Ivey Publishing

Manufacturing Planning & Control for Supply Chain Management

Jacobs, F., Berry, W., Whybark, D., & Vollmann,T.,6/e (United States, McGraw-Hill Irwin, 2011)
Prepared By Asad Shafiq, PhD Student
Chapter and Title Chapter Matches: Case Information
Chapter 1 & 1A:
Manufacturing Planning & Control and Enterprise Resource Planning (ERP)

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

Richard M. Kesner

Product Number: 9B05E023
Publication Date: 1/13/2006
Revision Date: 11/11/2015
Length: 21 pages

The KL Worldwide Enterprises Inc. case provides a rich context within which to explore the information technology (IT) issues that confront a global enterprise engaged in the manufacture, sales, and distribution of durable goods. The primary purpose is to give students a real-world, hands-on simulation of an IT systems development process that spans the entire lifecycle of an IT project from initial project scoping and justification through acceptance testing and deployment. The KL case emphasizes the design and delivery of enterprise resource planning, supply-chain management, decision support system, and e-commerce solutions for both for-profit and not-for-profit organizations. The case leads the reader into a consideration of the many opportunities to improve KL�s performance through the better design and integration of IT-enabled processes and services, including designing a new e-commerce or DSS capability and reengineering KL�s supply-chain and product design practices.

Teaching Note: 8B05E23 (9 pages)
Industry: Manufacturing
Issues: Operations Management; E-Commerce; Information System Design; Information Systems; Northeastern
Difficulty: 4 - Undergraduate/MBA

Chris J. Piper, Robert Klassen

Product Number: 9A97D011
Publication Date: 8/28/1997
Revision Date: 2/3/2010
Length: 10 pages

VBF Tubing, a Dutch firm, is facing increased demand for its products, high inventory levels, and expensive setup costs. In light of these problems, the logistics manager must decide how to respond to a proposal that longer production runs be scheduled. The production, cost and market data supplied permit the students to explore the necessity and implications of changing production batch sizes on these competing priorities. In particular, the application of the traditional Economic Order Quantity can be assessed based on other facility-wide operating practices.

Teaching Note: 8A97D11 (9 pages)
Industry: Manufacturing
Issues: Inventory Planning/Control; Economic Order Quantity; Just-in-Time; Operations Management
Difficulty: 4 - Undergraduate/MBA

Robert Klassen, P. Fraser Johnson

Product Number: 9A97D002
Publication Date: 2/5/1997
Revision Date: 10/11/2002
Length: 3 pages

A product development manager must plan the launch of a new toy for the upcoming Christmas season. This exercise provides a basic introduction to applying project planning techniques and associated calculations, and can be used in conjunction with computer project planning software. Activity times and their precedence relationships are explicitly given, and the students can plan and replan the project to meet the schedule deadline. (A Microsoft Project files, products 7A97D002A, 7A97D002B and 7A97D002C are available for use with this case.)

Teaching Note: 8A97D02 (10 pages)
Industry: Retail Trade
Issues: Project Management; Product Design/Development; Planning
Difficulty: 4 - Undergraduate/MBA

Chapter 2:
Demand Management

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

David M. Currie, Ilan Alon

Product Number: 9B04D015
Publication Date: 11/23/2004
Revision Date: 10/9/2009
Length: 7 pages

An executive must estimate the demand for rolls of film in various countries based on demographic data about the counties. She must determine the process and develop a spreadsheet model that will provide the results based on data (GNP per capita, population, income distribution) from the various countries. The purposes of the case are to show the relation between national statistics and company decisions and to provide training in advanced spreadsheet skills, conceptualizing a problem and modelling.

Teaching Note: 8B04D15 (15 pages)
Industry: Manufacturing
Issues: Marketing Research; International Business; Spread Sheet Application; Operations Management
Difficulty: 4 - Undergraduate/MBA

John S. Haywood-Farmer, Stephannie A. Larocque

Product Number: 9A93D001
Publication Date: 1/22/1993
Revision Date: 8/31/2010
Length: 13 pages

The University of Western Ontario's fitness unit coordinator was wondering how to improve the aerobics program. With financial and time constraints, a very seasonal demand pattern, and an entirely part-time staff with relatively short tenure, she wondered how to improve the quality of service, the suitability of classes, the number of classes, and the productivity of program administration. Students have to analyze market survey data and develop a plan of action.

