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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
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
Chapter 2: Strategy
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

Abstract
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
Abstract
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
American Connector Co. (A)
Gary P. Pisano; Sharon Rossi
Type: HBS
Pub. Date: 12/7/1992
Product #: 693035
Length: 18p
Teaching Note: 695014
Analog Devices, Inc.: The HalfLife System
Robert S. Kaplan
Type: HBS
Pub. Date: 3/16/1990
Product #: 190061
Length: 26p
Teaching Note: 191103

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

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
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.
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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
McDonald's Corp.
David Upton; Joshua D.
Margolis
Type: HBS
Pub. Date: 10/9/1992
Product #: 693028
Length: 22p
Teaching Note: available

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 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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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 selfservice, Customer service.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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 threewheelers 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
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

Abstract
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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

Biogen, Inc.: rBeta Interferon


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

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

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., 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.
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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
Project Management Manual
H. Kent Bowen
Type: HBS
Pub. Date: 9/13/1996
Product #: 697034
Length: 39p
Teaching Note: none

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.

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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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

Chapter 5: Strategic Capacity


Management
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

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.
Abstract
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Applichem (A) (Abridged)
Janice H. Hammond, Gary P.
Pisano
Type: HBS
Pub. Date: 8/18/1993
Product #: 694030
Length: 13p
Teaching Note: 696017
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

JetBlue Airways: Managing


Growth
Robert S. Huckman, Gary P.
Pisano
Type: HBS
Pub. Date: 10/10/2008
Product #: 609046
Length: 24p
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.

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.
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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

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
Shouldice Hospital Ltd.
James L. Heskett

Type: HBS
Pub. Date: 4/25/1983
Product #: 683068
Length: 18p
Teaching Note: 686120

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, 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.
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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

Chapter 6: Learning Curves


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

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.
Abstract
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Donner Co.
Roy D. Shapiro
Type: HBS
Pub. Date: 9/27/1988
Product #: 689030
Length: 14p
Teaching Note: available

Executive Shirt Co., Inc.


Janice H. Hammond, Sylvie
Ryckebusch

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.
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.

Type: HBS
Pub. Date: 10/25/1995
Product #: 696071
Length: 10p
Teaching Note: none
Supplement #: 696093

Subjects: Production planning.

Managing Innovation at Nypro,


Inc. (A) and (B)

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.

Clayton M. Christensen,
Rebecca Voorheis
Type: HBS
Pub. Date: 9/22/1995
Product #: 696061
Length:14p
Teaching Note: available
Metreke Cards
Steven C. Wheelwright
Type: HBS
Pub. Date: 1/8/1992
Product #: 692073
Length: 8p
Teaching Note: none

Subjects covered: Innovation; International operations;


Manufacturing policy; Manufacturing strategy; Process innovation;
Technological change

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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Quantum Corp.: Business and
Product Teams
Steven C. Wheelwright, Clayton
M. Christensen

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.

Type: HBS
Pub. Date: 1/22/1992
Product #: 692023
Length: 20p
Teaching Note: 693004
Samsung International, Inc.
Alice H. Amsden

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.

Type: HBS
Pub. Date: 3/12/1986
Product #: 686123
Length: 13p
Teaching Note: none

Subjects: International operations, Process flow, Production


processes, Productivity, Quality control.

Wilkins, A Zurn Company:


Aggregate Production Planning

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.

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

Chapter 8: Facility Layout

Subjects: Inventory control, Logistics, Manufacturing strategy,


Operations management.
Abstract

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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
Chapter 9: Service Processes
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

Burger King Corp.


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

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.

Abstract
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.

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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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

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

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.
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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 prepackaged 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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
ExtendSim Simulation
Exercises in Process Analysis
(A)
Roy D. Shapiro

Type: HBS
Pub. Date: 9/14/1993
Product #: 694039
Length: 3p
Teaching Note: available

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

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

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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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
Donner Co.
Roy D. Shapiro

Type: HBS
Pub. Date: 9/27/1988
Product #: 689030
Length: 14p
Teaching Note: available

Abstract
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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
Kristen's Cookie Co. (A)
Roger E. Bohn
Type: HBS
Pub. Date: 1/21/1986
Product #: 686093
Length: 3p
Teaching Note: 688024

Managing Variability: Process


Control and Process Capability

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.

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.
This technical note provides an introduction to quality management
tools, with a focus on the concepts of process control and process
capability.

Kamalini Ramdas
Type: University of Virginia
Darden
Pub. Date: 2/2/2004
Product #: UV0426
Length: 21p
Teaching Note: none

Subjects: Operations, Operations management, Process analysis,


Defects, Quality management.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
National Cranberry Cooperative
1996
Roy D. Shapiro
Type: HBS
Pub. Date: 5/31/1988
Product #: 688122
Length:10p
Teaching Note: available
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

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.

