Ivey Publishing

Foundations of Operations Management

Ritzman, L., Krajewski, L., Malhotra, M. & Klassen, R.,3/e (Canada, Pearson Education, 2013)
Prepared By Asad Shafiq, PhD Student
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Creating Customer Value Through Operations

Owen Hall, Charles McPeak

Product Number: 9B08D003
Publication Date: 4/1/2008
Length: 4 pages

Mapleleaf Corporation is a mid-size player in the paper products industry. The firm has recently become aware that growing demand will soon outstrip its present production capacity. The primary objective of this case is to introduce students to the world of capacity planning and optimization.

Teaching Note: 8B08D03 (5 pages)
Industry: Manufacturing
Issues: Capacity Planning; Multi-source, Multi-demand Optimization Analysis; Net Present Value Method; Forecasting
Difficulty: 5 - MBA/Postgraduate

John S. Haywood-Farmer, Tim Tattersall

Product Number: 9B00D015
Publication Date: 9/28/2000
Revision Date: 6/1/2018
Length: 6 pages

Creemore Springs Brewery, a small, independent brewer, offered new, high quality alternatives to premium beer connoisseurs. Continuing quality problems with the company that cleaned its bottles prompted the president of Creemore Springs Brewery to decide whether or not to recommend moving the bottle cleaning operation from the external contractor and bring it in-house. To assess the company's options he must analyse the qualitative and quantitative costs and benefits of making such a move by performing a task analysis, reviewing the production process and calculating the payback.

Teaching Note: 8B00D15 (7 pages)
Industry: Manufacturing
Issues: Process Design/Change; Break-Even Analysis
Difficulty: 1 - Introductory

Chris J. Piper

Product Number: 9A94D019
Publication Date: 5/19/1995
Revision Date: 2/23/2010
Length: 3 pages

About 15 operators work in a simple hybrid batch-flow environment to produce the Earth Buddy novelty product. The case introduces the topic of process analysis. Sufficient information is presented to introduce and discuss the following concepts in an 80-minute class: capacity, throughput time, cycle time, bottleneck identification and resolution, and work-in-process inventory accumulation and draw-down. Issues that can be explored during the discussion include: shift scheduling, the impact of cross-training, batch versus flow production, rush orders, and the impact of defects on capacity. (An Extend simulation file is available for this case, Earth Buddy - Extend Simulation file.)

Teaching Note: 8A94D19 (10 pages)
Issues: Process Analysis; Manufacturing; Capacity Analysis
Difficulty: 4 - Undergraduate/MBA

Chapter 2:
Supply Chain Management

Zhiduan Xu, Shi Yun, Xu Yong

Product Number: 9B11D009
Publication Date: 9/19/2011
Length: 15 pages

Established in 1945, MGT Group was headquartered in France. Its LSD factory was a well-known global engineering provider specializing in the design and manufacture of high-precision valves. At the end of 2007, MGT decided to close the LSD factory in France and relocate it to Fuzhou, China. Two people were put in charge of this project: Kevin Lurton, vice chief operations officer of MGT Control Systems Division, and Jian Li, the general manager of MGT Fuzhou Company. Lurton and Li faced a series of challenges, ranging from the need for strategic planning to the need for an implementation policy for supply chain reconstruction during the cross-border factory relocation.

Teaching Note: 8B11D009 (14 pages)
Industry: Manufacturing
Issues: Cross-border Factory Relocation; Supply Chain Reconstruction; Supply Chain Strategy; France; China; Ivey/CMCC
Difficulty: 5 - MBA/Postgraduate

Katrin Haarer, Nahide Hannane, Leonardo Zapata-Flores, Joo Y. Jung

Product Number: 9B11D013
Publication Date: 10/31/2011
Length: 9 pages

In 2008, International Automotive Company (IAC), a German manufacturer of automotive parts, acquired a plant in Reynosa, Mexico. This plant produced various types of motors for power windows, heating, ventilating, air conditioning, and wipers. At the time of acquisition, the plant was showing record losses. Because the acquisition was internally financed, it was crucial to make the plant profitable quickly. After conducting a deep analysis, the company discovered that a lack of proper management in the supply chain system was leading to a large amount of wasted resources. As a result, managers looked for opportunities to save money and facilitate improvements mainly in areas such as packaging, warehousing, and transportation. One of the greatest obstacles involved IAC’s employees, who were falling short in terms of knowledge and motivation.

Teaching Note: 8B11D013 (5 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Operations Management; Lean Management; Mexico
Difficulty: 4 - Undergraduate/MBA

P. Fraser Johnson, Ken Mark

Product Number: 9B07D001
Publication Date: 1/9/2007
Revision Date: 5/30/2017
Length: 15 pages

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 are 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 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.

