chase, jacobs & aquilano - harvard business school press

Case Map for

Chase / Jacobs / Aquilano Operations and Supply Chain Management

13nd Edition (Mcgraw-Hill/Irwin)

This map was prepared by an editor at HBS Publishing, not by a teaching professor. Faculty at Harvard Business School were not involved in analyzing the textbook or selecting the cases and articles. Every case map provides only a partial list of relevant items from HBS Publishing. To search for alternatives, or to get more information on the cases listed below, visit our web site at www.hbsp.harvard.edu.

Chapter 1: Introduction Abstract

Mass Production and the Beginning of Scientific Management Thomas K. McCraw Type: HBS Pub. Date: 4/24/1995 Product #: 391255 Length: 17 Teaching Note: none

Examines the coming of mass production (continuous and large-batch processes and those involving fabricating and assembling of Scientific interchangeable parts), and relates the beginnings of modern factory management to the needs and opportunities created by the new technology. Besides focusing on the interrelation of technology and management, it examines issues created by the responses of management and labor to the new machines and methods. Subjects: Automation; Business history; Labor relations; Management of change; Manufacturing; Production planning; Technological change

Chapter 2: Strategy Abstract Amazon.com's European Distribution Strategy Janice H. Hammond, Claire Chiron Type: HBS Pub. Date: 6/30/05 Product #: 605002 Length: 28p Teaching Note: none

Describes how Amazon's distribution system evolved from the company's inception. In 2003, Amazon Europe must decide how to reconfigure its distribution network in light of expected growth, products proliferation, and geographical expansion in Europe. Examines how characteristics of suppliers and customers differ across the markets Amazon serves in Europe. The protagonist must consider the degree of centralization appropriate for the European network, where inventory should be held, what fulfillment models should be used, and how to manage risks of supply disruption. Subjects: Inventory management, Order management cycle, Order processing, Order quantity, Warehousing, Globalization, Distribution, Expansion, Plant location, Electronic commerce, Online retailing, Supply chain management, Supply chains.

Case Map for



American Connector Co. (A) Gary P. Pisano; Sharon Rossi Type: HBS Pub. Date: 12/7/1992 Product #: 693035 Length: 18p Teaching Note: 695014

American Connector Co. is forced to reexamine operations at its Sunnyvale plant when a Japanese competitor announces plans to build an "ultimate" plant in the United States. Case examines issues related to benchmarking a competitor's manufacturing capabilities and productivity. Allows students to compare two companies' manufacturing strategies and their implications for productivity and flexibility. Subjects: Competition; Electronics; Manufacturing strategy ; Plant management; Productivity

Analog Devices, Inc.: The Half-Life System Robert S. Kaplan Type: HBS Pub. Date: 3/16/1990 Product #: 190061 Length: 26p Teaching Note: 191103

The company has committed to major improvements in quality, cost, and on-time delivery performance. Despite strong senior management support, however, the actual rate of improvement was disappointing until a new measurement philosophy was introduced. The new approach specified expected rates of improvement and compared actual improvements to the expected rate. Operational people preferred the new measures to the monthly financial reports they continued to receive. The case explores the conflicts between financial measurements and operating improvements. Subjects: Cost control, Learning curves, Management accounting, Productivity, Quality control.

Dr. Reddy's Laboratories Ltd.: Chasing a Daring Vision Bala Chakravarthy, Anand Jha Type: IMD Pub. Date: 7/25/05 Product #: IMD216 Length: 15p Teaching Note: available

Describes the leadership dilemmas facing the top management team of a leading Indian pharmaceutical company--the first in its industry to be listed on the NYSE. Much admired for its impressive growth, Dr. Reddy's stands at a crossroad. How much emphasis should it place on the legacy business of active pharmaceutical ingredients and generics that have brought the company its current stature, and how much should it focus on future business like specialty pharmaceuticals and discovering new chemical entities? The two represent different business models and straddling the strategy, organization, and human resources demands of each one is the challenge for Dr. Reddy's top team. Subjects: Leadership, Strategic leadership, Strategic vision, Vision, Strategic planning, Business model innovations, Business models, Generic drugs, Pharmaceuticals.

Case Map for



Eli Lilly and Co.: Manufacturing Process Technology Strategy—1991 Steven C. Wheelwright, Gary P. Pisano, Jonathan West Type: HBS Pub. Date: 12/9/91 Product #: 692056 Length: 18p Teaching Note: 692109

Outlines the evolution of Lilly's corporate manufacturing strategy over the past decade. The corporate vice president of manufacturing must decide on the next phase of Lilly's strategy for the early 1990s, as well as to what extent and what role process development will play. Provides data outlining three different points in the product development process at which manufacturing process development might be initiated. Using learning curve concepts and data, students can estimate the economic costs and benefits (as well as organizational issues and challenges) associated with each. Illustrates process improvement's substantial impact in a capital-intensive industry, describes possible roles of manufacturing process technology in an industry that has viewed product R&D as its primary competitive advantage, illustrates phases through which manufacturing can evolve in pursuit of comparative advantage, and introduces students to a challenging and changing industry. Subjects: Learning curves, Manufacturing strategy, Process analysis, Product development, Productivity.

Fresh Connections Jonathan West, Susan S. Harmeling, Christian G. Kasper Type: HBS Pub. Date: 11/18/1999 Product #: 600022 Length: 23p Teaching Note: 600108

Mary Alice McKenzie is facing numerous issues in growing her Vermont-based fresh-prepared foods business. She must address immediate operational problems--such as bottlenecks and capital equipment decisions--as well as decide on a long-term strategic position. This case investigates how she can structure her operations today to take advantage of the continued growth in the home meal replacement market. Subjects: Operations, Operations management, Food, Natural foods.

McDonald's Corp. David Upton; Joshua D. Margolis Type: HBS Pub. Date: 10/9/1992 Product #: 693028 Length: 22p Teaching Note: available

McDonald's has over many years built an operating strategy based on consistency and quality through a limited product range. Competitive forces have drawn the company into a much wider variety of foods and services in order to maintain growth. Now, new competitors threaten to beat McDonald's at its own, original game. In addition, McDonald's faces unprecedented challenges in its environmental policy. The case teaches approaches and dangers arising from flexibility, and the identification of capabilities that support different types of flexibility. The integration of environmental concerns with operations strategy is also addressed. Subjects: Competition; Environmental protection; Fast food industry; Operations management; Services; Strategy implementation

Case Map for



Rapid Rewards at Southwest Airlines Frances X. Frei, Corey Hajim Type: HBS Pub. Date: 8/11/2001 Product #: 602065 Length: 24p Teaching Note: available

Southwest Airlines is well known as the low-fare airline that has achieved ongoing financial success in one of the most financially troubled industries in the United States. Told from the perspectives of two Southwest customers--a frequent flier and a more typical customer--the case revolves around two customer service requests from the frequent flier, both of which provide a compelling temptation to cater to the satisfaction of the airline's highest revenue customers. The requests are intriguing because they would neither add cost nor increase the turnaround time of Southwest's service. Subjects: Service management, Airlines, Call centers, Customer self-service, Customer service.

Case Map for



Timeshare Exchange Fair (A) Anton Ovchinnikov, Dmitry Krass, Scott Sampson Type: University of Virginia Darden School Foundation Pub. Date: 9/25/2007 Product #: UV0901 Length: 11p Teaching Note: available

This award-winning case series examines how optimization-based decision-making leads to a new business design for a timeshare exchange: an exchange fair. Students model a complex managerial problem as a linear program, identify the types of data needed, and use models to provide decision support. The series covers linear and integer programming, multiple-criteria decision-making, network flow problems, local search heuristics, and Pareto-optimality. The series demonstrates the advantages and difficulties involved in applying management science techniques to a real-life business environment. It teaches standard techniques of extracting relevant data from a mass of more- and less-relevant information and forces students to confront issues consultants face: How do you motivate management to even consider a management science approach? How do you build a "business case" demonstrating the shortcomings of the methodology already in place? The case provides background on the timeshare industry, exchanges, and the exchange fair, in which owners submit their existing intervals to a centralized pool, together with requests for the intervals they want to exchange; the exchange determines who gets which interval. Various aspects of a functioning exchange fair are presented, and, starting from a heuristic, the series effectively guides students toward the "better" optimization-based way of executing the exchange. This case series is a winner of the 2005 INFORMS case competition and received an honorable mention at the 2005 DSI case competition. Suitable for both general MBA and executive education programs and as a basis for an exam or assignment, this series is also appropriate for specialized undergraduate and graduate programs in services management (e.g., tourism and hotel administration), logistics, and industrial and systems engineering. Subjects: Decision analysis, Alternatives, Choices, Competitive decision making, Decision making, Quantitative analysis, Linear programming, Operations, Operations management, Service management, Computer based modeling.

Chapter 3: Design of Products and Services

Abstract

Case Map for



Flextronics: A Focus on Design Leads to India Chuck Holloway, Charles Holloway, David W. Hoyt Type: Stanford Graduate School of Business Pub. Date: 1/10/2005 Product #: OIT45 Length: 25p Teaching Note: none

Flextronics, the world's largest contract manufacturing firm, made a strategic decision to expand its business to include original design and manufacturing (ODM) services. As an ODM supplier, Flextronics designed and built products that original equipment manufacturers (OEMs) purchased and sold under their brand names. Purchasing from an ODM allowed OEMs to bring new products to market quickly and efficiently. ODMs could sell the same basic product to many OEMs, providing substantial design and manufacturing efficiencies. Flextronics' first ODM products were cellular phone handsets. The company had substantial hardware capabilities, which grew out of its contract manufacturing experience. In 2004, Flextronics considered adding software design expertise and considered a number of approaches to accomplish this. Having learned of the outstanding reputation of Indian software companies, the company's CEO and the president of its Design and OEM Services operation visited India. Describes the contract manufacturing and design landscape in 2004, with a focus on software. Subjects: Design, Design management, Product design, Expansion, Strategy formulation, Assembly lines, Manufacturing, Analytic applications, Applications, Software, Software applications.

Hewlett-Packard: The Flight of the Kittyhawk (A) Clayton M. Christensen Type: HBS Pub. Date: 1/26/2006 Product #: 606088 Length: 18p Teaching Note: available

Hewlett-Packard decided that, to grow more rapidly, it needed to design a revolutionary disk drive product that would create an entirely new market or application for magnetic recording technology. The company followed most of the "rules" good managers follow in such situations: heavyweight project team, lots of senior management support, etc. But it still failed. Learning objective: To understand why good management isn't enough and how to manage similar situations. Can use in courses on managing innovation or new product development, especially where the general manager's perspective is paramount. Subjects covered: Innovation; Market definition; Market research; Product development; Technological change

Case Map for



IDEO Product Development Stefan Thomke Type: HBS Pub. Date: 6/22/2000 Product #: 600143 Length: 21p Teaching Note: available

Describes IDEO, the world's leading product design firm, and its innovation culture and process. Emphasis is placed on the important role of prototyping and experimentation in general, and in the design of the very successful Palm V handheld computer in particular. A studio leader is asked by a business start-up (Handspring) to develop a novel hand-held computer (Visor) in less than half the time it took to develop the Palm V, requiring several shortcuts to IDEO's legendary innovation process. Focuses on: 1) prototyping and experimentation practices at a leading product developer; 2) the role of playfulness, discipline, and structure in innovation processes; and 3) the managerial challenges of creating and managing an unusually creative and innovative company culture. Includes color exhibits. Subjects covered: Creativity; Design; Organizational management; Outsourcing; Product development; Prototypes

Innovation as a Learning Process: Embedding Design Thinking Sara L. Beckman, Michael Barry Type: HBS Pub. Date: 11/1/2007 Product #: CMR377 Length: 33p Teaching Note: none

There is a generic innovation process, grounded in models of how people learn, that can be applied across multiple sectors. It can be applied to the design and development of both hardware and software products, to the design of business models and services, to the design of organizations and how they work, and to the design of the buildings and spaces in which work takes place or within which companies interact with their customers. Describes such a model of innovation, grounding it in learning models and developing its implications for understanding, implementing, and engaging in the innovation process. Focuses on the value and functions of multifaceted innovation teams, notes the difficulties inherent in innovation efforts, shows where some of the pitfalls are for organizations attempting to innovate, and emphasizes the need to be flexible and adaptive in using the innovation process. Subjects: Brainstorming, Innovation, Innovations, Technological innovation, Teams, Work environments, Design, Design management, Product design, Business model innovations, Business models.

Case Map for



Phase Zero: Introducing New Services at IDEO (A) Amy C. Edmondson, Laura R. Feldman Type: HBS Pub. Date: 2/28/2005 Product #: 605069 Length: 11p Teaching Note: available

Focuses on whether world-renowned product design firm IDEO's new customer service fits with the firm's strategic position and organization capabilities. Over the course of IDEO's 13-year history, an increasing share of revenues are a result of "Phase 0" projects--preliminary strategic explorations of future product possibilities for various client firms. Describes a specific Phase 0 project in order to explore the challenge of managing these strategic, intangible services in the context of IDEO's successful history of generating award-winning tangible product designs. A team at IDEO's Boston office worked with mattress manufacturer Simmons to discover unmet customer needs and identify new product line opportunities. Describes the challenges and questions facing the Simmons project team as well as critical and operational questions facing IDEO. Examines these issues through the eyes of the head of the Boston office, who wonders how to evaluate Phase 0 projects. Subjects: Customer relations, Innovation, Organizational learning, Service management, Teams.

Pratt & Whitney: Engineering Standard Work H. Kent Bowen, Courtney Purrington Type: HBS Pub. Date: 2/18/2004 Product #: 604084 Length: 24p Teaching Note: none

As the engineering of state-of-the-art jet engines becomes more and more complex, Pratt & Whitney leaders face major competitive problems. Product development projects are not meeting the cost, quality, and lead-time targets. The leadership develops a design, development, test, and launch system that treats the engineering resources as a factory and carefully designs and manages the work flows, engineering activities, and hand-offs between tasks. There is promising initial success but some question whether the "engineering standard work" system stifles creativity and whether it is appropriate for the work of other professional functions. Subjects: Engineering, Knowledge workers, Product development.

Product Development at Dell Computer Corp. Stefan Thomke, Vish V. Krishnan, Ashok Nimgade Type: HBS Pub. Date: 8/10/1998 Product #: 699010 Length: 21p Teaching Note: available

Describes how Dell redesigned its new product development process after experiencing a major product setback and a significant decline in firm profits in 1993. Dell's new process is challenged during the development of a new line of portable computers when the incoming head of portables has to manage the risk of using a new technology. This case focuses on: (1) product development process design, (2) the costs and benefits of flexibility and structure in uncertain environments, and, (3) managing development risk during and after a financial and market setback. Learning objective: To explore managerial issues in product development that can be found in uncertain and risky environments. To discuss and quantify the cost and benefits of process flexibility.

Case Map for



Tata Motors: The Tata Ace Krishna G. Palepu, Vishnu Srinivasan Type: HBS Pub. Date: 10/18/07 Product #: 108011 Length: 21p Teaching Note: none

Considers the strategy and experience of Tata Motors, India's leading commercial truck maker, as it developed a new small commercial vehicle, the Tata Ace. Positioned as a replacement for the three-wheelers that predominated as small commercial vehicles in India, the Ace create a new product category and enabled Tata Motors to access a new market segment. The company adopted tailored approaches to product design, distribution, marketing, service, and sourcing for the vehicle. After successfully targeting the niche, considers how Tata Motors might grow its presence in the segment with new models, enter new regional markets, export to developing or developed countries, and face new competition. Subjects: Automobiles, Emerging markets, Innovation, Product development, Product positioning, Sales management.

Chapter 4: Project Management

Abstract

A&D High Tech (A): Managing Projects for Success Mark Jeffery, Derek Yung, Alex Gershbeyn Type: Kellogg School of Management Pub. Date: 1/1/06 Product #: KEL156 Length: 20p Teaching Note: available

Based on a real $25 million project at a major U.S.-based computer manufacturer. For confidentiality reasons the company has been disguised as A&D High Tech. The Web-based online ordering system project is required by sales and marketing for the fall holiday season. If the project misses this window, the firm will lose substantial market share to competitors. Examines how to create and analyze a project plan in Microsoft Project. Specifically, data is given to build the project plan step-by-step and then analyze the plan using the Microsoft Project management tool. In order to make manageable for students, we reduced the size of the project, and the corresponding number of resources, to approximately $1 million, but retained all of the features of the original project. The project plan that students construct from the data given in the case is fraught with risks, and students must apply risk management techniques to diagnose the plan. Ultimately, students must answer the management question: Will the project be completed for the holiday shopping season? Subjects: Digital technology, Emerging technologies, Nanotechnology, Technology, Operations, Operations management, Project management, Project planning, Project strategy, Evidence based risk management, Risk management, Marketing, Outsourcing, Browsers, Internet, Web-enabled application, Websites, Sensors.

Case Map for



BAE Automated Systems (A): Denver International Airport Baggage-Handling System Lynda M. Applegate, Ramiro Montealegre, H. James Nelson, Carin-Isabel Knoop Type: HBS Pub. Date: 5/21/1996 Product #: 396311 Length: 3p Teaching Note: 399099

Describes the events surrounding the construction of the BAE baggage-handling system at the Denver International Airport. It looks specifically at project management, including decisions regarding budget, scheduling, and the overall management structure. Also examines the airport's attempt to work with a great number of outside contractors, including BAE, and coordinate them into a productive whole, while under considerable political pressures. Approaches the project from the point of view of BAE's management, which struggles to fulfill its contract, work well with project management and other contractors, and deal with supply, scheduling, and engineering difficulties. Subjects: Engineering, Management communication, Politics, Project management.

Biogen, Inc.: rBeta Interferon Manufacturing Process Development Steven C. Wheelwright Type: HBS Pub. Date: 1/29/1996 Product #: 696083 Length: 18p Teaching Note: none

Biogen, Inc., a Cambridge, MA-based biotechnology company, is wrapping up a project to develop a new manufacturing process for a new drug product that will reposition the company from a purely research-oriented company to a fully integrated pharmaceutical manufacturing organization. Morris Rosenburg, a senior scientist at Biogen, has been asked to perform a major evaluation of the project in order to report on lessons learned as well as to make recommendations on how to improve project management moving forward. Subjects: Biotechnology, Product development, Production processes, Project management.

Boeing 767: From Concept to Production (A) David A. Garvin, Lee C. Field, Janet Simpson Type: HBS Pub. Date: 4/1/1988 Product #: 688040 Length: 19p Teaching Note: 689027

Biogen, Inc., a Cambridge, MA-based biotechnology company, is wrapping up a project to develop a new manufacturing process for a new drug product that will reposition the company from a purely research-oriented company to a fully integrated pharmaceutical manufacturing organization. Morris Rosenburg, a senior scientist at Biogen, has been asked to perform a major evaluation of the project in order to report on lessons learned as well as to make recommendations on how to improve project management moving forward. Subjects: Biotechnology, Product development, Production processes, Project management.

Case Map for



Lifefont: The Case for RetailDriver F. Asis Martinez-Jerez, Karim Fakhry Type: HBS Pub. Date: 9/19/2005 Product #: 106005 Length: 25p Teaching Note: available

Examines how Lifefont (pseudonym), a multidivisional consumer packages goods company, develops a system to manage and measure the impact of promotional events in retail outlets. Subjects: Change management, Consumer markets, Customer relationship management, Information technology, Project management, Retailing, Sales promotions.

