Ivey Publishing

Operations and Supply Chain Management

Jacobs, F.R.; Chase, R. B.,14/e (United States, McGraw-Hill Irwin, 2014)
Prepared By Jill Pillon, CaseMate Editor
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Introduction

NAMO ALLOYS PVT. LTD. - A DRIVE TO SUSTAINABLE INVESTMENT DECISION
Jitendar Khatri Bittoo, Ashutosh Dash

Product Number: 9B13D022
Publication Date: 2/28/2014
Revision Date: 2/28/2014
Length: 14 pages

Namo Alloys, a medium-size, secondary-metal manufacturing firm, is seeking to expand by investing in new technology. The co-founder’s challenge is to select a technology that aligns with the company’s sustainable manufacturing philosophy by creating not only economic value but also sustainable societal and environmental values that will ensure triple bottom line value creation for all company stakeholders.

Teaching Note: 8B13D022 (18 pages)
Industry: Manufacturing
Issues: Sustainable investment; sustainable development; triple bottom line; multi-criteria decision making; India
Difficulty: 5 - MBA/Postgraduate



7 DAYS INN: OPERATIONS STRATEGY
Gang Chen, Liang Xu

Product Number: 9B12D023
Publication Date: 12/6/2012
Revision Date: 12/4/2012
Length: 15 pages

AWARD WINNING CASE - This case won the Emerging Global Chines Competitors, 2013 European Foundation for Management Development (EFMD) Case Writing Competition. 7 Days Inn, a leading hotel group in China, was established in 2005 and was listed on the New York Stock Exchange in 2009. It now operates more than 1,000 hotels in 168 major Chinese cities and has enrolled more than 30 million customers in its membership club. Its success is largely due to its innovative business model and operations strategy, which includes designing product services with the vertical cutting approach, enhancing customer loyalty through a membership system and direct sales, managing a hotel chain with different governance structures and expanding a hotel chain with an innovative franchised-and-managed model. In particular, the case introduces the company’s shepherd management philosophy. However, as the company expands, it has become difficult for headquarters to manage and supervise all the hotels. In addition, the resignation rate of hotel managers has gone up to 30 per cent in the past few years. What should 7 Days Inn do to deal with these challenges? Does the company need to break the rules again and innovate its business model, operations strategy or operating model — or all of them?

Teaching Note: 8B12D023 (12 pages)
Industry: Accommodation & Food Services
Issues: Hotel management; business model innovation; China
Difficulty: 4 - Undergraduate/MBA



MILLBROOK ESTATE HOMES LTD.: THE WHISTLE HILL ESTATES OPPORTUNITY
David Wood, Ken Mark

Product Number: 9B11D005
Publication Date: 4/1/2011
Revision Date: 1/21/2013
Length: 14 pages

In October 2008, the president of Millbrook Estate Homes Ltd. is trying to determine if his firm should take on a new development called Whistle Hill Estates. Millbrook began as a builder of modest homes on a large scale, but the Whistle Hill opportunity would involve developing high-end custom homes.



The president’s decision will have a significant effect on Millbrook’s future strategy. Millbrook can stay within its comfort zone and continue building large numbers of entry-level or mid-level homes, purchasing supplies in bulk, and negotiating volume discounts with the trades, or the company can choose to move into the high-end custom home segment, in which it will have to manage more complex designs, source custom materials, and provide a greater level of customer service to clients. In the second option, Millbrook has the opportunity to earn higher profits per house built. If the president wants Millbrook to expand into the custom home segment, he needs to consider what changes will be necessary to position the Whistle Hill opportunity for success.


Teaching Note: 8B11D005 (8 pages)
Industry: Construction
Issues: Organizational Structure; Strategic Change; Process Design/Change; Operations Management; Real Estate Development
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Strategy

OLEUM RESOURCES
David Wood, Tom Hansen, Jack Hansen, Shane Parkhill

Product Number: 9B12D019
Publication Date: 9/7/2012
Revision Date: 5/31/2013
Length: 15 pages

This case introduces students to the value chain of the oil and gas industry in Canada. Through examining the current position and future plans of a small, independent oil and gas exploration company, they will discover the challenges of growing through acquisition and the risks associated with expanding beyond a company's core competencies. The case includes an overview of the industry, the history of Oleum Resources Ltd., and the opportunities it has to revise its business strategy by expanding into the innovative but risky ASP technology. The company's first two options entail not only investing considerable capital but also hiring highly specialized personnel. However, the third option, to stay the course, may mean facing losses and investor unhappiness.

Teaching Note: 8B12D019 (9 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Value Chain; Sustainable Advantage; Oil and Gas; Market Conditions; Canada
Difficulty: 3 - Undergraduate



WAWA: SUPPLY CHANGE MANAGEMENT
Robert W. Keidel

Product Number: 9B11M042
Publication Date: 6/8/2011
Length: 14 pages

By mid-2007, Wawa, headquartered outside Philadelphia, had grown into a chain of 564 convenience stores (200 of which sold gasoline) within a 250-mile radius. A privately owned firm, Wawa employed over 16,000 people and had $4.67 billion of sales in 2006, an increase of 19.6 per cent over the prior year. It was widely admired as a highly effective and humane organization with a loyal and expanding body of customers.