Teaching Note: 8B07D01 (9 pages)
Industry: Retail Trade
Issues: Purchasing; Retailing; Supply Chain Management; Logistics
Difficulty: 4 - Undergraduate/MBA

Chapter 3:
Process Configuration

David Wood

Product Number: 9B10D012
Publication Date: 12/13/2010
Revision Date: 6/2/2014
Length: 5 pages

Deborah McDonald of Upper Canada Insurance (Upper Canada) was reviewing several pieces of data she and her team had spent the last month collecting. McDonald and her team had been asked to address the inefficiencies in the life insurance application process, largely due to the high numbers of applicants withdrawing from the system (known as wastage) in the midst of the process. Upper Canada had determined that the most common reason for clients abandoning the application process was the long time required to get a response, followed by lack of communication and poor customer service. It was thought that by solving these problems, Upper Canada could meet or exceed industry wastage levels and improve the efficiency of the sales team. McDonald was assigned the task of analyzing the data and making recommendations to resolve the issues of the application process, but was not certain where to begin.

Teaching Note: 8B10D012 (8 pages)
Industry: Finance and Insurance
Issues: Capacity Utilization; Customer Service; Inventory; Process Flow Development; Create Value
Difficulty: 4 - Undergraduate/MBA

P. Fraser Johnson

Product Number: 9B01D014
Publication Date: 3/28/2002
Length: 4 pages

With revenues of over US$1 billion, UPS Logistics Group was a wholly owned subsidiary of United Parcel Service, which offered a full range of supply chain services in North America, Europe, Asia and Latin America. UPS Logistics was responsible for distribution in Eastern Canada for the Canadian Pharmaceutical Distribution Network, an association of pharmaceutical manufacturers that jointly distribute products to hospital pharmacies. Members of this association are unhappy with the current performance of the supply chain, and have asked UPS Logistics' general manager for operations to establish a set of key performance indicators for the network's distribution operations. The general manager must determine how the logistics would be measured before setting specific improvement targets.

Teaching Note: 8B01D14 (14 pages)
Industry: Health Care Services
Issues: Performance Measurement; Outsourcing; Logistics; Distribution
Difficulty: 4 - Undergraduate/MBA

Robert Klassen

Product Number: 9A96D007
Publication Date: 9/20/1996
Revision Date: 2/9/2010
Length: 4 pages

A manufacturing manager has been asked to develop an estimate of the production cost of a therapeutic wrist exerciser prototype. Automated assembly was possible long-term, but a manual assembly and test procedure was necessary until the product was firmly established. Teams of students can be asked to develop an assembly process for the new product using either an assembly line or single operator configuration. Hands-on experience in job design can be provided to the students. Students must use job design and work measurement methods to estimate overall product cost and propose alternative prototype designs that might reduce assembly costs. The performance of the two process configurations can be compared during an in-class student demonstration. Subsequent discussion can focus on the challenges of work design for an assembly line or single operation configuration, along with the quality, cost and management challenges implicit in each.

Teaching Note: 8A96D07 (12 pages)
Industry: Manufacturing
Issues: Job Analysis; Simulation; Process Analysis; Product Design/Development
Difficulty: 4 - Undergraduate/MBA

Chapter 4:

Torben Pedersen, Jacob Pyndt

Product Number: 9B11M049
Publication Date: 6/22/2011
Length: 19 pages

AWARD WINNING CASE - Supply Chain Management Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. The case examines the supply chain, managerial, and organizational challenges facing a large European industrial company competing in a mature industry with strong price pressure. Established in the 1930s in Denmark, Danfoss initially produced automatic valves for refrigeration plants. The company has since grown into a major industrial group. Until the mid-1990s, Danfoss had the majority of its sales and production in Europe. This changed, however, with the arrival of a new CEO, who initiated a process to change the company into a global player within all of its main business areas.

Following this process of internationalization, the company was facing three main issues which top management was concerned about: Danfoss’s manufacturing network; its continued global growth; and its highly engineering-based culture. The first issue stemmed from the fact that Danfoss had followed a strategy of one product, one plant. This had created a situation with a lot of highly specialized product lines and very few common features between them. On the other hand, the internationalization strategy had so far been quite successful in Eastern Europe and China. In the United States, however, the company was still experiencing difficulties despite heavy investments in its manufacturing capacity in Mexico. In China, the company had experienced success and wanted to secure long-term growth in the market. The third issue was the very engineering-based culture of the company, which among other things was manifested in the fact that Danfoss previously developed products at the expense of consumer demand and preferences.

