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Harvard Business School Publishing
Case Map forHeizer & Render: Operations Management, 6e (Prentice Hall)
1For more information visit www.hbsp.harvard.edu or call (800)-545-7685.
Outside the U.S. and Canada call (617)-783-7600.E-mail inquiries: [email protected].
Case Title Source,Number,Length,TeachingNote
Geographical andIndustry Setting,Company Size,Timeframe
Case Decision Issue
PART ONE: INTRODUCTION TO OPERATIONSMANAGEMENT
Chapter 1: Operations and ProductivityMass Productionand theBeginnings ofScientificManagement
HBSP#391-25517p
Examines the coming of mass production(continuous and large-batch processes and thoseinvolving fabricating and assembling ofinterchangeable parts), and relates the beginningsof modern factory management to the needs andopportunities created by the new technology.Besides focusing on the interrelation oftechnology and management, it examines issuescreated by the responses of management andlabor to the new machines and methods.
Taco Bell Corp. HBSP#692-05831pTN #692-091
United States, fastfood, 1983-1991
John Martin, Taco Bell CEO, brings the companyinto line with its competitors through incrementalchange during the 1980s. In the early 1990s, headopts breakthrough approaches to improveservice levels while reducing prices, providing adistinct competitive advantage. Illustrates thepower of breakthrough thinking in a serviceindustry and demonstrates the importance of acoordinated, holistic approach to implementation.
Chapter 2: Operations Strategy for CompetitiveAdvantageFreshConnections
HBSP#600-02223pTN #600-108
Vermont, food, 60employees, 1999
Mary Alice McKenzie is facing numerous issuesin growing her Vermont-based fresh-preparedfoods business. She must address immediateoperational problems – such as bottlenecks andcapital equipment decisions – as well as decideon a long-term strategic position. This caseinvestigates how she can structure her operationstoday to take advantage of the continued growthin the home meal replacement market.
Komatsu Ltd.:Project G’sGlobalization
HBSP#398-01620pTN #398-106
Japan, constructionequipment
Describes the major strategic and organizationaltransformation at Komatsu aimed at changing itfrom a Japan-based producer of constructionequipment to a truly global company with theability to leverage its groupwide portfolio ofresources and capabilities into a new, morediverse business base. Details efforts to build andacquire foreign operations, to specialize and
Harvard Business School Publishing
Case Map forHeizer & Render: Operations Management, 6e (Prentice Hall)
2For more information visit www.hbsp.harvard.edu or call (800)-545-7685.
Outside the U.S. and Canada call (617)-783-7600.E-mail inquiries: [email protected].
integrate overseas units, to expandresponsibilities of offshore operations, and tolocalize management. Highlights the challengesof reconfiguring assets, redefining roles andrelationships, and changing the people andprocesses used to manage the key offshoreoperation.
SouthwestAirlines – 1993(A)
HBSP#694-02329p
Dallas, TX, airlines,1993
Southwest Airlines, the only major U.S. airline tobe profitable in 1992, must decide which of twonew cities to open, or to add a new long-haulroute. Provides windows into Southwest'sstrategy, operations, marketing, and culture.Illustrates how an airline can simultaneously be alow-cost leader, service leader, and profit leader.
McDonald’sCorp.
HBSP#693-02822pTN #600-104
Global, fast food,10,000 employees,1992
McDonald's has over many years built anoperating strategy based on consistency andquality through a limited product range.Competitive forces have drawn the company intoa much wider variety of foods and services inorder to maintain growth. Now, new competitorsthreaten to beat McDonald's at its own, originalgame. In addition, McDonald's facesunprecedented challenges in its environmentalpolicy. The case teaches approaches and dangersarising from flexibility, and the identification ofcapabilities that support different types offlexibility. The integration of environmentalconcerns with operations strategy is alsoaddressed.
Eli Lilly and Co.:ManufacturingProcessTechnologyStrategy – 1991
HBSP#692-05618pTN #692-109
Indianapolis, IN,pharmaceuticals,1991
Outlines the evolution of Lilly's corporatemanufacturing strategy during the 1980s. Thecorporate vice president of manufacturing mustdecide on the next phase of Lilly's strategy for theearly 1990s, as well as to what extent and whatrole process development will play. Provides dataoutlining three different points in the productdevelopment process at which manufacturingprocess development might be initiated. Usinglearning curve concepts and data, students canestimate the economic costs and benefitsassociated with each. Illustrates processimprovement's substantial impact in a capital-intensive industry, describes possible roles ofmanufacturing process technology in an industrythat has viewed product R&D as its primarycompetitive advantage, illustrates phases throughwhich manufacturing can evolve in pursuit ofcomparative advantage, and introduces studentsto a challenging and changing industry.
Australian Paper HBSP Australia, pulp and Describes a company which has broken an
Harvard Business School Publishing
Case Map forHeizer & Render: Operations Management, 6e (Prentice Hall)
3For more information visit www.hbsp.harvard.edu or call (800)-545-7685.
Outside the U.S. and Canada call (617)-783-7600.E-mail inquiries: [email protected].
Manufacturers(A)
#691-04122pTN #692-026
paper, 1987-1990 unwritten cordial agreement among the threeAustralian paper manufacturers to split thedomestic market three ways by market segment.The company invades another's "territory" withadvanced technology and quality, and by usingthe other company's poor environmental record toprotect itself against retaliation. The defenderfinds itself unable to respond by adding capacityas public pressure denies it the ability to addcapacity and upgrade the technology. Havingwon a large share of the market, and havingsuccessfully introduced a new recycled paperproduct, the invader is now considering thefinancial, strategic, and ethical issues of furtherexpansion.
Chapter 3: Operations in a Global EnvironmentHitting the Wall:Nike andInternationalLabor Practices
HBSP#700-04723p
U.S., Indonesia,Vietnam,footwear/sportinggoods, 16,000employees, 1991-1999
In the mid-1990s, Nike, one of the world's mostsuccessful footwear companies, is hit by a spateof alarmingly bad publicity. After years of high-profile media attention as the company that can"just do it," Nike is suddenly being painted as afirm that relies on low-cost, exploited labor in itsoverseas plants. Nike officials vigorously denythe charges, claiming that Nike has no controlover the independent contractors whomanufacture Nike shoes. But the activists will notretreat. Eventually, Nike must learn to deal withthe activists' claims and with the web ofconflicting data that surrounds the notion of a"fair" or "living" wage. Stimulates debate aboutappropriate wages in developing countries andhow activists affect company decisions.
