IT/Automation Cost Reduction in Intel’s Manufacturing Environment

Abstract

Intel manufacturing relies heavily on IT and Factory Automation during the manufacturing processes. At Intel, everything from scheduling products on the floor and product delivery systems to statistical process control is done through automation systems.

Shortly after an Intel meeting described in the case, a new position Computing Cost Reduction Manager - was created to lead a team within Factory Automation to drive cost reduction efforts which was a top priority for Intel in 2003. The computing cost reduction team s task was to come up with specific recommendations on how to achieve the cost goals established by and report out on a strategy in the next two weeks. In the case, the organization and business processes are examined and enough information is given to provide recommendations for cost reduction