Teaching Note: 8A93D01 (9 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Customer Relations; Demand Analysis; Consumer Analysis; Marketing Research
Difficulty: 4 - Undergraduate/MBA

Chapter 3:

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

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

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 4 & 4A:
Sales and Operations Planning

Darren Meister, Ramasastry Chandrasekhar

Product Number: 9B09M076
Publication Date: 10/15/2009
Length: 19 pages

In September 2009, the president and chief executive officer (CEO) of Rona Inc. was reviewing the company's progress in relation to the ongoing economic recession. Rona was the largest retailer of hardlines in Canada. Rona had noticed definitive signs of slowdown in the third quarter of 2007 and had launched Strategic Plan 2008 - 2011 as a response. The two-phase program was nearing the completion of its first phase of Productivity, Efficiency and Profitability (PEP) and was gearing up for the 24 month-long Recovery Program. The Strategic Plan had been tweaked since its launch, all with a view towards strengthening the core platform. The objective of the Recovery Plan was to restore focus on growth vectors from which the company had become distracted. On the eve of commencement of the Recovery Plan, the CEO began to wonder if Rona was ready to act on increasing sales, recruiting independents, constructing new stores and pursuing acquisitions. Or was it necessary to redesign and relaunch the PEP program, thus deferring the Recovery Plan?

Teaching Note: 8B09M76 (8 pages)
Industry: Retail Trade
Issues: Strategy Development; Retailing; Managing Recession; Strategy Execution
Difficulty: 3 - Undergraduate

John S. Haywood-Farmer, Erich Isopp, Naomi Midanik

Product Number: 9B06D012
Publication Date: 8/30/2006
Revision Date: 9/16/2009
Length: 16 pages

The head of logistics has received a number of customer complaints regarding various aspects of the company's product delivery policy. She must decide what can be done to increase customer satisfaction with its pricing, delivery service and customer relations. The head of logistics is not sure if it's a problem with communications or internal problems with the delivery process. She will have to assess customer feedback and examine the sales process.

Teaching Note: 8B06D12 (10 pages)
Industry: Construction
Issues: Logistics; Quality; Service Operations; Customer Relations
Difficulty: 4 - Undergraduate/MBA

Larry Menor, Ken Mark

Product Number: 9B01D004
Publication Date: 2/2/2001
Revision Date: 12/17/2009
Length: 19 pages

Blinds To Go (BTG), a Montreal-headquartered producer of made-to-order window coverings, had made the decision to enter the Florida market by opening eight retail stores. As a result of this decision, the senior vice-president (SVP) of operations for BTG was faced with the dilemma of deciding if and when an assembly plant should be built to support these and future Florida retail stores. The most recent plant, built in Lakewood, New Jersey, had experienced operational problems during its startup, resulting in the eventual replacement of most of the supervisory staff and a significant portion of the plant employees. This led to additional start-up costs and customer service problems. Faced with this expansion into Florida, the SVP set about devising an operating plan that would achieve the goals of the Florida expansion without the growing pains of past efforts. As the stores were to be opened in six months, a plan would have to be finalized soon.

Teaching Note: 8B01D04 (14 pages)
Industry: Manufacturing
Issues: Service Operations; Operations Management; Action Planning and Implementation; System Design
Difficulty: 4 - Undergraduate/MBA

Chapter 5:
Master Production Scheduling

Eric Olsen, Carol Prahinski, Jenni Denniston

Product Number: 9B06D017
Publication Date: 10/12/2006
Revision Date: 9/16/2009
Length: 11 pages

The general manager of the Wilkins plant in Paso Robles, California has received instructions from head office to reduce inventory by 30 per cent in the next quarter. Although inventory had been accumulating over the past years, this has 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.

Teaching Note: 8B06D17 (22 pages)
Industry: Manufacturing
Issues: Manufacturing Strategy; Inventory Planning/Control; Logistics; Operations Management
Difficulty: 4 - Undergraduate/MBA

David M. Currie, Giorgio Sinkovic

Product Number: 9B04D019
Publication Date: 11/23/2004
Revision Date: 5/18/2017
Length: 6 pages

An executive wonders if it is possible to increase profits by changing the mix of products at a shipyard. The yard currently operates below the breakeven point, so must achieve profitability or default on loan payments.

Teaching Note: 8B04D19 (6 pages)
Industry: Manufacturing
Issues: linear programming; spreadsheet application, strategy
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

Chapter 6 & 6A:
Material Requirements Planning and Advanced MRP

David Wood, Robert Klassen

Product Number: 9B11D015
Publication Date: 11/10/2011
Revision Date: 6/29/2012
Length: 7 pages

Bruce Ballantyne had recently joined C.R.P. Products (CRP), a furniture manufacturer in Stratford, Ontario, to help review the company’s operations and assess what changes were necessary to keep up with demand. Although it was early 2011 and the peak season was still four months away, Ballantyne knew that he would have to determine what equipment was needed over the next three weeks to ensure it was delivered and installed before the peak season. Jamie Bailey, the owner of CRP, had also concluded that CRP did not have the financing available for both the new equipment needed to make its unique design of outdoor furniture and the seasonal working capital required to support inventory and accounts receivable. He had turned to Ballantyne to develop a solution that would keep up with demand, keep inventory low, and work within the available financing.