RegardingNAFTA
HBSP#797-01314pTN #798-122
North America,meatpacking, auto,electronics, 1965-1994
In the aftermath of World War II, the countries ofthe industrialized world engaged in anunprecedented round of institution-building,through which historical barriers to internationaltrade, especially tariffs, came tumbling down.The GATT has reshaped the environment ofworld trade to such an extent that internationaltrade flows have exploded. Even as global tradehas become more integrated, however, a secondround of institutions – regional rather than global– has emerged. The most recent and largest of themajor regional institutions, NAFTA, was signedin 1992 and took effect in early 1994. This caseexamines the effect of this radically newinstitutional context on three different firms, eachrepresenting a different industry and country.This case demonstrates the importance of
Harvard Business School Publishing
Case Map forHeizer & Render: Operations Management, 6e (Prentice Hall)
4For more information visit www.hbsp.harvard.edu or call (800)-545-7685.
Outside the U.S. and Canada call (617)-783-7600.E-mail inquiries: [email protected].
regional institutions such as NAFTA and also theextent to which their impact and benefits varywidely across firms and industries.
Toys “R” UsJapan
HBSP#796-07720pTN #798-007
Japan, toys, 1991 Documents the American retailer's process ofentry into the Japanese toy market. Discusses thehistory of Toys "R" Us in the United States aswell as the history of the Japanese toy market,distribution, wholesaling, and retailing systems.Eager to enter the world's second largest toymarket, Toys "R" Us executives begin in the late1980s to formulate strategies for opening largediscount toy stores in Japan. The company faces aseries of setbacks due to Japanese store-sizeregulation, application procedures, and a long-standing multi-layered distribution system.Continued effort and the acceptance of a Japanesepartner enable the company to prepare for theopening of a Toys "R" Us outlet in 1991. Facedwith a lack of direct distribution deals and highland and labor costs, executives of Toys "R" UsJapan worry about the ultimate success of theirnew venture. This case examines differencesbetween U.S. and Japanese retailing systems, andwhat these differences imply for U.S. firmshoping to enter the lucrative Japanese market.
Hewlett-Packard:Singapore (A)
HBSP#694-03518pTN #697-033
Singapore,computers, 1970-1991
In the over 20 years since Hewlett-Packard (HP)set up a manufacturing site in Singapore toproduce calculators, HP has invested managerialtalent and resources in developing its licensorinto a technology development partner. The casedetails the growth of high-volume manufacturingcapabilities and the setting up of an R&D facility.Various projects are described in whichSingapore contributed an increasing amount ofskill, leading up to an abortive attempt tocompletely co-develop a new printer. Singaporenow feels ready to develop a printer on its ownfor the Japanese market, and the case poses thequestion of whether or not it is ready to do so.There is also an issue of whether the developersunderstand the Japanese market well enough toproceed. This case illustrates the enormous effortrequired to create a technology-developmentcapability and the difficulties of doing so whenthe source and recipients of the knowledge areseparated both geographically and culturally.
Lenzing AG:Expanding inIndonesia
HBSP#796-09923pTN #798-005
Indonesia, textiles,1990
In 1994, Lenzing AG, the world's largest rayonmanufacturer, is deciding whether to expandproduction in South Pacific Viscose, itsIndonesian subsidiary. Indonesia is a booming
Harvard Business School Publishing
Case Map forHeizer & Render: Operations Management, 6e (Prentice Hall)
5For more information visit www.hbsp.harvard.edu or call (800)-545-7685.
Outside the U.S. and Canada call (617)-783-7600.E-mail inquiries: [email protected].
market for rayon, but management still has someconcerns about the expansion. First, for the plantto remain successful, Lenzing's downstreamcustomers – textile producers – must also remainin Indonesia. Second, despite being located in anarea of tropical forests, the Indonesian plant hasno local access to wood pulp, its most criticalinput. Finally, with the expansion, Lenzing wouldbe increasing its exposure in a country thatremains politically and economically uncertain.This case exposes students to issues surroundingexpansion in a foreign country. In particular, itpushes them to consider how expansion at aparticular site affects the company's competitiveposition with regard to both its upstreamsuppliers and downstream customers.
Chapter 4: ForecastingMerchandising atNine West RetailStores
HBSP#698-09817pTN #601-148
United States,footwear retailing,1998
Describes the merchandising decision process(organization, structure, and incentives) at NineWest retail stores, a large footwear retailer in theUnited States. Also describes changes currentlyoccurring at Nine West and thus provides acontext in which students can recommendchanges to the merchandising process and thestructure of the merchandising organization.
NewTechnologies,New Markets:The Launch ofHong KongTelecom’sVideo-on-Demand
HBSP(University ofHong Kong)#HKU01119pTN #HKU012
Hong Kong,multimedia andtelecommunications,1998
In March 1998, Hong Kong Telecom's InteractiveMultimedia Services (IMS) unit launched theworld's first commercial Video-on-Demand(VOD) system. Worldwide interest resulted fromthe implementation of the world's firstcommercial VOD system – an expensive high-technology service for which consumer demandhad yet to be proven – and from the launching ofthe first generation of interactive television (iTV)systems. In taking the new technology to market,how should IMS generate demand for the service,and how could it forecast technological adoptionrates? What was the role of the government inregulating the new business environment? Andwhat issues were associated with such large andlong-term capital investments? This case asksstudents to examine the forecasting behind a newtechnology, discuss how to redefine businessscope in a changing environment, and criticallyassess the concept of a "killer application"strategy in providing new IT services.
Sport ObermeyerLtd.
HBSP#695-02221p
U.S., Hong Kong,China, apparel, 100employees, 1992
Describes operations at a skiwear design andmerchandising company and its supply partner.Introduces production planning for short-life-
Harvard Business School Publishing
Case Map forHeizer & Render: Operations Management, 6e (Prentice Hall)
6For more information visit www.hbsp.harvard.edu or call (800)-545-7685.
Outside the U.S. and Canada call (617)-783-7600.E-mail inquiries: [email protected].