Teaching Note: 8B11M049 (12 pages)
Issues: Family Business; Supply Chain Management; Organizational Design; Manufacturing Strategy; Internationalization; Denmark; China
Difficulty: 4 - Undergraduate/MBA

P. Fraser Johnson

Product Number: 9B09D005
Publication Date: 3/9/2009
Length: 10 pages

In May 2007, the chief operating officer at TSC Stores in London, Ontario, asked the director of distribution to evaluate the company's supply chain strategy and make recommendations to the board of directors. The chief operating officer was concerned about the ability of the company's supply chain to support the corporate business plan, which called for 20 per cent annual growth over the next three years. Preliminary analysis indicated that TSC would need more distribution capacity by first quarter 2008, which gave the director of distribution only six to eight months to evaluate options and implement a plan. The chief operating officer and the board would want to know the process and schedule that the director of distribution intended to follow to deal with the evolving capacity demands in distribution.

Teaching Note: 8B09D05 (11 pages)
Industry: Retail Trade
Issues: Supply Chain Strategy; Capacity Planning; Distribution
Difficulty: 4 - Undergraduate/MBA

Srinivasan Maheswaran

Product Number: 9B09D007
Publication Date: 10/14/2009
Length: 4 pages

The case describes the situation faced by the vice-president of operations at Konkan Leaf Tobacco Development, the tobacco processing unit of XYZ Limited. This unit is in charge of procurement and processing of different varieties and grades of tobacco grown in southern India. The tobacco leaves are categorized into different varieties on the basis of quality and location of the crop. The company has two processing plants with varying processing capacities. Due to the seasonal and agricultural nature of the commodity, the company is finding it difficult to maintain efficiencies between the inflow of the tobacco and the requirement of the processing line capacity, resulting in frequent start-stop situations for the processing lines. This case enables students to develop strategies for the process management to achieve the optimum process schedule, which will result in the fewest stoppages of the process lines and optimization of both the utilization of the processing lines and the inflow patterns among the processing units.

Teaching Note: 8B09D07 (8 pages)
Issues: Mapping Inflow and Processing Line Capacity; Process Management; Capacity Utilization; Forecasting
Difficulty: 4 - Undergraduate/MBA

Chapter 5:
Inventory Management

P. Fraser Johnson, Alison Woodcock

Product Number: 9B05D002
Publication Date: 1/28/2005
Revision Date: 9/28/2009
Length: 8 pages

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 had been satisfied with their relationship, after five years, both parties were interested in exploring ways to improve the network, particularly as competitors 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, he believed that opportunities existed to make additional improvements in the area of inventory management and he wondered how and where Progistix could work together with Xerox on such an initiative. Third, was to improve system-wide inventory turn performance by re-examining the cut-off point for filling the technicians' trunks with inventory. This case provides an opportunity for students to analyse a rapid-response supply chain and make recommendations for improvements. Class discussion can include issues related to supply chain partnerships, outsourcing, inventory management and demand forecasting. Data provided in the case allow students to develop implementation plans and set specific performance targets.

Teaching Note: 8B05D02 (9 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Logistics; Inventory Planning/Control; Outsourcing
Difficulty: 4 - Undergraduate/MBA

Michiel R. Leenders

Product Number: 9A97D015
Publication Date: 12/3/1997
Revision Date: 2/3/2010
Length: 5 pages

On February 9, 1995, the purchasing officer at Fisher & Paykel Limited in Auckland, New Zealand, was preparing for the next meeting of the evaporator pad cover team. Recent supply problems had threatened to close down the refrigerator assembly line and the purchasing officer's task was to propose a workable and cost effective solution.

Teaching Note: 8A97D15 (15 pages)
Industry: Manufacturing
Issues: Make or Buy Decision; Scheduling
Difficulty: 4 - Undergraduate/MBA

John S. Haywood-Farmer

Product Number: 9A95D008
Publication Date: 5/4/1995
Revision Date: 6/5/2012
Length: 5 pages

In the mid-1990s McLeod Motors rationalized a number of motor end shields to reduce manufacturing costs, improve service, and reduce inventories. However, inventories have apparently risen. Students must identify why McLeod has inventory, how large the inventory might have been before the rationalization, how large they might be now, why they are so large, and what could be done to reduce inventory levels. The case can be used in conjunction with a discussion on inventory function.

