with you. The success of this new product depends on the

manufacturing process being able to achieve required benchmarks. Your analysis and feedback

would help us in this regard. I understand that in MBA 521 you learned the methods required to

systematically analyze the data and give me a recommendation.

Specifically, your analysis needs to address the following issues:

• The processor temperatures are a major concern for us. Can you analyze and describe the

sample data? What are the average and median temperatures? How much variability is

there in the temperatures? Is there anything that stands out?

• Our engineers’ assumption is that the temperature data is normally distributed. If that is

the case, what would be the likelihood that the Twilight Zone temperature will exceed 5

degrees? What is the probability that the Twilight Zone temperatures will be less than 4.5

degrees?

• What is the actual percentage of samples that exceed 5 degrees or are less than 4.5

degrees?

• Is the manufacturing process producing units with stable Twilight Zone temperatures?

Can you check if there are any apparent changes in the temperature pattern? Are there

any outliers? A closer look at the Z-scores should help you in this regard.

• How do the samples hold up to the speed test? What percentages of the samples pass or

fail the test?

• What would be the likelihood of having the following specific number of speed test

failures in the next 100 processors tested?

o 5 failures, 10 failures, 15 failures and 20 failures.

Thank you for your help on this issue. I look forward to hearing from you.