TN #696-012 cycle products with uncertain demand and allowsstudents to analyze a reduced version of thecompany's production planning problem. Inaddition, provides details about information andmaterial flows that allow students to makerecommendations for operational improvements,including comparisons between sourcing productsin Hong Kong and China. Teaches students howto match supply with demand for products withhigh demand uncertainty and a globally dispersedsupply chain.
L.L. Bean, Inc.:Item Forecastingand InventoryManagement
HBSP#893-0035pTN #895-057
Maine, directmarketing, 1991
L.L. Bean must make stocking decisions onthousands of items sold through its catalogs. Inmany cases, orders must be placed with vendorstwelve or more weeks before a catalog lands on acustomer's doorstep, and commitments cannot bechanged thereafter. As a result, L.L. Bean suffersannual losses of over $20 million due to stockoutsor liquidations of excess inventory. Provides acontext in which buying decisions that balancecosts of overstocking and understocking whendemand is uncertain are made and implementedon a routine basis.
NestleRefrigeratedFoods: ContadinaPasta & Pizza(A)
HBSP#595-03536pTN #596-009
United States, food,1990
Nestle Co.'s Refrigerated Foods Division has verysuccessfully launched its Contadina brand pastaand sauces. The new product has achieved nearly$100 million in sales in three years. The divisionis now considering an extension into the pizzaline. This case provides a detailed look at the useof simulated test markets to forecast a newproduct's potential. Intended to provide studentswith an in-depth understanding of new productforecasting in consumer packaged goods.
PART TWO: DESIGNING OPERATIONS
Chapter 5: Design of Goods and ServicesThe Ritz-CarltonHotel Co.
HBSP#601-16331p
Washington, DC,hospitality, 2000
In just seven days, The Ritz-Carlton transformsnewly hired employees into "Ladies andGentlemen Serving Ladies and Gentlemen." Thecase details a new hotel launch, focusing on theunique blend of leadership, quality processes, andvalues of self-respect and dignity, to createaward-winning service. Allows students toexamine innovation and improvement in a serviceindustry. Raises questions of when and how toinnovate in a successful service operating systemand the challenges of innovation for a brand builton customer experience. Teaching points includethe role of leadership and values in creating aculture of service and the need to manage the
Harvard Business School Publishing
Case Map forHeizer & Render: Operations Management, 6e (Prentice Hall)
7For more information visit www.hbsp.harvard.edu or call (800)-545-7685.
Outside the U.S. and Canada call (617)-783-7600.E-mail inquiries: [email protected].
tension between standardized quality proceduresand the cultivation of empowered employees whocan customize each interaction to meet the needsof their customers.
ProductDevelopment atDell ComputerCorp.
HBSP#699-01021pTN #699-134
Describes how Dell redesigned its new-product-development process after experiencing a majorproduct setback and a significant decline in firmprofits in 1993. Dell's new process is challengedduring the development of a new line of portablecomputers when the incoming head of portableshas to manage the risk of using a new technology.This case focuses on: 1) product developmentprocess design, 2) the costs and benefits offlexibility and structure in uncertainenvironments, and 3) managing development riskduring and after a financial and market setback.Explores managerial issues in productdevelopment found in uncertain and riskyenvironments. Allows students to discuss andquantify the cost and benefits of processflexibility.
Innovation at 3MCorp. (A)
HBSP#699-01223pTN #699-135
United States,medical/surgical
Describes how 3M Corp. introduces and learns anew and innovative methodology called LeadUser research to understand future customer andmarket needs. A team from 3M's Medical-Surgical Markets Division applies the Lead Usermethodology to the field of surgical infectioncontrol and discovers not only new productconcepts but also a very promising new businessstrategy. Focuses on: 1) 3M's approach to themanagement of innovation and understandingmarket needs, 2) an in-depth description of theLead User method and its potential as applied tothe medical business, and 3) the managerialchallenges of introducing novel methods into asuccessful organization. Explains how tointroduce and conduct Lead User research tounderstand future customer and market needs.Allows students to discuss the potential ofcustomer input in innovation strategyformulation.
CIBA Vision:The DailyDisposable LensProject (A)
HBSP#696-10019p
Global, contact lenses,1992
Examines CIBA Vision's decision of whether tolaunch a major new R&D initiative to develop alow cost, daily disposable contact lens, and howto organize such a project. One group ofexecutives favors setting up a small, autonomousproject team organizationally and geographicallyisolated from the company's existing R&Doperations. This approach will enable focus, butposes serious issues concerning future
Harvard Business School Publishing
Case Map forHeizer & Render: Operations Management, 6e (Prentice Hall)
8For more information visit www.hbsp.harvard.edu or call (800)-545-7685.
Outside the U.S. and Canada call (617)-783-7600.E-mail inquiries: [email protected].
integration. Can be used to explore approaches toproduct development and operations in a globalenvironment as well as approaches to buildingnew organizational capabilities.
ApplePowerbook (A):Design Qualityand Time toMarket
HBSP(DesignManagementInstitute)#994-02322pTN #995-017
California, computers,15,000 employees,1989-1991
Examines the design of Apple's first notebookcomputer in a context of extreme time-to-marketpressures that challenge Apple's "time-to-perfection" culture and functional organizationalstructure. Focus is on industrial design (ID), usertesting, and mechanical design interaction increating design alternatives, identifying user-centered themes that bring coherence to thedesign. Examines tensions between diverseconcepts of product, competing priorities, andtradeoffs between design perfection and time-to-market.
BMW: The 7-Series Project(A)
HBSP#692-08320pTN #692-094
Germany,automobiles, 1990
Explores BMW's decision about how tomanufacture prototype vehicles. Historically,BMW's prototypes were handcrafted by highlyskilled artisans in the company's shop. A proposalhas been made to alter the process so thatprototypes are made in a way that can betteruncover potential problems that may arise duringfinal production. While the new approach isexpected to make production start-up of newmodels smoother and reduce quality problems,there is some concern within the company that itwill lead to less flexibility to change (andimprove) designs during the development cycle.Explores different ways of competing on qualityin a luxury product segment and how the productdevelopment process affects each of these. Asecond objective is to examine the notion of aprototyping strategy and the role prototypingplays in linking development strategy andmanufacturing strategy.