Project Management Manual H. Kent Bowen Type: HBS Pub. Date: 9/13/1996 Product #: 697034 Length: 39p Teaching Note: none

A descriptive manual for how to manage the process of project management. Major sections are: 1) define and organize the project, 2) plan the project, and 3) track and manage the project. 12 processes are described in detail. Subjects: Project management, Project planning, Project strategy, Evidence based risk management, Risk management, Organizational management, Product development, Product evolution, Product innovation, Process analysis.

Case Map for



Project Management Simulation: Scope, Resources, Schedule Robert D. Austin Type: HBS Pub. Date: 9/1/2009 Product #: 3356 Length: 90 min Teaching Note: available

In this single-player simulation, students make both quantitative and qualitative decisions as they manage a critical new product development project for a printer manufacturer. The students' primary objective is to bring a competitive product to market on time and on budget, ahead of the competition. Faculty can choose from among five distinct and realistic scenarios, each designed to highlight specific learning objectives. The simulation contains powerful administrative tools which allow for real-time reporting of student decisions. Ideal for courses in Operations Management and Project Management. Subjects Covered: Project Management, Operations Management, Managing Resources, Scheduling, Project Planning, Managing Budget, Project Implementation, Team-Building, General Management, Managing Teams Learning objective: Explores trade-offs among the 3 major project management levers: scope, resources, and schedule Illustrates importance of and trade-offs associated with level, timing and type of communication Shows the value of coaching and training Examines importance of team member morale on productivity Aids in illustrating the concept of earned value management Highlights importance of appropriately timing changes in project resource allocation Forces students to navigate projects through uncertainty and unanticipated events Illustrates the concept that correcting problems early in the course of the project provides significant benefit.

SchmidtCo (A) John S. Hammond III Type: HBS Pub. Date: 5/24/2004 Product #: 904080 Length: 4p Teaching Note: available

John Schmidt's project to convert the information system of his auto parts distribution business is in real trouble, putting his company at risk. He must decide what his decision problem is and set appropriate objectives as well as create a good set of alternatives from which to choose. This case can be used in courses on decision making as well as those that address management of information technology projects. Subjects: Decision analysis, Decision making, Information systems, Information technology, Negotiations, Operations management, Project management, Uncertainty.

Case Map for



Teradyne Corp.: The Jaguar Project Type: HBS Pub. Date: 9/16/2005 Product #: 606042 Length: 23p Teaching Note: available

Teradyne, a leading manufacturer of semiconductor test equipment, embarked on a multiyear effort to improve its product development capabilities and to implement more formalized project management approaches. Examines the development of a new-generation tester that involved significant hardware and software design. For this, the company decided to implement new approaches to project management and project teams. Invites discussion of the effectiveness of these approaches and the general lessons for the management of product development. Subjects: Managerial behavior, Problem solving, Product development, Project management, R&D, Teams.

Vitreon Corp.: The Hyalite Project Roy D. Shapiro Type: HBS Pub. Date: 10/2/2006 Product #: 607031 Length: 17p Teaching Note: none

Considers decisions facing the leader of a manufacturing staff project team assigned to a plant where yields have deteriorated sharply. The process is complex: the plant organization is not cooperative, and there are deep disagreements about what is wrong and how to fix it. Provides an opportunity to analyze yields and productivity, as well as the organizational and personal challenges inherent in line-staff interaction. Subjects: Operations, Operations management, Line & staff management, Middle management, Efficiency, Productivity, Project management, Project planning, Project strategy, Process analysis, Manufacturing strategy.

Chapter 5: Strategic Capacity Management

Abstract

Ai Li Industrial Company Ltd. Peter C. Bell, Joanna Wong, Frederick Chan, lleana Funez Type: Richard Ivey School of Business Pub. Date: 8/17/07 Product #: 907E17 Length: 4p Teaching Note: available

The head of the key account team at Ai Li Industrial Company Ltd. (Ai Li) was discussing the possibility of bidding for a new account with a major North American department store. The account would involve the manufacture of compact cosmetics kits for the upcoming holiday season. Although the potential benefits from the considerably large order would be significant, it would require one third of Ai Li's nearly full manufacturing capacity. Subjects: Capacity analysis, Competitive bidding, Outsourcing.

Case Map for



Applichem (A) (Abridged) Janice H. Hammond, Gary P. Pisano Type: HBS Pub. Date: 8/18/1993 Product #: 694030 Length: 13p Teaching Note: 696017

The head of the key account team at Ai Li Industrial Company Ltd. (Ai Li) was discussing the possibility of bidding for a new account with a major North American department store. The account would involve the manufacture of compact cosmetics kits for the upcoming holiday season. Although the potential benefits from the considerably large order would be significant, it would require one third of Ai Li's nearly full manufacturing capacity. Subjects: Capacity analysis, Competitive bidding, Outsourcing.

Genentech--Capacity Planning Daniel C. Snow, Steven C. Wheelwright, Alison Berkley Wagonfeld Type: HBS Pub. Date: 11/22/2005 Product #: 606052 Length: 27p Teaching Note: available

While facilitating a complex clinical approval process over the next two to three years for a family of new cancer drugs, Genentech must develop a long-term capacity plan for a major class of new cancer products. Adding to the complexity and uncertainty is the fact that the lead time for planning, building, and certifying a new $600 million plus production-scale facility is five years. In addition, ensuring that the best process technology is incorporated into such a new plant makes the task facing David Ebersman, the senior vice-president of products operations, and his management team a daunting one. Frames the issues Ebersman and his team face and outlines the approach to date.Subjects: Capacity planning, Capital budgeting, Facilities, Operations management, Product development, Technology & operations.

JetBlue Airways: Managing Growth Robert S. Huckman, Gary P. Pisano Type: HBS Pub. Date: 10/10/2008 Product #: 609046 Length: 24p Teaching Note: available

Considers the situation facing David Barger, President and CEO of JetBlue Airways, in May 2007 as he addresses the airline's need to slow its growth rate in the response to increasing fuel costs and the effects of major operational crisis for the airline in February 2007. In 2005, JetBlue-typically viewed as a low-cost carrier (LCC)-made a move that is often considered antithetical to the LCC model. Specifically, JetBlue moved from a single aircraft type (i.e., the Airbus 320, or A320) to a fleet with two types of aircraft by adding the smaller Embraer 190, or E190. Students are initially asked to consider the impact of this decision on JetBlue's operations strategy and business model. They are then asked to consider how the reductions in aircraft capacity growth should be spread across the two plane types. This discussion hinges not only on issues of aircraft efficiency but also on those of operational focus and the ultimate competitive priorities of the airline as a whole. Subjects: Business growth, Growth, Growth management, Organic growth, Capacity planning, Airlines, Growth strategy, Strategic management, Strategy, Strategy & execution.

Case Map for



Mid-Missouri Energy Forest Reinhardt, James Weber, Mary L. Shelman Type: HBS Pub. Date: 10/10/2008 Product #: 708021 Length: 24p Teaching Note: available

Mid-Missouri Energy (MME) is a farmer-owned cooperative created to take advantage of the growing interest in ethanol as an automotive fuel. Its business largely consists of buying corn and turning it into ethanol. MME's 40-million-gallon-per-year plant began production in February 2005 and, since that time, has exceeded all performance projections. Much of this success was due to favorable corn and ethanol prices, both of which were beyond the control of MME. MME was aided by record gasoline prices and ethanol usage mandates in the 2005 energy bill. U.S. ethanol demand is projected to increase; however, corn and ethanol price swings could reduce the profitability of the business. MME must decide whether to double plant capacity, sell the plant to outside investors, or perhaps make no major changes. Subjects: Alternative energy, Energy, Energy conservation, Energy consumption, Energy resources, Energy policy, Government policy, Public policy, Risk assessment, Cooperatives, Competition, Capacity, Production capacity, Agriculture, Agribusiness.

New Balance Athletic Shoes Kim B. Clark Type: HBS Pub. Date: 1/1/1980 Product #: 680110 Length: 15p Teaching Note: 683040

Faced with growth exceeding 100% per year, James Davis, president of New Balance, must decide how to meet the need for additional capacity. Several factors contribute to a climate of extreme uncertainty. Several options are considered, ranging from a second shift to acquiring a plant in Ireland. Sufficient information is provided to allow an analysis of forecasted demand as well as the strategic financial and organizational implications of alternative courses of action. Subjects: Forecasting, Sales forecasting, Business growth, Growth, Growth management, Organic growth, Facilities planning, Location decisions, Location of industry, Assembly lines, Manufacturing, Capacity planning, Demand analysis.

Case Map for



Protege Partners: The Capacity Challenge Randolph B. Cohen, Brian J. Delacey Type: HBS Pub. Date: 4/12/2005 Product #: 205100 Length: 23p Teaching Note: none

In February 2005, Jeffrey Tarrant (HBS '85) and Ted Seides (HBS '99) considered their strategy for Protege Partners, founded in July 2002 as a fund of hedge funds (FOHF) specializing in small hedge funds. Protege's assets under management had grown to $1.1 billion, and Protege's development almost exactly mirrored the founders' expectations from 2001. Although the founders saw benefits to growth, they remained committed to the integrity of managing a small fund and wanted to continue generating superior performance for their clients. Should they close the Protege FOHF to new investors and focus on managing the existing assets as they originally intended? Could they continue to increase assets under management without taking on more top-level professionals? Should they hire additional analytical staff to help them grow Protege? Should they leverage Protege's special relationships with seeded managers to create a multistrategy hedge fund? Perhaps most important, how would their valued clients react to change? Subjects: Entrepreneurial management, Organizational design, Business model innovations, Business models, Capacity planning, Capacity analysis, Financial institutions, Financial services.

Scharffen Berger Chocolate Maker Daniel C. Snow, Steven C. Wheelwright, Alison Berkley Wagonfeld Type: HBS Pub. Date: 10/2/2009 Product #: 606043 Length: 2p Teaching Note: none

Scharffen Berger, a premium brand chocolate, is growing rapidly and must decide where and when to add capacity in the production line and with what technology. The company must consider the demands of marketing, the impact on quality and reputation, and the economics of alternative approaches to increasing output in both the short term and long term. Provides an opportunity for students to examine the existing process technology and flow, to understand the determinants of product quality, and to make recommendations about changes that will expand the capabilities of the firm in supplying its premium products to a rapidly growing market segment. Subjects: Process analysis, Process improvement, Factories, Quality control, Capacity planning.

Shouldice Hospital Ltd. James L. Heskett Type: HBS Pub. Date: 4/25/1983 Product #: 683068 Length: 18p Teaching Note: 686120

Various proposals are set forth for expanding the capacity of the hospital. In assessing them, serious consideration has to be given to the culture of the organization and the importance of preserving it in a service delivery system. In addition to issues of capacity and organizational analysis, describes a well-focused, well-managed medical service facility that may well point the way to future economies in the field. Subjects: Capacity planning, Expansion, Market segmentation, Organizational behavior, Services, Social enterprise, Word-of-mouth.

Case Map for



The Broad Institute: Applying the Power of Genomics to Medicine Vicki L. Sato, Rachel Gordon Type: HBS Pub. Date: 3/5/2008 Product #: 608114 Length: 32p Teaching Note: none

In June 2003, Harvard University and MIT announced an unprecedented partnership to create a biomedical institute, The Broad Institute. The culture of the Broad centered on science, and those involved considered it to be at the edge of the scientific frontier. In just four years the Broad had made many important scientific contributions to the bio-medical field. These included understanding genetic alterations in cancer; building an RNAi Consortium to better understand the role of every gene in the human body; creating an integrated database that mapped the connections among drugs, genes, and diseases; and cataloging inherited genetic variations of Type 2 Diabetes. Opportunities for additional important scientific advances beckoned but would require both funding and physical space. The Broad Institute's leaders, including Altshuler, Director of the Program in Medical and Population Genetics, and Golub, Director of the Cancer Program, needed to decide how big was too big. How many projects could the Broad productively support? What happened when the Broad outgrew its physical space? Altshuler and Golub knew that the Broad had made tremendous strides in the past year. It had minimized barriers and attracted many young scientists who viewed the Broad as an exciting place to do research. That success made the question of how to balance the priorities of growth and the preservation of the culture that had made everything possible all the more important. Subjects: Resource allocation, Consensus, Group behavior, Group decision making, Group dynamics, Groups, Groupthink, Teamwork, Beliefs, Corporate culture, Culture, Capacity planning, Growth strategy.

Chapter 6: Learning Curves Abstract

Growth of Intel and the Learning Curve Samuel C. Wood, Glen Schmidt Type: Stanford Pub. Date: 6/1/1999 Product #: OIT27 Length: 10p Teaching Note: available

The transistor has been called the most important invention of the 20th century because it is the basic building block for microprocessors and other integrated circuits. Over 20 years ago, Intel founders Noyce and Moore predicted continued exponential growth of the electronics industry, based on industry's ability to make cheaper and smaller transistors at a learning rate of 70%. The case traces what has since happened, comparing and contrasting the learning rate for transistors with that for automobiles, and exploring which form of Moore's Law holds for Intel's chips and for DRAM. Students should get a feel for how learning curve principles might be useful in setting company strategy or predicting industry growth. Subjects covered: Computers; Learning curves; Manufacturing; Technology

Chapter 7: Manufacturing Process

Abstract

Case Map for



BMW: The 7-Series Project (A) Gary P. Pisano Type: HBS Pub. Date: 2/18/1992 Product #: 692083 Length: 20p Teaching Note: 692094

Explores BMW's decision about how to manufacture prototype vehicles. Historically, BMW's prototypes were handcrafted by highly skilled artisans in the company's shop. A proposal has been made to alter the process so that prototypes are made in a way that can better uncover potential problems that may arise during final production. While the new approach is expected to make production start-up of new models smoother and reduce quality problems, there is some concern within the company that it will lead to less flexibility to change (and improve) designs during the development cycle. Explores different ways of competing on quality in a luxury product segment and how the product development process affects each of these. A second objective is to examine the notion of a prototyping strategy and the role prototyping plays in linking development strategy and manufacturing strategy. Subjects: Automobiles, Manufacturing strategy, Product design, Product development, Prototypes, Quality control.

BYD Company, Ltd. Robert S. Huckman, Alan MacCormack Type: HBS Pub. Date: /12/2006 Product #: 606139 Length: 24p Teaching Note: available

Considers whether BYD Co., Ltd., the largest Chinese maker of rechargeable batteries, should enter the Chinese automobile industry by acquiring Qinchuan Auto, a state-owned car manufacturer. Set just after BYD's initial public offering on the Hong Kong Stock Exchange in 2002, it describes the development of BYD's labor-intensive approach to battery manufacturing--an approach decidedly different from its more capital-intensive Japanese competitors and one that took advantage of the abundant supply of low-cost labor in China. Highlights the unique benefits and challenges created by BYD's operations strategy and asks students to determine whether the capabilities developed by the company in battery manufacturing can productively be applied to the automobile sector. Asks students to consider which, if any, aspects of BYD's operations constitute sources of sustainable competitive advantage for the company. Subjects: Diversification, Entrepreneurship, Innovation, Labor markets, Production processes.

Case Map for



Donner Co. Roy D. Shapiro Type: HBS Pub. Date: 9/27/1988 Product #: 689030 Length: 14p Teaching Note: available

The management of a small manufacturer of circuit boards faces a number of production and operations management problems. The first day on this case is used to analyze the production capacity of various stages in the process and to examine bottlenecks and key production flow decisions. The emphasis is on physical flows. The second day the emphasis is on information flows. We look in detail at the problems faced by the company, discuss the tools and techniques of process analysis that can be used to determine the relative importance of those problems, identify solutions, and discuss implementation issues. Subjects: Performance measurement, Performance measurement systems, Process analysis, Capacity analysis, Electronics.

Executive Shirt Co., Inc. Janice H. Hammond, Sylvie Ryckebusch Type: HBS Pub. Date: 10/25/1995 Product #: 696071 Length: 10p Teaching Note: none Supplement #: 696093

The Executive Shirt Co. is contemplating a move into custom-made shirts. The company's general manager has charged two of his managers to come up with plans for incorporating production of custom shirts into the existing manufacturing process. Subjects: Production planning.

Managing Innovation at Nypro, Inc. (A) and (B) Clayton M. Christensen, Rebecca Voorheis Type: HBS Pub. Date: 9/22/1995 Product #: 696061 Length:14p Teaching Note: available

Nypro is the world's leading injection molder of precision plastic parts, operating a global network of 21 plants. Nypro's strategy is for each plant to offer identical capabilities, because its customers are global companies with worldwide sourcing needs. The case describes the way Nypro manages product and process innovation across the global plant network. Subjects covered: Innovation; International operations; Manufacturing policy; Manufacturing strategy; Process innovation; Technological change

Metreke Cards Steven C. Wheelwright Type: HBS Pub. Date: 1/8/1992 Product #: 692073 Length: 8p Teaching Note: none

Used to introduce the assembly line process to first-year MBA students. Three different variations of an assembly line process for packing greeting cards are presented for analysis. To choose among the three, the students must address issues of time standards, capacity, supervision and training. A rewritten version of an earlier case. Subjects: Capacity analysis, Employee training, Supervision.

Case Map for



Quantum Corp.: Business and Product Teams Steven C. Wheelwright, Clayton M. Christensen Type: HBS Pub. Date: 1/22/1992 Product #: 692023 Length: 20p Teaching Note: 693004

Describes the adoption and evolution of product development teams and business teams at Quantum. Emphasizes integration of team capabilities with product development and competitive advantage in a rapidly changing environment. Subjects: Competition, Product development, Teams, Technology.

Samsung International, Inc. Alice H. Amsden Type: HBS Pub. Date: 3/12/1986 Product #: 686123 Length: 13p Teaching Note: none

A major Korean firm has begun production of televisions in the United States. Output and quality are below Korean standards. Students must determine why and suggest ways to improve. Subjects: International operations, Process flow, Production processes, Productivity, Quality control.

Wilkins, A Zurn Company: Aggregate Production Planning Eric Olsen, Carol Prahinski, Jenni Denniston Type: Richard Ivey School of Business Foundation Pub. Date: 9/13/2006 Product #: 906D17 Length: 11p Teaching Note: available

The general manager of the Wilkins plant in Paso Robles, California has received instructions from the head office to reduce inventory by 30% in the next quarter. Although inventory had been accumulating over the past years, this had been seen as a benefit to the company for a couple of reasons. One is that the cost of raw materials has risen in the past year. The second is that the company has a policy of no layoffs, so having inventory in stock allows the company to minimize the use of overtime and temporary workers. The general manager wondered whether revising the production planning process would be enough to solve Wilkins' inventory problems. Subjects: Inventory control, Logistics, Manufacturing strategy, Operations management.

