Ivey%Operations%Club%

2013%2014'

Midterm%Review:%Agenda%
Ini+al'Thoughts'
Se7ng'the'stage'
Framework'

General'Overview'
Size%Up'(External'and'Internal)'
Key'Success'Factors'
Quan+ta+ve'Analysis'
Alterna+ves'and'Op+ons'
Decision/Implementa+on'

Pointers'
Ques+ons'

Initial%Thoughts%
Be'exible'
Adapt'to'both'+ming'and'content'during'the'exam'
Go'in'with'a'framework'but'dont'be'too'focused'on's+cking'to'it'
Balance'between'prepara-on'and'mental'agility'

See'the'big'picture'
Solving'problems'is'great,'but'only'if'theyre'the'RIGHT'problems'
Think'cri+cally'about'what'maVers,'what'will'aect'the'business'
the'most'
Iden+fy'as'many'issues'as'you'can,'but'also'rank/priori-ze'them'

No'case'fact'cluVer'
Nothing'should'be'on'your'exam'that'doesnt'have'a'clear'
implica-on'coming'out'of'it'
Suggested'format:'Fact'!'Implica+on'
E.g.'Machine'1'has'45%'u+liza+on'where'as'machine'2'as'97%'
u+liza+on'!'introduc+on'of'exogenous'variability'will'make'
machine'2'a'boVleneck.'Can'we'balance'out'u+liza+on'among'two'
machines?'

Midterm%Review:%Agenda%
Ini+al'Thoughts'
Se7ng'the'stage'
Framework'

General'Overview'
Size%Up'(External'and'Internal)'
Key'Success'Factors'
Quan+ta+ve'Analysis'
Alterna+ves'and'Op+ons'
Decision/Implementa+on'

Pointers'
Ques+ons'

Setting%the%Stage%%
Read'rst'&'last'sec+ons'
One'or'both'of'the'two'sec+ons'will'iden-fy'the'key'issues/
decisions'for'you.'(Keep'in'mind'though'that'you'can'always'say'
the'iden+ed'issue(s)'is/are'wrong)'

Skim'the'case'&'Exhibits'
Keep'an'eye'out'for'where'you'can'nd'major'points'of'
informa-on''other'issues'needing'solu+ons,'key'data'points,'
major'exhibits'
Rip'out'exhibits!'Use'them'in'your'exam.'

Write'down'what'the'problem/decision'is'
Then'think'about'what'informa+on'you'need'in'order'to'make'
the'necessary'decision(s).'This'will'allow'you'to'nd'the'relevant'
informa+on'when'you'do'your'thorough'read.'

Thorough'read'

Midterm%Review:%Agenda%
Ini+al'Thoughts'
Se7ng'the'stage'
Framework'

General'Overview'
Size%Up'(External'and'Internal)'
Key'Success'Factors'
Quan+ta+ve'Analysis'
Alterna+ves'and'Op+ons'
Decision/Implementa+on'

Pointers'
Ques+ons'

General%Overview%
Role'

List'all'constraints/decisions'at'hand'

Is'your'decision'constrained'by'your'role?'Timing'constraints?'
How'much'power'do'you'have'to'implement'change?'

Key'Issues'

What'are'the'real'issues'and'what'are'the'symptoms?'
What'are'the'opportuni+es?'
E.g.:'
Loca+on'

How'are'your'opera+ons'aected'by'your'loca+on?'

Timing'

Is'the'process'+me%sensi+ve?'Exp.'Perishable'goods'
Is'the'decision'+me%sensi+ve?'

Decision'

Decisions'to'be'made'

Which'decisions'will'actually'solve'the'iden+ed'issues?'
How'does'solving'this'aect'the'rms'overall'strategy?'

Ini+al'Alterna+ves'
Considera+ons'and'Constraints'

Size@up%(External)%
Industry'
Nature'of'the'industry?'
Could'consider:'seasonality,'pricing'trends,'price'taker'vs'price'seVer,'
how'inuen+al'are'we'on'the'industry'
How'do'these'trends'aect'our'decision?'