Chapter 6: Managing QualityDeutscheAllgemeinversich-erung
HBSP#696-08412pTN #697-090
Germany, insurance,2,000, 1996
Describes the application of statistical processcontrol in a service industry. In this case, AnnetteKluck must decide how to adopt manufacturing-based principles to a service process ranging fromcustomer account setup to legal services. Teachesstatistical process control (p-charts) as well asservice industry quality improvement.
WainwrightIndustries (A):Beyond theBaldrige
HBSP#396-21915p
Missouri, automotivesupplier, 300employees, 1979-1996
Traces the growth of a small automotive supplycompany, focusing on its commitment to qualityin 1981, and the evolution of its quality culture.Breakthrough programs that stress "trust andbelief" in the workforce and commitment to
Harvard Business School Publishing
Case Map forHeizer & Render: Operations Management, 6e (Prentice Hall)
9For more information visit www.hbsp.harvard.edu or call (800)-545-7685.
Outside the U.S. and Canada call (617)-783-7600.E-mail inquiries: [email protected].
customers result in Wainwright winning theMalcolm Baldrige Award in 1994. Invitesdiscussion of the meaning of quality and theassumptions that drive quality cultures. Alsoprobes the leadership and change initiatives andencourages examination of the tensions that existbetween the Baldrige criteria and ISO 9000guidelines.
Romeo EnginePlant (Abridged)
HBSP#197-10010p
Michigan,automobiles, 1993
A newly reopened automobile engine plant hasbeen organized along total quality and teamworkprinciples. The employees' job is to solveproblems and ensure quality, not to watch partsbeing produced. New operating and financialsystems have been installed to promotecontinuous improvement, waste elimination, andcost reduction activities. Illustrates employeeempowerment and team problem-solving toachieve total quality management; and contrastsoperational and actual costing systems withtraditional labor and overhead variance reporting.
Johnson Controls,AutomotiveSystems Group;The Georgetown,Kentucky Plant
HBSP#693-08623pTN #693-102
Kentucky,automotive, 40,000employees, 1993
Prior to the 1980s, auto-makers purchasedindividual seat components and built the seatsalongside their auto assembly lines. This casedescribes how Johnson Controls, AutomotiveSystems Group blossomed when auto makersturned to outsourcing the complete seat set.Closely examines one plant that switched fromjust-in-time (JIT) delivery of seat sets to JITassembly to serve a nearby Toyota Camryassembly operation. Exposes the challenge ofdealing with growing seat variation and anopportunity of doubling the plant floor space at aseparate site. The specific case question is howthe plant should use this new space. Students whohave been only exposed to the concept of JITproduction will grasp not only how JIT is actuallypracticed but what it really entails.
Motorola-Penang HBSP#494-13518p
Malaysia, electronics,2,750 employees,1990-1993
S.K. Ko managed Motorola's Penang, Malaysiafactory, producing telecommunicationscomponents and equipment. As a female managerof a multi-ethnic and labor-intensive plant inAsia, Ko faced a number of challenges. She hadalready promoted quality circles and qualitycompetitions to meet Motorola's raised standards.Extensive training gave workers the skills tosolve problems and to troubleshoot equipment.But Ko was skeptical of empowerment efforts atother Motorola sites that aimed for much greaterworker participation in decision making. Shethought empowerment inappropriate to the Asian
Harvard Business School Publishing
Case Map forHeizer & Render: Operations Management, 6e (Prentice Hall)
10For more information visit www.hbsp.harvard.edu or call (800)-545-7685.
Outside the U.S. and Canada call (617)-783-7600.E-mail inquiries: [email protected].
context. She also thought that many operatorswould have trouble upgrading their skills as theworld became more information intensive. OtherSoutheast Asian nations with lower labor costswere a competitive threat to Penang's labor-intensive processes. She envisioned Penangtransformed by the year 2000 into a fullyautomated manufacturing operation and a designcenter for all of Motorola's Asian operations.
Measure ofDelight: ThePursuit of Qualityat AT&TUniversal CardServices (A)
HBSP#694-04723pTN #696-073
Florida, credit cards,2,700 employees,1989
AT&T's Universal Card Services has beenextremely successful during its short lifetime.Dedicated to improving service quality andcustomer satisfaction, Chief Quality Officer RobDavis and his Quality Team have designed andput into place an unusual measurement andcompensation system based on more than 100performance measures monitored andcommunicated daily. This case links performancemeasurement and compensation policies toprecepts of quality management.
Process Control atPolaroid (A)
HBSP#693-04717p
Waltham, MA, film,1984-1985
Describes the initial efforts at a film productionplant to shift from a traditional QC inspectionmentality to a worker-based process controlmentality. Students can prepare SPC charts,propose actions needed, and combine steps intoan overall action plan. Teaches basic tools ofquality and statistical process control.
Chapter 7: Process Strategy and Capacity PlanningProductDevelopment atDell ComputerCorp.
HBSP#699-01021pTN #699-134
Describes how Dell redesigned its new-product-development process after experiencing a majorproduct setback and a significant decline in firmprofits in 1993. Dell's new process is challengedduring the development of a new line of portablecomputers when the incoming head of portableshas to manage the risk of using a new technology.This case focuses on: 1) product developmentprocess design, 2) the costs and benefits offlexibility and structure in uncertainenvironments, and 3) managing development riskduring and after a financial and market setback.Explores managerial issues in productdevelopment found in uncertain and riskyenvironments. Allows students to discuss andquantify the cost and benefits of processflexibility.
Tektronix, Inc.:Global ERPImplementation
HBSP#699-04322pTN #602-078
Pacific Northwest,electronics, 1993-1998
Reviews Tektronix's implementation of anEnterprise Resource Planning (ERP) solution inits three global business divisions. This case tellsthe story of three implementations, each with its
Harvard Business School Publishing
Case Map forHeizer & Render: Operations Management, 6e (Prentice Hall)
11For more information visit www.hbsp.harvard.edu or call (800)-545-7685.
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own character and requirements. Tektronixmanagers needed to synchronize the requirementsof each division with the company's overall needto standardize business practices and its desire toadhere to a common business model across theenterprise. Details the difficulty of major businesschange in a mature business and technicalenvironment.