Teaching Note: 8A95D08 (11 pages)
Industry: Manufacturing
Issues: Inventory; Scheduling; Materials Management; Inventory Planning/Control
Difficulty: 4 - Undergraduate/MBA

Chapter 6:
Quality and Process Improvement

John S. Haywood-Farmer, Karim Moolani, Michelle Peng

Product Number: 9B09D001
Publication Date: 1/7/2009
Revision Date: 3/21/2011
Length: 14 pages

In April 2008, the owners of the Cambridge, Ontario-based Cerny Hospitality Group (CHG) were considering the purchase and implementation of OpenTable's reservation management software in three of their restaurants, including the Blackshop Restaurant. It was thought that the software could aid in more effectively managing customer demand due to its ability to allow on-line reservations and its data-gathering capability, an improvement over its current manual reservation system. CHG was a family-owned and operated business and had achieved considerable success with its personal touch with clients. When considering the purchase of the software, CHG had concerns about the potential cost and return on investment, in addition to the strategic fit for this company that placed much emphasis on the human-touch and personal interaction with customers.

Teaching Note: 8B09D01 (6 pages)
Industry: Accommodation & Food Services
Issues: Capacity Analysis; Process Analysis; Process Design/Change; Quality Control; Technology; Equipment Investment; Bottlenecks; Service Operations; Customer Service
Difficulty: 4 - Undergraduate/MBA

Robert Klassen, Larry Li, Tom Gleave

Product Number: 9A98D001
Publication Date: 4/27/1998
Revision Date: 1/27/2010
Length: 17 pages

The assistant engineer in the Thermal Treatment Department of a state-owned enterprise in China has received approval for the formation of a new quality control group to reduce the high defect rate of a critical part. The total quality concept is presented within the context of a specific quality problem, which encourages students to both assess the company's quality system and apply quality improvement tools to this particular problem. This case is the first of a three part series that applies the principles and tools of total quality management in a Chinese setting. This case can either be used independently or in combination with the (B) case, 9A98D002 and (C) case, 9A98D003.

Teaching Note: 8A98D01 (16 pages)
Industry: Manufacturing
Issues: China; International Business; Quality Management; Production Processes; Operations Management
Difficulty: 4 - Undergraduate/MBA

John S. Haywood-Farmer, Tom Gleave

Product Number: 9A98DT09
Publication Date: 12/15/2004
Revision Date: 9/30/2002
Length: 23 pages

The general manager of COM DEV's Chinese facility which assembled satellite components, was trying to decide whether the plant should seek ISO 9000 certification. Not only did ISO 9000 registration have a number of advantages and disadvantages, but as well, the decision in the Chinese plant would have some implications for COM DEV's other facilities in Canada and Europe. In addition, if the general manager decided to seek ISO 9000 certification for his plant, he would have to decide which level of certification to seek.

Teaching Note: 8A98D09 (10 pages)
Industry: Manufacturing
Issues: China; Branch Operations; Quality Management; Joint Ventures
Difficulty: 4 - Undergraduate/MBA

John Kamauff, John S. Haywood-Farmer, Sara Allan

Product Number: 9A95D020
Publication Date: 5/13/1996
Revision Date: 2/16/2010
Length: 25 pages

This case addresses the concepts of quality in services and the role of information technology in providing breakthrough service. By capitalizing on an opportunity created by the deregulation of the airline industry, Rosenbluth has used technological innovation and a commitment to the service deliverers to add value for both the end users of business travel services as well as to reduce travel expenses for the corporations themselves. This case illustrates that people are at the heart of service delivery, but Rosenbluth has given its associates a system that enables them to deliver value to the customer. Most organizations would have been happy to have achieved those aspects of quality management described in the case, but Rosenbluth wants more. Kathy Veit is faced with determining how to build upon a very structured approach concentrating on training which occurred during the previous eighteen months. Her concern is how to inculcate quality into key business initiatives across the organization.

Teaching Note: 8A95D20 (6 pages)
Industry: Other Services
Issues: Operations Management; Quality Management; Technology; Service Operations
Difficulty: 4 - Undergraduate/MBA

Michiel R. Leenders, John Walsh

Product Number: 9A82D022
Publication Date: 1/1/1982
Revision Date: 6/29/2001
Length: 18 pages

The plant manager for Noram Foods was considering the impact of changing Noram's policy on package weight. Noram Foods in Canada had an enviable record of sound financial performance, although there had been a period of declining profits when the Canadian economy suffered under conditions of high unemployment, high interest rates, and high inflation. Leo Marsden believed the weight control issue represented a major opportunity for re-evaluation and increased performance.