This case addresses Wawa’s supply chain management (SCM) in the context of strategic direction, organizational design, and future growth opportunities. Over an eight-year period, Wawa had transformed its supply chain from a disjointed array of parts into a coherent, high-functioning system. Issues before the company now included (1) the relation between SCM and competitiveness; (2) the nature of the typical store and store manager; and (3) possible expansion beyond Wawa’s current area of operations. Another question concerned Wawa’s stores. Historically, these had featured a friendly ambience where “everybody knows your name,” but the company was moving towards larger, more standardized units with fewer offerings, with the goal of minimizing customer throughput time. What would this shift mean for the role of the store manager, and for the overall customer experience? Finally, to what extent was Wawa “landlocked” in its concentrated, middle-Atlantic market? Could — and should — the company attempt to export its distinctive value proposition, culture, and methods to other geographic areas?


Teaching Note: 8B11M042 (14 pages)
Industry: Retail Trade
Issues: Supply Chain Management; Geographic Expansion; Convenience Stores; United States
Difficulty: 5 - MBA/Postgraduate



OPERATIONS STRATEGY AT GALANZ
Ng Chi Hung, Barbara Li, Xiande Zhao, Xuejun Xu, Yang Lei

Product Number: 9B10D005
Publication Date: 8/20/2010
Revision Date: 5/4/2017
Length: 17 pages

Starting from a humble beginning of being a manufacturer of down feather products owned by Shunde Township, Galanz Enterprises Group Co. Ltd. (Galanz) had transformed itself into a world class manufacturer of microwave ovens producing about 50 per cent of the global output in 2003. This case describes the competitive and operational strategies that Galanz used to achieve such a meteoric growth. The company started out with a clear competitive strategy based on cost leadership. It designed and implemented operations system to help achieve lower cost through economy of scale, the transfer of production capacity from developed countries and full utilization of the available production capacity.

Teaching Note: 8B10D05 (14 pages)
Industry: Manufacturing
Issues: China; Competitive Strategy; Operations Strategy
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Design of Products and Services

AMERICAN EXPRESS CANADA
Larry Menor, Ramasastry Chandrasekhar

Product Number: 9B12D022
Publication Date: 10/17/2012
Revision Date: 7/5/2018
Length: 23 pages

This case examines how a premium credit card company, American Express Canada (Amex Canada), is attempting to differentiate itself from its competition and to realize value for—and from—its cardholder members through a focus on providing apt quality services and servicing. In April 2011, the president and chief executive officer of Amex Canada is considering his options in sustaining the company's stance in the ultra-rich end of the premium payment cards segment in the face of competition from credit card companies that previously targeted the Canadian mass market. The situation is compounded by the after-effects of the economic downturn that began in the United States in 2008. Amex Canada has to develop a viable strategic and operational plan to realize its vision of becoming the most respected service brand, an ambition that is founded upon what it calls the Total Service Experience it provides to its card members. The case looks at the history of the company, provides an overview of the Canadian payment card industry, and explores core service and servicing issues salient to the design and provision of the Total Service Experience that Amex Canada hopes will not only satisfy existing cardholders but will attract new card members across its array of payment card options.

Teaching Note: 8B12D022 (23 pages)
Industry: Finance and Insurance
Issues: Service Design and Delivery; Quality; Customer Experience; Canada
Difficulty: 5 - MBA/Postgraduate



C. R. PLASTICS
David Wood, Mary Gillett

Product Number: 9B11D016
Publication Date: 1/3/2012
Revision Date: 9/11/2018
Length: 10 pages

Jamie Bailey, owner and president of C. R. Plastics, had successfully grown his business every year since 1994 when he began producing recycled plastic outdoor furniture. This rapid growth had provided its own challenges in terms of constrained financing and by summer 2010, Bailey was desperate for a new source of cash. He subsequently auditioned to be on Dragon’s Den, a television show where entrepreneurs could pitch their business to a group of venture capitalists, who could then choose to invest their own cash in exchange for a share of the business. With a week remaining before he had to present his final pitch, Bailey had to make a difficult prediction: How much money would he need to meet the growing demand into 2011? Complicating his analysis were competing proposals to fundamentally change how production was managed. In addition to reconfiguring labour allocation, one method required significant investment in equipment, while the other increased inventory during the off-season. Which alternative would allow the company to retain a greater share of the equity when Bailey pitched his business to the Dragon’s Den panel?

Teaching Note: 8B11D016 (8 pages)
Industry: Manufacturing
Issues: Cash Flow Projections; Financing; Valuation; Seasonal Working Capital Management; Furniture; Canada
Difficulty: 4 - Undergraduate/MBA



A-CAT CORP. - BANG FOR THE BUCKS
Jitendra R. Sharma

Product Number: 9B09D006
Publication Date: 7/13/2009
Length: 7 pages

The case describes the situation facing the vice-president of A-CAT Corp. (A-CAT), Vidarbha Region, Maharashtra. A-CAT manufactured a wide range of electrical appliances for household use. Typical products included TV signal boosters, transformers, FM radio kits, electronic ballasts, battery chargers and voltage regulators. The voltage regulators manufactured by A-CAT were used for many different purposes; however, the focus was on its flag-ship product, VR500 - a voltage regulator. Over the last few months, this model had faced stiff competition and was not able to meet the rising expectations of the market. Management was concerned that a significant number of A-CAT's customers were opting for competitors' products. The case intends to 1) make students aware of the relationship between customer requirements and the technical characteristics of a product 2 ) help students grasp the basics of value analysis 3) teach students to use value analysis in assessing the scope for cost reduction.