Chapter 8: Facility Layout Abstract

Case Map for



AIC Netbooks: Optimizing Product Assembly Steven C. Wheelwright, Sunru Yong Type: HBS Pub. Date: 1/21/2011 Product #: 4245 Length: 8p Teaching Note: available

AIC Systems, located in Taichung, Taiwan, is a manufacturer of printed circuit boards, primarily for motherboards and video cards for personal computers. The firm is considered an original design manufacturer (ODM) and takes an active role in innovating and designing each new generation of components. By doing in-house design and development, the company has been able to foster exclusive, long-term relationships with its customers. The firm decides to diversify its portfolio to include consumer electronics with a particular focus on mobile technology. The goal is to move from manufacturing components for other computer companies to developing the firm's own line of branded consumer electronics. The new "netbook" market provides an opportunity for AIC Systems to design and manufacture a branded product in the mobile electronics industry. The production manager has created an assembly line for producing the new netbooks, and after three months of production he must consider ways to improve efficiency and reduce production costs. Students must perform a quantitative analysis of the existing assembly-line system and make recommendations to reach optimal efficiency. Learning objective: Determine whether an assembly-line system is optimally designed to meet variable market demand efficiently and suggest adjustments to the system if necessary. Understand the quantitative tools used to evaluate manufacturing processes. Subjects covered: Manufacturing; Performance management; Production management; Production planning; Quantitative analysis

Pharmacy Service Improvement at CVS (A) Andrew McAfee Type: HBS Pub. Date: 12/14/2005 Product #: 606015 Length: 11p Teaching Note: available

CVS's retail pharmacy operations are functioning poorly and dissatisfying customers. Many customers are defecting as a result. A pharmacy service improvement team has documented the current prescription fulfillment process, its exception rates, and the problems generated by exceptions. The company must now decide how to change this process, and what information system changes to make in support of the redesigned process. Subjects: Business process automation, Business processes, Customer retention, Customer service, Information technology, Process failures, Process improvement, Reengineering.

Case Map for



Toshiba: Ome Works H. Kent Bowen, Janice H. Hammond, Sylvie Ryckebusch, Hiroshi Uchikoga Type: HBS Pub. Date: 2/2/1996 Product #: 696059 Length: 18p Teaching Note: none

In 1995, Toshiba was the market leader in portable computer sales worldwide. This case describes the assembly of portable notebook computers in Toshiba's Ome factory in Ome, Japan, providing insights into some of the reasons for Toshiba's success. In addition to describing production techniques such as dynamic line balancing, this case probes the nature of the Japanese workforce and the unique problems faced by Japanese businesses. Subjects: Electronics, Manufacturing, Production planning.

Chapter 9: Service Processes Abstract

Benihana of Tokyo W. Earl Sasser Jr., John R. Klug Type: HBS Pub. Date: 11/1/1972 Product #: 673057 Length: 17p Teaching Note: 677037 & 696021

Discusses the development of a chain of "theme" restaurants. The student is asked to evaluate the current operating strategy and suggest a long-term expansion strategy. Subjects: Corporate strategy, Expansion, Multinational corporations, Food, Natural foods.

Burger King Corp. W. Earl Sasser Jr., David C. Rikert Type: HBS Pub. Date: 12/1/1980 Product #: 681045 Length: 15p Teaching Note: 681070

Describes the operating system of a Burger King unit. The case does not have a decision focus; it is designed for use with McDonald's Corp. Students are asked to compare the operating systems of these two fast food hamburger chains. Careful analysis will detect the subtle and not so subtle differences between the two operating systems selected by these two firms. Subjects: Operations research, Systems design, Work force management.

Case Map for



Call Center Design for Lion Financial Services J. Michael Harrison, Yuval Nov Type: Stanford Graduate School of Business Pub. Date: 10/16/2003 Product #: OIT29 Length: 21p Teaching Note: none

Andy Carr, the founder of a small consulting firm that specializes in telephone call-centers, is completing an analysis of call center operations for Lion Financial Services (LFS). LFS operates three call centers that collectively employ 170 agents and handle 30,000 calls per week. Agents are organized into different "pools," according to their training and experience; complicated rules are used for routing calls among the three centers and their constituent pools. Carr's analysis and recommendations touch upon a variety of issues: capacity requirements, including the mix of agents by skill category; training programs, promotion ladders, and the definition of agent pools; call routing protocols; potential benefits of physical consolidation; and most prominently, the degree of call "scripting" that is appropriate in designing the LFS work system. Carr believes that by developing a small number of "call blueprints," training agents in their use, and measuring adherence to the blueprints in call-monitoring programs, LFS can improve the quality of service it delivers and reduce the experience and educational levels required of its call-center agents. Concerns are raised about the creation of a factory like atmosphere. Subjects: Overtime, Work force, Work force management, Work force optimization, Operations, Operations management, Resource allocation, Systems design, Call centers, Customer self-service, Customer service, Financial institutions, Financial services.

McDonald's Corp. (Condensed) W. Earl Sasser Jr., David C. Rikert Type: HBS Pub. Date: 12/1/1980 Product #: 681044 Length: 15p Teaching Note: 681070

Describes the operating system of McDonald's, the world's most successful fast food chain. The case does not have a decision focus; it is designed for use with Burger King Corp. Students are asked to compare the operating systems of these two fast food hamburger chains. Careful analysis will detect the subtle and not so subtle differences between the two operating systems selected by these two firms. Subjects: Operating systems, Operations research, Systems design, Work force management.

Case Map for



Operations Management Simulation: Benihana V2 W. Earl Sasser Jr., Richardo Ernst Type: HBS Pub. Date: 8/9/2011 Product #: 7003 Length: 120 min Teaching Note: available

In this single-player simulation, students explore the principles of operations and service management while working through a series of challenges set during a single evening at a busy Benihana restaurant. Customers start in the bar area for drinks and then move into the dining room where chefs prepare the food right at the table. Each simulation challenge examines a particular aspect of the restaurant operation beginning with the effect of batching customers from the bar into the dining room. Other challenges examine the effect of redesigning the bar area, reducing dining time, and boosting demand through advertising and special promotions. The final challenge requires students to consider the lessons learned in the previous challenges to design a strategy that maximizes utilization, throughput, and total profit for the evening. The simulation is designed to expand on the learning objectives of the Benihana of Tokyo case study (#673057). The second release of this popular simulation provides students with enhanced animation tools for exploring the challenges of running a service operation and provides faculty with streamlined tools for conducting an effective debrief. Learning objective: Analyze capacity, demand rates, cycle time, and throughput in a service operation. Understand how batching strategies improve throughput and how increasing capacity improves bottlenecks. Optimize capacity in an operation. Minimize or eliminate demand variability (cyclical, stochastic, batch size, and service time). Optimize multiple variables in an operation and ensure consistency in the overall strategy. Subjects covered: Operations management; Service management; Simulations

Case Map for



Service Blueprinting: A Practical Technique for Service Innovation Mary Jo Bitner, Amy L. Ostrom, Felicia N Morgan Type: California Management Review Pub. Date: 5/1/2008 Product #: CMR397 Length: 30p Teaching Note: none

With the global focus on service-led growth has come increased need for practical techniques for service innovation. Services are fluid, dynamic, experiential, and frequently co-produced in real time by customers, employees, and technology, often with few static physical properties. However, most product innovation approaches focus on the design of relatively static products with physical properties. Thus, many of the invention and prototype design techniques used for physical goods and technologies do not work well for human and interactive services. This article describes one technique-service blueprinting-that has proven useful for service innovation. Service blueprinting is securely grounded in the customer's experience and it allows the clear visualization of dynamic service processes. The technique is described in detail including real case examples that illustrate the value and breadth of its applications. Subjects: Brainstorming, Innovation, Innovations, Technological innovation, Call centers, Customer self-service, Customer service, Customer relations, Customer relationship management, Customer relationships.

Sof-Optics, Inc. (A) W. Earl Sasser Jr., Ramchandran Jaikumar, David C. Rikert Type: HBS Pub. Date: 12/1/1980 Product #: 681052 Length: 20p Teaching Note: available

The marketing director of a fast-growing firm must make some decisions about the customer service department. The volume in the department has been rising steadily, eye doctors are waiting longer for orders to be filled, and morale in the department is slipping. With pressure on the firm to make a profit, the marketing director must carefully justify any request for additional people or equipment. Subjects: Capacity analysis, Customer relations, Customer service, Employee morale, Scheduling, Systems analysis, Work force management.

Case Map for



Taiwan Semiconductor Manufacturing Co.: The Semiconductor Services Company Hau Lee, Seungjin Whang, Shiri Shneorson Type: Stanford Graduate School of Business Pub. Date: 5/2/2006 Product #: GS40 Length: 27p Teaching Note: none

Founded in 1987, Taiwan Semiconductor Manufacturing Co. (TSMC) was the world's first pure foundry, focused solely on the manufacturing of semiconductors. Operating in the cyclical semiconductor market, the company managed to grow rapidly and to become the world's 8th largest semiconductor manufacturer with more than a 50% market share in the foundry business. In the company's early days, TSMC management focused on manufacturing excellence and technology leadership. As competition in the sector intensified in the late 1990s, the company began to focus on customer service to differentiate itself further from companies like UMC, its next-door neighbor and closest competitor, and the rapidly growing Chinese foundries. The company invested heavily in the development of innovative, value-added services and proprietary information systems that would facilitate better communication and improve customer service, putting in place eCommerce applications such as eFoundry and Enterprise Supply Chain Management suites. TSMC management believed that customers, typically U.S.-based integrated circuit design houses facing high financial stakes, rapid technological innovations, short product life cycles, and intensive competition, would choose a foundry business partner based on quality, trustworthiness, and reputation, as opposed to price only. Could superior customer service make an impact in a capital-intensive, process- and quality- oriented industry such as the semiconductor industry, or would TSMC have to compete on price? Explores these issues, as well as other factors affecting TSMC's strategic path as it moves forward in the mid-2000s. Subjects: Competitive strategy, Customer service, Globalization, High technology, Outsourcing, Strategic planning, Strategic positioning, Supply chains.

Case Map for



Tamago-ya of Japan: Delivering Lunch Boxes to Your Work Jin Whang, Shinya Fushimi, Jason Kaminsky, Veronica Rocha, John Tsou Type: Stanford Graduate School of Business Pub. Date:9/9/2007 Product #: GS60 Length: 11p Teaching Note: none

Tamago-ya is a family-owned business located in Tokyo, Japan. The company has captured a unique position in the market of selling pre-packaged lunch boxes to business professionals by maintaining high quality and reliable delivery. In order for Tamago-ya to guarantee such a high level of customer service, it has created an operational culture wherein those who deliver orders also engage in judging customer demand and feedback, those who supply food materials must be able to respond to variation in demand on a daily basis, and those who plan the production and distribution schedule must forecast and adjust on a real-time basis. Tamago-ya competes with convenience stores, which offer less variety in their menu options throughout the month, can stock-out on popular choices, and tend to have long lines during the lunchtime rush. However, Tamago-ya is faced with many challenges--including demand forecasting, supply planning, and long-term strategic planning. Subjects: Customer service, Demand analysis, Distribution planning, Family-owned businesses, Food, Logistics, Production planning, Supply chains.

Totalline Transport Larry Menor, Ken Mark, Jordan Mitchell Type: Richard Ivey School of Business Pub. Date: 6/3/2005 Product #: 905D01 Length: 22p Teaching Note: none

The vice-president and general manager of Totalline Transport wants to eliminate late appointment fees in delivering to one of Canada's premier electronic shops--Electronics International. Suppliers of electronics goods hire Totalline Transport to deliver to retailers. The vice-president sees an opportunity to solve the problem of congestion in the parking lot of Electronics International's warehouse and eliminate unnecessary soft costs such as missed appointment fees and detention charges. The bottleneck in the process is the waiting time for all of the trucks to unload. If the carrier arrives late, the retailer charges the carrier $1,000. If the carrier is waiting in line due to a backlog at the warehouse, the carrier levies a charge of $50 to $60 per hour. Beyond these costs, the vice-president realizes that suppliers and retailers are spending one day per week investigating problems with shipments. He is eager to make his customers (suppliers) successful. He sees three central options in cutting down traffic: to request two dedicated doors at the warehouse; cut down on time for Electronics International by applying stickers at Totalline's consolidation point on all deliveries, allowing Electronics International to accept shipments immediately into inventory without handling; or deliver direct to Electronics International stores. Subjects: Operations management, Services, Suppliers.

Chapter 10: Waiting Line Analysis and Simulation

Abstract

Case Map for



ExtendSim ® Simulation Exercises in Process Analysis (A) Roy D. Shapiro Type: HBS Pub. Date: 9/14/1993 Product #: 694039 Length: 3p Teaching Note: available

First set of exercises meant to be used with ExtendSim, a simulation system created by Imagine That, Inc. of San Jose, California. These exercises allow students to investigate the impact of variable processing times on the performance of simple in-line processes. Unadvertised per Case Records. Subjects covered: Models; Operations management; Operations research; Process analysis; Simulations

Simulation in Excel and VBA Mehmet Begen, Wei Xia Type: Richard Ivey School of Business Pub. Date: 10/17/2011 Product #: W11358 Length: 24p Teaching Note: none

This note is an introduction to simulation in Excel and VBA. The note demonstrates different ways of doing simulation in Excel and Excel VBA with examples. The concepts used and explained in the note are random number, probability distributions, data tables, loops and arrays, histograms and descriptive statistics. Learning objective: The note is an introduction to simulation in Excel and VBA and can be used as an introductory reading or lecture notes in any course that teaches and or requires simuation and Excel VBA. Subjects covered: Probability; Scientific management; Simulation; Statistics

Case Map for



Totalline Transport Larry Menor, Ken Mark, Jordan Mitchell Type: Richard Ivey School of Business Pub. Date: 6/3/2005 Product #: 905D01 Length: 22p Teaching Note: none

The vice-president and general manager of Totalline Transport wants to eliminate late appointment fees in delivering to one of Canada's premier electronic shops--Electronics International. Suppliers of electronics goods hire Totalline Transport to deliver to retailers. The vice-president sees an opportunity to solve the problem of congestion in the parking lot of Electronics International's warehouse and eliminate unnecessary soft costs such as missed appointment fees and detention charges. The bottleneck in the process is the waiting time for all of the trucks to unload. If the carrier arrives late, the retailer charges the carrier $1,000. If the carrier is waiting in line due to a backlog at the warehouse, the carrier levies a charge of $50 to $60 per hour. Beyond these costs, the vice-president realizes that suppliers and retailers are spending one day per week investigating problems with shipments. He is eager to make his customers (suppliers) successful. He sees three central options in cutting down traffic: to request two dedicated doors at the warehouse; cut down on time for Electronics International by applying stickers at Totalline's consolidation point on all deliveries, allowing Electronics International to accept shipments immediately into inventory without handling; or deliver direct to Electronics International stores. Subjects: Operations management, Services, Suppliers.

Chapter 11: Process Design and Analysis

Abstract

Donner Co. Roy D. Shapiro Type: HBS Pub. Date: 9/27/1988 Product #: 689030 Length: 14p Teaching Note: available

The management of a small manufacturer of circuit boards faces a number of production and operations management problems. The first day on this case is used to analyze the production capacity of various stages in the process and to examine bottlenecks and key production flow decisions. The emphasis is on physical flows. The second day the emphasis is on information flows. We look in detail at the problems faced by the company, discuss the tools and techniques of process analysis that can be used to determine the relative importance of those problems, identify solutions, and discuss implementation issues. Subjects: Performance measurement, Performance measurement systems, Process analysis, Capacity analysis, Electronics.

Case Map for



Fabritek Corp. William K. Holstein, Lawrence A. Bennigson, Linda G. Sprague Type: HBS Pub. Date: 3/1/1969 Product #: 669004 Length: 7p Teaching Note: 677121 & 690021

Describes a large-volume automotive parts contract in a high-quality machine work company. Quality and delivery problems arise when one of the four men on the job is replaced with a high producer who cannot earn a substantial bonus because of machine interference. Subjects: Bonuses, Compensation, Incentives, Operations research, Performance effectiveness, Production processes.

Kristen's Cookie Co. (A) Roger E. Bohn Type: HBS Pub. Date: 1/21/1986 Product #: 686093 Length: 3p Teaching Note: 688024

The student is starting his or her own business, baking make-to-order cookies. Basic times of each operation are laid out and the student is asked to determine the consequences for the operating system. Serves as an exercise and review of concepts such as capacity, bottlenecks, and throughput times. Students should be able to make several useful suggestions for improving the system. The case ends with a series of open-ended questions. Subjects: Pricing strategy, Assembly lines, Manufacturing, Production scheduling, Capacity analysis.

Managing Variability: Process Control and Process Capability Kamalini Ramdas Type: University of Virginia Darden Pub. Date: 2/2/2004 Product #: UV0426 Length: 21p Teaching Note: none

This technical note provides an introduction to quality management tools, with a focus on the concepts of process control and process capability. Subjects: Operations, Operations management, Process analysis, Defects, Quality management.

Case Map for



National Cranberry Cooperative 1996 Roy D. Shapiro Type: HBS Pub. Date: 5/31/1988 Product #: 688122 Length:10p Teaching Note: available

Describes the continuous flow process used to process cranberries into juice and/or sauce. Requires student to analyze process flows to determine where the bottlenecks are and to decide how, and whether, to expand capacity. Original version written by J.G. Miller and R.P. Olson. Subjects: Capacity analysis, Cooperatives, Process analysis, Process flow.

Operations Management Simulation: Process Analytics Roy D. Shapiro, Frances X. Frei Type: HBS Pub. Date: 11/11/2009 Product #: 3291 Length: 90 min Teaching Note: available

This single-player simulation explores concepts in process analysis via a series of problems sets that are paired with simulation models, allowing students to increase their intuition and understanding of core operations concepts, including: • cycle time • yield • use of inventory in processes • capacity management • bottlenecks and constraints • throughput time and rates • machine and labor utilization rates • line and batch processes • parallel sub-assembly processes • cross trained worker processes (multiple variations) Operations Management: Process Analytics offers a high degree of flexibility for faculty. The assignment questions can be completely edited, re-sequenced, or removed altogether. The models themselves can be manipulated (for example, faculty can add workstations to the simulation.) Faculty can also choose to allow students to manipulate the models on their own, changing model permutations so that they can experiment with processes and enhance their understanding. Student responses to questions are captured for faculty review. Ideal for operations management courses in undergraduate, MBA, and executive education programs. Learning objective: 1. To expose students to the fundamentals of core concepts in process analysis in a dynamic, experiential manner 2. To increase student intuition regarding the interplay between the various elements of process analytics by providing them with detailed questions and toolkit-style exercises 3. To give students the tools by which to further their understanding of process analysis via experimentation through the proactive creation and editing of simulation models Subjects covered: Capacity analysis; Manufacturing; Operations management; Process analysis; Process flow; Production planning; Production processes; Simulations

Case Map for



Productivity and Performance Systems: A Comparative Analysis of Northern Telecom and United Parcel Service Christopher W.L. Hart, W. Bruce Chew Type: HBS Pub. Date: 8/25/1988 Product #: 689022 Length: 21p Teaching Note: 689003

Explores the issue of measuring and improving service quality and productivity by examining the radically different approaches of Northern Telecom and United Parcel Service. Subjects: Operating systems, Productivity, Quality control, Services.

Quality Wireless (A): Call Center Performance Sunil Chopra Type: Kellogg School of Management, Northwestern University Pub. Date: 8/25/1988 Product #: KEL153 Length: 21p Teaching Note: available

Quality Wireless has received customer complaints about long hold times at its call center. To address these complaints, it put into place certain process changes at its call center. After one month, the company will now decide whether improvement has taken place. Subjects: Performance measurement, Performance measurement systems, Operations, Operations management, Process analysis, Process improvement, Service management.

