Case Study Teradyne Corporation

963 Words4 Pages
Introduction The case illustrates the Project management approach and techniques used by Teradyne corporation is a semiconductor testing company offering testing services to its customer in the engineering and electronics industry. This engineering based company was founded by two MIT classmates and initially focused on making the equipment to test transistors and other electronic components. Teradyne is company with a with strong engineering culture, its senior management are mostly people with strong engineering background and established a culture of continuously improving process and project management. This TQM culture also further fueled “individual initiative” or self management into process and projects. The company was doing…show more content…
This allowed the design of the tester to be optimized to the test requirements of the particular device.By mid 1990’s, changes in the market began to erode the logic of this strategy. Particularly as semiconductor manufacturers diversified into a broader range of device types, they were increasingly asking for a tester platform that could test multiple types of devices. This trend accelerated in the late 90’s with the growth of contract manufacturers whose business model was to offer a wide range of device-testing services. For these customers, utilization rates of device-specific testers were simply too low to be economically feasible. As Teradyne’s vice president described it “The platforms were getting more complicated and costly to develop and it was becoming increasingly infeasible to develop multiple…show more content…
In addition, employees have been charged to select and take the project lead themselves with no supervision, and anchoring the culture of empowerment and accountability. Such culture developed the leading skills among the individuals with the pro-active approach to lead the projects. In addition to this, the Teradyne has the individualistic culture in which each individual could select and take the whole direction of the project. In addition, it also leads to the development of over committed projects that not only allocate the additional resources to one projects but also ignored the importance of the other important projects. Also, it created a resource deficient in the organization since the overly allocated projects remain the priority of the individuals. Lastly, such culture also leads to the individual developing their own goals and tasks that misaligned with the overall organizational strategy and which failed to develop a proper work system, ensuring the involvement of the senior executive at the right time and also the depiction of the project progress on a wider lens to the management, leading to the development of more centralized and individualistic approach in the

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