Teaching Note: 8A82D22 (9 pages)
Industry: Manufacturing
Issues: Statistical Analysis; Quality Control
Difficulty: 4 - Undergraduate/MBA

Chapter 7:
Lean Systems

Edward D. Arnheiter

Product Number: 9B07D019
Publication Date: 10/10/2007
Length: 13 pages

This case chronicles the creation and transformation of a Singaporean joint venture, Eagle Services Asia (ESA). It describes some early start-up problems, including a forced shutdown by the Civilian Aviation Authority of Singapore (CAAS). The resulting shakeup of the ESA management team provides a fresh start and an opportunity to reinvigorate the company using lean management principles. Managerial decisions play a key role in ESA's success, together with the discipline and training of the workforce. Students will gain an understanding of cultural difficulties associated with international joint ventures, and learn fundamental aspects of lean management including how to create and sustain a lean culture. The case also provides insight into the worldwide aircraft engine business, the engine overhaul process and cultural barriers that may arise when managing operations in foreign countries.

Teaching Note: 8B07D19 (5 pages)
Industry: Manufacturing
Issues: Expatriate Management; Cultural Customs; Organizational Behaviour; Joint Ventures; Management of Change; Human Resources Management
Difficulty: 5 - MBA/Postgraduate

Edward D. Arnheiter, John J. Cocco

Product Number: 9B02D019
Publication Date: 1/9/2003
Revision Date: 11/30/2009
Length: 33 pages

Loctite Corporation is a large industrial adhesives company. The company has implemented the five principles of lean management on its customer service operation. A recent merger of the customer engineering service operation with the dispensing equipment operation has the vice-president of technical service and application engineering looking at applying the lean principles on the equipment operations. The company initially considered equipment a secondary product line needed only to augment its service offering in the support of the core product, industrial adhesives. In addition, most of Loctite's equipment manufacturing activities were outsourced so suppliers played a key role in lean transformation. The vice-president must prepare a plan to implement the principles of lean management while meeting the goals set out by the president of the company.

Teaching Note: 8B02D19 (17 pages)
Industry: Manufacturing
Issues: Manufacturing Strategy; Inventory Planning/Control; Value Chain; Price Tension
Difficulty: 5 - MBA/Postgraduate

Chris J. Piper, Narendar Sumukadas

Product Number: 9A97D012
Publication Date: 12/3/1997
Revision Date: 2/3/2010
Length: 15 pages

The vice-president Operations of Spartan Plastics, is facing a trade-off. As an avid proponent of the Toyota production system, just in time manufacturing (JIT), ISO 9001, and continuous improvement, he has reduced setup times, batch sizes, and throughput times. On the other hand, the scrap rate has shot up. This case would be appropriate for use in a production and operations course, to introduce students to the concepts of JIT and world class manufacturing.

Teaching Note: 8A97D12 (6 pages)
Industry: Manufacturing
Issues: Quality Management; Continuous Improvement; Just-in-Time; Operations Management
Difficulty: 4 - Undergraduate/MBA

Chapter 8:
Managing Projects

Kenneth J. Klassen, Leanne Miele

Product Number: 9B10D016
Publication Date: 1/21/2011
Revision Date: 9/27/2019
Length: 11 pages

The project manager for American Constructors Inc. (ACI) sat down with his team on September 24, 2009, to evaluate the progress of its building expansion project in Murfreesboro, Tennessee. The team had been working on the World Outreach Church expansion project for over a year already and it was nearing completion. Originally scheduled for completion by March 2010, the project deadline was pushed ahead to December 14, 2009, at the request of the client, who desired to use the property for the Christmas season. In an effort to maintain the reputation of ACI, which had grown to be known as a premier contractor in Tennessee, the project manager and his team needed to determine if the December 14 deadline was feasible.

Teaching Note: 8B10D016 (14 pages)
Industry: Construction
Issues: Scheduling; Project Design/Development; Project Management; Critical Path
Difficulty: 4 - Undergraduate/MBA

Kenneth J. Klassen, Leanne Miele

Product Number: 9B10D002
Publication Date: 6/10/2010
Length: 7 pages

It was June 5, 2008 and the senior promotions coordinator was beginning to feel the pressure of managing a major sponsorship event for the Toronto Sun, a daily newspaper publication in Ontario, Canada. She had recently been hired and had received the responsibility of organizing the Toronto Sun's presence in the city's annual Caribana Parade after her colleague failed to make any progress following months of handling the assignment. With only eight weeks until parade day (August 2), she felt challenged to make the company's float a success. The Toronto Sun earned its place in the parade as the primary print media sponsor for the event. Pulling the company's float from the biggest parade event in the city would mean forfeiting valuable marketing exposure. This case was designed for use in an undergraduate or MBA operations management or introductory project management course. Developed to aid instructors in facilitating discussions of key project management concepts, the case content allows for an analytical approach to covering the basic skills in planning a project, including precedence relationships, critical path, due dates, uncertainty (PERT tasks), crashing, etc. It can be used to teach students MS Project or other project management software. It can also be used for a less analytic, more managerial discussion of project management.

