- 19 - experienced significant manufacturing and quality problems when it converted the machines to vision technology. Compaq U.S. was unable to provide technical assistance to Xetel because the machines were not Fuji machines. In addition to difficulties with subcontractors having different machines, Compaq U.S. also experienced difficulty with subcontractors that used different processes, including Texas Instruments. Although Texas Instruments had acceptable quality, its use of the batch process of manufacturing created some difficulties in shipping PCA's on time. Compaq U.S. purchases from Compaq Asia were nearly identical to purchases from unrelated subcontractors, but there were some differences in the transactions between the parties. For example, Compaq U.S. incurred additional freight and duty costs annually when dealing with Compaq Asia in the amounts of $2.6 million and $1.2 million, respectively. With respect to materials, Compaq Asia was responsible for leftover parts while Compaq U.S. reimbursed unrelated subcontractors for leftover parts. In addition, Compaq U.S. paid Compaq Asia in 90.9 days while unrelated subcontractors were generally paid in 30.3 days. Another transactional difference was that Compaq U.S. paid for setup charges in transactions with unrelated subcontractors in the amount of $2.9 million during 1991 and 1992 while not making comparable payments to Compaq Asia.Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Next
Last modified: May 25, 2011