Compe--ve'Analysis''
Who'are'our'main'compe+tors?'Will'this'aect'our'posi+oning?'
Barriers'to'entry,'do'suppliers'or'customers'have'bargaining'power,'
threat'of'subs+tute'products'emerging'

Consumer'Analysis'
Who'are'they,'what'do'they'value,'are'there'changing'trends,'are'
there'high/low'switching'costs,'what'impact'does'opera+ons'have'on'
your'customers'decisionsbuying'behaviour'

Other'considera-ons'
Anything'else'you'nd'that'might'be'relevant'to'the'case'
E.g.'What'exibility'does'the'market'require:'volume,'delivery,'cost,'
quality,'design,'etc.'

KSFs:'Companies'have'to'do'x'y'z'to'be'successful'in'this'industry'

Size@up%(Internal)%
Business'Opera+ons'
Dening'characteris+cs'of'the'ops'cycle'
Labor'intensive,'capital'intensive,'skilled'labor,'standard'vs'custom'
products,'project'vs'batch'vs'line'vs'ow'

Current'strategy'and'compe++ve'posi+oning'
Quality,'price,'speed,'service,'eciency,'delivery,'etc.'

People''do'we'have'the'right'people?'
Current'nancials''margins,'growth,'etc.'
Opera+ons'strategy'
Is'it'in'line'with'our'corporate'strategy?'Source'of'compe++ve'advantage?'

Implica+ons'

What'do'we'do'best'
What'type'of'exper+se'is'required'
How'do'we'compete'
What'is'our'biggest'weakness'
How'can'we'maximize/maintain'our'compe++ve'advantage'

Key%Success%Factors%
What'are'our'key'success'factors'%'dieren+ator'
Relate'this'to'the'decision'at'hand''is'there'consistency'between'
the'two'

Does'the'decision'allow'us'to'capitalize'on'our'internal'
capabili-es,'and'is'it'consistent'with'what'is'occurring'in'the'
external'environment?'
Some'Examples'of'Key'Success'Factors'

Pricing'decisions?'''
Price%compe++veness?'''
Ability'to'keep'costs'down?'''
Ability'to'meet'special'delivery'+mes?'''
Ability'to'oer'product'customiza+on?''
Flexible'opera+ons/reac+ve'to'customer'needs?''
Providing'superior'product'quality'or'customer'service?'''
Innova+on?'

Quantitative%Analysis%
Process'ow'
If'this'is'included'in'an'exhibit,'rip'it'out'and'use'it'in'your'exam!'

Demand'
What'is'current'demand,'what'will'the'trend'be'in'the'future'
Can'nd'from'nancial'statements'if'not'given'

Capacity'
Calcula+on'chart'
Cycle'+me'%'maximum'amount'of'+me'allowed'for'work'on'1'unit'at'
each'sta+on'
Capacity,'U+liza+on'and'Capacity'U+liza+on'
BoVlenecks'

Qualita+ve'
How'does'down+me'aect'cycle'+me?'(carries'through)'
How'does'variability'aect'cycle'+me?'(also'carries'through)'

Quantitative%Analysis%(contd)%
Earth'Buddy'Capacity'U+liza+on:'
(assume'100%'demand)'
'

Process'

Capacity'

U-liza-on'

Capacity'
U-liza-on'

Filling'

6'llers/1.5'mins/head'=''

4'

100%'

Moulding'

3'moulders/0.8mins/head='

3.75'

100%'

Eyes'

5'heads/min'

3.75'

75%'

Eyeglasses'

5'heads/min'

3.75'

75%'

Pain+ng'

4'heads/min'

3.75'

94%'

Packing'

3.03'heads/min'

3.03'

100%'

4'heads/minute'
3.75'heads/min'