Teaching Note: 8B09D06 (7 pages)
Industry: Manufacturing
Issues: Cost Control; Value Analysis; Product Design/Development; Cost/Benefit Analysis; Consumer Satisfaction
Difficulty: 5 - MBA/Postgraduate


Chapter 4:
Project Management

CONVOCATION AT THE NATIONAL INSTITUTE OF MANAGEMENT'S CENTRAL INDIA CAMPUS (A)
Srinivasan Maheswaran, Jitendra R. Sharma, John S. Haywood-Farmer

Product Number: 9B13D003
Publication Date: 2/25/2013
Revision Date: 2/22/2013
Length: 10 pages

The (A) case involves managing the planning and execution of the first convocation held at one of the campuses of a business school in Nagpur, India, at fairly short notice. The school’s chairperson of post-graduate studies in management programs has been appointed as the chief co-ordinator of the event. Leveraging his operations-management background and working in collaboration with other faculty, he sets about identifying the required activities and their precedence relationships in order to ascertain the time required to complete these activities.

The (B) case 9B13D004 presents a situation that arises about three weeks into the project that necessitates some replanning in midstream.


Teaching Note: 8B13D003 (10 pages)
Industry: Educational Services
Issues: critical path; project management; India
Difficulty: 4 - Undergraduate/MBA



PROJECT MANAGEMENT ANALYSIS IN THE INTERNET FORECASTING INDUSTRY
Owen Hall, Jr., Kenneth Ko

Product Number: 9B12E006
Publication Date: 5/25/2012
Revision Date: 5/17/2012
Length: 3 pages

B&W Systems designs and distributes a variety of management software products through the Internet and retail outlets such as Best Buy. The company is considering the development of an Internet-based forecasting system designed specifically for new start-up and small business owners. The company’s primary concern with the product is timing and the possibility of new market entrants. The director of operations has been tasked with reviewing the timely implementation of the new product, including estimated completion times and costs, and presenting his findings to the board.

Teaching Note: 8B12E006 (7 pages)
Industry: Manufacturing
Issues: Information Systems; Project Management; Critical Path; Linear Programming; Forecasting
Difficulty: 5 - MBA/Postgraduate



AMERICAN CONSTRUCTORS INC.: WORLD OUTREACH EXPANSION PROJECT
Kenneth J. Klassen, Leanne Miele

Product Number: 9B10D016
Publication Date: 1/21/2011
Revision Date: 7/26/2013
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


Chapter 5:
Strategic Capacity Management

BELLA SPRINGS
Nicole R.D. Haggerty, Francis Ayensu, Jesse Brame, Chris Lau, Gerry Li

Product Number: 9B13D009
Publication Date: 4/16/2013
Revision Date: 8/3/2018
Length: 6 pages

The founder of a water purification, packaging and distribution company in Ghana, Africa, faced some operational issues. Demand has increased for the company’s water sachets, but the founder needed to develop strategies to increase the firm’s current operational capacities to meet this demand. He and the operations manager needed to determine how the company can position itself as a successful high-growth company in a developing and sometimes uncertain Ghanaian economy.

Teaching Note: 8B13D009 (5 pages)
Industry: Accommodation & Food Services
Issues: capacity planning; distribution; emerging markets
Difficulty: 4 - Undergraduate/MBA



UPPER CANADA INSURANCE
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



NIPISSING BANK
John S. Haywood-Farmer, Eric Janssen

Product Number: 9B10D019
Publication Date: 3/7/2011
Length: 7 pages

The case, written for an introductory business course, particularly a section on operations, deals with managing capacity and demand. In early 2008, McKenzie Scott, manager of administrative services at Nipissing Bank in Ottawa, Canada, was trying to decide how to carry out a management initiative to add additional marketing materials to client mail-out packages. In particular, Scott was considering upgrading the bank’s current envelope-stuffing equipment, replacing it, or outsourcing the activity entirely.

Teaching Note: 8B10D019 (11 pages)
Industry: Finance and Insurance
Issues: Tradeoff Analysis; Process Analysis; Capacity Analysis; Expansion Option; Capital Investment
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Learning Curves

LEGO GROUP: AN OUTSOURCING JOURNEY
Marcus Moller Larsen, Torben Pedersen, Dmitrij Slepniov

Product Number: 9B10M094
Publication Date: 12/1/2010
Revision Date: 5/10/2017
Length: 16 pages

The last year's rather adventurous journey from 2004 to 2009 had taught the fifth-largest toy-maker in the world - the LEGO Group - the importance of managing the global supply chain effectively. In order to survive the largest internal financial crisis in its roughly 70 years of existence, the management had, among many initiatives, decided to offshore and outsource a major chunk of its production to Flextronics. In this pursuit of rapid cost-cutting sourcing advantages, the LEGO Group planned to license out as much as 80 per cent of its production besides closing down major parts of the production in high cost countries. Confident with the prospects of the new partnership, the company signed a long-term contract with Flextronics. This decision eventually proved itself to have been too hasty, however. Merely three years after the contracts were signed, LEGO management announced that it would phase out the entire sourcing collaboration with Flextronics. This sudden change in its sourcing strategy posed LEGO management with a number of caveats. Despite the bright forecasts, the collaboration did not fulfill the initial expectations, and the company needed to understand why this had happened. Secondly, what could LEGO management have done differently?