RFID at the METRO Group Zeynep Ton, Vincent Dessain, Monika Stachowiak-Joulain Type: HBS Pub. Date: 11/9/2005 Product #: 606053 Length: 22p Teaching Note: available

Introduces radio frequency identification (RFID) as the next generation of automatic identification technologies that is expected to improve the performance of retail supply chains through reduced shrink, increased product availability, and improved labor productivity. Showcases the implementation of the technology by the METRO Group, the world's third-largest retailer. Places students in the position of Dr. Gerd Wolfram, managing director of METRO's internal IT service group, and Zygmunt Mierdorf, the company's chief information officer, who, in mid-2005, evaluate the results of the RFID rollout and decide on the next stage in the implementation. Subjects: Inventory management, Operations management, Process analysis, Radio frequency identification, Supermarkets, Suppliers, Supply chains, Technology.

Case Map for



Weight Solutions Clinic: Bariatric Surgery Center Sunil Chopra, Canan Savaskan Type: Kellogg School of Management, Northwestern University Pub. Date: 1/1/2004 Product #: KEL030 Length: 11p Teaching Note: available

Addresses how flow times and capacity calculations can be made for a service process such as the Bariatric Surgery Center at a clinic. Highlights how these calculations can be made for a service process just as in any manufacturing setting. Discusses the notions of critical paths and bottlenecks and what factors affect both time and capacity. Also, discusses the relative profitability of two types of bariatric surgery, the goal being to link product profitability to the process. Subjects: Profitability, Profits, Operations, Operations management, Process analysis, Capacity analysis, Service management, Cardiac surgery, Health care providers, Health care systems, Healthcare systems.

Chapter 12: Six-Sigma Quality

Abstract

Eurasia International: Total Quality Management in the Shipping Industry Ali Farhoomand, Amir Hoosain Type: University of Hong Kong Pub. Date: 7/23/2004 Product #: HKU334 Length: 13p Teaching Note: available

Gives an account of how a ship management company was able to set itself apart from competitors and from its clients' own in-house technical and crew management capabilities by embracing a culture of continuous improvement and implementing Total Quality Management systems. The shipping industry was not alone in being regulated, but its distinctly international nature made ship managers, as cost-cutting practitioners, particularly open to criticism. A ship management company's very existence hinged upon its ability to convince ship owners that it would preserve their valuable assets and maximize revenue-earning potential--demonstrating that its collective skills were superior and more cost effective. As a result, an effective quality assurance system that continuously improved the organization's human and business systems could enhance efficiency and have a significant marketing impact. Subjects: Change management, Customer relations, International business, Total quality.

Excel Logistics Services Sunil Chopra Type: Kellogg School of Management Pub. Date: 1/1/2004 Product #: KEL019 Length: 8p Teaching Note: available

Looks at the introduction of statistical process control (SPC) into a distribution center servicing a department store chain. Focuses on the receiving process in the distribution center and describes the introduction of SPC methodology. Discusses run charts, pareto diagrams, and control limits. Subjects: Control systems, Defects, Quality management.

Case Map for



Hank Kolb, Director, Quality Assurance Frank S. Leonard Type: HBS Pub. Date: 3/1/1981 Product #: 681083 Length: 3p Teaching Note: 683030

Designed to introduce the systemic nature of product quality and the complexity of quality problems. Uses a new director, quality assurance, and the discovery of a quality problem. The new director has to decide if it is a real problem, what to do about it, and how to go about orienting an organization toward a better quality attitude. Subjects: Product planning & policy, Product liability, Assembly lines, Manufacturing, Quality control, Industrial goods.

Kristen's Cookie Co. (A2) Roger E. Bohn Type: HBS Pub. Date: 1/23/1986 Product #: 686094 Length: 7p Teaching Note: available

Intended for distribution during class, this case contains one set of answers to the (A1) case. It introduces the concept of a Gantt chart and discusses issues raised by the case such as the value of labor flexibility. The open-ended questions in the (A1) case are only partially answered to encourage further student creativity. Subjects: Learning curves, Pricing strategy, Process analysis, Production scheduling, Capacity analysis.

Managing Variability: Process Control and Process Capability Kamalini Ramdas Type: University of Virginia Darden School Foundation Pub. Date: 2/2/2004 Product #: UV0426 Length: 21p Teaching Note: none

This technical note provides an introduction to quality management tools, with a focus on the concepts of process control and process capability. Subjects: Operations, Operations management, Process analysis, Defects, Quality management.

Paul Chesler, Director, Quality Assurance Frank S. Leonard Type: HBS Pub. Date:7/13/2006 Product #: 607002 Length: 3p Teaching Note: none

Introduces the systemic nature of product quality and the complexity of quality problems. A new director of quality assurance discovers an apparent quality problem. The actions of different departments and functions contribute to the problem. The new director must decide how serious the problem is, what to do about it, and how to go about orienting an organization toward a better quality attitude. Subjects: Product planning & policy, Assembly lines, Manufacturing, Quality control, Assembly lines, Manufacturing.

Case Map for



Steinway & Sons David A. Garvin Type: HBS Pub. Date: 9/1/1981 Product #: 682025 Length: 17p Teaching Note: 682073

Considers whether Steinway should reintroduce a long-discontinued product line to meet competition from the Japanese. Raises the issue of just how quality is defined in this market. Looks closely at a production process relying on craft skills. Students have the opportunity to consider issues of quality. Subjects: Competition, Quality control, Production processes.

The Home Depot, Inc. Zeynep Ton, Catherine Ross Type: HBS Pub. Date: 3/12/2008 Product #: 608093 Length: 28p Teaching Note: available

Home Depot popularized the concept of "do-it-yourself" for customers eager to build, repair, and improve their own homes. Home Depot stores were stocked with a wide range of home-improvement goods and had knowledgeable employees ready to help customers choose the right products, tools, and materials and even explain how to use them. To some extent, Home Depot store managers "did it themselves" as well. For its first 20 years, Home Depot was known for its entrepreneurial spirit and was run rather informally. Store managers, who tended to be experts in home improvement, made their own merchandise-planning decisions and had considerable autonomy in running their stores. Purchasing was also decentralized. As it grew in size, many in the company believed that a more disciplined approach to operations would be important for further growth. In 2000, the company hired Bob Nardelli, a former GE senior executive, to lead the change. As chairman and CEO, Nardelli centralized merchandising and purchasing and brought process discipline to store operations, simplifying and standardizing store processes and introducing Six Sigma quality methodology. Nardelli's changes led to higher profitability. Nevertheless, Home Depot's stock price remained nearly unchanged during his tenure and certain aspects of customer service suffered significantly. These results raise an important question not only for Home Depot, but also for other companies in which employees perform both routine production-related activities and nonroutine customer-service activities: Is there a trade-off between process discipline and customer service? If so, what aspects of customer service? Subjects: Human resources management, Personnel, Personnel management, Merchandising, Organizational change, Process improvement, Consumer goods, Department stores, Retail stores, Retailers, Retailing, Supply chain management, Supply chains.

Chapter 13: Abstract

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Deutsche Allgemeinversicherung David M. Upton Type: HBS Pub. Date: 1/29/1996 Product #: 696084 Length: 12p Teaching Note: available

Describes the application of statistical process control in a service industry. In this case, Annette Kluck must decide how to adopt manufacturing-based principles to a service process ranging from customer account setup to legal services. Learning objective: Teaches statistical process control (p-charts) as well as service industry quality improvement. Subjects covered: Implementing strategy; Process analysis; Quality control; Service management; Statistical analysis

Six Sigma Quality at Flyrock Tires Sunil Chopra Type: Kellogg School of Management, Northwestern University Pub. Date: 1/1/2004 Product #: KEL028 Length: 3p Teaching Note: available

Assumes an understanding of statistical process control and focuses on highlighting the usefulness of Six Sigma quality. Focuses on the issue of a worn bearing at a tire manufacturer leading to a mean shift (while producing defectives). Shows how a Six Sigma process would quickly detect the mean shift while producing fewer defectives. Learning objective: To introduce the methodology of statistical process control and to illustrate the value of Six Sigma. Subjects covered: Operations management; Six sigma

Chapter 14: Lean Supply Chains

Abstract

Esterline Technologies: Lean Manufacturing Richard L. Nolan, Karen A Brown, Subodha Kumar Type: HBS Pub. Date: 5/3/2006 Product #: 906417 Length: 23p Teaching Note: available

Raises the issue of the appropriate role of IT in lean manufacturing. Most large manufacturing companies have implemented ERP IT systems to support lean manufacturing practices. The Kerry plant of Esterline Technologies attempted an ERP implementation and then terminated it. Now the Kerry plant is revisiting the appropriate use of IT in an environment of highly innovative lean manufacturing. Subjects: ERP, Information technology, Innovation, Toyota production system.

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How to Manage Through Worse-Before-Better Robin Cooper, Brian Maskell Type: MIT Sloan Management Review Pub. Date: 7/01/2008 Product #: SMR288 Length: 10p Teaching Note: available

Many Western managers were introduced to lean production in 1990, with publication of "The Machine That Changed the World," based on a five-year study of Toyota by MIT's International Motor Vehicle Program. Since then, thousands of managers have used the principles of lean management to achieve faster cycle times, reduced defect rates and sharp gains in on-time deliveries. Lean management permits a marked reduction in inventory levels across the supply chain, which should result in better financial performance -- especially because companies achieve simultaneous declines in manufacturing and service costs. But, as the authors point out, the transition takes time and is full of obstacles. One predictable hurdle is the crisis in confidence that occurs when management isn't able to improve financial performance quickly. Lean transformations generally have short-term adverse impacts on the company's bottom line (that is, things get worse before better). Management needs to anticipate these challenges and explain them clearly. To help managers overcome the financial hurdles on the path to lean, the authors offer new tools for anticipating the deterioration in financial performance that occurs as a mass producer goes lean and for understanding the real performance improvements that take place during this period. Their approach, called "value-stream accounting," helps managers plan for the short-term financial impact, monitor progress, understand the operational improvements and develop strategies to maximize the longer-term benefit. Managers need to understand that the "bad" news isn't really bad -- it's part of the necessary process of establishing a stronger, more productive organization. The authors' approach replaces the traditional cost-accounting system with a transparent accounting system that tracks the company's value streams, which incorporate all of the value-adding and non-value-adding activities required to bring a product or service from start to finish. Subjects: Financial management, Operations, Operations management, Research methodology.

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Johnson Controls, Inc.: Automotive Systems Group, The Georgetown, Kentucky Plant Kazuhiro Mishina Type: HBS Pub. Date: 3/26/1993 Product #: 693086 Length: 23p Teaching Note: 693102

Prior to the 1980s, automakers purchased individual seat components and built the seats alongside their auto assembly lines. This case describes how Johnson Controls, Automotive Systems Group, blossomed when automakers turned to outsourcing the complete seat set. The case closely examines one plant, in Georgetown, Kentucky, that switched from just-in-time (JIT) delivery of seat sets to JIT assembly to serve a nearby Toyota Camry assembly operation. Exposes the challenge of dealing with growing seat variation and an opportunity of doubling the plant floor space at a separate site. The specific case question is how the plant should use this new space. Subjects: Facilities planning, Manufacturing strategy, Materials management, Production controls, Suppliers, Vertical integration.

Lean at Wipro Technologies Bradley R. Staats, David M. Upton Type: HBS Pub. Date: 10/16/2006 Product #: 607032 Length: 18p Teaching Note: none

Wipro Technologies, a rapidly growing software services firm based in India, decided to use principles from the Toyota Production System (also known as lean) to fundamentally change their operating model. Looks at why Wipro chose to use lean and how they went about implementing it in a novel context such as this. Provides detail of Wipro's internal and external environment, which was necessitating the change (shift from delivering a low-cost product to providing a business solution). Also, explores whether this new approach can lead to a substantial competitive advantage. Subjects: Continuous improvement, Operations, Operations management, After action reviews, Organizational learning, Manufacturing strategy, Outsourcing.

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New Balance Athletic Shoe, Inc. H. Kent Bowen, Robert S. Huckman, Carin-Isabel Knoop Type: HBS Pub. Date: 4/20/2006 Product #: 606094 Length: 18p Teaching Note: available

Considers whether New Balance, one of the world's five largest manufacturers of athletic footwear, should respond to Adidas' planned acquisition of Reebok--a transaction that would join the second- and third-largest companies in the industry. Highlights the unique aspects of New Balance's strategy--focusing on fit and performance by offering long-lived shoes in a wide variety of widths and eschewing celebrity endorsement of its products--and discusses New Balance's operations decisions to support that strategy. These include significant use of domestic manufacturing at a time when nearly all other competitors sourced finished shoes from Asian suppliers and an emphasis on improving inventory management for its network of small and large retailers. Set just after the announcement of the Adidas-Reebok transaction in 2005, with New Balance having recently initiated a companywide effort to improve operational performance through the application of concepts from lean manufacturing and the Toyota Production System. Asks students to consider whether New Balance should change aspects of its operations strategy in light of the consolidation among its competitors or whether the Adidas-Reebok transaction represents an opportunity for New Balance to emphasize the importance of moving forward with its current approach. Subjects: Mergers & Acquisitions, Acquisitions, Continuous improvement, Operations, Operations management, Competitive environment, Organizational environment, Assembly lines, Manufacturing, Outsourcing, Toyota production system, Supply chain management, Supply chains.

The F/A-18 F404 Engine: Getting Lean (A) Thomas Cross, E. Richard Brownlee II, Robert Osterhoudt, Jeff Pottinger, C. J. Jaynes Type: University of Virginia Darden School Foundation Pub. Date: 9/19/2007 Product #: UV0885 Length: 12p Teaching Note: available

The U.S. Navy Aircraft Intermediate Maintenance Depot (AIMD) Lemoore Power Plants Division (F404 engine maintenance) was a real mess. Not-Ready-For-Issue parts were everywhere. Division through-put was poor (35 engines and 190 modules awaiting maintenance), there were 30 F/A-18 aircraft with bare firewalls (no engines), the maintenance crews were working 12-hour days, manning was at 61% of authorized levels, reenlistment rates were an abysmal 50%, and crew morale was lousy. And more parts and engines arrived in daily. The Officer-in-Charge of the Aircraft Intermediate Maintenance Detachment decided to use Lean manufacturing to tackle the challenge. It would be the first application of the Lean concept to Naval Aviation. Subjects: Accounting, Accounting & control, Cost analysis, Operations, Operations management, Aircraft, Airplane manufacturing.

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Toyota Motor Manufacturing, U.S.A., Inc. Kazuhiro Mishina Type: HBS Pub. Date: 9/8/1992 Product #: 693019 Length: 22p Teaching Note: 693046

On May 1, 1992, Doug Friesen, manager of assembly for Toyota's Georgetown, Kentucky, plant, faces a problem with the seats installed in the plant's sole product--Camrys. A growing number of cars are sitting off-line with defective seats or are missing them entirely. This situation is one of several causes of recent overtime, yet neither the reason for the problem nor a solution is readily apparent. As the plant is an exemplar of Toyota's famed production system (TPS), Friesen is determined that, if possible, the situation will be resolved using TPS principles and tools. Students are asked to suggest what action(s) Friesen should take and to analyze whether Georgetown's current handling of the seat problem fits within the TPS philosophy. Subjects: International operations, Offshoring, Overseas operations, Process analysis, Quality control, Production controls, Suppliers, Automobiles.

Virginia Mason Medical Center Richard Bohmer, Erika M. Ferlins Type: HBS Pub. Date: 10/3/2005 Product #: 606044 Length: 28p Teaching Note: available

In 2000, Dr. Gary Kaplan became CEO of the Virginia Mason Medical Center in Seattle, Washington. The hospital was facing significant challenges: It was losing money for the first time in its history, staff morale had plummeted, and area hospitals presented ardent competition. Considerable change was imminent. Within his first few months, Kaplan had rallied the organization around a new strategic direction: to become the quality leader in health care. What Kaplan and his administrators lacked was an effective tool to execute their strategy. Soon thereafter, a series of serendipitous events led to the discovery of the Toyota production system, and the Virginia Mason Medical Center became entrenched in an overwhelming challenge: how to institute a production model in health care. Subjects: Models, Leadership, Strategic leadership, Operations, Operations management, Cardiac surgery, Health care providers, Health care systems, Healthcare systems, Toyota production system.

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Wipro Technologies: The Factory Model Virginia A. Fuller, David Upton Type: HBS Pub. Date: 10/25/2005 Product #: 606021 Length: 12p Teaching Note: none

Based in Bangalore, Wipro Technologies is a rapidly growing software services company. Wipro is experimenting with a new software service delivery model that draws on the principles of the Toyota production system and "lean" manufacturing. Addresses the advantages and disadvantages of software outsourcing and how to mitigate the effects of, for example, lock-in and hijacking. Explores how Wipro has helped its customers deal with these issues and looks at the changing competitive role of Indian outsourcers (from low-cost, to high-quality/rapid turnaround). Specifically explores Wipro's experimental use of lean principles as a source of new competitive advantage in software services. Also addresses the issue of standardization in information technology, examining why companies progressively develop so many standards and how companies like Wipro can help them standardize, thus limiting one of the primary drivers of companies' IT costs. Subjects: Manufacturing, Manufacturing costs, Operations management, Outsourcing, Standardization, Toyota production system.

Chapter 15: Logistics, Distribution, and Transportation

Abstract

Aldi: A German Retailing Icon Jordan Mitchell, Marc Sachon Type: IESE Business School Pub. Date: 10/7/2005 Product #: IES184 Length: 27p Teaching Note: available

Describes the operations of Aldi, a privately owned German company. With estimated sales of 37 billion euros in 2005, Aldi is the largest hard discounter worldwide and one of the top 15 retailers today. Gives a detailed description of Aldi's historical development, with a clear focus on in-store and supply chain operations. Subjects: Logistics, Retailing, Sales & marketing, Supply chains.

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CEMEX: Transforming a Basic Industry Company Hau L. Lee, David Hoyt Type: Stanford Graduate School of Business Pub. Date: 12/7/2005 Product #: GS33 Length: 22p Teaching Note: none

In early 2005, the market for cement in Mexico was changing. The market, particularly in northern Mexico, had traditionally consisted primarily of sales of bagged cement, which was common in developing economies. There appeared to be a shift to bulk cement, more typical of developed economies. CEMEX, the third largest cement company in the world, and the dominant company in Mexico, had developed a strong brand identity for its bagged cement. Bulk cement, however, was harder to differentiate. Describes the Mexican cement industry and dramatic changes that CEMEX had made in 2000-2005 to focus on customer needs, particularly the needs of its distributors. These changes involved a wide range of activities, including dramatic improvements in logistics, creating a retail network among its distributors, and developing a suite of software applications to ensure that the right product was delivered to the right place at the right time. What lessons could the company adopt from its branded business and its success with building its distributor network, if the market turned more toward commodity bulk cement? Subjects: Brands, Change management, Corporate strategy, Distribution channels, Industry analysis, Logistics, Marketing strategy, Networks, Software, Supply chain.

Dr. Ing. h.c. F. Porsche AG (A): True to Brand? Jeffrey Fear, Carin-Isabel Knoop Type: HBS Pub. Date: 1/12/2006 Product #: 706018 Length: 29p Teaching Note: available

Examines one of the most important entrepreneurial decisions made in the history of Porsche, made in early 1998: to build a sport utility vehicle (SUV)--the Cayenne. After decades of relying on one or two sports car models and nearly going bankrupt and losing its independence in 1993, Porsche had to diversify its product lines. Also examines the branding implications of the internationalization of production. Subjects: Brand management, Corporate governance, Diversification, Entrepreneurship, Globalization, Internationalization, Leadership, Logistics, Manufacturing, Production, Supply chains.