Teaching Note: 8B11D015 (13 pages)
Industry: Manufacturing
Issues: Capacity Management; Inventory, Batch Size and Free Capacity; Economic Order Quantity; Process Design; Plant Layout; Furniture; Ontario, Canada
Difficulty: 4 - Undergraduate/MBA

Carol Prahinski, Eric Olsen

Product Number: 9B06D005
Publication Date: 4/11/2006
Revision Date: 9/16/2009
Length: 16 pages

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 had concerns about the level of the inventory that was conducted, he knew changes were needed and must decide what alternatives to consider. Students are exposed to the difficulties of managing inventory as well as typical problems that occur in growing businesses. Students will diagram the bill of material, conduct a materials requirement planning explosion and determine appropriate levels of safety stock, and address concerns associated with the high level of inventory.

Teaching Note: 8B06D05 (14 pages)
Industry: Manufacturing
Issues: Inventory Planning/Control; Material Requirements Planning; Materials Management
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 7:
Capacity Planning & Management

Peter C. Bell, Benjamin Craig, Andrew Weston, Sachin Gupta

Product Number: 9B11E004
Publication Date: 4/8/2011
Length: 5 pages

The general manager of Craig Manufacturing Cambridge Branch felt that there was room to improve top-line growth through better utilization of plant capacity. The company was losing out on sales due to the highly seasonal nature of demand; the plant was fully loaded four months of the year, but it had unused capacity during the remaining months. The general manager had just attended a lecture where a more flexible approach to pricing had been suggested as a way to better manage supply chain and capacity issues. An idea began to emerge: Could Craig Manufacturing use pricing to better match demand to plant capacity? If so, would this practice boost profitability, or would it merely reduce revenues?

Teaching Note: 8B11E004 (11 pages)
Industry: Manufacturing
Issues: Pricing; Capacity Planning; Optimization; Revenue Management; Seasonal Demand
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

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

Chapter 8:
Production Activity Control

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

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

John S. Haywood-Farmer, Bill Rankin

Product Number: 9A93D021
Publication Date: 10/2/1993
Revision Date: 9/9/2009
Length: 7 pages

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 favouring them. Ultimately, the use of linear programming to construct aggregate plans will be introduced.

Teaching Note: 8A93D21 (13 pages)
Industry: Manufacturing
Issues: Aggregate Planning; Linear Programming; Tradeoff Analysis
Difficulty: 4 - Undergraduate/MBA

Chapter 9:
Just-in-Time (JIT)

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 10 & 10A:
Distribution Requirements Planning and Management of Supply Chain Logistics

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

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

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

P. Fraser Johnson, Viola Hoo

Product Number: 9B04D008
Publication Date: 1/4/2011
Length: 12 pages

A summer intern student at 3M Health Care must analyze 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 a current supply chain structure of using value-added resellers.

Teaching Note: 8B04D08 (7 pages)
Industry: Health Care Services
Issues: Hospitals; Sales Strategy; Logistics; Distribution
Difficulty: 4 - Undergraduate/MBA

Chapter 11:
Order Point Inventory Control Methods

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

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 12:
Strategy & MPC System Design

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

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

Robert Klassen, P. Fraser Johnson

Product Number: 9A98D006
Publication Date: 3/2/1998
Revision Date: 9/25/2000
Length: 15 pages

Unicon supplies pre-cast concrete products to the flourishing construction market in Hong Kong. The deputy managing director, is evaluating an opportunity to pursue a blanket regulatory approval for Unicon's custom-designed concrete products with its largest customer, the Hong Kong Housing Authority. This opportunity promised to offer cost savings to both Unicon and this customer, although questions remain about the broader implications for Unicon's manufacturing operations and other customers. At the same time, management must develop a plan to expand its manufacturing capacity if Unicon hopes to capitalize on the rapidly expanding market and fend off new competitors from mainland China.

Teaching Note: 8A98D06 (16 pages)
Industry: Manufacturing
Issues: Government Regulation; Product Life Cycle; Manufacturing Strategy; International Business
Difficulty: 4 - Undergraduate/MBA