Teaching Note: 8B10M94 (13 pages)
Industry: Manufacturing
Issues: Outsourcing; Management Control; Global Strategy; Supply Chain Management
Difficulty: 4 - Undergraduate/MBA



CREATING A PROCESS-ORIENTED ENTERPRISE AT PINNACLE WEST
T.S. Raghu

Product Number: 9B10E002
Publication Date: 3/2/2010
Revision Date: 2/4/2015
Length: 18 pages

Pinnacle West is in the energy-related services business and headquartered in Phoenix, Arizona. Its largest subsidiary, APS, is a power utility that serves over a million customers across Arizona. The case was written when one of the biggest recessions in recent history hit global and U.S. markets. Written from the perspective of the vice-president and chief information officer, the case chronicles the various recent successful process change initiatives at Pinnacle West. The vice-president has achieved initial success in instituting a process-oriented culture inside his own information technology (IT) services organization, and in some specific business units within Pinnacle West. He now faces a significant crossroads in his process orientation strategy for Pinnacle West. He has to devise a strategy for a wider rollout of a process-oriented strategy throughout Pinnacle West and determine if the larger enterprise is ready for this strategy. He has to consider various issues in making this decision - resource availability, change management competency and buy-in from other top-level managers. He has to carefully weigh the various options in rolling out this strategy, as he fears that any misstep may derail his carefully executed plans for bringing a process-oriented approach to managing at Pinnacle West. This case can be used in an introductory systems course. It can also be used in a course on business process management or operations management.

Teaching Note: 8B10E02 (8 pages)
Industry: Utilities
Issues: Organizational Change; Information Technology Strategy; Change Management; Business Process Re-Engineering
Difficulty: 5 - MBA/Postgraduate


Chapter 7:
Manufacturing Processes

METROPOLITAN WATER SUPPLY AUTHORITY: EVALUATING SECURITY RISKS
Jeanne McNett, Ronald M. Whitfield

Product Number: 9B12D025
Publication Date: 1/31/2013
Revision Date: 1/25/2013
Length: 4 pages

The director of a rural metropolitan water supply facility faces a complex risk management challenge. The facility uses chlorine gas in its water treatment, largely because it has determined that chlorine is the most effective treatment available, in terms of safety, cost and environmental impact. However, a security report from the Department of Homeland Security suggests that chlorine, a hazardous chemical, can be used by terrorists, both during its transport to the treatment facility and at the facility itself. The director of the water supply facility wonders whether the Department of Homeland Security made its recommendation based on an isolated risk without considering the big picture. The case provides students with an opportunity to analyse a complex sustainability-related management issue.

Teaching Note: 8B12D025 (3 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Security Systems; Risk Analysis; Safety; Process Analysis; United States
Difficulty: 4 - Undergraduate/MBA



PEARSON'S SUCCESSMAKER: PUTTING THE CUSTOMER FIRST IN TRANSFORMING PRODUCT DEVELOPMENT PROCESSES
T.S. Raghu, Collin Sellman

Product Number: 9B11E040
Publication Date: 2/23/2012
Length: 13 pages

Pearson Plc is an education company that operates worldwide, with headquarters in London, England. Its six primary business units are North American Education, International Education, Professional, The Financial Times, Interactive Data, and Penguin Publishing. The vice president of product management within the Digital Learning division of the North American Education unit based in Chandler, Arizona, begins to transform the product development processes to better meet the needs of his customers in the education market, specifically in transitioning from using an off-shored Waterfall software development model to an on-shore Agile model.



When the vice president first joined Pearson a year earlier, the Digital Learning unit had spent significant resources developing a major upgrade for one of its educational software products. The first version of this new product was challenged by the disconnect between what the software development group was delivering and what the vice president’s customers desired. He is now faced with a decision to continue focusing on the specific methodology the group had implemented (Scrum) or move to a new one (Kanban). Additionally, he has to consider expanding his focus to help drive Agile methodologies both with other groups in his business unit and outside his business unit. These decisions must be made at a potentially critical time for his products as his organization deals with the growing pains associated with the shift to Agile.


Teaching Note: 8B11E040 (11 pages)
Industry: Information, Media & Telecommunications
Issues: Product Development; Process Design; Agile Methodology; Systems Development; Educational Software; United States
Difficulty: 4 - Undergraduate/MBA



VALUE CHAIN AND IT TRANSFORMATION AT DESKO (B)
Pierre Hadaya, Robert Pellerin, Jean Ethier

Product Number: 9B11E008
Publication Date: 5/20/2011
Length: 6 pages

This case, a supplement to Value Chain and IT Transformation at Desko (A), describes Desko’s customer order process.

Teaching Note: 8B11E008 (10 pages)
Issues: Distribution; Information Systems; Production Processes; Business Process Re-Engineering; Value Chain; Customer Service; Office Furniture
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Facility Layout

BUILDING SUSTAINABLE DISTRIBUTION AT WALMART CANADA
Robert Klassen, P. Fraser Johnson, Asad Shafiq

Product Number: 9B13D010
Publication Date: 4/5/2013
Revision Date: 11/12/2013
Length: 9 pages

The director of logistics at Walmart Canada, was developing plans for a new distribution centre in Alberta. Senior management had presented her with a challenge: why not build the most sustainable distribution centre in the world? Yet, much remained unclear about how to translate this challenge into specific actions, while keeping in mind corporate goals for sustainability. Her team now was exploring three options that promised to be significantly greener: hydrogen fuel cells for forklift trucks, LED lighting and renewable energy generation from on-site wind turbines. Any investment in these sustainable technologies had to make business sense, and any decision could dramatically affect the distribution centre’s operating performance.