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Global Supply Chain Management Simulation Type: HBS Pub. Date: 1/1/2004 Product #: 6107 Length: n/a Teaching Note: available

This interactive online simulation allows students to try their hands at managing the complexities of a global supply chain by putting them in the shoes of the supply chain manager of a mobile phone manufacturer. Students become responsible for the rollout of two models of mobile phones. Illustrates key concepts of supply chain management, such as: creating a balanced supply chain across suppliers with different lead times, building flexibility into the supply chain to avoid stock-outs and excess inventory, and evaluating and using demand forecasts. Student success is measured by company profits as well as through a dynamic evaluation process in which students answer probing questions from the company's board members. Students can use the simulation individually or in teams. Users must have an Internet connection (dial-up or other) and a personal computer that meets minimum technical requirements Subjects covered: Demand analysis; Design; Forecasting; Operations management; Product management; Suppliers; Supply chain management

Haier's U.S. Refrigerator Strategy 2005 Pankaj Ghemawat, Thomas M. Hout Type: HBS Pub. Date: 2/15/2005 Product #: 705475 Length: 23p Teaching Note: available

Haier, the first Chinese consumer durable brand in the United States, succeeded in the compact refrigerator, freezer, and air conditioner markets and then built a U.S. factory to enter the full-size market. Issues include the value of a local entrepreneur to the Asian manufacturer entering the United States; brand building and price positioning; the sourcing location decision trade-off between production costs and logistics costs; the role of change in the U.S. appliance distribution channels; global and regional competitive analysis; the response of U.S. competitors to the global sourcing evolution; and the time horizons of Chinese company management. Subjects: Cost analysis, Globalization, Market entry, Brands, Corporate brand, Logistics, Plant location, Appliances.

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Renault's Logan Car: Managing Customs Duties for a Global Product Hau Lee, Amanda Silverman Type: Stanford Graduate School of Business Pub. Date: 4/29/2008 Product #: GS62 Length: 26p Teaching Note: available

Operations network design is about where to locate your supply sources and manufacturing and distribution operations, as well as the deployment of such operations, i.e., who should be supplying whom. With the emergence of global supply and manufacturing sources and the global market, such a design will increasingly have to span multiple regions. In the design, we have to capture the quantitative impacts of such factors like fixed and variable costs of production or distribution facilities, inventory, freight, and other logistics costs. The global network requires explicit treatment of taxes, customs and duties. This case is about Renault's recent car Logan, which was designed to serve markets in emerging markets like Eastern Europe, North Africa and the Middle East. The company has designed its supply chain to take advantage of the special customs and duties treaties in these regions. The case illustrates the complexities of such design decisions, and the approaches one needs to take. The case also ends with a key decision that Renault has to make - how to set up the supply chain for the new market in South Africa. Again, the customs and duties implications play a big role in such a decision. Subjects: Exports, Imports, ASEAN, NAFTA, Trade agreements, Design, Design management, Product design, Plant location.

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Renesas Electronics and the Automotive Microcontroller Supply Chain (A) Willy Shih, Margaret Pierson Type: HBS Pub. Date: 4/5/2012 Product #: 612071 Length: 16p Teaching Note: available

The magnitude 9.0 earthquake that struck Japan in March, 2011 caused extensive damage to Renesas Electronics wafer fabrication facility, a critical link in the global automotive supply chain. Many OEMs sole-sourced customized microprocessors from the fab so its shutdown forced the "Big Three" of Detroit and Japan to shutdown production as well. Data from two automotive customers in particular, allowing the instructor to look at issues of delayed differentiation, sole-sourcing decisions, and/or Renesas' market position as a producer of low-volume customized components, in the context of supply chain disaster recovery. The two OEM's had different strategies with respect to cross-utilization of components between product lines. Therefore, a simple numerical assignment will show students the power of delayed differentiation in components. The OEM with higher cross-utilization (lower customization of components between product lines) had more flexibility in which vehicles they stopped producing during the shortage. Similarly, students can look at the impact of delayed differentiation at the product level by looking at the production process within the fab itself. Here Renesas's customization causes early differentiation. Again numbers are provided to work examples. Finally, broader questions around the viability of Renesas's market position can be discussed. How should they respond to the disaster in the short term? How can they assure customers they can handle future disruptions differently? And from the OEMs' perspective, do they need to change their product design to allow for the incorporation of alternative parts? Such parts have downsides of their own. The findings in the two numerical examples can be used to drive this discussion, or a general strategy framework may be applied. Learning objective: Examine the impact of sole-sourcing, OEM component-customization strategy, and delayed differentiation in production on supply chain robustness to external disruptions. Subjects covered: Disaster recovery; Operations management; Production scheduling; Sourcing; Supply chain management

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Rio Tinto Iron Ore: Challenges of Globalization in the Mining Industry Hau Lee, David W. Hoyt, Samir Singh Type: Stanford Graduate School of Business Pub. Date: 7/3/2007 Product #: GS56 Length: 26p Teaching Note: available

In 2006, Rio Tinto Iron Ore (RTIO) faced a number of challenges. The iron ore business had traditionally been dominated by a few large suppliers, who sold to a relatively few large steel producers. The business environment was changing, however, with the rapid development of China. Demand was growing faster than supply, causing increased prices, particularly on the spot market. Most of RTIO's production was committed to fulfilling long-term contracts, so it could not fully benefit from the high spot market prices. New entrants, however, were not committed to long-term contracts and were attracted by these high prices. In addition, many new Chinese iron and steel mills were small operations, geographically disbursed, and did not secure their iron ore supplies before building their plants. An important part of the iron ore supply chain was transportation. Traditionally, customers were responsible for shipping, but this did not meet the needs of small, remotely located Chinese mills. In addition to these changes in the marketplace, RTIO had developed new steelmaking technology that enabled the use of lower quality iron ore and also generated substantially fewer greenhouse gas emissions than conventional technology. There were a number of possible approaches to commercializing this technology, ranging from vertical integration to licensing. Subjects: Logistics, Mining, Supply chains.

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Supply Chain Management Simulation: Root Beer Game V2 Type: HBS Pub. Date: 7/5/2012 Product #: 6619 Length: 60 min Teaching Note: available

In this fast-paced, multi-player simulation, students experience the effects of a supply chain dynamic called the "bullwhip" effect. Small changes in customer demand cause increasing oscillations in ordering patterns and inventory levels moving down the supply chain away from the customer. Students play one of four roles in a root beer supply chain: factory, distributor, wholesaler, or retailer. In each simulated week, they must examine inventory, anticipate demand, and send orders to the adjacent connection in the supply chain. Each student attempts to minimize inventory carrying costs while avoiding costly inventory shortages. Students must make rapid ordering decisions while dealing with limited information, a lack of demand visibility, and shipping delays. Faculty can configure different supply chain scenarios for students to help them explore the root causes of the bullwhip effect while enabling discussion of techniques for controlling it. A single-player version is also available. Learning objective: Understanding the "bullwhip" effect. Understanding demand forecasting, required lead times, and the effects of batch ordering. Exploring techniques for controlling the bullwhip effect. Reducing uncertainty and demand variability. Understanding the role of centralized information. Subjects covered: Demand analysis; Design; Forecasting; Operations management; Product management; Suppliers; Supply chain management

Synnex International: Transforming Distribution of High-Tech Products, Shih-Fen Chen, Lien-Ti Bei Type: Ivey School of Business Pub. Date: 12/1/2008 Product #: 908A19 Length: 22p Teaching Note: available

The case describes how Synnex Technology International Corporation (Synnex) in Taiwan transformed itself from a local distributor of electronic components into a global logistic conglomerate of communication and information products between 1985 and 2007. The case analyzes the channel structure of electronic product distribution and explains how Synnex introduced innovative practices to transform its operation. The case is designed for MBA students to grasp some fundamental issues related to distribution channel design and supply chain management in a marketing or logistic management course. Subjects: Marketing, Distribution, Logistics, Supply chain management, Supply chains, Sensors.

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The Crown Worldwide Group: Relocating in China Under the Closer Economic Partnership Arrangement Michael J. Frantantuono Type: University of Hong Kong Pub. Date: 7/3/2007 Product #: HKU653 Length: 31p Teaching Note: available

In June 2003, the governments of Hong Kong and the People's Republic of China signed the Closer Economic Partnership Arrangement (CEPA). CEPA outlined terms for the liberalization of trade in goods and services and enabled firms incorporated in Hong Kong to establish wholly owned businesses on the mainland. One firm that benefited from the liberalization was the Crown Worldwide Group. Founded by Jim Thompson in 1965, and based in Hong Kong since 1970, Crown had evolved into the world's largest privately held company providing relocations and records management services, and had become a significant player in the field of logistics. By 2003, the company had a global network of offices and warehouses in more than 100 cities on six continents. Following the signing of CEPA, Crown formulated a plan for building state-of-the-art warehouse/office complexes on the mainland. The first was to be in Shanghai, to be followed by a second in Beijing, and then others in several more cities. Crown was successful in the first phase of implementing its strategy: by August 2006, Shanghai employees had been working out of the new facility for more than a year. Meanwhile, Crown had located a plot of land in Beijing and had completed site preparations--but progress on construction had stalled due to unexpected delays in project registration approval from Beijing authorities. The delay raised the question: How best to proceed? As he considered his options, Thompson weighed tactical considerations and strategic concerns. Economic logic suggested the need to get the construction project back on track as quickly as possible. Nonetheless, he knew that any action had to be consistent with the core values he had cultivated at Crown, the reputation his company had earned as a world-class provider of logistics services, and Crown's plans for further expansion in China. Subjects: Business & society, Corporate strategy, International business, Logistics, Relocation, Strategy formulation, Strategy implementation.

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When Supply is of Public Interest: Roche & Tamiflu Noel Watson, Laura Rock Kopczak, Prashant Yadav Type: HBS Pub. Date: 1/15/2009 Product #: 609061 Length: 21p Teaching Note: available

The case focuses on the challenges of Roche maintaining a supply network for a global influenza pandemic response initiative based on its antiviral drug Tamiflu. The Roche group is a 40 billion CHF company consisting of a pharmaceutical division and a diagnostic division. The company's antiviral drug Tamiflu dominates the market for prevention and treatment of seasonal influenza (flu). Tamiflu, however, could also play an important role in responding to the first wave of a pandemic caused by a particularly harmful strain of the influenza virus A. Tamiflu was designed to be effective against any strain of Type A or B influenza. Thus, there was the potential to establish a preparedness plan based on creating a stockpile of the drug in conjunction with an appropriate plan for distribution to the affected population. The use of Tamiflu in such a crisis would allow the world to respond immediately, rather than having to wait for development of a vaccine which had limitations in its effectiveness and the drug had been endorsed by the WHO as a first line of defense. The case focuses on the challenges of Roche maintaining a supply network for a global pandemic response initiative. Managing supply is particularly challenging for three reasons. First, demand for stockpile quantities is spiky and uncertain, and governments placing orders expect lead times to be short. Second, lead times for increasing capacity are long, as are lead times for drug production and encapsulation. Last, media coverage and press releases made by governments and other stakeholders increase the stakes, as negative media coverage may damage Roche's reputation with consumers, leading to lower sales levels for its products. Subjects: Logistics, Manufacturing strategy, Generic drugs, Pharmaceuticals, Supply chain management, Supply chains.

Chapter 16: Global Sourcing and Procurement

Abstract

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Cradle-to-Cradle Design at Herman Miller: Moving Toward Environmental Sustainability Deishin Lee, Lionel Bony Type: HBS Pub. Date: 5/30/2007 Product #: 607003 Length: 21p Teaching Note: available

Herman Miller, an office furniture supplier, decided to implement the cradle-to-cradle (C2C) design protocol during the design of its mid-level office chair, Mirra. The C2C protocol was a set of environmentally friendly product development guidelines created by architect William McDonough and chemist Michael Braungart. The essence of this protocol was to eliminate waste and potentially harmful materials by designing the product so that, at the end of its useful life, the raw materials could be fed back into either a technical or biological cycle and used for the same or other purposes. Therefore, materials remained in a closed-loop, eliminating the need for landfill and other toxic forms of disposal such as incineration. The case describes the C2C protocol, the details of how Herman Miller implemented C2C during the design of the Mirra chair, as well as the impact of the new protocol on their internal processes: design decisions, manufacturing, and supply chain management. The proximate decision point in the case is whether the company should replace the polyvinyl chloride (PVC) material in the arm pads of the Mirra chair. PVC was a highly toxic material to manufacture and dispose of and thus violated the C2C protocol. However, it was the standard material for arm pads and many other parts in the office furniture industry as it was durable, scratch resistant, and inexpensive. To switch to thermoplastic urethane (TPU), a more environmentally friendly material, for the Mirra Chair arm pad required at least modification of a production tool, or possibly a completely new tool. In addition, the cost of TPU was higher than PVC. There was also uncertainty about how consistent the quality of the arm pad would be with TPU. Learning objective: To show that by scrutinizing processes through an environmental lens, Herman Miller can also improve performance. Subjects covered: Environmental protection; Operations management; Product development; Small & medium-sized enterprises; Strategy; Supply chain management; Sustainability; Waste disposal

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Crocs: Revolutionizing an Industry's Supply Chain Model for Competitive Advantage Michael Marks, Chuck Holloway, Charles Holloway, Hau Lee, David W. Hoyt, Amanda Silverman Type: Stanford Graduate School of Business Pub. Date: 6/118/2007 Product #: GS57 Length: 22p Teaching Note: available

Discusses the astounding growth of Crocs, Inc., a manufacturer of plastic shoes, from 2003 through early 2007. Much of the company's growth was made possible by a highly flexible supply chain which enabled Crocs to build additional product within the selling season. The normal model used within the fashion industry was to take orders well in advance of each selling season and produce to those orders, with relatively little additional production. If demand was far in excess of this production, there would be stock outs and the company would lose the ability to capture revenue for that season. The product might, or might not, be in fashion the following year, when production would again be based on pre-season orders. Crocs' ability to build additional shoes within the season enabled it to take advantage of strong customer demand, resulting in the company filling in-season orders totaling many times that of the initial pre-booked orders. Subjects: Entrepreneurial management, Strategy formulation, Manufacturing strategy, Production, Supply chain management, Supply chains.

ECCO A/S - Global Value Chain Management Bo Nielsen, Torban Pedersen, Jacob Pyndt Type: Richard Ivey School of Business Foundation Pub. Date: 4/24/2008 Product #: 908M14 Length: 21p Teaching Note: available

ECCO A/S (ECCO) had been very successful in the footwear industry by focusing on production technology and assuring quality by maintaining full control of the entire value chain from "cow to shoe." As ECCO grew and faced increased international competition, various value chain activities, primarily production and tanning, were offshored to low-cost countries. The fully integrated value chain tied up significant capital and management attention in tanneries and production facilities, which could have been used to strengthen the branding and marketing of ECCO's shoes. Moreover, an increasingly complex and dispersed global value chain configuration posed organizational and managerial challenges regarding coordination, communication and logistics. This case examines the financial, organizational and managerial challenges of maintaining a highly integrated global value chain and asks students to determine the appropriateness of this set-up in the context of an increasingly market-oriented industry. It is suitable for use in both undergraduate and graduate courses in international corporate strategy, international management, international marketing, supply-chain management, cross-border strategic management and international business studies in general. Subjects: Vertical integration, Global business, Global economy, Operations, Operations management, Executive education, Management development, Marketing, Value chains.

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Evolution of the Xbox Supply Chain Hau Lee, David W. Hoyt, Charles Holloway Type: Stanford Graduate School of Business Pub. Date: 4/14/2006 Product #: GS49 Length: 13p Teaching Note: available

In November 2005, Microsoft prepared for a global launch of its next-generation game console, the Xbox 360. Microsoft's original Xbox had been introduced a year after Sony's Playstation, but would beat Sony's next-generation system to market by a substantial amount. It would also play an important part in Microsoft's future strategy, where the home entertainment system was seen as a major growth opportunity. Describes the evolution of the video game console business and the evolution of the Xbox, both from a design and manufacturing perspective. Microsoft's decisions for the original Xbox supply chain are described, together with the changes in the supply chain that were made for the Xbox 360. Asks questions about the motivation for changes to the supply chain, the risks and benefits of global rather than regional launch, and the use of contract manufacturers. Prepares students for discussion of how supply chains must evolve to support changing business strategy. Subjects: Competition, Product design, Product introduction, Sourcing, Strategy formulation, Supply chains.

Ford Motor Co.: Supply Chain Strategy Robert D. Austin Type: HBS Pub. Date: 3/3/1999 Product #: 699198 Length: 9p Teaching Note: 601172

Describes Ford's examination of its supply chain to evaluate whether the company should "virtually integrate" on the Dell Computers model. Subjects: Logistics, Information technology, Management of information systems, Technology management, Suppliers, Electronic commerce, Online retailing, Supply chain management, Supply chains, Automobiles.

Li & Fung 2006 F. Warren McFarlan, William C. Kirby, Tracy Yuen Manty Type: HBS Pub. Date: 2/20/2007 Product #: 307077 Length: 17p Teaching Note: none

Describes the opportunities and strategy facing one of the most innovative global supply-chain companies, and the strategy it has chosen to deal with the expanding demand for its services. Li & Fung links thousands of factories in India, China, and elsewhere to nearly a thousand large retailers, primarily in the U.S. and Europe. It basically does the supply-chain job faster and more accurately with the aid of a sophisticated information system than anyone else. Subjects: Information technology, Supply chains.

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Netafim: Migrating from Products to Solutions Hau L. Lee, Guy Michlin Type: Stanford Graduate School of Business Pub. Date: 2/17/2006 Product #: GS46 Length: 22p Teaching Note: none

In 2005, Erez Meltzer, the president and CEO of Netafim (the world's leading manufacturer of drip irrigation equipment), was wondering whether Netafim's supply chain was strong enough to support the change in strategy he was planning for the company: migrating from selling products to selling solutions. When Meltzer stepped into office three years earlier, the company was struggling with flat sales, an out-of-date supply chain, and no global synergies. In just three years, Meltzer turned around the company, restructured its supply chain, and reinvigorated its growth. The question was whether the newly restructured supply chain would support the new strategy--one that would require new supply chain-related competencies from the organization. Subjects: Globalization, Marketing strategy, Reorganization, Strategy formulation, Strategy implementation, Supply chain, Turnarounds.

PCH International: Managing the Flows of Information, Goods and Finance Hau Lee, Jennie Tung Type: Stanford Graduate School of Business Pub. Date: 2/17/2006 Product #: GS61 Length: 22p Teaching Note: none

PCH International started out as a sourcing agent of low-priced electronic components from Taiwan and China to the Western world in the mid 1990s, it had evolved to become a provider of comprehensive supply chain solutions to global technology companies by 2007. PCH was designed to address the needs of a complex global technology supply chain landscape. The first section of the case provides an overview of the global technology supply chain in the 2000s; the second section describes the physical, information and capital "flows" in the technology supply chain and the third section discusses how PCH had designed solutions to address the challenges in the three "flows." Customers examples included in the case to illustrate the various supply chain priniples. Subjects: Digital technology, Emerging technologies, Nanotechnology, Technology, Supply chain management, Supply chains, Consumer electronics.