Teaching Note: 8B10D02 (13 pages)
Industry: Manufacturing
Issues: Media; Scheduling; Project Design/Development; Project Management; Critical Path
Difficulty: 4 - Undergraduate/MBA

Lyn Purdy, Ken Mark

Product Number: 9A98D020
Publication Date: 10/27/1999
Revision Date: 1/27/2010
Length: 10 pages

The assistant brand manager for DayQuil cold medication is under the gun to meet the deadline for a sampling experiment designed to increase DayQuil's market share. The case discusses managing timelines, identifying bottlenecks, and developing project management skills. DayQuil Sampling Operations serves to introduce students to project management issues and the decisions that have to be made, including crashing timelines and identifying parallel processes. This case can also serve as an excellent introduction to the use of Microsoft Project. DayQuil Sampling Operations is part of a three-case series about the DayQuil brand of cold medication made by Procter & Gamble. The other cases are Procter & Gamble Canada: DayQuil Brand Sampling (9A98A029) and Procter & Gamble Canada: Managing DayQuil Sampling (9A98C015).

Teaching Note: 8A98D20 (5 pages)
Industry: Manufacturing
Issues: Brands; Critical Path; Project Management
Difficulty: 4 - Undergraduate/MBA

Chapter 9:
Location and Layout

Robert Klassen, Adam Bortolussi

Product Number: 9B10D004
Publication Date: 4/19/2010
Revision Date: 5/27/2014
Length: 9 pages

New technology being developed by Carroway Environmental promised a clean, inexpensive process to deal with a vexing problem: scrap tires. Using microwave energy, tires were broken down to reclaim their raw materials for sale into a wide variety of markets and alternative uses. Just as important, no harmful wastes and pollutants were created. But the president and chief executive officer was continuing to face challenges to secure additional funding of $2 million required to get his new business venture off the ground. The president was also unsure about where to locate the first large-scale pilot plant. Finally, given that the president envisioned developing multiple sites across North America, should he be looking for a joint venture partner?

Teaching Note: 8B10D04 (8 pages)
Industry: Manufacturing
Issues: Process Design/Change; New Venture; Sustainable Development; Technology
Difficulty: 4 - Undergraduate/MBA

Yi-Chia Wu, Joo Y. Jung

Product Number: 9B09D014
Publication Date: 2/5/2010
Length: 15 pages

The city of McAllen, Texas and its partners have worked on attracting an automotive assembly plant to the region for over fifteen years. Under the North American Free Trade Agreement (NAFTA) provision, this region enjoys the advantages offered by both sides of the Mexican-U.S. border. Even during the economic downturn of 2007 to 2008, McAllen experienced a lower unemployment rate compared to other cities in the United States. One of the primary reasons was its close proximity and economic ties to Mexico. Lower labour cost, a right-to-work state and proximity to Mexico were some of this region's strengths, while a high illiteracy rate, limited numbers of automotive suppliers and small workforce were among its weaknesses. Based on publicly available data and aggregate score evaluation methods, McAllen is compared to other potential sites. The case addresses a wide range of issue regarding site selection factors within the automotive industry.

Teaching Note: 8B09D14 (6 pages)
Industry: Manufacturing
Issues: Automotive; Site Selection; Global Strategy; Decision Making
Difficulty: 4 - Undergraduate/MBA

John S. Haywood-Farmer, Alex Antoniou

Product Number: 9B04D006
Publication Date: 6/24/2004
Revision Date: 10/9/2009
Length: 17 pages

Canadian Tire is a large automotive parts, sports and leisure, and home improvement retail store chain. With the rise in the number of large retail outlets, the company needed to look at ways to maintain and increase sales. Continuous improvements were made to store design and in-store operations. The vice-president of store planning and merchandising was evaluating checkout configurations. He needed to make his decision soon to avoid delaying the construction of four new test stores. He has three options; continue using the current tandem system, add self check-outs or switch to a single line configuration. He must analyze the three options to determine the benefits and trade-offs of each.