Teaching Note: 8B13D010 (12 pages)
Industry: Retail Trade
Issues: Environmental Management; Supply Chain; Renewable Energy; Distribution; Canada
Difficulty: 4 - Undergraduate/MBA



WAREHOUSING STRATEGY AT VOLKSWAGEN GROUP CANADA INC. (VGCA)
P. Fraser Johnson, Adam Bortolussi

Product Number: 9B12D002
Publication Date: 3/5/2012
Revision Date: 11/15/2012
Length: 8 pages

The director of warehousing and logistics at Volkswagen Group Canada (VGCA) had been tasked with analyzing the capacity of the Toronto parts distribution centre to support an aggressive growth plan that involved a series of new product launches and product facelifts. Expecting that expansion of the facility would be necessary, the director needed to determine the additional warehouse capacity required, when it would be needed by, and which expansion option made the most sense.

Teaching Note: 8B12D002 (9 pages)
Industry: Transportation and Warehousing
Issues: Supply Chain Management; Warehousing; Distribution; Capacity Analysis; Logistics; Automotive Industry
Difficulty: 4 - Undergraduate/MBA



CRP PRODUCTS
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


Chapter 9:
Service Processes

ISS & NORDEA: FACILITY MANAGEMENT IN THE NORDIC REGION
Torben Pedersen, Bent Petersen

Product Number: 9B12D005
Publication Date: 4/19/2012
Revision Date: 3/28/2012
Length: 20 pages

Nordea Bank had emerged as the largest financial group in the Nordic region. As part of its consolidated approach, Nordea’s top management had made the strategic decision to outsource a number of the company’s peripheral activities, such as catering, security, and cleaning, in order to focus on the core business of banking. In Denmark, Finland, and Sweden, some services had been outsourced to one of the leaders in the facility management (FM) market, the global service provider ISS. The relationship between Nordea and ISS on the delivery of facility services had a long history, but a new contract was successfully concluded by the end of 2010. Consequently, ISS was chosen as Nordea’s FM partner and would continually be providing Nordea with a scope of supportive services across 20 locations in the Nordic region. From 2010 and onwards, a significant switch was made to an output-based focus in the contract, where it was the quality of the delivered services that was specified rather than how to achieve this level of quality, i.e. the input. The change to an output-based contract was seen as a new beginning of a relationship that required significant changes on both sides in terms of mentality, organization, governance structures, and adjustments of expectations. Both the view of the customer (Nordea) and the supplier (ISS) are presented and contrasted in the case.

Teaching Note: 8B12D005 (15 pages)
Industry: Finance and Insurance
Issues: Outsourcing; Facility Management; Service Operations; Contract Governance; Supply Chain Management; Nordic Countries
Difficulty: 5 - MBA/Postgraduate



MAKING WAVES LONDON
John S. Haywood-Farmer, Hayden Bielawski

Product Number: 9B12D001
Publication Date: 1/30/2012
Revision Date: 1/26/2012
Length: 14 pages

After spending two years as the vice president internal for Making Waves London (MWL), Brianna Murphy was ready to assume her elected position of president for the 2011-2012 year. MWL had a mandate to provide affordable and accessible swimming instruction to children with special needs. Her time spent as vice president had convinced her that changes were needed — MWL had grown in recent years and faced a multitude of service issues, from capacity to quality. Largest among these were difficulty in attracting qualified instructors; higher than expected enrolment resulting in waiting lists; lack of pool capacity; and funding problems. Murphy wanted to ensure that MWL was the best adaptive aquatic program possible, but was unsure how to address and prioritize the issues.

Teaching Note: 8B12D001 (10 pages)
Industry: Social Advocacy Organizations
Issues: Human Resource Management; Non-profit Organization; Absenteeism; Volunteers; Special Needs Children; Canada
Difficulty: 4 - Undergraduate/MBA



MARBLE SLAB CREAMERY: THE WEIGHING DECISION
John S. Haywood-Farmer, Emily Hubling, Azim Remani

Product Number: 9B09D008
Publication Date: 10/21/2009
Revision Date: 9/23/2011
Length: 16 pages

A current franchisee of Marble Slab Creamery (producer of the self-proclaimed Freshest Ice Cream on Earth) was set to open his second location in Waterloo, Ontario. In a recent phone conversation with Marble Slab's Canadian president, the contentious issue of the corporate ice-cream weighing policy had come up. The franchisee was convinced that his managerial abilities and the growth potential of the new location would result in an ultimately successful franchise; however, the president had expressed hesitation at the franchisee straying from the policy. Two questions were foremost in his mind as he weighed his options: 1) What did customers truly value in the Marble Slab service concept? 2) How would the chosen weighing policy affect the customer experience? The franchisee had hopes of owning several Marble Slab franchises, and knew that his weighing policy decision could have lasting effects on his business operations and his relationship with head office.

Teaching Note: 8B09D008 (13 pages)
Industry: Accommodation & Food Services
Issues: Customer Service; Service Quality; Operations Analysis; Franchising
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Waiting Line Analysis and Simulation

SCHOOL CHALEY HUM: OPTIMIZING STUDENTS' COMMUTE TO KPS
Omkarprasad S. Vaidya, David Sparling, Rohit Bhagat

Product Number: 9B13D011
Publication Date: 5/14/2013
Revision Date: 4/27/2016
Length: 11 pages

A privately managed school in Raipur, India, is faced with concerns from parents regarding long commutes faced regularly by students. The school has grown from a modest 89 students and 12 faculty members in 1993 to more than 2,700 students. Today, student commutes range from a few steps to several kilometres on school buses of varied capacities. While the transportation manager has been making adjustments to bus routes and capacity at the beginning of each term, the issue has become too large for one person to manage. In response, management decides to hire a consulting firm specializing in supply chain modeling to find a solution that would reduce not only students’ travel times but also fuel consumption and greenhouse gases emitted by the buses, thereby reducing the school’s carbon footprint.