Polo Ralph Lauren & Luen Thai: Using Collaborative Supply Chain Integration in the Apparel Value Chain Benjamin Yen, Ali F. Farhoomand, Shamza Khan Type: University of Hong Kong Pub. Date: 11/24/2006 Product #: HKU595 Length: 19p Teaching Note: available

Luen Thai is considering adopting a "design-to-store" supply chain strategy to compete in the apparel market as he faces increasing margin pressure, new market entrants, and China's WTO entry. The decision to implement "design-to-store" will depend on the success of partner process integration (between fabric mill, manufacturer, and brand) and mechanisms to enhance "collaborative behavior" between partners. Luen Thai endeavors to fundamentally improve information flow which could lead to change in processes and create multi-company efficiencies. Subjects: Collaboration, Efficiency, Operations management, Production, Strategic management, Value chains.

Case Map for



Scotts Miracle-Gro: The Spreader Sourcing Decision John Gray, Michael Leiblein, Shyam Karunakaran Type: Richard Ivey School of Business Foundation Pub. Date: 12/12/2008 Product #: 908M78 Length: 11p Teaching Note: available

The Scotts Miracle-Gro company is the world's largest marketer of branded consumer lawn and garden products, with a full range of products for professional horticulture as well. Headquartered in Marysville, Ohio, the company is a market leader in a number of consumer lawn and garden and professional horticultural products. The case describes a series of decisions regarding the ownership and organization of the assets used to manufacture fertilizer spreaders. This case is intended to illustrate the application of and tradeoffs between financial, strategic and operations perspectives in a relatively straightforward manufacturing "make-buy" decision. The case involves a well-known, easily-described product that most students would assume is made overseas. Sufficient information is provided to roughly estimate the direct financial cost associated with internal (domestic) production, offshored (non-domestic) production and outsourced production. In addition, information is included that may be used to estimate potential transaction costs as well as costs associated with foreign exchange risk. Subjects: Globalization, Operations, Operations management, Human resources management, Personnel, Personnel management, Assembly lines, Manufacturing, Outsourcing, Supply chain management, Supply chains, Strategic management, Strategy, Strategy & execution.

Seven-Eleven Japan Co. Sunil Chopra Type: Kellogg School of Management, Northwestern University Pub. Date: 1/1/2005 Product #: KEL026 Length: 14p Teaching Note: available

Discusses the structure of the Seven-Eleven Japan supply chain in terms of its facilities network, inventory management, distribution, and information. Subjects: Inventory management, Operations, Operations management, Information management, Distribution, Consumer goods, Department stores, Retail stores, Retailers, Retailing, Supply chain optimization, Transportation.

Case Map for



Sport Obermeyer Ltd. Janice H. Hammond, Ananth Raman Type: HBS Pub. Date: 10/13/1994 Product #: 695022 Length: 19p Teaching Note: 696012

The case describes operations at a skiwear design and merchandising company and its supply partner. Introduces production planning for short-life-cycle products with uncertain demand and allows students to analyze a reduced version of the company's production planning problem. In addition, it provides details about information and material flows that allow students to make recommendations for operational improvements, including comparisons between sourcing products in Hong Kong and China. Subjects: Apparel, Demand analysis, Forecasting, International operations, Production planning, Sourcing, Supply chain.

Supply Chain Management at Wal-Mart Fraser P. Johnson Type: Richard Ivey School of Business Foundation Pub. Date: 11/28/2006 Product #: 907D01 Length: 15p Teaching Note: none

In 2006 Wal-Mart, the second largest firm in the world by sales, was looking to improve its already efficient supply chain. The company's supply chain was closely integrated with its retail and information systems strategies and has been developed incrementally over the past 40 years. However, rivals were copying every aspect, from the way Wal-Mart cross-docks product in warehouses to Wal-Mart's use of a sophisticated database to capture, store, and disseminate store-level information to suppliers. Wal-Mart's new executive vice president, logistics, Johnnie Dobbs, was overseeing a handful of initiatives designed to improve the firm's supply chain. However, it was not certain that these initiatives were going to have a significant impact on Wal-Mart costs, and he needed to consider what the company should do to stay ahead of the competition. Subjects: Logistics, Purchasing, Consumer goods, Department stores, Retail stores, Retailers, Retailing, Supply chain management, Supply chains.

Supply Chain Management at World Co. Ltd. Ananth Raman, Anna McClelland, Marshall L. Fisher Type: HBS Pub. Date: 4/4/2001 Product #: 601072 Length: 21p Teaching Note: 601147

Describes a supply chain with very quick (i.e., two week) response times and allows students to explore how such short response times are achieved. Allows students to explore why other supply chains, with much longer response times, might not be able to replicate this performance. Subjects: Inventory management, Supply & demand, Supply chains, Time to market.

Chapter 17: Enterprise Resource Planning Systems

Abstract

Case Map for



Boeing Australia Ltd.: Assessing the Merits of Implementing a Sophisticated e-Procurement System Ali Farhoomand, Peta Ashworth Type: University of Hong Kong Pub. Date: 8/1/2003 Product #: HKU271 Length: 15p Teaching Note: available

Formed in late 1996, Boeing Australia Ltd. (BAL) was a relatively new company and a global extension of the U.S. firm, the Boeing Co. BAL developed capabilities in the areas of space and communications, site management, and the upgrade and maintenance of military aircraft and equipment. As BAL grew, so did the legacy information system it used for both internal communications and external dealings with customers. BAL, however, faced difficult decisions as it sought to upgrade its procurement systems and processes to improve operations. In early 1999, BAL recruited a new national procurement manager, Russell Menere, whose immediate task was to look for gains in productivity by improving procurement processes, either through cost savings or by reduced processing time. To meet this objective, Menere initiated a number of short-term improvements. These included the rationalization of a large number of BAL's suppliers, improving BAL's relationships with its key suppliers; the introduction of a credit-card purchasing system for low-value, large-volume consumables; and the adoption of electronic ordering processes with BAL's larger suppliers. In 2002, with new opportunities available through e-business technology, Menere needed to decide what BAL's next step should be. Should BAL invest in a new system that would simplify the procurement process across different divisions and support complex interfaces with suppliers? Should BAL continue to sit on the fence and seek short-term improvement tools for integration with its existing legacy systems? Subjects: Aircraft, Electronic commerce, Information systems, Operations management, Process analysis, Suppliers.

Campbell Soup Co.: A Leader in Continuous Replenishment Innovations James L. McKenney, Theodore H. Clark Type: HBS Pub. Date: 10/14/1994 Product #: 195124 Length: 21p Teaching Note: available

Campbell Soup, like most food manufacturers, faced grocery chain and wholesale demand for its goods driven by Campbell's own promotional pricing structure rather than retail consumer demand. Former policies to encourage overstock created huge swings in production and inventory levels. Campbell's introduced continuous product replenishment (CPR) under which they would manage inventory for their customers, enabled by electronic data interchange to link supply to actual demand. Implementing this channel shift required a restructuring of relationships with its customers and a radical restructuring of its promotional policies. Subjects covered: Data processing; Information technology; Organizational change

Case Map for



Citibank's e-Business Strategy for Global Corporate Banking (2008) Ali Farhoomand, Minyi Huang Type: University of Hong Kong Pub. Date: 10/24/2008 Product #: HKU797 Length: 20p Teaching Note: available

This case examines the challenges Citibank is facing in implementing e-business strategies. The focus is on how Citibank has developed an e-business strategy that fits with its corporate business strategy. Citibank not only needs to use information technology to improve internal operations and provide more efficient customer services at lower costs, but it also needs to ensure that its single, global online platform can serve the highly segmented market. At one end of the spectrum of the market are multinationals and top-level domestic corporations that operate sophisticated treasuries, and at the other end are companies and small- and medium-sized businesses that are not yet ready to upgrade or transform their systems. Subjects: Global business, Global economy, Operations, Operations management, Competitive advantage, Information technology, Management of information systems, Technology management, Browsers, Internet, Web-enabled application, Websites, Information systems, Bank management, Banking, Banks, Central banks, Commercial banking, Electronic commerce, Online retailing.

Enterprise IT at Cisco (2004) Andrew McAfee, F. Warren McFarlan, Alison Berkley Wagonfeld Type: HBS Pub. Date: 9/9/2004 Product #: 605015 Length: 13p Teaching Note: available

Illustrates the challenges associated with centralizing IT decisions at Cisco after a decade of decentralized planning and project funding. When Brad Boston became Cisco's new CIO in 2001, he found that managers were starting to get frustrated with the results of their latest IT initiatives. Boston believed that Cisco needed to focus on its global infrastructure before investing in more functional tools and applications. Under the leadership of Boston and an executive operating committee, Cisco selected three major enterprise projects that required an unprecedented level of process planning and cross-functional cooperation, a major change from Cisco's legacy of entrepreneurial drive. As these three projects started to wind down in 2004, Boston and the operating committee were thinking about what types of new projects the IT organization should support. Raises issues about change management, centralized planning, IT prioritization and resource allocation, enterprise cooperation, and project funding. Subjects: Computer hardware, Computers, High technology, High technology products, Entrepreneurship, Agility, Change management, Cross functional management, Centralization, Enterprise systems, Information technology, Management of information systems, Technology management, ERP, Telecommunications, Consumer electronics.

Case Map for



Enterprise Resource Planning Software--Ongoing Maintenance Cost Benefit Analysis Mike Canniff Type: Richard Ivey School of Business RFoundation Pub. Date: 7/19/2006 Product #: 906E12 Length: 16p Teaching Note: available

The Oracle acquisition of PeopleSoft in 2005 seems like ancient history (at least in technology years). In fact, the PeopleSoft acquisition is not even Oracle's latest major acquisition (Siebel was acquired in September 2005). One of the primary reasons that Oracle acquired PeopleSoft was to gain access to the 10,000+ customer base of PeopleSoft (and JD Edwards), which provides more than $1 billion in annual revenue. This customer base is a gift that keeps on giving in the form of a lucrative maintenance stream. Discusses options that PeopleSoft customers and, by extension, other enterprise software owners pursue to minimize enterprise resource planning (ERP) ongoing costs of ownership. Encourages students to evaluate several criteria that can be used to lower ERP costs. Subjects: Cost control, Enterprise systems, Outsourcing, Strategic management, Vendor management.

i2 Technologies, Inc. Ananth Raman, Jasjit Singh Type: HBS Pub. Date: 12/7/1998 Product #: 699042 Length: 21p Teaching Note: 601143

Describes the emergence and growth of i2 Technologies and the supply chain planning software industry. In December 1998, i2's market capitalization was in excess of $2 billion; the supply chain planning software industry had annual sales of approximately $1 billion and was expected to grow at 57% annually. By describing i2's products and the process that the company followed to sell and implement its software at companies, the case provides students with the background needed to understand why i2 was successful. This understanding enables students to address issues like what i2 should do in the future, and whether new competition such as SAP poses a substantial threat to i2's future success. Subjects: Forecasting, Mathematical programming, Operations management, Operations research, Production planning, Software, Supply chain.

Richter: Information Technology at Hungary's Largest Pharma Deborah Compeau, Jordan Mitchell, Gyorgy Drotos, Emma Incze, Gyorgy Vas Type: Ivey Pub. Date: 5/7/2008 Product #: 907E21 Length: 23p Teaching Note: available

The director of information technology (IT) at Ritcher, a major Hungarian pharmaceutical company with operations throughout Eastern Europe, is in the midst of planning for the IT department for the coming years. The three main considerations for the coming year are: Is the current IT structure appropriate to meet the growing demands of the overall organization? To what extent should IT affiliates be centrally controlled? How can IT best serve the rest of the company? Subjects: Corporate governance, Governance, Centralized organizations, Corporate structure, Organizational structure, Enterprise systems, Information systems.

Case Map for



SAP's Platform Strategy in 2006 Ali F. Farhoomand, Samuel Tsang Type: University of Hong Kong Pub. Date: 2/23/2006 Product #: HKU564 Length: 27p Teaching Note: available

In face of globalization, outsourcing, changing regulations, and rapid technological innovations, companies in the 2000s were increasingly challenged to devise and implement adaptable business models. This entailed putting in place enterprise applications that were open-source, simple to implement, and easy to integrate within and without the organizational bounds. Because traditional enterprise resource planning (ERP) systems were generally complex, proprietary, and difficult to install, ERP systems providers had to reposition themselves strategically. SAP, the leading company in this space, faced this challenge by transforming itself from a closed-source software developer to an open-source software integrator. By opening up its proprietary software products as an open development and integration platform, SAP allowed its customers to modify their ERPs to suit their specific needs. This new strategy, however, would fundamentally affect the company's business architecture. In other words, SAP had to rethink how it would define its value proposition, identify and target its customers, deploy its resources, configure its business processes, manage its alliances, and develop and maintain its profit and growth engines. How could the company pull off this repositioning initiative? Would it be able to attract the global army of independent developers in supporting its new software platform strategy? How would the ongoing consolidation in the software industry affect the Company's new strategy? How would the main competitors such as Oracle, IBM, Microsoft, and a host of companies emerging in India react? Subjects: Competitive advantage, Core competence, Corporate strategy, ERP, Globalization, Open-source software, Outsourcing, Platforms, Strategy, Transformations.

Case Map for



The San Diego City Schools: Enterprise Resource Planning Return on Investment Nancy Kulick, Mark Jeffery, Tim Riitters, Scott Abbott, Douglas Papp, Tiffany Schad, Jed Wallace, Jeff Wiemann Type: Kellogg School of Management Pub. Date: 1/1/2006 Product #: KEL174 Length: 18p Teaching Note: available

This case focuses on the challenge of quantifying the return on investment (ROI) of a large technology project, enterprise resource planning (ERP), in the nonprofit environment of the San Diego City Schools. The school district does not generate a profit, so traditional revenue enhancement arguments do not work. Instead, the case discusses the internal processes re-design and system consolidation enabled by the new ERP system. The system ROI is composed of two major components: cost savings from removal of legacy applications and productivity improvements. The cost containment benefits are relatively straightforward to quantify, but do not justify the system. The productivity improvements are harder to quantify, and many can be categorized as soft benefits. Furthermore, many of the productivity and cost-saving benefits will not be realized without personnel reductions, which are especially difficult in school districts and government agencies. The case debrief therefore discusses the tradeoffs quantifying soft benefits and productivity improvements, best practices for management decision making, and the organizational change necessary to realize the ROI. Subjects: Behavior, Organizational behavior, Rates of return, Return on investment, Finance, Digital technology, Emerging technologies, Nanotechnology, Technology, Operations, Operations management, ERP, IT management.

Vandelay Industries, Inc. David Upton, Andrew McAfee Typer: HBS Pub. Date:10/29/1996 Product #: 697037 Length: 16p Teaching Note: 697063

An ICS consultant considers issues at the start of a full-scale implementation of SAP software for a large client. The enterprise resource planning (ERP) software will integrate previously fragmented business processes and so must be supported by the entire client organization. Subjects: Change management, Consulting, Data processing, Enterprise systems, ERP, Information systems, Manufacturing strategy, Reengineering, Software.

Case Map for



ZARA: IT for FastFashion Andrew McAfee; Anders Sjoman and Vincent Dessain Type: HBS Premier Case Collection Pub. Date: 6/25/2004 Product #: 604081 Length: 23p Teaching Note: available

Zara's CIO must decide whether to upgrade the retailer's IT infrastructure and capabilities. At the time of the case, the company relies on an out-of-date operating system for its store terminals and has no full-time network in place across stores. Despite these limitations, however, Zara's parent company, Inditex, has built an extraordinarily well-performing value chain that is by far the most responsive in the industry. The case describes this value chain, concentrating on its operations and IT infrastructure. Learning Objective: To show how one company makes brilliant use of multiple information channels: subjective and objective; qualitative and quantitative; and phone, face-to-face, e-mail, and modem. Also, to highlight the inside-out approach to selecting IT. To demonstrate how information and IT support a business model.

Chapter 18: Forecasting Abstract

Daikin Industries Chris J. Piper, Tetsu Imigi Type: Richard Ivey School of Business Foundation Pub. Date: 9/2/2004 Product #: 904D18 Length: 11p Teaching Note: available

The president of Daikin Industries Residential Air Conditioning Shiga Factory confronted the prospect of an unseasonably cold summer at a time when the Shiga Factory had large quantities of its products in inventory in anticipation of strong summer sales. The president was concerned not only about pending losses in the current year, but also about the factory's long-term survival. Unprofitability was unacceptable and Daikin was caught in a stagnant market in which it was increasingly difficult to build share by product differentiation. The Shiga Factory had been forced to use large inventories to cope with uncertain demand and a long and unwieldy supply chain. The president must decide whether to reduce the number of models, build a lower cost factory outside Japan, or exit the business. He must also determine whether there are any other options. Subjects: Demand analysis, Inventory management, Supply chains.

Demand and Supply Forecasting at Air Products--Electronics Specialty Materials Shoshanah Cohen, Taylor Randall, Zahra Kanji, Susan L. Kulp Type: HBS Pub. Date: 5/23/2007 Product #: 107018 Length: 15p Teaching Note: available

Explores the process and inputs behind financial and operational forecasting in the Electronic Specialty Materials unit at Air Products and Chemicals, a global chemical company. The protagonist, John Goldberg, grapples with how to better integrate the two forecasting processes, while also trying to prepare for unexpected urgent orders and natural disasters. Subjects: Contingency planning, Demand planning, Disaster planning, Operations, Performance measurement, Supply chain management.

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Four Products: Predicting Diffusion (2006) John T. Gourville Type: HBS Pub. Date: 1/18/2006 Product #: 506050 Length: 9p Teaching Note: none

One of the critical tasks in the marketing of new innovations is predicting demand and rates of diffusion for those products. Focuses on four innovative products from different domains. Although one can speculate on the scope and rate of diffusion for each of these products independently, it's helpful to compare and contrast diffusion across these products. Doing so allows one to focus on the "levers" or product characteristics that influence product diffusion, making one product a star and another a dog. Importantly, looking across products allows one to pick up on things that get lost in discussing a single product. Subjects: Market research, Brainstorming, Innovation, Innovations, Technological innovation, Digital technology, Emerging technologies, Nanotechnology, Technology, Product introduction, New product marketing, Demand analysis.

Handleman Co. Janice Hammond, Kevin Dolan Type: HBS Pub. Date: 4/14/2005 Product #: 605024 Length: 30p Teaching Note: none

Describes the organization and operations of the Handleman Co., an intermediary in the music industry that buys recorded music and resells it to mass retailers such as Wal-Mart. The company provides distribution, inventory management, retail merchandising, and category management to its retail customers. It differentiates itself by keeping track of trends in the music industry and ensuring that the trends in music popularity translate to the appropriate assortments in each retail store. Recounts the changes that Handleman has made in organizational structure, processes, and system to support its business. Describes the challenges facing the president of the entertainment division in light of increasing product proliferation, price pressure, the need for growth, and the advent of online music. Subjects: Business marketing, Demand analysis, Distribution, Entertainment, Inventory management, Supply chains, Wholesaling.