MassachusettsGeneral Hospital:CABG Surgery(A)
HBSP#696-01521pTN #697-074
Boston, MA, healthcare, 10,000employees, 1994
Describes the efforts of a cross-functional team atMassachusetts General Hospital to reengineer theservice delivery process (the "care path") forheart bypass surgery (CABG) in order to shortenhospital stays and lower costs whilemaintaining/enhancing the quality of careprovided. Explores the diagnosis andimprovement of service delivery processes in ahigh-quality, high-cost medical setting.
John Crane UKLtd.: The CAD-CAM Link
HBSP#691-02124pTN #692-100
United Kingdom,engineering, 500employees, 1990
Describes the improvement of manufacturingperformance in a job shop through the applicationof a variety of techniques such as grouptechnology, manufacturing cells, and CAD-CAM.As well as exploring the limitations and merits ofthese methods, the case explores the conflictbetween computer-integration and shop-floorautonomy. The teaching objectives are to providean understanding of computer techniquesavailable in modern small-batch manufacture,sources of manufacturing improvement, and theimplementation of computer-integratedmanufacturing.
NationalCranberryCooperative(Abridged)
HBSP#688-12210p
Massachusetts, foodprocessing, 1980
Describes the continuous flow process used toprocess cranberries into juice and/or sauce.Requires student to analyze process flows todetermine where the bottlenecks are and to decidehow, and whether, to expand capacity.
Chapter 8: Location StrategiesFilene’sBasement
HBSP#594-01824pTN #594-061
Boston, MA, retaildiscount store, 1,700employees, 1993
Filene's Basement is in the process of decidingwhere, and if, to locate two new stores in its newChicago area of operations. The existing Chicagoarea stores have been performing well, however,management is concerned with over-saturation ofthe market. At the time of the case, Filene'sBasement has 49 stores in operation.
To Move or Notto Move: CathayPacific Airways
HBSP(University ofHong Kong)#HKU-00322pTN #HKU-004
Hong Kong, airlines,1991
Cathay Pacific's Data Centre, located in HongKong, had experienced an explosion and fire thatdisrupted normal business for 13 hours. In thesearch for a more secure location, the problemswith finding suitable offices in Hong Kong werehighlighted, while the benefits and advantages
Harvard Business School Publishing
Case Map forHeizer & Render: Operations Management, 6e (Prentice Hall)
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offered by other countries presented the companywith the option of relocating the data center off-shore. Highlights the importance of informationtechnology (IT) in allowing businesses to migratesome or all of their operations to previouslyinaccessible locations that provide a competitiveadvantage; and examines political, economic,technical, and organizational issues related tolocation selection.
WristonManufacturingCorp.
HBSP#698-04915p
Michigan,automotive, 1988
Wriston Manufacturing is a broad-line maker ofcomponents for the automotive industry. It hasdeveloped a network of nine plants as its productline has grown. Newer, higher-volume productstend to be made in newer, focused, high-volumeplants, while older product lines tend to beassigned to the Detroit plant, the oldest one in thesystem. Because Detroit produces a wide varietyof products, its overhead costs are very high.Management needs to decide whether to close theDetroit plant, or find a way to make it profitable.Helps students see that the cost structure of aplant is driven primarily by its mission – by thecomplexity or breadth of the product line it isasked to produce. Conventional accountingmeasures of profitability mask the reasons whycomplex plants have high costs.
EllisManufacturingCo.
HBSP#682-10319p
Global, home kitchenappliances, 1981
Ellis finds itself in a weakening competitiveposition largely due to the lack of rationalizationin its plants. Driven by a strong traditionallydecentralized sales organization, Ellis finds thatall plants want control over all product lines. As aresult, overall economies of scale are notachieved and duplication of resources hasweakened Ellis' cost position. Case gives enoughdata for students to make specificrecommendations.
Chapter 9: Layout StrategyToshiba: OmeWorks
HBSP#696-05918p
Japan, electronics,190,000 employees,1995
In 1995, Toshiba was the market leader inportable computer sales worldwide. This casedescribes the assembly of portable notebookcomputers in Toshiba's Ome factory in Ome,Japan, providing insights into some of the reasonsfor Toshiba's success. In addition to describingproduction techniques such as dynamic linebalancing, this case probes the nature of theJapanese workforce and the unique problemsfaced by Japanese businesses. Teaches bestpractices: design of efficient assembly operations,design of worker tasks; and analysis: belt driven
Harvard Business School Publishing
Case Map forHeizer & Render: Operations Management, 6e (Prentice Hall)
13For more information visit www.hbsp.harvard.edu or call (800)-545-7685.
Outside the U.S. and Canada call (617)-783-7600.E-mail inquiries: [email protected].
assembly, cycle time, idle time, line balancing.MouawadBangkok RareJewelsManufacturersCo. Ltd. (A)
HBSP#696-05621p
Bangkok, Thailand,jewelry production
Describes a jewelry production process in a smallfactory in Bangkok, Thailand. The process iscomplicated by two needs: accounting forprecious stones and maintaining high quality. Thetraditional control system in the factory has beenworking reasonably well, but has added muchoverhead. The protagonist is charged with findinga better way to manage the challenges presentedby this job shop. This case explores the factorsthat make production control challenging.
Copeland Corp.:Evolution of aManufacturingStrategy – 1975-82 (B)
HBSP#686-0893pTN #688-074
Compressormanufacturing, 1975-1982
In the (A) case (#686-088), Copeland had tochoose between focusing its Sidney plant byproduct line or by manufacturing process. Nowthat it has made that decision, a plant layout mustbe selected from two alternatives.
Chapter 10: Human Resources and Job DesignDeaconess-Glover Hospital(A)
HBSP#601-02224p
Boston, MA, healthcare, 200employees, 1999
Chronicles the initial efforts to teach a health careorganization to manage itself according to theprinciples of the Toyota Production System(TPS). TPS – though intensively studied overmany years by outsiders – had beenmischaracterized as a collection of productioncontrol tools such as kanban cards, andon cords,and pull systems. TPS is in fact an integratedapproach to designing, doing, and improving thework of individuals and of groups workingcollaboratively to produce and deliver goods,services, and information. This case providesbackground on Deaconess-Glover Hospital andon its TPS teacher, John Kenagy. Describes howKenagy observed the work done at the hospital tounderstand how the system worked. Ends withthe question of what he should recommend tomanagers about their next step. Shows how toobserve people directly in an organization toconstruct a "current condition" of how theyactually do their work and how the systemactually operates. The "current condition"description invariably differs from descriptionsgiven verbally or presented in process-flowdiagrams and organizational charts.