Teaching Note: 8B13D011 (12 pages)
Industry: Educational Services
Issues: Vehicle routing problems; TSP; short distance haul; India
Difficulty: 4 - Undergraduate/MBA



SUNSET GRILL AT BLUE
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



PAEDIATRIC ORTHOPAEDIC CLINIC AT THE CHILDREN'S HOSPITAL OF WESTERN ONTARIO (ABRIDGED)
Robert Klassen, Kellie Leitch, Manpreet Hora

Product Number: 9B09D011
Publication Date: 10/30/2009
Revision Date: 1/13/2010
Length: 9 pages

This abridged case simplifies the multiple patient flows and number of healthcare workers. The Chief of Paediatric Orthopaedic surgery was very concerned by the long times that the young patients (and their parents) were experiencing in the orthopaedic clinic. Long wait times tended to aggravate the already pent-up distress and concern that they were feeling. She glanced at recently collected data on service times and wondered how the process might be improved, while continuing balancing budgetary pressures to reduce costs. Moreover, any changes couldn't be done in isolation, as her clinic shared resources with other departments. A monthly executive meeting was fast approaching, and expectations were starting to run high that her efforts might be able to spur improvements in other department too.

Teaching Note: 8B09D11 (14 pages)
Industry: Health Care Services
Issues: Health Administration; Process Design/Change; Process Analysis; Service Operations
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Process Design and Analysis

CARROWAY ENVIRONMENTAL SYSTEMS
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



RED HAT GLOBAL SUPPORT SERVICES: THE MOVE TO RELATIONSHIP-BASED CUSTOMER SERVICING AND KNOWLEDGE-CENTERED SUPPORT
Richard M. Kesner

Product Number: 9B11E036
Publication Date: 12/1/2011
Length: 19 pages

In the 1990s, Red Hat established itself as a leading proponent of the open source software movement and sought to carve out for itself a significant role in the open source marketplace. As of 2011, the company reported $177 million in non-GAAP operating income in FY2010, based on revenues of $748 million. Red Hat’s market capitalization was set at $8 billion as of January 25, 2011. It operated 65 offices worldwide, including 12 Global Support Service Centers, and employed 3,580 people. The Red Hat brand was most closely associated with Linux even though its stable of product offerings had grown to include a number of other noteworthy system software and middleware products, such as JBoss and Red Hat Enterprise Virtualization. As Red Hat’s Linux product line had come to be widely accepted as an enterprise software platform, the company had transformed its thinking about and delivery of customer support. This case study explores the innovative ways that Red Hat went about this transformation process.

Teaching Note: 8B11E036 (11 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Customer Relations; Computer Industry; Service Operations; Process Design/Change; Linux; United States; Northeastern
Difficulty: 4 - Undergraduate/MBA



PROCESS MANAGEMENT STRATEGY FOR XYZ LIMITED - KLTD DIVISION
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 12:
Six Sigma Quality

AGILE ELECTRIC: QUALITY ISSUES IN A GLOBAL SUPPLY CHAIN
Dhruv Dar, Sanjay Kumar, Vijay Aggarwal

Product Number: 9B12D011
Publication Date: 7/18/2012
Revision Date: 8/16/2012
Length: 16 pages

The case describes the evolution of a global multi-tiered supply chain involving one of the world’s largest automotive original equipment manufacturers (OEMs), its tier 1 supplier — Automek, a U.S.-based global corporation — and the tier 2, tier 3, and tier 4 suppliers based in India.

With Automek’s engineering support, India-based Agile Electric had successfully developed many parts for the OEM in the past. Based on this experience, Automek buyers placed an order with Agile for a new product — an actuator assembly. In developing this product with little support from Automek, Agile was concerned due to its lack of knowledge concerning the suppliers for the actuator assembly components and the critical requirements. To allay its concerns, Automek promised to locate suppliers and assess and validate the suppliers based in India. Agile then invested in the assembly line and developed the actuator assembly. When supplies started, the OEM reported many quality problems, traceable to the tiered suppliers.

Along with quality and parts supply issues, the issues of subsequent liability in the case of a recall by the OEM were faced by members of the supply chain. Agile felt that since Automek had selected or approved the suppliers, and since Agile had had no original product expertise, that Automek should take responsibility for resolving the quality problems.


Teaching Note: 8B12D011 (8 pages)
Industry: Manufacturing
Issues: Global Sourcing; Supply Chain Management; Quality Management; Cross-cultural Differences; Developing Countries; India
Difficulty: 4 - Undergraduate/MBA



DECISION-MAKING AT A-CAT CORP.
Jitendra R. Sharma

Product Number: 9B11D011
Publication Date: 9/19/2011
Length: 5 pages

The case describes the situation faced by the vice president of A-CAT Corp. The company was a mid-sized manufacturer and distributor of domestic electrical appliances, largely catering to the price-sensitive rural population. The firm operated two medium-sized facilities in a remote district in Vidarbha, India. A-CAT manufactured a wide range of electrical appliances including TV signal boosters, transformers, FM radio kits, electronic ballasts, battery chargers, and voltage regulators. The focus was on its flagship product, the VR500 voltage regulator. The team planned to identify potential suppliers/vendors with their attendant strengths and weaknesses and to do so in a well-documented and structured manner. Analytical hierarchy process was a technique that could be used to meet this challenge.

