Global Electronics Essay

2241 Words Jun 18th, 2013 9 Pages
Global Electronics Inc. Case Analysis
Global Electronics, Inc. (GEI), has its main office in Sarasota, Florida and the company employs about 2,300 people at its three U.S. fabrication facilities (located in Huntsville, Alabama; Evansville, Indiana; and Reading, Pennsylvania), and has 4,000 employees at its assembly and test facility in Kuala Lumpur, Malaysia. Discrete power semiconductors and analog, digital, mixed-signal, and radiation-hardened integrated circuits for signal processing and power-control applications are at the heart of what GEI designs, manufactures, and markets.
This case will examine the warning signs that existed within GEI to implement ABC as a possible solution and why ABC is a better solution when
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Now, when someone calls, I can say this is what the flow is, this is what those activities cost, and this is how much your product is going to cost. This has been extremely helpful for our customers and us” (Brewer et al., 2003, para. 29). Clearly the ABC costing system was more beneficial to GEI than the standard system.
Analysis (Question 2) Was the implementation of ABC at GEI successful? What did GEI do well? What areas of the implementation could have been improved on? What are the key success factors that lead to or impede successful ABC implementation? Be sure to consider behavioral as well as technical factors.
In the headnote of the GEI web article, Chris Richards, Director of MIS for GEI can be quoted, “Implementing change in an organization is about ninety percent cultural and ten percent technical. This is because the organization dynamics, politics, and search for a champion that go on are the real issues that make or break the project” (Brewer et al., 2003, Headnote para. 2). There were key technical and behavioral success factors and impedance factors with the implementation of the ABC cost system. The largest factor was Chris Richards pushing for an integrated companywide implementation. “The problem with a nonintegrated approach, even though it is certainly a lot simpler and less risky, is how do you affect behavior?...For

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