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1、FortheexclusiveuseofC.LEE9-403-090REV:AUGUST23,2004JEFFREYT.POLZERALISONBERKLEYWAGONFELDFlextronics:DecidingonaShop-FloorSystemforProducingtheMicrosoftXboxItwasMarch2001andJimMcCuskerwasgettingrestlessduringthelongflightovertoHungary.Hehadjustspentafewd
2、aysvisitingFlextronics’NorthAmericanoperationsinGuadalajara,Mexico,andnowhewasonhiswaytoFlextronics’centralEuropeanfacilities.HewasplanningtospendtwodaystherebeforeheadingbacktohisprimaryofficeatFlextronics’U.S.headquartersinSanJose,California.Astheseni
3、oraccountmanagerforFlextronics’relationshipwithMicrosoft,McCuskerspentmuchofhistimetravelingbetweenthetwofacilities,oneinMexicoandoneinHungary,thatwouldbeproducingthenewXboxvideogamesystemforthe2001holidayseason.WhenMcCuskerfirsttookchargeoftheMicrosoft
4、accountinNovember2000,hequicklyrealizedthatFlextronicshadcommittedtoanextremelyaggressivescheduleforproducingtheXbox.ThetwofacilitiesdesignatedtobuildtheproductwouldhavetoworktogetherverycloselytoachieveMicrosoft’sgoalofasimultaneousNorthAmericanandEuro
5、peanlaunch.TheMicrosoftXboxwasFlextronics’firsttrulyglobalproject,andMcCuskerknewthatitwouldbeimportanttostandardizecertainelementsamongtheFlextronicsfacilities.Infact,inbiddingforthebusiness,FlextronicsmanagementhadcommittedtoMicrosoftthattheywoulduset
6、hesameshop-floormanagementsysteminbothfacilitiessothatMicrosoftcouldtrackalltheproductionstatisticsmoreeasily.1McCuskerinitiallythoughtitwouldberelativelystraightforwardtomeetMicrosoft’srequirementforasinglesoftwaresysteminMexicoandHungary.Duringtheprev
7、iousyear,theheadofNorthAmericanoperations,MikeMcNamara,andthevicepresidentofcompanywideinformationtechnology,MikeWebb,hadchosenasoftwareprogrambyaCaliforniastart-upcalledDatasweepasthenewcorporateshop-floorsystem.ThefacilityinGuadalajara,Mexico,nowrunby
8、McCusker’sformermanager,MattRyan,wasalreadyupandrunningonthesystemforusewithotherproductsbeingmanufacturedinMexico.Althoughthereweresomeareasforimprovement,thesoftwareappearedtobeworking.McCuskerassumedthattheHungarianfacilitycou