Teaching Note: 8B11D011 (11 pages)
Industry: Manufacturing
Issues: Analytical Hierarchy Process (AHP); Cost-benefit Analysis; Decision Making; India
Difficulty: 4 - Undergraduate/MBA


Chapter 13:
Statistical Quality Control

ASTERAND: LEARNING FROM FAILURE
Anne Snowdon, Hannah Standing Rasmussen, David Maslach

Product Number: 9B12D018
Publication Date: 10/29/2012
Revision Date: 10/26/2012
Length: 11 pages

This case chronicles the challenges of establishing an innovative tissue bank service to accelerate the research and development processes of biotechnology and pharmaceutical companies worldwide. Asterand’s two major challenges involved achieving a standardized approach to collecting tissue samples in hospitals all over the world and achieving the highest possible quality of tissue samples shipped to their primary customer, Amgen. Despite the identified need for high-quality tissue samples, Asterand was experiencing multiple quality control problems in their processes and procedures. Tissue samples were being packaged poorly, labeled incorrectly or delivered at the wrong time or to the wrong place. Additionally, there were quality issues with the RNA analysis of the samples, which was a critical factor in the usability of the tissue sample for research and development of new therapies and drugs.



The head of pathology at Amgen’s California facility was threatening to terminate their existing order and communicate the failure of Asterand to all company employees, which would have a devastating ripple effect across the industry and likely destroy opportunities for any future orders with Asterand. If this happened, Asterand would not be able to secure contracts with customers and was at risk of losing investors and going bankrupt.


Teaching Note: 8B12D018 (11 pages)
Industry: Health Care Services
Issues: Health sector; medical products; product quality; customer relationship; United States
Difficulty: 4 - Undergraduate/MBA



QUALITY MANAGEMENT IN THE OIL INDUSTRY: HOW BP GREASES ITS MACHINERY FOR FRICTIONLESS SOURCING
Martin Lockstrom, Shen Li, Shengrong (Linda) Zhang

Product Number: 9B12D006
Publication Date: 3/28/2012
Revision Date: 3/28/2012
Length: 9 pages

In the winter of 2010 in Shanghai, Dr. Zeb Feng, procurement director for Asia at British Petroleum (BP), was acutely aware of the growing burden that quality control imposed over his company’s global operations. Chinese suppliers were masters of cost-cutting, but quality often suffered as a result, which led in turn to an increased need for inspection and development efforts. Almost five years ago, Feng’s company had established an international procurement office (IPO) in Shanghai, which served as a shared service centre for internal customers throughout BP worldwide. Since that time, the IPO had been mainly sourcing non-hydrocarbon goods and services.



After a corporate board meeting with Christina De Luca, the vice president of procurement and supply chain management for BP’s downstream operations, it had been decided that the company would start to enhance its global competitive sourcing. As the number-one supplier market in the world, China was a high priority for further oil exploration. The pressing point that concerned Feng was whether Chinese suppliers were sufficiently ready to supply mission-critical supplies for oil drilling, extraction, and refining. During a recent conference call, De Luca had reiterated, “Zeb, our competitors are way ahead of us in their sourcing operations, and they have achieved much lower costs. We’ve got to do something!” Feng had to gather his team for a planning meeting. He knew that supply quality was the key issue, but how could it be resolved?


Teaching Note: 8B12D006 (6 pages)
Industry: Other Services
Issues: International Procurement Office (IPO); Quality Management; China; CEIBS
Difficulty: 5 - MBA/Postgraduate



MICROSOFT AND THE XBOX 360 RING OF DEATH
Gloria Barczak, David T.A. Wesley

Product Number: 9B10A005
Publication Date: 4/19/2010
Length: 16 pages

The case chronicles Microsoft's difficulties with the Xbox 360 home video game console. Microsoft launched the Xbox 360 one year ahead of the competition, and used its advantage to gain a solid lead in the market for next generation video game consoles. Despite early technical problems, users were willing to accept a certain degree of unreliability because the Xbox 360 was the only high definition console on the market. Microsoft also had valuable game franchises. To play any of the exclusive video game content available for the Xbox 360, users had no choice but to buy a system. However, Microsoft's early lead quickly disappeared after Nintendo's Wii become all the rage, especially among families and casual gamers. Sony also began to catch up to its Redmond rival following media reports that the PlayStation 3 was far more reliable. When Toshiba abandoned HD-DVD, a high definition movie format supported by Microsoft, Sony's Blu-Ray players (including the PlayStation3) became the de facto standard. Finally, Sony began to release its own exclusive games and began to quickly close the gap between its online service and Microsoft's Xbox Live. Microsoft's inability to resolve the quality problems that had plagued the Xbox 360 since its launch caused a loss of goodwill among its core customers. By extending the console's warranty to an unprecedented three years, Microsoft was able to allay the fears of some buyers. Nevertheless, by the end of the case, Microsoft has fallen to second place in overall console sales and third place in monthly sales. Moreover, it was unable to reverse the huge losses that Microsoft's gaming division had incurred every year since the launch of the original Xbox. The case may be used with The Launch of the Sony PlayStation 3 (Ivey case 9B07A014) and A Note on Computer Games (Ivey case 9B07A013).

Teaching Note: 8B10A05 (11 pages)
Industry: Manufacturing
Issues: Production Management/Control; Market Strategy; Quality Control; Product Design/Development; Northeastern
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Lean Supply Chains

SHANGHAI BAOLONG AUTOMOTIVE CORPORATION
H. Brian Hwarng, Xuchuan Yuan

Product Number: 9B12D021
Publication Date: 10/25/2012
Revision Date: 10/23/2012
Length: 18 pages

The president of a Chinese auto parts manufacturer is facing a crisis. For nearly 10 years the company's production lines have not been able to keep up with the orders. Deliveries are due, but the in-house stock is in short supply despite the production lines operating under extended hours. Quality issues have resulted in recent recalls in the United States, making the company's prospects worrisome. Faced with worsening international trade conditions and mounting problems, the chair and president decide to expedite the initiative of transforming their company into a lean manufacturer based on the Toyota Production System. However, the company has no in-house expertise or experience in lean production. The case presents a challenging situation faced by many companies as they move up the ladder of production competence and operational excellence. The major learning focuses on the adoption of Japanese production practices in an emerging Chinese company as it implements lean production.

