Case Study on "Intel Quality System Handbook 2009"

Case Study 4 pages (1125 words) Sources: 1

[EXCERPT] . . . .

Intel Quality System Handbook

The catalyst of Intel's ability to continually innovate in their existing businesses and successfully branch into entirely new ones including networking, security, video-optimized chipsets and many others is highly dependent on the company's ability to engrain quality management through every supplier, production, design-in and service process. For Intel to innovate they must put quality at the center of their organization and continually work to exceed their own rigorous standards of performance (Leip, 32, 33). Intel is a very metric-driven culture and thrives on the use of metrics including yield management rates of its memory and microprocessor foundries, and the capacity utilization and yield management metrics of performance (Intel, et.al.). Every enterprise faces the need to innovate to survive, yet many have varying levels of urgency about translating innovation into profitable products and services. Intel has a great sense of urgency however about keeping innovation and quality tightly synchronized with each other (English, 44). The Intel Quality Management System (QMS) and Supplier Continuous Quality Improvement Program (SCQIP) are two foundational programs designed to further support and strengthen the innovation processes at Intel, while also ensuring the core value proposition of the company, which is state-of-the-art quality products, are met (Intel, et.al.). Quality then is the foundational element of the value proposition and serves as a very strong catalyst of innovation within Intel. The intent of this analysis is to evaluate how Intel has been able to galvanize their value proposition around quality management, while at the same time capitalizing on the strength of Moore's Law as a unifying concept of their product development strategies.

How Intel Successfully Engrained Quality into their Culture

Intel's values and supporting behaviors form the foundation of how the company translates the high value placed on quality into a consistently well-executed value proposition and high level of innovation. At the center of the Intel values and supporting behaviors are the belief that quality is the single greatest differentiator there is, and that entire markets can be defined not must by speed of innovation, but by excellent quality levels as well. This is a unique aspect of Moore's Law that is not often discussed, yet the ability to deliver exceptionally high quality products over time at the pace this law quantifies that continues to transform Intel and its profitability. The Intel values and supporting behaviors include customer orientation, discipline, quality, risk taking, creating a great working environment, and having a results orientation. All of these factors taken together are what Intel relies on to keep its culture focused on quality management and the many metrics associated with it. Intel has found a strong correlation of creating a culture that values measuring quality management initiatives and insuring accountability of results with the ability to be resilient financially despite recessions, as Figure 1, Comparing Intel Revenue Performance, 1999 -- 2009, indicates.

Figure 1: Comparing Intel Revenue Performance, 1999 -- 2009

Source: Intel SEC Filings

Intel's core values of customer orientation, discipline, quality, risk taking, creating a great working environment, and results orientation also lead to consistently higher levels of product quality by infusing autonomy, mastery and purpose into the organization. These three factors (autonomy, mastery, and purpose) are responsible for long-term learning taking place (Ramsey, 12, 13). Intel has specifically designed their culture to support these factors as part of their core values and behaviors (Intel,… READ MORE

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