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Henkel Iberica (A) F. Asis Martinez-Jerez, V.G. Narayanan, Lisa Brem Type: HBS Pub. Date: 3/23/2005 Product #: 105023 Length: 12p Teaching Note: available

In 2002, Esteban Garriga, customer service director at Henkel Iberica, questions whether Collaborative Planning, Forecasting, and Replenishment (CPFR) would help manage retail promotions and limit their impact on the stock-outs and obsolete inventory. Describes the situation facing Henkel Iberica, the Spanish subsidiary of the German consumer products company Henkel KgaA, with respect to the management of retail promotions. The increasing number of promotions and the complexity of the company portfolio seriously taxed Henkel Iberica's sales, production, and distribution systems. Many in the organization believed the company should abandon or cut back promotions and adopt an everyday low pricing strategy. Garriga believes the solution to be in CPFR. Describes Henkel Iberica's operations and provides the necessary background to discuss whether CPFR is the adequate solution for its problems. Subjects: Demand analysis, Marketing strategy, Problem solving, Supply chains.

L.L. Bean, Inc.: Item Forecasting and Inventory Management Arthur Schleifer Jr. Type: HBS Pub. Date: 10/27/1992 Product #: 893003 Length: 5p Teaching Note: 985057

L.L. Bean must make stocking decisions on thousands of items sold through its catalogs. In many cases, orders must be placed with vendors twelve or more weeks before a catalog lands on a customer's doorstep, and commitments cannot be changed thereafter. As a result, L.L. Bean suffers annual losses of over $20 million due to stockouts or liquidations of excess inventory. Provides a context in which buying decisions that balance costs of overstocking and understocking when demand is uncertain are made and implemented on a routine basis. Subjects: Direct marketing, Forecasting, Inventory management, Order processing, Risk management, Uncertainty.

Leitax (A) Noel Watson, Rogelio Oliva, Laura Winig Type: HBS Pub. Date:8/3/2005 Product #: 606002 Length: 21p Teaching Note: available

Leitax, a young digital camera manufacturer selling its cameras mainly through retailers, experienced poor matching of inventory availability with demand for new and existing products in 2002. Describes the implementation and details of a consensus forecasting approach, a crucial part of a demand and supply planning redesign that was introduced to address the problem. The forecasting approach is a cross-functional one involving the sales, operations, and finance functions. Describes the results of the introduction, including planning challenges the company continued to face. Subjects: Inventory management, Forecasting, Sales forecasting, Supply & demand, Cross functional management, Demand planning, Supply chain optimization.

Case Map for



Merchandising at Nine West Retail Stores Ananth Raman, Colin Welch Type: HBS Pub. Date: 5/15/1998 Product #: 698098 Length: 17p Teaching Note: 601148

Describes the merchandising decision process (organization, structure, and incentives) at Nine West retail stores, a large footwear retailer in the United States. Also describes changes currently occurring at Nine West and thus provides a context in which students can recommend changes to the merchandising process and the structure of the merchandising organization. To explain how merchandising decisions are made at a fashion retailer and to explore how changes in the environment will impact the merchandising organization. Subjects: Budgeting, Forecasting, Incentives, Inventory control, Inventory management, Merchandising.

Necanko, Inc., Carol Prahinski Type: Richard Ivey School of Business Foundation Pub. Date: 12/7/2004 Product #: 904D20 Length: 3p Teaching Note: available

Necanko, Inc. is a large international food manufacturer. A buyer-scheduler for the company must forecast sales demand to determine production planning, inventory management, and distribution for the year. Sales were normally predictable and stable, but the company has just come back from a three-month layoff due to slow sales, and it is now experiencing a sales increase three times greater than usual. The buyer-scheduler is uncertain why the sales are spiking and must decide what action to take. Subjects: Demand analysis, Distribution, Food, Forecasting, International business, Inventory management, Operations management, Production scheduling, Uncertainty.

Case Map for



STMicroelectronics E-Chain Optimization Project: Achieving Streamlined Operations Through Collaborative Forecasting and Inventory Management Barchi Peleg Type: Stanford Graduate School of Business Pub. Date: 12/6/2004 Product #: GS36 Length: 23p Teaching Note: none

In 1998, STMicroelectronics initiated the e-Chain Optimization (eChO) project with one of its major customers in a joint effort to streamline the company's planning and replenishment operations. Prior to eChO, inefficient and disconnected manual processes were used to match customer demand with ST's fab capacity. This, combined with high demand uncertainty, resulted in inefficiencies in capacity utilization, inventory management, product-mix decisions, and capacity investments. As part of the eChO project, a new B2B system, based on RosettaNet standards, was put in place to enable collaborative planning and replenishments. The new solutions were to be based on a vendor-managed-inventory (VMI) model. The eChO project was successful, allowing both business partners to improve substantially the efficiency of their internal operations and increase customer satisfaction while simultaneously reducing their inventory-related and other operating costs. In addition, it helped foster greater customer loyalty. The discovery process for the first implementation project took a total of three years and required significant investments from both business partners. To reap the most benefits from this investment, ST had to apply the key findings and duplicate the RosettaNet-enabled business processes to other trading partners. However, ST was likely to face several major obstacles along the way, such as an unwillingness of other customers to make the required initial investments. Subjects: Business to business, Forecasting, Inventory management, Operations management, Planning, Standardization, Strategic alliances, Supply chain.

Toyota: Demand Chain Management Hau Lee, Barchi Peleg, Seungjin Whang Type: Stanford Graduate School of Business Pub. Date: 3/18/2005 Product #: GS42 Length: 24p Teaching Note: none

The Toyota demand chain is efficient, flexible, customer oriented, and product specific. Studies how Toyota uses its advanced distribution channels, inventory management, planning methodologies, and production capabilities to create and manage its demand chain, with a particular focus on the Japanese and the North American markets. Uses the Toyota Prius and the Scion product lines to illustrate how Toyota adjusts its demand chain to fit a particular product and its target customers, utilizing as much as possible from its existing manufacturing and distribution infrastructure. Subjects: Demand planning, Distribution channels, Inventory management, Production planning, Supply chains.

Case Map for



Wilkins, A Zurn Company: Demand Forecasting Carol Prahinski, Eric Olsen Type: Richard Ivey School of Business Foundation Pub. Date: 9/13/2006 Product #: 906D06 Length: 12p Teaching Note: available

The newly promoted inventory manager wonders if there is an easier, more reliable means of forecasting sales demand. Currently, forecasts are based on the plant manager's, sales/marketing manager's, and inventory manager's knowledge of industry trends, competitive strategies, and sales history. The inventory manager must decide if using statistical forecasting methods would ease the forecasting process and make the forecasts more reliable. Students are exposed to different forecasting techniques, including executive opinion, linear regression, and time series. The data characteristics include seasonality, trend, and random fluctuations. Subjects: Demand analysis, Manufacturing, Planning, Sales forecasting, Uncertainty.

Chapter 19: Sales and Operations Planning

Abstract

MacPherson Refrigeration Ltd. John S. Haywood-Farmer, Bill Rankin Type: HBS Pub. Date:1/1/1993 Product #: 93D021 Length: 8p Teaching Note: 893D21

Linda Metzler, newly appointed production planning manager, is drafting an aggregate production plan for the company's refrigerators, freezers, and air conditioners for the next year. She has considered three plans. Students are asked to devise better plans and to evaluate the quantitative and qualitative factors favoring them. Ultimately, the use of linear programming to construct aggregate plans will be introduced. Subjects: Linear programming, Tradeoff analysis, Aggregate planning, Planning.

Pioneer Hi-Bred International, Inc.: Supply Management Francis J. Aguilar, Xin X He, Paul Clark Type: HBS Pub. Date: 4/16/1998 Product #: 898238 Length: 15p Teaching Note: 899208

This case depicts the supply-management practices--including planning, production, and distribution--at Pioneer Hi-Bred International, the world's leader in the genetically engineered hybrid crop-seed industry. Set in the context of a supply-management planning meeting, it reveals conflicting considerations in setting policies for production (what, how much, and where to plant) and distribution. Since the issues are viewed from three independent perspectives--planning, production, and distribution--the case lends itself to role playing. Subjects: Agribusiness, Forecasting, Inventory management, Linear programming, Operations management, Production planning, Sourcing, Supply & demand.

Case Map for



Play Time Toy Co. Thomas R. Piper Type: HBS Pub. Date:10/31/1991 Product #: 292003 Length: 6p Teaching Note: 292055

The president of a toy company is considering the adoption of level production in a business characterized by highly seasonal sales. The issues include balancing the cost savings and the inventory risk, estimating the seasonal financing need, and determining the appropriate approach to the bank. A rewritten version of an earlier case. Subjects: Financing, Inventory management, Production planning, Production scheduling, Risk management.

Toy World, Inc. W. Carl Kester Type: HBS Pub. Date: 11/23/1994 Product #: 295073 Length: 6p Teaching Note: 297118

A shift from seasonal to level production of toys will change the seasonal cycle of Toy World's working capital needs and necessitate new bank credit arrangements. A rewritten version of an earlier case. Learning Objective: Students must analyze the company's performance, forecast funds needs, and make a recommendation. Introduces the pattern of current assets and cash flows in a seasonal company and provide an elementary exercise in the construction of pro forma financial statements and estimation of funds needs. Subjects: Financing, Inventory management, Production planning, Production scheduling, Risk management.

Wilkins, A Zurn Company: Aggregate Production Planning Eric Olsen, Carol Prahinski, Jenni Denniston Type: Richard Ivey School of Business Foundation Pub. Date:9/13/2006 Product #: 906D17 Length: 11p Teaching Note: available

The general manager of the Wilkins plant in Paso Robles, California has received instructions from the head office to reduce inventory by 30% in the next quarter. Although inventory had been accumulating over the past years, this had been seen as a benefit to the company for a couple of reasons. One is that the cost of raw materials has risen in the past year. The second is that the company has a policy of no layoffs, so having inventory in stock allows the company to minimize the use of overtime and temporary workers. The general manager wondered whether revising the production planning process would be enough to solve Wilkins' inventory problems. Subjects: Inventory control, Logistics, Manufacturing strategy, Operations management.

Chapter 20: Inventory Control Abstract

Case Map for



Barilla SpA (A) Janice H. Hammond Type: HBS Pub. Date: 5/17/1994 Product #: 694046 Length: 21p Teaching Note: available

Barilla SpA, an Italian manufacturer that sells to its retailers largely through third-party distributors, experienced widely fluctuating demand patterns from its distributors during the late 1980s. This case describes a proposal to address the problem by implementing a continuous replenishment program, under which the responsibility for determining shipment quantities to the distributors would shift from the distributors to Barilla. Describes support and resistance within Barilla's different functional areas and within the distributors Barilla approached with the proposal. Learning objective: Allows students to analyze how a company can effectively implement a continuous replenishment system both to reduce channel costs (in this case, inventory and transportation costs incurred by Barilla as well as inventory costs incurred by the distributors) and to improve service levels (defined in this case as the percent of retailers' orders filled from distributors' inventory). Subjects covered: Distribution planning; Logistics; Order processing; Suppliers

Blanchard Importing and Distribution Co., Inc. Paul W. Marshall, Alan H. Drinan Type: HBS Pub. Date: 9/1/1972 Product #: 673033 Length: 11p Teaching Note: 678033

Illustration of the two main types of errors resulting from use of the economic order quantity (EOQ) as a tool in production scheduling. Designed to permit class discussion to begin with a consideration of one common type of mistake, errors in calculation of the EOQ volume resulting from use of incorrect data for the input parameters of the formula. The analysis can then shift to a more general discussion of the second type of error, the misapplication of EOQ and re-order point (ROP) techniques to a given system. Class discussion can conclude with student recommendations of alternative techniques which may be better suited to the Blanchard operation than the EOQ/ROP method. Subjects: Beverages, Inventory management, Order quantity, Production scheduling, Wholesaling.

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Boeing Co.: Moonshine Shop Robert D. Austin, Richard L. Nolan, Shannon O'Donnell Type: HBS Pub. Date: 4/3/2007 Product #: 607130 Length: 25p Teaching Note: none

Describes how the "Moonshine Shop," a group of plant-savvy creative generalists, is helping a great industrial company become more innovative. Chronicles the history of the Moonshine Shop, its successes and failures, and describes innovations they've helped put in place. The group routinely creates savings equal to multiples of their own budge through front-lines process innovation and support of staff on-the-floor. Subjects: Inventory management, Brainstorming, Innovation, Innovations, Technological innovation, Process innovation, Operations, Operations management, Creativity, Organizational change, Plant management.

CarMax Rajiv Lal, David Kiron Type: HBS Pub. Date: 6/15/2005 Product #: 505080 Length: 29p Teaching Note: none

Carmax is the largest multi-market used car dealer in the U.S., and has no format-to-format competitor in the $375 billion used car market. CarMax is trying to do what some analysts believed to be impossible: sell used cars profitably on a national scale, and at the same time revamp the tarnished image of the used car salesman. Subjects: Corporate strategy, Growth management, Information systems, Innovation, Inventory management, Operations management.

David Berman Ananth Raman, Vishal Gaur, Saravanan Kesavan Type: HBS Pub. Date:4/12/2005 Product #: 605081 Length:19p Teaching Note: available

Examines the decision of a hedge fund manager who is considering investing in a retail stock. The protagonist is concerned about the retailer's inventory level. Explores the relationship between the retailer's inventory and future earnings--and, hence, the relationship between inventory level and stock price. Subjects: Inventory, Stocks, Earnings, Hedge funds, Investments, Business valuation, Valuation, Financial institutions, Financial services, Supply chain management, Supply chains.

Elite Rent-a-Car Gregory S. Zaric, Jordan Mitchell Type: Richard Ivey School of Business Foundation Pub. Date: 4/23/2007 Product #: 907E11 Length: 6p Teaching Note: none

The president and founder of a premier luxury car rental agency located throughout Europe must decide on the composition of the fleet of cars for the upcoming summer season. She has to balance a desire for high utilization versus the possibility of having to turn away clients if they request a car that is not in stock. Can be used to introduce or reinforce a number of concepts, including break-even analysis, basic descriptive statistics, and the new vendor model. Subjects: Breakeven analysis, Inventory control, Statistical analysis

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Food Security and The Church of Jesus Christ of Latter-day Saints Ray A. Goldberg, Eliot Sherman Type: HBS Pub. Date: 9/25/2007 Product #: 508002 Length: 35p Teaching Note: none

The Mormon Church focuses on self-reliance and being prepared for emergencies. Part of their program encourages each member of the Church to have a reserve food supply on hand at all times. Given U.S. and global food stock levels, is the Church program a good model for the country? Subjects: Inventory, Charities, Philanthropy, Religion & business, Agriculture, Food, Natural foods, Agribusiness.

Hamptonshire Express V.G. Narayanan, Ananth Raman Type: HBS Pub. Date: 3/1/1998 Product #: 698053 Length: 5p Teaching Note: available

Presents a series of problems that face a newspaper publisher, including inventory level, effort level, subsidy for unsold inventory, and commission for sales. Each problem is accompanied by one or more spreadsheets. Students must make various operational decisions. Learning objective: Explores the relatinship among channel incentives, allocation of decision rights, and channel performance. Subjects covered: Inventory management; Marketing channels; Suppliers

Hewlett-Packard Co.: DeskJet Printer Supply Chain (A) Laura Rock Kopczak, Hau Lee Type: HBS Pub. Date: 5/11/2001 Product #: GS3A Length: 12p Teaching Note: none

Hewlett-Packard's (HP) Vancouver Division faced a challenge in 1990. Although its new inkjet printers were selling well, inventory levels worldwide were rising as sales rose. In Europe, high product variety was making inventory levels especially high. HP considered several ways to address the inventory issue: air-freighting printers to Europe, developing more formalized inventory planning processes, or building a factory in Europe. Learning objective: To discuss inventory analysis and/or to discuss the organizational challenges companies face in implementing supply chain solutions. Subjects covered: Inventory management; Supply chain management

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Merrimack Tractors and Mowers: LIFO or FIFO? William J. Bruns Jr., Sharon Bruns, Susan S. Harmeling Type: HBS Pub. Date: 12/9/2008 Product #: 3217 Length: 6p Teaching Note: available

At Merrimack Tractors and Mowers in 2008, product manufacturing costs are increasing faster than competitors' costs, and as a result earnings are likely to fall below those reported in 2007. The company president and the company controller have discussed this problem, and the controller has mentioned that if the company changed from LIFO to FIFO it might be possible to maintain earnings growth in 2008. He prepares a memo to the president explaining how inventory flow assumptions work and provides pro-forma income statements that show that, for one product (reel mower units), adopting FIFO would allow Merrimack to report higher income in 2008 than it did in 2007, but higher income taxes would have to be paid. Subjects: International Financial Reporting Standards, Inventory, Codes of conduct, Codes of ethics, Ethics.

Northco (A) Ananth Raman, Bowon Kim Type: HBS Pub. Date: 10/16/1996 Product #: 697017 Length: 11p Teaching Note: 697125

A small school-uniform manufacturer wrestles with seasonal demand. The company is saddled with excess inventory when it is bought by a leveraged buyout firm. Students are required to identify ways to analyze and solve the problem. Subjects: Apparel, Inventory management, Leveraged buyouts.

Paper and More (A) Noel Watson Type: HBS Pub. Date: 7/19/2005 Product #: 606023 Length: 11p Teaching Note: available

Provides a context and exercise for introducing retail inventory management, including cost optimization, service-level criteria, and forecasting in single and multiproduct settings. The owner of a single-location paper and paper products store considers the implications of expansion for inventory management. Considerations include lost sales, retail metrics for multiproduct settings, and shelf space constraints. Subjects: Inventory management, Forecasting, Sales forecasting, Expansion, Consumer goods, Department stores, Retail stores, Retailers, Retailing.

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Progistix-Solutions Inc.--The Critical Parts Network P. Fraser Johnson, Alison Woodcock Type: Richard Ivey School of Business Foundation Pub. Date: 9/13/2004 Product #: 905D02 Length: 9p Teaching Note: available

The president and chief executive officer of Progistix-Solutions Inc. has asked an analyst to prepare an annual review of the Xerox Critical Parts Network for presentation to management in two weeks. The president expected the analyst to review the performance of the network and establish an improvement plan for the coming year, supported by specific goals and objectives. Although Xerox and Progistix were satisfied with their relationship, after five years, both parties were interested in exploring ways to improve the network, especially because competitors had adopted similar approaches. In preparation for the meeting, the analyst wanted to explore opportunities in three specific areas: First, identify opportunities to improve depot operations. Second, determine how and where Progistix could work together with Xerox on such an initiative making additional improvements in the area of inventory management. Third, improve systemwide inventory turn performance by re-examining the cut-off point for filling the technicians' trunks with inventory. Subjects: Demand planning, Inventory control, Inventory management, Logistics, Outsourcing, Supply chain.

Supply Chain Close-Up: The Video Vault V.G. Narayanan, Lisa Brem Type: HBS Pub. Date: 3/25/2002 Product #: 102070 Length: 10p Teaching Note: 103012

The owners of the Video Vault struggle to determine the optimal stocking levels of home videos in an industry fraught with new technology, new pricing paradigms, and stiff competitive pressure from large national chains. Teaching Purpose: To demonstrate the role of incentive contracts in achieving supply chain coordination. Subjects: Accounting, Contracts, Incentives, Inventory, Operations management, Pricing, Supply chains.

