Success Stories
TEXAS INSTRUMENTS - MANUFACTURING CAPACITY PLANNING
Texas Instruments is a world-leading electronics manufacturer. The electronics industry invests very large sums into capital equipment and facilities, and must plan these investments years in advance of breaking ground. Adding to the complexity of these decisions is the fast pace of innovation that occurs in the electronics business. TI’s senior management needed a new planning tool to be sure that a new plant would be successful before making these billion dollar wagers.
Quantum Leap was called in to help TI solve this challenge. The previous planning process involved a team of ten PhD analysts working through hundreds of alternative plans. The challenges included conflicting requirements, such as minimizing costs and unused capacity while maximizing the need to accommodate flexible demand forecasts.
Quantum Leap developed a system that produced the optimal set of plant allocations and conversions to satisfy the expected demand. Quantum Leap’s solution saved TI $850 million through a decision not to commit to building a new plant. New plants will not be built until needed, and will be built with the most appropriate technologies. The solution enabled hypothetical new plants to be modeled and “what-if” simulations performed. TI can now perform various simulations and study the impact of changing parameters and constraints.
Quantum Leap’s engagement process involved business modeling of the electronics manufacturing capacity process, and developing a customized planning software solution that used Quantum Leap’s patented Adaptive Optimization Engine®. The software system runs on a standard desktop PC.
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