Teaching Note: 8B04D06 (7 pages)
Industry: Retail Trade
Issues: Process Design/Change; Service Operations; Store Layout; Retailing
Difficulty: 4 - Undergraduate/MBA

John S. Haywood-Farmer, Tim Silk

Product Number: 9A97D009
Publication Date: 7/22/1997
Revision Date: 11/20/2002
Length: 7 pages

In response to a recent incident the supervisor of administration services was trying to decide how best to prevent the company from sending out mail with insufficient postage. The case describes how the company determines how much postage is required and the process Canada Post uses in dealing with mail with insufficient postage. The supervisor is examining two options. One involves a software solution to calculate envelope weight, the other involves mechanically weighing each envelope.

Teaching Note: 8A97D09 (6 pages)
Industry: Finance and Insurance
Issues: Store Layout; Technological Change; Equipment Selection/Maintenance; Crisis Management
Difficulty: 4 - Undergraduate/MBA

John S. Haywood-Farmer, Andrew Fletcher

Product Number: 9A96D005
Publication Date: 6/28/1996
Revision Date: 2/9/2010
Length: 11 pages

The president has to decide where to relocate his water park manufacturing company's production facility. Not only has the company apparently outgrown its current site, but residents near it have complained about unpleasant odors. The company has investigated three potential sites which students have to evaluate both financially as well as from a strategic point of view: should the company own or rent its facility? Should the manufacturing facility be located near customers, suppliers (including labor), or the company's head office?

Teaching Note: 8A96D05 (7 pages)
Industry: Manufacturing
Issues: Plant Location; Site Selection; Expansion; Corporate Strategy
Difficulty: 4 - Undergraduate/MBA

Chapter 10:
Managing Demand and Forecasting

P. Fraser Johnson, Kyle Hunter

Product Number: 9B07D018
Publication Date: 8/30/2007
Length: 12 pages

The corporate manager of vehicle planning at Nissan Canada Inc. had been asked by the director of vehicle ordering for Nissan North America (NNA), to review the proposed vehicle ordering process as part of the new Integrated Customer Order Network (ICON). The ICON project would change Nissan's North American vehicle ordering process from a 'make-to-stock' into a 'make-to-order' environment which called for a significant process transformation for Nissan's operations in North America and Japan. The corporate manager of vehicle planning was hoping that the new process would be exactly what the dealers were seeking in an effort to closer align production with customer demand. However, he needed to evaluate the new process from the perspective of all stakeholders to ensure that Nissan's business objectives could be met.

Teaching Note: 8B07D18 (7 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Forecasting
Difficulty: 5 - MBA/Postgraduate

Carol Prahinski, Eric Olsen

Product Number: 9B06D006
Publication Date: 8/21/2006
Revision Date: 9/16/2009
Length: 11 pages

The newly promoted inventory manager wonders if there is an easier, more reliable means of forecasting the sales demand. Currently forecasts are based on the plant manager, sales/marketing manager and inventory manager's knowledge of industry trends, competitive strategies and sales history. He must decide if using statistical forecasting methods would ease the forecasting process and make the forecast 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.

Teaching Note: 8B06D06 (23 pages)
Industry: Manufacturing
Issues: Sales Forecasting; Demand Analysis; Planning Information; Uncertainty
Difficulty: 4 - Undergraduate/MBA

James A. Erskine, Michiel R. Leenders, Chris J. Piper

Product Number: 9B04D017
Publication Date: 9/20/2004
Revision Date: 10/9/2009
Length: 6 pages

The purchasing manager was wondering how many bottles he should purchase in the coming year. Last year, the market had levelled off and sales predictions were difficult. On the one hand he wanted to be sure sufficient bottles were available to supply this year's sales levels, yet he also wanted to minimize year-end inventories as covered storage space for empty bottles was tight and a bottle change-over seemed possible in the next two years.

Teaching Note: 8B04D17 (12 pages)
Industry: Manufacturing
Issues: Inventory; Forecasting
Difficulty: 4 - Undergraduate/MBA

Chapter 11:
Operations Planning & Scheduling

John S. Haywood-Farmer, Dina Ribbink, Jason Melhuish

Product Number: 9B10D015
Publication Date: 2/3/2011
Length: 13 pages

A partner and owner of the Sunset Grill at Blue Mountain in the ski village at Blue Mountain, Ontario, had very mixed emotions. The restaurant had just finished its first year of operation and had broken even, and had been named as the Business of the Year in the counties of Simcoe and Grey. Yet the owner knew that operations were still far from perfect. Queues of waiting customers were very long, food orders were delivered slowly, and tensions were rising. What could be done to improve the situation?