BOTTLENECK
Process 1
Capacity

min/week
# machines avail
Time available

Process 2

Process 3

Process 4

Process 5

Process 6

2400

2400

2400

2400

2400

2400

4800

4800

2400

7200

4800

7200

(LESS) delays/downtime/set-up time

Net, Time Available

(cycle time) min/unit

Utliization

0.20

0.17

0.14

0.25

0.13

0.25

TOTAL CAPACITY

24000

28800

16800

28800

38400

28800

DEMAND

23000

23000

23000

23000

23000

23000

96%

80%

137%

80%

60%

80%

12000

9600

CAPACITY UTILIZATION
WIP before process:

Throughput rate:

16800

Quantitative%Analysis%(contd)%
BoVlenecks'
What'is'causing'the'boVleneck?'E.g.'Machine'u+liza+on,'labor'
u+liza+on'
How'can'we'beVer'u+lize'capacity/improve'opera+ons?'
How'do'we'ensure'the'boVleneck'is'being'fully'u+lized'
Once'we'address'this'boVleneck,'do'we'create'a'new'boVleneck?'
How'do'we'address'that?''
Note:'BoVleneck'could'be'dierent'processes'at'dierent'+mes'
of'the'day/year'
BoPlenecks'can'be'found'using'other'hints,'not'just'capacity'
u-liza-on''look'for'buildup'of'WIP''
Calculate'WIP'and'what'it'costs'you'

Alternatives/Options%
Present'and'evaluate'all'alterna+ves/op+ons'
Establish'a'criteria'for'evalua-on!'

Also'present'some'original'alterna+ves'(2%3),'be'crea+ve'
Second'shir,'new'personnel,'new'equipment,'reduce'batch'size'

Evaluate'each'alterna+ve:'
1)'Pros''why'are'they'qualita+vely'benecial?'
2)'Cons''what'are'some'cons'associated'with'them?'
3)'Numbers''do'the'calcula+ons!'Every'+me!'Prove'whether'or'
not'it'will'work.''
Your'evalua-on'process'should'be'so'extensive'that'you'already'
have'your'decision'lined'up'for'you'
Dont'do'numbers'for'op+ons'that'are'clearly'a'no%go'
State'all'assump+ons'
Make'sure'your'alterna+ves'address'your'stated'issues,'especially'
the'ones'ranked'highest'

Alternatives/Options%
Another'sugges+on:'make'all'criteria'quan+ta+ve'
Give'each'criteria'a'score'for'importance'rela+ve'to'the'decision'
(higher'#'='more'important)'!'inventory'management'is'the'
most'important'in'the'example'below'
Give'each'op+on'a'score'for'how'well'it'addresses'the'criteria'
compared'to'the'status'quo'(0'for'all'op+ons)'!'posi+ve'number'
means'a'posi+ve'eect'
Mul+ply'the'score'by'the'criteria'importance'and'add'them'up'
Choose'the'op+on'with'the'best'score'
Inventory'
Management'(3)'

Late'Deliveries'(1)' Cost'(3)'

Total'

6'

3'

3'

30'

Op+on'2'
0'
(status'quo)'

0'

0'

0'

Op+on'3'

7'

1'

22'

Op+on'1'

4'

Decision%
Decision'
Begin'by'clearly'sta+ng'your'decision'and'its'impact'on'current'
opera+ons'
Iden+fy'reasons'for'choosing'said'decisions'
Numerical'reasons'
Qualita+vely,'does'it'support'KSF?'

Explain'why'you'didnt'choose'the'other'alterna+ves'

Explain'how'changes'will'impact'customers,'plant,'workers,'etc.'

Ac+on'Plan'and'Implementa+on'(not'too'concerned'for'the'
rst'one)!
Outline'a'specic'implementa+on'plan'and'+meline''
Dis+nguish'between'short%term'and'long%term'issues'

Discuss'key'risks'with'your'recommenda+ons'and'analysis''
Con-ngency'
What'happens'in'the'case'of'a'strike,'mechanical'breakdowns,'plant'
problems,'etc.'?''