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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Productivity and Performance
Systems: A Comparative
Analysis of Northern Telecom
and United Parcel Service

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.

Christopher W.L. Hart, W.


Bruce Chew
Type: HBS
Pub. Date: 8/25/1988
Product #: 689022
Length: 21p
Teaching Note: 689003
Quality Wireless (A): Call
Center Performance
Sunil Chopra

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.

Type: Kellogg School of


Management, Northwestern
University
Pub. Date: 8/25/1988
Product #: KEL153
Length: 21p
Teaching Note: available

Subjects: Performance measurement, Performance measurement


systems, Operations, Operations management, Process analysis,
Process improvement, Service management.

RFID at the METRO Group

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 mid2005, evaluate the results of the RFID rollout and decide on the next
stage in the implementation.

Zeynep Ton, Vincent Dessain,


Monika Stachowiak-Joulain
Type: HBS
Pub. Date: 11/9/2005
Product #: 606053
Length: 22p
Teaching Note: available

Subjects: Inventory management, Operations management, Process


analysis, Radio frequency identification, Supermarkets, Suppliers,
Supply chains, Technology.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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
Chapter 12: Six-Sigma
Quality
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

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.
Abstract
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Hank Kolb, Director, Quality
Assurance
Frank S. Leonard
Type: HBS
Pub. Date: 3/1/1981
Product #: 681083
Length: 3p
Teaching Note: 683030
Kristen's Cookie Co. (A2)
Roger E. Bohn
Type: HBS
Pub. Date: 1/23/1986
Product #: 686094
Length: 7p
Teaching Note: available
Managing Variability: Process
Control and Process Capability

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.

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.

This technical note provides an introduction to quality management


tools, with a focus on the concepts of 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
Paul Chesler, Director, Quality
Assurance
Frank S. Leonard
Type: HBS
Pub. Date:7/13/2006
Product #: 607002
Length: 3p
Teaching Note: none

Subjects: Operations, Operations management, Process analysis,


Defects, Quality management.

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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Steinway & Sons
David A. Garvin
Type: HBS
Pub. Date: 9/1/1981
Product #: 682025
Length: 17p
Teaching Note: 682073
The Home Depot, Inc.
Zeynep Ton, Catherine Ross
Type: HBS
Pub. Date: 3/12/2008
Product #: 608093
Length: 28p
Teaching Note: available

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.

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

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Deutsche
Allgemeinversicherung
David M. Upton

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.

Type: HBS
Pub. Date: 1/29/1996
Product #: 696084
Length: 12p
Teaching Note: available

Learning objective: Teaches statistical process control (p-charts) as


well as service industry quality improvement.

Six Sigma Quality at Flyrock


Tires

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.

Sunil Chopra
Type: Kellogg School of
Management, Northwestern
University
Pub. Date: 1/1/2004
Product #: KEL028
Length: 3p
Teaching Note: available
Chapter 14: Lean Supply
Chains
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

Subjects covered: Implementing strategy; Process analysis; Quality


control; Service management; Statistical analysis

Learning objective: To introduce the methodology of statistical


process control and to illustrate the value of Six Sigma.
Subjects covered: Operations management; Six sigma

Abstract
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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

Lean at Wipro Technologies


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

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.
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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 throughput 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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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 highquality/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
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

Abstract
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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, solesourcing 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

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Supply Chain Management
Simulation: Root Beer Game
V2
Type: HBS
Pub. Date: 7/5/2012
Product #: 6619
Length: 60 min
Teaching Note: available

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

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 singleplayer 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

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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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 midlevel 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

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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 marketoriented 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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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 nextgeneration 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

Describes Ford's examination of its supply chain to evaluate whether


the company should "virtually integrate" on the Dell Computers model.

Robert D. Austin

Subjects: Logistics, Information technology, Management of


information systems, Technology management, Suppliers, Electronic
commerce, Online retailing, Supply chain management, Supply chains,
Automobiles.

Type: HBS
Pub. Date: 3/3/1999
Product #: 699198
Length: 9p
Teaching Note: 601172
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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 outof-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 multicompany efficiencies.
Subjects: Collaboration, Efficiency, Operations management,
Production, Strategic management, Value chains.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Sport Obermeyer Ltd.
Janice H. Hammond, Ananth
Raman
Type: HBS
Pub. Date: 10/13/1994
Product #: 695022
Length: 19p
Teaching Note: 696012

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

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.
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
Chapter 17: Enterprise
Resource Planning Systems

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.

