Integrative Case Analysis: Custom Chip, Inc.
The corporation known as Custom Chip, Inc., suffers from a myriad of problems. A lack
of adequate communication and coordination is occurring between the application engineers, the
production engineers, and the manufacturers; the fact these three groups possess varying
priorities and are rather insensitive to each other’s needs is not conducive. In addition, costs are
accumulating because of delayed production lines and the differing expectations and objectives
of the three departments. Some of the managers are ineffective, quarrel with one another, and are
unable to coordinate well.
Many of the application engineers seem complacent and very cohesive as a group. The
application engineers are rewarded for being extremely innovative, but these designs simply are
not practical. Application engineers also believe their problems are of a higher priority than their