Eli Lilly: TheEvista Project
HBSP#699-01624pTN #600-027
Indianapolis, IN,pharmaceuticals
Describes the creation and operation of twoheavyweight teams for new drug developmentand launch. The primary focus is on one of thosetwo teams, Evista, although comparisons to theother team, Zyprexa, are included. Lilly mustdecide the next phase (post-launch) for managingEvista's rollout. This case explores operationalrealities of heavyweight development teams and
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their transition following product launch.SouthwestAirlines: UsingHumanResources forCompetitiveAdvantage (A)
HBSP(GraduateSchool ofBusiness,StanfordUniversity)#HR1A24pTN #HR1T
United States,airlines, 12,000employees, 1994
In 1994 both United Airlines and ContinentalAirlines launched low-cost airlines-within-an-airline to compete with Southwest Airlines. From1991 until 1993 Southwest had increased itsmarket share of the critical West Coast marketfrom 26% to 45%. This case considers howSouthwest had developed a sustainablecompetitive advantage and emphasizes the role ofhuman resources as a lever for the successfulimplementation of strategy.
PPG: Developinga Self-directedWork Force (A)
HBSP#693-02018pTN #697-095
Kentucky, glass,100 employees,1991
PPG has built a state-of-the-art glass plant inBerea, Kentucky. The plant is pursuing the goalof a "self-directed workforce." The case describesthe progress to date and the unresolved issuesfaced by management. These include questionsabout shift rotation, promotion opportunities,employee evaluation and supervision, the role ofemployees in policy setting, and whether or not tointroduce a system of peer review. Explores theprocess of creating a self-directed workforce, theunderlying theoretical model, and the difficultiesand tensions inherent in that approach.
Lincoln ElectricCo.
HBSP#376-02830pTN #395-230
Cleveland, OH,welding, 1975
Covers the strategy and management practices ofthe world's largest manufacturer of weldingequipment. Discusses the compensation systemand company culture, and the leadership style ofmanagement.
PART THREE: MANAGING OPERATIONSChapter 11: Supply-Chain ManagementSupply ChainManagement atWorld Co. Ltd.
HBSP#601-07221pTN #601-147
Japan,apparel/retailing,5,000 employees,1999
Describes a supply chain with very quick (i.e.,two week) response times and allows students toexplore how such short response times areachieved. Allows students to explore why othersupply chains, with much longer response times,might not be able to replicate this performance.Illustrates the need and value of response times toshort-lifecycle product supply chains and howresponse times can be reduced through processand organizational changes.
Ford Motor Co.:Supply ChainStrategy
HBSP#699-1989pTN #601-172
Dearborn, MI,automobiles,370,000 employees,1998
Describes Ford's examination of its supply chainto evaluate whether the company should"virtually integrate" on the Dell Computersmodel.
Tale of TwoElectronicComponentsDistributors
HBSP#697-06421pTN #697-124
United States,electronicdistributors, 1995-1996
Discusses the role of distribution intermediariesin the electronic components industry, anddescribes operations at two of these distributors.Serves as a vehicle to discuss the functionsprovided by distributors in the channel. Lets
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students understand the differences between thesedistributors and discuss how each of them isgoing to deal with issues like consolidation andthe rapid growth of the Internet. Also introducesstudents to the complexity of managingoperations at a small distributor.
Sport ObermeyerLtd.
HBSP#695-02221pTN #696-012
U.S., Hong Kong,China, apparel, 100employees, 1992
Describes operations at a skiwear design andmerchandising company and its supply partner.Introduces production planning for short-life-cycle products with uncertain demand and allowsstudents to analyze a reduced version of thecompany's production planning problem. Inaddition, provides details about information andmaterial flows that allow students to makerecommendations for operational improvements,including comparisons between sourcing productsin Hong Kong and China. Teaches students howto match supply with demand for products withhigh demand uncertainty and a globally dispersedsupply chain.
Barilla SpA (A) HBSP#694-04623pTN #695-063
Italy, grocery, 7,000employees, 1990
Barilla SpA, an Italian manufacturer that sells toits retailers largely through third-partydistributors, experienced widely fluctuatingdemand patterns from its distributors during thelate 1980s. This case describes a proposal toaddress the problem by implementing acontinuous replenishment program, under whichthe responsibility for determining shipmentquantities to the distributors would shift from thedistributors to Barilla. Describes support andresistance within Barilla's different functionalareas and within the distributors Barillaapproached with the proposal. Allows students toanalyze how a company can effectivelyimplement a continuous replenishment system toboth reduce channel costs and improve service.
Chapter 12: Inventory ManagementPioneer Hi-BredInternational,Inc.: SupplyManagement
HBSP#898-23815pTN #899-208
Des Moines, IA,agribusiness, 5,000employees, 1997
Depicts the supply-management practices –including planning, production, and distribution –at Pioneer Hi-Bred International, the world'sleader in the genetically engineered hybrid cropseed industry. It reveals conflictingconsiderations in setting policies for productionand distribution, including costs, customerservice, vicissitudes of farm production, marketuncertainties, and corporate culture. Studentsmust determine what bears on the key issues – thesize of the safety stock inventory and the level ofoverseas products – and specify the informationthat would be needed to arrive at a decision. Also
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permits consideration of the forces that couldchange supply management at Pioneer in years tocome. This case allows students to consider thechallenges in managing the production,inventory, and distribution functions in a large,complex agribusiness firm. It also demonstratesthe role of inventory management in supplymanagement, and its relationship to production,marketing, and customer service.
Injex Industries HBSP#697-00320p
Hayward, CA,injection moldingfor automotiveindustry, 250employees, 1996
Injex Industries supplies the New United MotorManufacturing, Inc. (NUMMI) – a joint venturebetween General Motors and Toyota – withinterior plastic door trim panels and garnish parts.Injex applies the methods of lean, just-in-timemanufacturing through the Toyota ProductionSystem and improves quality and productivitysignificantly. NUMMI is Injex's only customer.The challenge is to keep inventory as low aspossible, yet be able to react to productionproblems without seriously impacting itscustomer's production. A major model changerequires Injex to change many plastic injectionmolds for new design on the upcoming 1998model with little time for production testing. Thegeneral manager worries about serving only onecustomer, but reasons that new business wouldhave to be substantial to justify setting up newsystems for other customers. What are theadvantages and disadvantages of having a single,very demanding customer?