Midterm%Review:%Agenda%
Ini+al'Thoughts'
Se7ng'the'stage'
Framework'

General'Overview'
Size%Up'(External'and'Internal)'
Key'Success'Factors'
Quan+ta+ve'Analysis'
Alterna+ves'and'Op+ons'
Decision/Implementa+on'

Pointers'
Ques+ons'

Pointers%
Leave'yourself'enough'+me'for'each'sec+on'
Give'yourself'a'strict'+me'limit'for'each'sec+on'if'need'be'
You'will'get'a'beVer'mark'by'covering'the'most'important'
aspects'of'every'sec+on'rather'than'every'aspect'of'most'
sec+ons'

An'execu+ve'summary'is'a'denite'plus'for'this'exam'
It'prepares'the'reader'for'what'to'expect'

Write'legibly'
HBA2s'mark'these'exams,'so'it'is'in'your'best'interest'to'make'it'
as'easy'as'possible'for'them'

Make'and'jus+fy'all'assump+ons'
Jus+fy'your'assump+ons'as'well'
If'you'make'a'poor'assump+on,'you'will'only'be'penalized'
slightly.'

Pointers%
DO'NOT'GET'BOGGED'DOWN'IN'THE'NUMBERS'

The'numbers'can'be'somewhat'daun+ng'at'+mes'
There'are'also'many'right'assump+ons/numbers'to'use'
Do'not'worry'if'the'numbers'are'wrong;'rather,'ensure'that'you'
make'reasonable'assump+ons'and'that'you'make'strong'analyses'of'
the'numbers'

TIE'BACK'EVERY'IMPLICATION'TO'THE'ISSUES/DECISIONS'TO'BE'
MADE'

The'strongest'exams'do'not'have'the'most'implica+ons;'rather,'they'
draw'the'most'relevant'implica+ons'and'+e'them'directly'back'to'the'
issues.'
As'well,'drawing'relevant'implica+ons'makes'the'recommenda+on'
easier'to'write.'

Be'prepared'

Let'your'brain'focus'on'what'the'business'issues'and'solu+ons'are,'
while'your'paper'reminds'you'to'do'internal/external'analysis'
Pencil'exams'cannot'be'appealed'
Use'color'if'it'helps'readability'

Pointers%
Use'the'frameworks/diagrams'used'in'class'
i.e.'the'process'management'triangle'

Iden+fy'the'issues/decisions'to'be'made'before'you'have'
done'an'in%depth'read'of'the'case'
Read'the'case'and'mark'it'with'implica+ons'directly'+ed'back'to'
the'issues'
Correctly'iden+fying'ALL'the'issues/decisions'is'the'most'
important'part'of'the'exam.'
Remember,'there'may'be'some'less'important'decisions'that'
must'be'made.'Consider'the'importance'of'each'decision'when'
assessing'your'op+ons'and'making'a'recommenda+on.'

OPTIONAL:'briey'conclude'arer'each'sec+on'
Arer'each'major'sec+on'(industry,'company'analysis,'etc),'you'
can'briey'summarize'what'you'discussed,'and'what'direc+on'
those'implica+ons'are'leading'you'toward.'

Pointers%
Remember,'in'the'end'this'is'an'Ivey'case'exam.'
80%'of'it'will'be'almost'iden+cal'to'every'other'case'you'have'
done.'
Do'not'stress'about'this'exam.'The'numbers'may'be'daun+ng'at'
+mes;'however,'as'long'as'you'make'reasonable'assump+ons,'
they'should'not'be.'
Get'a'good'nights'sleep.'A'4'hour'exam'is'extremely'both'
physically'and'mentally.'A'good'nights'sleep'will'make'sure'you'
are'as'sharp'as'possible.''

Questions?%

ijacobsen.hba2014@ivey.ca'
'
ngoel.hba2014@ivey.ca'