Entity Dossier
Organization

MIT

Strategic Concepts & Mechanics

Signature MoveMidnight Shift Yield ObsessionStrategic PatternSemiconductor Optimism as Naming PhilosophyIdentity & CultureWartime Childhood as Resilience TrainingRisk DoctrineStaff Up Before the BreakthroughCornerstone MoveFury-Driven Reverse Logic at CrossroadsSignature MoveHarvard Feast Carried EverywhereCompetitive AdvantageInsider Management at Every LevelStrategic PatternTechnological Inflection Points Level the FieldOperating PrincipleSolitude and Classical Music as Thinking FuelIdentity & CultureFailure Never Accepted, Setbacks UnderstoodSignature MovePublish Papers to Build StandingSignature MoveEnvironment Over Individual TalentCornerstone MoveProcess-Level Problem Solving on the Factory FloorCornerstone MoveSelf-Teach Past Every GatekeeperSignature MoveThirteen-Hour Meeting as Onboarding RitualRelationship LeverageFoxconn's Loss-Leader-to-Lock-In PlaybookRisk DoctrineTacit Knowledge as Accidental ExportCompetitive AdvantageApple Squeeze: Invaluable Experience Over MarginIdentity & CultureVerbal Jujitsu Procurement CultureSignature MoveDesign the Impossible Then Manufacture the ImpossibleSignature MoveFifty Business Class Seats Daily to ShenzhenOperating PrincipleZero Inventory as Theological DoctrineStrategic PatternUnconstrained Design Not Cost ArbitrageCornerstone MoveSecret $275 Billion Kowtow to Keep the Machine RunningSignature MoveSilk Tie Competitions to Train NegotiatorsCornerstone MoveScrew It, iTunes for WindowsCornerstone MoveBuy the Machines, Own the Factory Floor Without Owning a FactorySignature MoveDrive Off the Cliff to Prove the Brakes Don't WorkCornerstone MoveTrain Everyone Then Pit Them Against Each OtherRisk DoctrineRule By Law as Corporate LeashDecision FrameworkBig Potato Small Potato: Positional Power Over FairnessCapital StrategyFamily Reputation as Credit LineSignature MoveManagement by Suggestion Not OrderSignature MoveNegatives Fuel Forward MomentumCompetitive AdvantageCultivated Image as Negotiation ArmorCornerstone MoveImprovise the Entire Machine Then Scale ItRelationship LeverageEccentric Genius on RetainerCornerstone MoveRide Two Tailwinds Nobody Else Sees YetRisk DoctrineQuit First Then Figure It OutIdentity & CultureMistakes Tolerated Speed RewardedSignature MoveDecision Speed as Competitive WeaponCapital StrategyGovernment Money Before Private ScaleSignature MoveSecond-Hand Equipment Until Forced Otherwise

Primary Evidence

"This kind of team spirit in sharing hardship moved me, but it also brought immense pressure. Besides the operators, the foremen even more often asked what could be improved. Production director James Reese appeared on our production line every day, paying special attention to the progress of yield. Reese was one year older than I was, with an MIT bachelor’s degree in electrical engineering and a Harvard MBA. He quickly became a good colleague and good friend of mine. At that time, the nearly seventy of us were producing almost all scrap every day, yet every week he still wanted to add a few more people. I didn’t understand and argued with him. He said we should first hire enough operators and train their basic skills; once the yield made a breakthrough, we would have large quantities of product. Later developments proved he was right. A few months later the yield leapt forward, and we already had enough well-trained operators on the line. So in a short time, we not only made up the deliveries that should have been made but were not during the low-yield period, we also smoothly met IBM’s rapidly increasing demand."

Source:Autobiography of Morris Chang: Volume 1, 1931-1964

"I dug out the heat transfer textbook I had studied at MIT and did some rough calculations, and found that my concern was correct. So over the next few days, I tried an indirect heating method: not letting the soldering tool directly contact the electrode, but only letting it contact the copper wire, using copper’s high thermal conductivity to melt part of the electrode and complete the soldering. My method was slower than the original, but the likelihood of disrupting the transistor’s internal chemistry should be lower than with the original method, so the final yield should be higher. After I myself became proficient in operating my soldering method, I began training the two most experienced operators. After one or two days, their soldering speed using the new method had reached 80–90% of the original method. We accumulated several hundred transistors soldered using the new method and compared the yield with another group of transistors soldered using the original method. Sure enough, the yield of the new method was noticeably higher than that of the original method. My supervisor came over to take a look, and the production manager also came to see it, and even sat down and asked me to teach him the new soldering method. A few days later, the entire production line switched to my method."

Source:Autobiography of Morris Chang: Volume 1, 1931-1964

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