Johnson Controls,AutomotiveSystems Group;The Georgetown,Kentucky Plant
HBSP#693-08623pTN #693-102
Kentucky,automotive, 40,000employees, 1993
Prior to the 1980s, auto-makers purchasedindividual seat components and built the seatsalongside their auto assembly lines. This casedescribes how Johnson Controls, AutomotiveSystems Group blossomed when auto makersturned to outsourcing the complete seat set.Closely examines one plant that switched fromjust-in-time (JIT) delivery of seat sets to JITassembly to serve a nearby Toyota Camryassembly operation. Exposes the challenge ofdealing with growing seat variation and anopportunity of doubling the plant floor space at aseparate site. The specific case question is howthe plant should use this new space. Students whohave been only exposed to the concept of JITproduction will grasp not only how JIT is actuallypracticed but what it really entails.
L.L. Bean, Inc.:Item Forecastingand Inventory
HBSP#893-0035p
Maine, directmarketing, 1991
L.L. Bean must make stocking decisions onthousands of items sold through its catalogs. Inmany cases, orders must be placed with vendors
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Management TN #895-057 twelve or more weeks before a catalog lands on acustomer's doorstep, and commitments cannot bechanged thereafter. As a result, L.L. Bean suffersannual losses of over $20 million due to stockoutsor liquidations of excess inventory. Provides acontext in which buying decisions that balancecosts of overstocking and understocking whendemand is uncertain are made and implementedon a routine basis.
Chaircraft Corp.– 1988
HBSP#689-08215p
Southeast, furnituremanufacturing /distribution, 700employees, 1988
Illustrates the difficulty of effective productionplanning and production control in a multistageproduction process affected by seasonal demand.
BlanchardImporting andDistribution Co.,Inc.
HBSP#673-03311pTN #678-033
Boston, MA, liquorwholesaling, 1972
Illustrates the two main types of errors resultingfrom use of the economic order quantity (EOQ)as a tool in production scheduling. Designed topermit class discussion to begin with aconsideration of one common type of mistake,errors in calculation of the EOQ volume resultingfrom use of incorrect data for the inputparameters of the formula. The analysis can thenshift to a more general discussion of the secondtype of error, the misapplication of EOQ and re-order point (ROP) techniques to a given system.Class discussion can conclude with studentrecommendations of alternative techniques thatmay be better suited to the Blanchard operationthan the EOQ/ROP method.
Chapter 13: Aggregate PlanningMacPhersonRefrigerationLtd.
HBSP(Richard IveySchool ofBusiness/UWO)#93D0218pTN #893D21
Linda Metzler, newly appointed productionplanning manager, is drafting an aggregateproduction plan for the company's refrigerators,freezers, and air conditioners for the next year.She has considered three plans. Students areasked to devise better plans and to evaluate thequantitative and qualitative factors favoring them.Ultimately, the use of linear programming toconstruct aggregate plans will be introduced.
Sport ObermeyerLtd.
HBSP#695-02221pTN #696-012
U.S., Hong Kong,China, apparel, 100employees, 1992
Describes operations at a skiwear design andmerchandising company and its supply partner.Introduces production planning for short-life-cycle products with uncertain demand and allowsstudents to analyze a reduced version of thecompany's production planning problem. Inaddition, provides details about information andmaterial flows that allow students to makerecommendations for operational improvements,including comparisons between sourcing productsin Hong Kong and China. Teaches students howto match supply with demand for products with
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high demand uncertainty and a globally dispersedsupply chain.
Chaircraft Corp.– 1988
HBSP#689-08215p
Southeast, furnituremanufacturing /distribution, 700employees, 1988
Illustrates the difficulty of effective productionplanning and production control in a multistageproduction process affected by seasonal demand.
Chaparral Steel(Abridged)
HBSP#687-04519p
Texas, steel, 1979 Examines a major capacity expansion proposal ofChaparral Steel, a steel minimill. Gives studentsthe opportunity to evaluate the proposedexpansion in the context of the competitiveenvironment, market demand, technologicalchoice, and the demands of a global industry.Also challenges them to analyze the proposal'simplications for manufacturing strategy,technological innovation, market share, andcompany finances.
Chapter 14: Material Requirements Planning (MRP)Tektronix, Inc.:Global ERPImplementation
HBSP#699-04322pTN #602-078
Pacific Northwest,electronics, 1993-1998
Reviews Tektronix's implementation of anEnterprise Resource Planning (ERP) solution inits three global business divisions. This case tellsthe story of three implementations, each with itsown character and requirements. Tektronixmanagers needed to synchronize the requirementsof each division with the company's overall needto standardize business practices and its desire toadhere to a common business model across theenterprise. Details the difficulty of major businesschange in a mature business and technicalenvironment.
VandelayIndustries, Inc.
HBSP#697-03716pTN #697-063
United States, heavyequipment/software,30,000 employees,1996
An ICS consultant considers issues at the start ofa full-scale implementation of SAP software for alarge client. The Enterprise Resource Planning(ERP) software will integrate previouslyfragmented business processes, and so must besupported by the entire client organization.Discusses ERP basics, pros and cons of processreengineering and standardization, and changemanagement issues.
DigitalEquipmentCorp.: TheEndpoint Model(A)
HBSP#688-05914pTN #691-047
Maine,Massachusetts,computers, 1,000employees, 1986
Describes a comprehensive manufacturingstrategy designed to reduce substantially the cycletime of orders (i.e. the time between theplacement of an order by a customer and itsdelivery to the customer). To launch the strategyDigital has adopted manufacturing resourceplanning (MRP II). The case allows students toassess the pros and cons of the strategy, whichrequires rapid information flows and tightmanufacturing discipline, the usefulness of MRPII, which integrates manufacturing with overall
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business plans, and the implementation process todate.