Chapter 21: Material Requirements Planning

Abstract

Case Map for



Material Requirements Planning at A-Cat Corp Jitendra R. Sharma, Tinu Agrawal Type: Richard Ivey School of Business Foundation Pub. Date: 4/11/2012 Product #: W12868 Length: 5p Teaching Note: available

Material requirements planning (MRP) systems have been widely used by manufacturing firms to maintain an optimum flow of inputs for best production results. By using an MRP system, a firm can prepare a production plan that specifies the number of sub-assemblies that go into the final products along with the exact timeline of an order, from placement to completion. This case analyzes how Sunita Menon's adoption of an MRP system at A-CAT Corp. (A-CAT) has improved the production-planning process. To make one unit of A-CAT's main product, P0110, requires two P0X units and two P0Y units; in addition, each P0X unit needs two types of subparts: four P1X1 units and three P1X2 units. The case examines the intricacies of procurement, warehousing and processing costs of various material components by critically evaluating different techniques in practice. Using situational scenarios, the case presents lot-sizing techniques - including lot for lot, economic order quantity, least total cost and least unit cost - for balancing costs such as set-up costs, ordering costs and inventory-holding costs. Learning objective: This case can be used in a core course on production and operations management under subtopics such as material requirements planning or inventory management. It can also be effectively utilized in elective courses on inventory management, materials management or similar topics. The case is intended to help students learn the basics of MRP systems and use lot-sizing techniques in assessing the scope for cost reduction. It provides a good illustration of a small industry in an undeveloped region that has proactively undertaken several innovative steps to improve its competitiveness. In this way, the case demonstrates how a small/medium-sized organization, even with resource constraints, can achieve cost reduction by way of inventory management. The case also asks readers to take a holistic view of products and their sub-assemblies, and to identify the opportunities for cost reduction in this industry. Techniques and concepts that can be used to address the issues in this case include MRP systems and lot-sizing techniques (lot for lot, economic order quantity, least unit cost and least total cost). Subjects covered: Decision making; Inventory management; Operations management

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Wilkins, A Zurn Company: Materials Requirement Planning Carol Prahinski, Eric Olsen Type: Richard Ivey School of Business Foundation Pub. Date: 4/11/2006 Product #: 906D05 Length: 19p Teaching Note: available

The materials manager at the Wilkins plant in California is surprised to find out that an auditor's report recommends a second annual physical inventory count. He has concerns about the level of the inventory that was conducted, knows changes are needed, and must decide what alternatives to consider. Explores the difficulties of managing inventory as well as typical problems that occur in growing businesses. Subjects: Inventory control, Manufacturing, Materials management, Planning.

Chapter 22: Work Center Scheduling

Abstract

Fabtek (A) Benson P. Shapiro, Rowland T. Moriarty Jr., Craig E. Cline Type: HBS Pub. Date: 5/13/1992 Product #: 592095 Length: 16p Teaching Note: 593006

Concerns the selection and scheduling of orders by a small industrial titanium fabricator that in recent months has been plagued by poor deliveries and a lack of capacity. Four orders are offered, from which the student must select one. Each order represents different order-mix/customer situation issues. The case forces the student to choose among the four orders, given conflicting estimates of capacity available, other business likely to come along, and the requirements of each order. A rewritten version of an earlier case. Subjects: Competitive bidding, Order management cycle, Order processing, Order quantity, Industrial markets, Market selection, Target audiences, Target markets, Price discrimination, Pricing, Production scheduling, Chemicals.

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Hines Goes to Rio Arthur I. Segel, Ricardo Reisen de Pinho Type: HBS Pub. Date: 7/21/2004 Product #: 805001 Length: 26p Teaching Note: available

The Torre Almirante office tower, Hines' newest project in Rio de Janeiro, was a 36-story, Class AA office tower with an adjoining 420-stall parking structure and a preserved 14-story historic facade. It was completely different from anything that had previously been built in the city. It was also the first time that a developer took the risk of publicly announcing to the Brazilian business community its intention and commitment to complete such a complex real estate project on schedule. It was an impressive and unprecedented enterprise, but at this stage, the project was enmeshed in some operational complications. Several project designs were not yet ready, and discussions among the different companies involved in the development had intensified in the past weeks. Robert A.M. Stern Architects, the New York-based design architect, was debating with Hines about issues ranging from the glass window specifications to the material for the gold leaf lobby ceiling. Pontual Arquitetura, the local production architect, was concerned about the fire protection system. In addition, Racional, the local general contractor, just pointed out a serious problem in the freight elevator shaft that could force Hines to modify substantial parts of the project and, consequently, trigger a new round of required approvals. Includes color exhibits. Subjects: Project management, Real estate, Real estate investment, Scheduling.

Manzana Insurance: Fruitvale Branch (Abridged) Steven C. Wheelwright Type: HBS Pub. Date: 9/4/1991 Product #: 692015 Length: 14p Teaching Note: 696043

Deals with performance assessment and improvement of a service operation in the insurance industry, a market that is highly sensitive to response time. Two branch offices in direct competition are described, and the impact of response time on performance is suggested. Management choices that impact response time are explored and the poorer performer of the two branches must decide how to respond. Subjects: Competition, Insurance, Operations management, Performance measurement, Scheduling, Service management.

Southern Pulp and Paper David Upton, William H. Bolen Jr. Type: HBS Pub. Date: 4/26/1996 Product #: 696103 Length: 10p Teaching Note: none

A paper mill's paper machines are a bottleneck in the operation. The causes include poor scheduling, lack of investment, and ineffective process control. The plant manager is charged with improving this situation fairly rapidly and has a number of proposals for change from which to choose. Subjects: Computer systems, Facilities, Implementation, Manufacturing, Operations management, Plant management.

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Ti-Tech (A) Benson P. Shapiro, John T. Gourville, Craig E. Cline Type: HBS Pub. Date: 4/25/2008 Product #: 508095 Length: 16p Teaching Note: none

This case concerns the selection and scheduling of orders by a small industrial titanium fabricator that recently has been plagued by poor deliveries and a lack of capacity. At the time of the case, Ti-Tech must decide which of four orders to accept, with capacity making it impossible to accept all four. Each order represents a different mix of labor, revenues, and potential future work. The case forces the student to choose among the four orders, given limited capacity available, other business likely to come along, and the requirements of each order. Subjects: Business to business, Competitive bidding, Efficient markets, Market analysis, Market structure, Marketing strategy, Order processing, Pricing, Production scheduling.


Competing for Development (A): Fuel Efficient Stove for Darfur Oana Branzei, Samer Abdelnour Type: Richard Ivey School of Business Foundation Pub. Date: 9/10/2008 Product #: 908M61 Length: 18p Teaching Note: available

The new country director of CHF International (CHF), a U.S.-based organization that initiated operations in Sudan with USAID funding, must review the successes of CHF's early interventions, and its strategic interest in the fuel efficient stoves project. The practical decision concerns a US$65,000 investment in a local manufacturing facility that would allow CHF to scale up the production of a stove design endorsed by the Lawrence Berkeley National lab using locally tested prototypes with USAID support. Students are asked to contemplate whether and how economies of scale would bring the costs down to a tipping point where internally displaced persons (IDPs) in Darfuri camps could afford the benefits of greater efficiency and convenience. They also need to balance cost cutting considerations with alternative decision criteria for local development: the success of this project depends on IDPs' preference among alternative stove providers - which encompasses, in addition to fuel economies, the characteristics of the stoves themselves (i.e. quality, fuel efficiency), the engagement of the community in their production, and the ability to use and repair the stoves. The role play supplements M0862A to M0862F will highlight several aspects of the competitive dynamics among the key players. A summary of the dynamic interaction between the players is provided in the supplement Competing for Development (C): Success, Bittersweet. Subjects: Simulation, Base-of-the-pyramid markets, Emerging markets, Community development, Economic development, Nonprofit sector, Nonprofits, Business & society, Corporate responsibility, Corporate social responsibility, Externalities, Social responsibility, Sustainability.

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Da Click's "Throwback" Jerseys Elliot N. Weiss Type: University of Virginia Darden School Foundation Pub. Date: 1/4/2007 Product #: UV0797 Length: 2p Teaching Note: none

This simple case enables students to determine production bottlenecks and perform sensitivity analyses. It can be used to accompany a discussion of "The Goal" by Eli Goldratt. Subjects: Behavior, Organizational behavior, Production planning.

ForeFront Manufacturing: Production Processes and Change Management in Mainland Chin Chris J. Piper, Nigel Goodwin Type: Richard Ivey School of Business Foundation Pub. Date: 10/6/2006 Product #: 906D20 Length: 15p Teaching Note: available

ForeFront Wood Products produces high-quality wooden door sets. The company faces capacity constraints and inefficiencies resulting from its processes and culture. As a consequence, it struggles to be profitable. ForeFront's parent company, ForeFront Holdings, plans an initial public offering in 2007. It has recently hired a new operations manager with the mandate to turn the factory around. As the operations manager begins his job he tours the manufacturing facilities to gather information on production processes and factors affecting capacity, cost, and conformance. Describes the firm's manufacturing and managerial processes. Many issues are covered, including high costs, low yields, unreported defects, and equipment that fails to operate near its rated capacity. Organizational and change management challenges, including high employee turnover, excessive use of overtime, and failure of supervisors to observe or report employee errors are also described. Subjects: Automation, Bottlenecks, Organizational behavior, Production controls.

Southwest Airlines in Baltimore Rogelio Oliva, Jody Hoffer Gittell, David Lane Type: HBS Pub. Date: 6/21/2002 Product #: 602156 Length: 23p Teaching Note: available

The number of connecting passengers through Southwest Airlines' Baltimore station has grown 100% CAGR since 1997. Originally designed as a point-to-point network, this load of connecting passengers has been stressing Baltimore ground operations, resulting in an erosion of service quality and difficulties in achieving fast plane turnarounds--one of the key elements of Southwest's low-cost strategy. This case presents comparative data to illuminate the key elements of Southwest's operating strategy and provides detailed information about the activities and information flows required to turn around a plane, allowing for a meaningful analysis of the process--e.g., resource utilization, capacity, bottlenecks, and coordination mechanisms. A rewritten version of an earlier case. Subjects: Operations management, Service management.


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3M Health Care P. Fraser johnson, Viola Hoo Type: Richard Ivey School of Business Foundation Pub. Date: 1/4/2011 Product #: 904D08 Length: 12p Teaching Note: available

A summer intern student at 3M Health Care must analyse the health care division's logistics systems and report her findings to the vice president of 3M Health Care Markets. The vice president is most interested in the recommendations for the proposed changes to the existing method of distributing products to Canadian hospitals. This case provides sufficient information for students to assess the quantitative and qualitative issues relating to direct distribution versus maintaining its current supply chain structure of using valu-added resellers. Learning objective: This case provides an opportunity to explore issues related to disintermediation. It provides sufficient information for students to assess the quantitative and qualitative issues related to direct distribution versus maintaining its current supply chain structure of using value-added resellers (VARs). Subjects covered: Distribution; Logistics; Operations management; Production management; Sales strategy

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Intermountain Health Care Richard Bohmer, Amy C. Edmondson, Laura R. Feldman Type: HBS Premier Case Collection Pub. Date: 10/1/2002 Product #: 603066 Length: 23p Teaching Note: available

Intermountain Health Care (IHC), an integrated delivery system based in Utah, has adopted a new strategy for managing health care delivery. The approach focuses management attention not only on the facilities where care takes place but also on physician decision making and the care process itself, with the aim of boosting physician productivity and improving care quality, while saving money. This case explores the challenges facing Brent James, executive director of the Institute for Health Care Delivery Research at IHC, as he implements new structures and systems (including a data warehouse for care outcomes, electronic patient records, computer workstations, clinical data support systems, and protocols for care) designed to support clinical process management across a geographically diverse group of physicians with varying levels of interest and dedication to IHC. Also highlights an innovative strategy for creating and disseminating knowledge at the individual and organizational levels to maintain high standards in care delivery. Learning objective: To familiarize students with a clinical process-based approach to care management. To evaluate its structure, James' strategy for implementation, and whether it can be achieved in other health systems. Engages students in a debate about the benefits and costs of standardization in health care delivery and other service organizations that face high variability and needs for customized service delivery. Subjects covered: Change management; Information systems; Innovation; Organizational structure

Pharmacy Service Improvement at CVS (A) Andrew McAfee Type: HBS Premier Case Collection Pub. Date: 12/14/2005 Product #: 606015 Length: 11p Teaching Note: available

CVS's retail pharmacy operations are functioning poorly and dissatisfying customers. Many customers are defecting as a result. A pharmacy service improvement team has documented the current prescription fulfillment process, its exception rates, and the problems generated by exceptions. The company must now decide how to change this process, and what information system changes to make in support of the redesigned process. Learning objective: To show the tight linkages between business processes and IT in many operations. Subjects covered: Business process automation; Business process reengineering; Business processes; Customer retention; Customer service; Information technology; Process improvement

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University Health Services: Walk-In Clinic David H. Maister, Shauna Doyle, Rocoo Pigneri Type: HBS Premier Case Collection Pub. Date: 12/1/1980 Product #: 681061 Length: 13p Teaching Note: available

The walk-in clinic for general outpatient care at a major university experiences complaints about excessive waiting times. The system is changed to provide for initial screening of arriving patients in order to route them to appropriate health care providers. The administrator of the clinic must appraise the new system and decide what further changes to make. Subjects covered: Operating systems; Operations management

Chapter 25: Operations Consulting

Abstract

American Nursing Services, Inc. W. Earl Sasser Jr., Leonard A. Schlesinger, Roger Hallowell Type: HBS Pub. Date: 4/28/1992 Product #: 692102 Length: 22p Teaching Note: none

P.K. Scherle, R.N., founder, president, and owner, struggles with her successful business and focuses on either growth or enhanced profitability. Subjects: Entrepreneurship, Growth management, Reengineering, Service management.

Deloitte & Touche Consulting Group David Upton, Christine Steinman Type: HBS Pub. Date: 4/4/1996 Product #: 696096 Length: 12p Teaching Note: 697085

Examines two dilemmas often faced by an operations consultant. First, the dual responsibility to both client and consulting firm. Second, the management of the often competing pressure to deliver immediate results, at the same time laying the foundation for long-term performance improvement. Subjects: Change management, Consulting, Facilities, Inventory management, Manufacturing, Reengineering.

Case Map for



Otis Elevator: Accelerating Business Transformation with IT F. Warren McFarlan, Brian J. Delacey Type: HBS Pub. Date: 9/24/2004 Product #: 305048 Length: 20p Teaching Note: available

Focuses on a major transformation of Otis Elevator's infrastructure. Led by the CEO, this transformation represents a remarkable long-term reengineering of all the processes of the firm to drive its operating costs down and service image up. The transformation is the continuation of a process that has been going on for more than 20 years. Subjects: Leadership, Strategic leadership, CEO, Organizational change, Information technology, Management of information systems, Technology management, Technology transfer, Machinery, Reengineering.

Quantum Corp.: eSupplyChain Group Andrew McAfee, Gregory Bounds Type: HBS Pub. Date: 1/23/2001 Product #: 601099 Length: 21p Teaching Note: 603032

The eSupplyChain group has been recently formed with Quantum Corp.'s Hard Disk Drive Group to evaluate Internet/IT-based approaches to improving supply chain performance. The Hard Disk Drive Group has endured several quarters of poor financial performance and has already embarked on a number of supply chain initiatives. The eSupplyChain group has been tasked with extending these and with understanding how to take advantage of eHITEX, a Web-based exchange just founded by a group of high-tech manufacturers, including Quantum. Quantum and the eSupplyChain group must decide which initiatives to pursue, and how to work with all involved stakeholders, both internal and external, to execute them successfully. The case also highlights the role of IT platforms both within and outside the firm. Subjects: Business to business, Customer service, Forecasting, Information technology, Inventory management, Supply chains.

Rosenbluth International and Biztravel.com Roger Hallowell Type: HBS Pub. Date: 3/29/2000 Product #: 800356 Length: 24p Teaching Note: 800416

Rosenbluth, the third largest U.S. travel agency, uses the Internet to serve new customers with a high-service strategy. Rosenbluth acquires Biztravel.com and integrates the customer support and logistics aspects of service delivery. Subjects: Economies of scale, Electronic commerce, Entrepreneurship, Human resources management, Internet, Service management, Travel.

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The Patient Care Delivery Model at the Massachusetts General Hospital Amy C. Edmondson, Richard Bohmer, Emily D. Heaphy Type: HBS Pub. Date: 3/18/1999 Product #: 699154 Length: 23p Teaching Note: 600083

Examines the implementation of a new patient care delivery model at Massachusetts General Hospital. Uses clinical and financial data to examine different choices for staffing non-physician health care professionals and to understand the challenges of managing change across multiple professions in the hospital environment. Recently promoted to senior vice president of Patient Care Services, Jeanette Ives Erickson must decide whether a model for patient care delivery is the best way to improve care and reduce costs in the midst of extreme budget pressures and a rapidly changing health care environment. Subjects: Change management, Health care, Hospitals, Management of professionals, Organizational change, Reengineering, Reorganization.

Webvan Andrew McAfee, Mona Ashiya Type: HBS Pub. Date: 9/25/2001 Product #: 602037 Length: 28p Teaching Note: 602052

Examines Webvan's operations and the processes by which it delivers groceries that were ordered from the Internet to customers' homes. Recounts Webvan's history from founding through early 2001 and concentrates on the unique approaches to warehousing, delivery, scheduling, and to a lesser extent, marketing and information technology. Also examines the rest of the Webvan business model and how it was formulated. At the time of the case, there is great pessimism, reflected in the press and the company's share price, that Webvan will be able to execute its business model profitably or even stay in business. Webvan's business model relied heavily on properly designed and executed operations, and it appears clear that the company's operations were neither. In addition, the mismatch between visiting operational capabilities and the operational requirements imposed by the rest of the business model appear to be severe. Subjects: Electronic commerce, Food, Information technology, Internet, Logistics, Scheduling, Supply chains, Warehousing.

Case Map for



World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration Luis C. Blancas, Hau Lee Type: Stanford Graduate School of Business Pub. Date: 9/27/2006 Product #: GS53 Length: 32p Teaching Note: available

Covers inter-firm, IT-enabled supply chain collaboration and focuses on supplier-manufacturer collaboration. To assess collaboration from a holistic point of view, the case describes the distinct role played by the various parties involved in the collaborative effort: the manufacturer and its supply base, as well as a consulting firm, a supply chain process outsourcing company, and a software provider. Centers on the two latter companies--World Wide Technology (WWT), a $2 billion supply chain process outsourcing company based in St. Louis, and ClearOrbit, a rapidly growing software company based in Austin, Texas. Presents the story of a world-class automotive original equipment manufacturer (OEM) whose purchasing operations for maintenance, repair, and operations material had grown complex, costly, and error prone. In mid-2004, WWT, along with a consulting firm, proposed an outsourcing program to the OEM: the consulting firm would perform strategic sourcing and WWT would manage the entire fulfillment cycle. A critical feature of this program was that it would be collaborative. Early on in the program, however, it became apparent to WWT that delivering on the collaborative requirements of the program demanded the aid of specialized technological capabilities. WWT decided to partner with ClearOrbit, a company that had recently developed an Internet-based solution for companies to manage POs, deliveries, and invoices with a supply base regardless of size and technological resources available at each supplier. Describes the challenges of design, implementation, and growth of the program. Subjects: Order management cycle, Order processing, Planning systems, Purchasing, Suppliers, Supply chain management, Supply chain optimization, Web-based technologies.

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