Abstract

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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 crossfunctional 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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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

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

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 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.
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.
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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

Chapter 18: Forecasting


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

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.
Abstract
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Four Products: Predicting
Diffusion (2006)
John T. Gourville
Type: HBS
Pub. Date: 1/18/2006
Product #: 506050
Length: 9p
Teaching Note: none

Handleman Co.
Janice Hammond, Kevin Dolan
Type: HBS
Pub. Date: 4/14/2005
Product #: 605024
Length: 30p
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.
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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
Leitax (A)
Noel Watson, Rogelio Oliva,
Laura Winig
Type: HBS
Pub. Date:8/3/2005
Product #: 606002
Length: 21p
Teaching Note: available

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 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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Merchandising at Nine West
Retail Stores
Ananth Raman, Colin Welch
Type: HBS
Pub. Date: 5/15/1998
Product #: 698098
Length: 17p
Teaching Note: 601148

Necanko, Inc., Carol Prahinski


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

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. is a large international food manufacturer. A buyerscheduler 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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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

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

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.
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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
MacPherson Refrigeration Ltd.
John S. Haywood-Farmer, Bill
Rankin
Type: HBS
Pub. Date:1/1/1993
Product #: 93D021
Length: 8p
Teaching Note: 893D21
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

Abstract
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.
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Play Time Toy Co.
Thomas R. Piper
Type: HBS
Pub. Date:10/31/1991
Product #: 292003
Length: 6p
Teaching Note: 292055
Toy World, Inc.
W. Carl Kester
Type: HBS
Pub. Date: 11/23/1994
Product #: 295073
Length: 6p
Teaching Note: 297118

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.
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
Chapter 20: Inventory Control

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.
Abstract

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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

CarMax
Rajiv Lal, David Kiron
Type: HBS
Pub. Date: 6/15/2005
Product #: 505080
Length: 29p
Teaching Note: none
David Berman
Ananth Raman, Vishal Gaur,
Saravanan Kesavan
Type: HBS
Pub. Date:4/12/2005
Product #: 605081
Length:19p
Teaching Note: available
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

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 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.

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.

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

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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
Hamptonshire Express
V.G. Narayanan, Ananth
Raman
Type: HBS
Pub. Date: 3/1/1998
Product #: 698053
Length: 5p
Teaching Note: available
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

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.

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'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

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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
Paper and More (A)
Noel Watson
Type: HBS
Pub. Date: 7/19/2005
Product #: 606023
Length: 11p
Teaching Note: available

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.

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 singlelocation 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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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
Chapter 21: Material
Requirements Planning

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.

Abstract

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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 inventoryholding 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 subassemblies, 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

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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
Chapter 22: Work Center
Scheduling
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

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.

Abstract
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 ordermix/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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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 420stall 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
Southern Pulp and Paper
David Upton, William H. Bolen
Jr.
Type: HBS
Pub. Date: 4/26/1996
Product #: 696103
Length: 10p
Teaching Note: none

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.

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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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.

Chapter 23:
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

Abstract
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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Da Click's "Throwback" Jerseys
Elliot N. Weiss

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.

Type: University of Virginia


Darden School Foundation
Pub. Date: 1/4/2007
Product #: UV0797
Length: 2p
Teaching Note: none

Subjects: Behavior, Organizational behavior, Production planning.

ForeFront Manufacturing:
Production Processes and
Change Management in
Mainland Chin

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.

Chris J. Piper, Nigel Goodwin


Type: Richard Ivey School of
Business Foundation
Pub. Date: 10/6/2006
Product #: 906D20
Length: 15p
Teaching Note: available

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.

Chapter 24:

Abstract

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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 processbased 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

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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
Chapter 25: Operations
Consulting
American Nursing Services,
Inc.
W. Earl Sasser Jr., Leonard A.
Schlesinger, Roger Hallowell

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

Abstract
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.

Type: HBS
Pub. Date: 4/28/1992
Product #: 692102
Length: 22p
Teaching Note: none
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
Otis Elevator: Accelerating
Business Transformation with
IT
F. Warren McFarlan, Brian J.
Delacey

Focuses on a major transformation of Otis Elevator's infrastructure.


Led by the CEO, this transformation represents a remarkable longterm 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.

Type: HBS
Pub. Date: 9/24/2004
Product #: 305048
Length: 20p
Teaching Note: available

Subjects: Leadership, Strategic leadership, CEO, Organizational


change, Information technology, Management of information systems,
Technology management, Technology transfer, Machinery,
Reengineering.

Quantum Corp.: eSupplyChain


Group

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.

Andrew McAfee, Gregory


Bounds
Type: HBS
Pub. Date: 1/23/2001
Product #: 601099
Length: 21p
Teaching Note: 603032

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.

Case Map for


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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

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

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.
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


Chase / Jacobs / Aquilano
Operations and Supply Chain Management
13nd Edition
(Mcgraw-Hill/Irwin)
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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