Lau Siang Hua See Shie Ping Terence Leow Shin Woei Ooi Kean Chong Cheong Sheng-En Jonathan Managing Technological Changes

2 Introduction  World largest storage device manufacturer  Leading provider of technology in the hard disk industry  Design, develop and produce key technology for its storage products  Managing technology changes

3 Introduction  Scope Past and present Factory of the future (FOF) Strategic planning and Staff motivation Quality control, Group and Work teams Conclusion and Recommendations

4 Introduction  The Current Operation Automation Quality control - Six Sigma Huge database Lean manufacturing Batch processing - manpower and cost intensive Parts and materials stored in warehouse  The Past Operation

5 Introduction  Factory of the Future (FOF) Full automation Intelligent software for tracking defects and manufacturing process Standardization of components

6 Introduction Steps taken in implementing the FOF Proper planning and adequate preparation Training of staff overseas; on-the-job training  centralized over departmentalized training Co-ordination among departments Trial-run of new system Obtain feedback

7 Strategic Planning Factory-of-the Future Quality Control Staff Motivation Group & Work Teams Main Management Theories

8 Strategic Planning  Involves Defining objectives Establish overall strategy Developing plans to coordinate activities  Objectives New products Become more cost effective

9 Strategic Planning (cont’d)  Strategies Recruit foreign talent to enhance capabilities Automation Research and Development Implementation of FOF

10 Barriers in implementing FOF  Time needed for workers to adapt  Accurate forecast of product problems  Cost of changing of old equipment  Little tolerance for disruptions in the chain of production

11 Staff motivation  Can be achieved through: Monetary awards for outstanding service Recognition of good service and innovation Profit sharing

12 Staff motivation (cont’d)  What Seagate does: Pay increment for novel solutions to problems ‘Cris’ award to recognize staff effort Recognition as technical staff for those who are able to patent ideas Profit sharing for all employees Award shares for consistently outstanding performance

13 Quality Control  Monitoring quality in terms of: Consistency Reliability Finish  Why quality control? Early detection can save the cost of further work

14  Quality control process involved: Quality Control (cont’d) Transformation operations InputsOutputs  Criteria for quality control: Life cycle of the product Mean time between failure

15  Additional Step: Failure Analysis Department  to find the cause of the failure  alert suppliers about the failure Quality Control (cont’d)

16  Informal Groups: At Seagate, many informal groups Management convince informal group leader the benefit of FOF (Factory of the Future) Group leader then convinces members Groups & Work Teams

17  Results: Resistance to change Groups & Work Teams (cont’d) Facilitate the learning process (member helps each other) Enhance efficiency of communication (within company)

18 Cross Functional Groups: Purpose - to harness the knowledge and skills of employees from different departments Results :  Creative solution (view problems from different perspectives)  Customization of new technology Groups & Work Teams (cont’d)

19 Conclusion  Seagate needs to upgrade and innovate constantly to remain competitive Implementation of FOF  Staff motivation Rewards and recognition  Group dynamics and company culture Structuring of work groups

20 Recommendations  Accommodation to employees due to change of technology Education and communication  Focus on employee reassurance Streamlining not necessarily retrenchment

21 Recommendations  Goal setting and performance management Designing jobs with motivating potential Clarify expectations with employees Alignment of rewards  Participative leadership McGregor’s Theory Y: more democratic approach in order to foster better working relations Encourage feedback and involvement in decision planning

22 Recommendations  Structured approaches to changes rather than instincts and “gut feel”  Examining Performance Deficiencies Employee Competency Employee perception of goals Emphasis on performance rewards

Q & A Session