DECISION MAKING & CONTROL
CASE STUDY
INSEL INC.
SECTION: 2
INSTRUCTOR: DR. ZAMZULAILA
GROUP: 4
NO
NAME
MATRIC NO
1
FATIN ZATALINI ZULKURNAIN
1018900
2
HAJAR FARHANA AB RAHMAN
1010798
3
SITI NORTHAHIRAH MOHD PAUZI
1018094
4
SITI AISHAH ZAKARIA
0820084
5
NURUL AIN AHAMED MARZUKI
0917794
INSEL INC.
SUMMARY
Insel Inc. is one of few Malaysian manufacturing companies that marketed a wide range of electronic product from highly sophisticated integrated circuit to consumer electronic products. In 2007, it was headquartered in the Butterworth Industrial Zone, Penang with sales achievement of over RM 5.5 billion, employed over 99,000 people, and spent RM411 in research and development.
In 2004, RM 2.2 billion or 39% of Insel’s net sales were from the Semiconductor Products Sector (SPS) which was headquartered in Kulim, Kedah. Semiconductor products were subject to rapid changes in technology. The Semiconductor Product Sector produced a large line of both discrete semiconductor components and integrated circuit. Because of integrated circuit provided saving space and reducing power consumption, the sales of this line reached RM 20.2 billion.
Among integrated circuit manufacturers, Insel was widely known for design and process expertise and became a leader in the semicustom integrated circuit, which was increasingly popular. In, 2007, to exploit fully the growing demand for semicustom integrated circuit, Insel organized the Motorised Integrated Circuit (MIC) Division as part of SPS and it occupied Insel’s Gurun facility.
There are seven departments in MIC Division, which are Product Engineering, Production Planning, Marketing, New Product Development, Quality Assurance, Manufacturing, and Financial Controller. This division used standard and variance costing system, and there were 29 cost centres in its factory design.
QUESTION 1
List four (4) major problems that Insel Inc.’s MIC Division is