Teaching Note: 8B10D015 (11 pages)
Industry: Accommodation & Food Services
Issues: Aggregate Planning; Wait Lines; Franchising; Breakfast Restaurant; Seasonality; Capacity and Demand
Difficulty: 4 - Undergraduate/MBA

Carol Prahinski

Product Number: 9B04D020
Publication Date: 9/12/2004
Revision Date: 10/9/2009
Length: 2 pages

Necanko Inc. is a large international food manufacturer. A buyer-scheduler for the company must forecast sales demand to determine production planning, inventory management and distribution for the year. Sales were normally predictable and stable, but the company has just come back from a three month layoff due to slow sales and they are 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.

Teaching Note: 8B04D20 (9 pages)
Industry: Manufacturing
Issues: Production Scheduling; Bullwhip Effect; Uncertainty; Marketing Channels
Difficulty: 4 - Undergraduate/MBA

Carol Prahinski, John S. Haywood-Farmer, David Wright, Kevin Saskiw

Product Number: 9B02D024
Publication Date: 1/10/2003
Revision Date: 11/30/2009
Length: 15 pages

Quinte MRI is a small service provider of medical diagnostic technologies. After just six weeks in operation at a medical centre, the company developed an extensive waiting list, and physicians began referring patients to competing facilities. Quinte MRI's business development coordinators must provide recommendations and an action plan to deal with this process and productivity problem in a setting with extreme variability.

Teaching Note: 8B02D24 (22 pages)
Industry: Health Care Services
Issues: Bottlenecks; Scheduling; Process Analysis; Capacity Analysis
Difficulty: 4 - Undergraduate/MBA

Ken R. Bowlby, John S. Haywood-Farmer

Product Number: 9A94D014
Publication Date: 9/8/1994
Revision Date: 2/23/2010
Length: 4 pages

The assistant plant manager was trying to decide on production scheduling and inventory management policies for the new computer diskette plant. Students are presented with three demand forecasts of increasing complexity as variability between and within product lines emerges. The case is suitable for students to do an economic order quantity (EOQ) analysis and draft a production schedule.

Teaching Note: 8A94D14 (6 pages)
Industry: Manufacturing
Issues: Production Scheduling; Inventory Planning/Control; Forecasting; Economic Order Quantity
Difficulty: 4 - Undergraduate/MBA

Chris J. Piper

Product Number: 9A82D006
Publication Date: 1/1/1982
Revision Date: 6/1/2001
Length: 4 pages

Martin Trailers Limited, which has grown rapidly, produces a line of camping trailers, which have a pronounced seasonal sales pattern. Details for the previous year's planning process, staffing levels, production outputs and costs are reviewed by the owner, with the objective of improving the management of materials in the year ahead. Sufficient information is available to perform a quantitative analysis of the aggregate planning decision and its relationship to material requirements planning.

Teaching Note: 8A82D06 (6 pages)
Industry: Manufacturing
Issues: Capacity Analysis; Material Requirements Planning; Materials Management; Purchasing
Difficulty: 4 - Undergraduate/MBA

Chapter 12:
Resource Planning

Derrick Neufeld, Liliana Lopez Jimenez

Product Number: 9B11E025
Publication Date: 8/30/2011
Revision Date: 5/4/2017
Length: 15 pages

The case describes the selection of an information technology (IT) product to support the operations of 1-888-Junk-Van, a small waste-collection business. Marcus Kingo, the business owner, has five alternatives from which to choose: a database upgrade, contracting out development of a new software application, using Google Docs, using an online tool framed as Platform as a Service (PaaS), or implementing a small-business enterprise resource-planning (ERP) system. Each option presents strengths and weaknesses, and students are left to make a decision. The case exemplifies the IT deployment challenges faced by small companies.

Teaching Note: 8B11E025 (9 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Information Technology; IT Selection and Evaluation; Small Companies; Virtual Business; Cloud Computing; Waste Management
Difficulty: 4 - Undergraduate/MBA

Lyn Purdy, Joseph Schiele

Product Number: 9A98C020
Publication Date: 10/27/1999
Revision Date: 1/25/2010
Length: 15 pages

The assembly supervisor at Navistar faces a critical supply problem; one that not only affects the bottom line but more importantly the customer. This case requires a student to determine what is and is not important, to think creatively about how to use the information provided, and to formulate a recommendation with respect to solving the current supply problem. The student must review: (1) a process flow chart in detail, (2) numerical data with respect to costs and frequency of specific causes for trim shortages, and (3) a number of identified causes for the supply problem. Navistar must look at value added activities, its internal policies and practices, storage of materials, a Just-In-Time inventory system that may be too tight, and communication difficulties that arise when last minute design changes occur.

Teaching Note: 8A98C20 (8 pages)
Industry: Manufacturing
Issues: Automotive; Supplier Relations
Difficulty: 4 - Undergraduate/MBA