Chapter 15: Short-term SchedulingThe Patient CareDelivery Model atthe MassachusettsGeneral Hospital
HBSP#699-15423pTN #600-083
Boston, MA, healthcare/hospital, 1999
Examines the implementation of a new patientcare delivery model at Massachusetts GeneralHospital. Uses clinical and financial data toexamine different choices for staffing non-physician health care professionals and tounderstand the challenges of managing changeacross multiple professions in the hospitalenvironment. Recently promoted to senior vicepresident of Patient Care Services, Jeanette IvesErickson must decide whether a model for patientcare delivery is the best way to improve care andreduce costs in the midst of extreme budgetpressures and a rapidly changing health careenvironment.
Southern Pulp andPaper
HBSP#696-10310p
Alabama, pulp andpaper, 1996
Describes a paper mill whose paper machines area bottleneck in the operation. The causes includepoor scheduling, lack of investment, andineffective process control. The plant manager ischarged with improving this situation fairlyrapidly and has a number of proposals for changeto choose from. Examines various aspects ofcomputer integration, operations improvement,and implementation.
Chapter 16: Project ManagementMicrosoft Office2000
HBSP#600-09718pTN #602-034
Seattle/Redwood,WA, software,1999-2000
Describes the history of Microsoft's Officeproduct suite. Discusses evolution of the Office2000 project. Set at the end of the project whenSteven Sinofsky, Office vice president, mustdecide upon the direction for the next version ofOffice, as well as make changes to the process.Explores product development in software,Microsoft's "milestone" development process,resolving the "fuzzy front end," and responding touncertain environments and radical incrementalchange.
We’ve GotRhythm!MedtronicCorp.’s CardiacPacemakerBusiness
HBSP#698-00418pTN #698-056
United States, healthcare, 10,000employees, 1997
Illustrates how a new management team atMedtronic's Cardiac Pacemaker business reverseda steep decline in market share through adoptionof certain management principles for new productdevelopment: clarity of strategy, aggregateproject planning, reducing the number of projectsto match development capacity, aplatform/derivative product architecture, andothers.
Chrysler andBMW: Tritec
HBSP#600-004
U.S., Germany,U.K., Brazil,
Presents a gifted project leader, lacking insignificant new product development experience.
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Engine JointVenture
25p automotive, 1996-1997
Highlights the issues and procedures related todefining the project strategy: organizing seniormanagement approvals and support for creating a"heavyweight" team; aligning the disparateperspectives, interests, and biases of projectmembers; and implementing best-practice toolsfor managing teams within the project. Creates aframework for establishing organizational designrules and key new product developmentprocesses, and also provides insights aboutmodels of leadership for new productdevelopment. Helps students construct a best-practice framework for new productdevelopment. Students should learn the criticalrole of senior management review and control,some of the ways in which managers deal withrisk, why alignment of team members is soimportant, and the attributes of a heavyweightteam manager.
BAE AutomatedSystems (A):DenverInternationalAirport Baggage-Handling System
HBSP#396-31115pTN #399-099
Denver, CO,engineering andconstruction, 365employees, 1989-1994
Describes the events surrounding the constructionof the BAE baggage-handling system at theDenver International Airport. It looks specificallyat project management, including decisionsregarding budget, scheduling, and the overallmanagement structure. Also examines theairport's attempt to work with a great number ofoutside contractors, including BAE, andcoordinate them into a productive whole, whileunder considerable political pressures.Approaches the project from the point of view ofBAE's management, which struggles to fulfill itscontract, work well with project management andother contractors, and deal with supply,scheduling, and engineering difficulties.
TurnerConstructionCo.: ProjectManagementControl Systems
HBSP#190-12820pTN #191-124
New York,Philadelphia,construction, 1989
Focuses on Turner Construction Co.'s projectmanagement process and its supporting financialcontrol system. After providing a brief overviewof the company's structure and project work, thecase gives a detailed description of its projectmanagement control system, the IOR system. Inaddition to explaining the mechanics of the IORsystem, the case identifies the uses and benefitsof the system from the perspectives of differentlevel managers. Finally, the role of the IORsystem as a decision support tool is illustratedthrough a specific dilemma on a project inprogress. The primary teaching objective is toillustrate how a control system can be usedinteractively in an organization both to manageand to guide organizational learning.
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Chapter 17: Maintenance and ReliabilityThe Dana-FarberCancer Institute
HBSP#699-02517p
Boston, MA, healthcare, 1995
Describes the death of a cancer patient in one ofthe nation's premier cancer treatment centers andexamines the organizational and processcharacteristics that may have contributed to themedical error.
WorkplaceSafety at Alcoa(A)
HBSP#692-04222pTN #697-128
Indiana, aluminum,63,000 employees,1991
Examines the challenge facing the managers of alarge aluminum manufacturing plant in its driveto improve workplace safety. The CEO of thecompany has made safety a top priority. Theplant has made good progress in reducing theinjury rate, but now confronts the need toaccelerate its improvement. Doing so requires thesafety director to consider progress to date andanalyze the opportunities for improvement, manyof which involve fundamental changes inbehavior at all levels of the organization. Progresshas not been uniform throughout the plant andpast approaches may not be adequate in meetingthe challenge. As the case comes to a close, theseissues come to a head because a superintendentwants to fire a supervisor who has failed toadhere to safety procedures. Designed tointroduce students to the issues of safety in itsoperating context. Students have informationavailable that allows them to analyze underlyingcauses and identify major opportunities forimprovement. However, the interactions betweensafety and other dimensions of manufacturingperformance are evident in developing andimplementing a plan for improvement.
A Brush withAIDS (A)
HBSP#394-0588pTN #394-180
Health careproducts, 1989
A product manager at a health products companyis responsible for marketing sharps containers,which hospitals use to store used needles in orderto protect medical workers from being prickedwith AIDS-contaminated needles. After hospitalsreport repeated instances of needles penetratingthe container walls, she realizes the defectiveproduct poses a health hazard for medicalworkers. The product manager must decidewhether or not to fix the containers when doingso would significantly decrease her profitperformance for the year. The company missionstatement stresses quality commitment tocustomers, but all compensation andadvancement incentives are geared solely towardprofit objectives. Gives students a chance to thinkabout ethical dilemmas they are likely to face inthe business world. Is a manager morally
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delegated to take active steps to protect the safetyof his or her customers when neither the law northe company is compelling him or her to do so?