Teaching Note: 8B12D021 (17 pages)
Industry: Manufacturing
Issues: Lean production; Toyota production system; lean implementation; corporate/social culture; China
Difficulty: 5 - MBA/Postgraduate



LEAN IMPLEMENTATION AT SIEMENS' KALWA PLANT
Jamie Anderson, Subramanian Chidambaran, Vaibhav Khandekar

Product Number: 9B12M026
Publication Date: 5/9/2012
Revision Date: 6/25/2012
Length: 20 pages

The Siemens Kalwa factory in Mumbai, also referred to as Kalwa Works (KW), started in 1973 with the production of motors and later diversified to produce switchgears and switchboards. By 2009, 40 per cent of all Siemens India employees were working in Kalwa and contributing 45 per cent of the total Siemens India production. Kalwa had become the most important business centre for Siemens India.

In October 2006, Siemens AG decided to implement lean manufacturing in the Kalwa factory as part of a worldwide rollout of the Siemens Production System in all its medium-voltage facilities. The implementations were expected to bring drastic improvements in labour productivity, lower inventory levels, and higher throughput to improve the factories’ financial performance. The lean program promised that the factory’s current realized capacity of 4,000 panels per year could be increased by approximately 50 per cent to 6,000 panels per year in the medium term within two years, and to about 12,000 panels within the next four to five years.

While the benefits of successful implementation were attractive, the company faced several challenges, including restructuring the organization, getting staff on board to accept and facilitate the change, and handling resistance from internal and external stakeholders. This case provides an opportunity to analyze and discuss lean implementation issues for a global multinational firm in the Indian context.


Teaching Note: 8B12M026 (9 pages)
Industry: Manufacturing
Issues: Lean Manufacturing Implementation; Organizational Change; Change Management; Factory; India
Difficulty: 4 - Undergraduate/MBA



SUPPLY CHAIN MANAGEMENT AT INTERNATIONAL AUTOMOTIVE
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


Chapter 15:
Logistics, Distribution and Transportation

ADANI AGRI LOGISTICS LIMITED: BLOCKING THE GRAIN DRAIN
Mohita Gangwar Sharma, K.N. Singh, Sachinder Mohan Sharma, Puneet Mehndiratta

Product Number: 9B14D001
Publication Date: 4/2/2014
Revision Date: 4/1/2014
Length: 11 pages

Adani Agri Logistics Limited (AALL) was established to execute a national project for the bulk handling of food grains through a public-private partnership with the Food Corporation of India. This project involved financing, planning, designing, constructing, operating and maintaining modern infrastructure for the bulk handling, storage and transportation of grains required for the public distribution system. Although a technology-driven supply chain solution was implemented, the benefits of this innovative supply system did not come into full fruition even after four years of operation. AALL soon realized that farmers were reluctant to accept the new storage system because it was a departure from the relationship-based transactions they were used to undertaking with traditional intermediaries. In this way, the company learned that there are cultural subtleties and traditions that must be appreciated and given consideration, along with the economic justifications. How could these traditions be respected and upheld while making way for improvement and progress?

Teaching Note: 8B14D001 (9 pages)
Industry: Transportation and Warehousing
Issues: Supply chain strategy; collaboration; national culture; trust; India
Difficulty: 5 - MBA/Postgraduate



YAMATO TRANSPORT CO. LTD.: TA-Q-BIN
H. Brian Hwarng, Motoka Mouri

Product Number: 9B13D021
Publication Date: 2/28/2014
Revision Date: 2/28/2014
Length: 18 pages

Since 1976, Yamato had enjoyed steady growth in the Japanese domestic parcel delivery market. Yamato had maintained its leading position in Japan through its highly acclaimed TA-Q-BIN service. However, with changing demographics and market conditions, the business landscape had been changing. Overdependence on the domestic delivery business limited the overall growth of Yamato. Furthermore, the growth of the TA-Q-BIN business in Japan was limited by the stagnant growth of Japan’s economy. Makoto Kigawa, president and then chairman of Yamato Transport, had been relentlessly pursuing business restructuring as well as promoting productivity improvements. His goal was to increase the share of the delivery business related to overseas markets from four to twenty per cent of total revenue by the time of Yamato’s centennial celebrations in 2019. How could he successfully implement the TA-Q-BIN service system in overseas markets such as Taiwan, Singapore, Shanghai, Hong Kong and Malaysia?

Teaching Note: 8B13D021 (12 pages)
Industry: Other Services
Issues: Express delivery; door-to-door services; global operations; Japan
Difficulty: 5 - MBA/Postgraduate



LOCATION PLANNING AT A.B. CORP.
Jitendra R. Sharma

Product Number: 9B12D008
Publication Date: 4/30/2012
Revision Date: 4/12/2012
Length: 3 pages

In March 2010, the management of A.B. Corp. announced its plan to select a definite location for its central warehouse. The company, a major producer of agriculture and farm equipment, had gone through three consecutive years of financial loss as a result of increasing production costs. Management had to select a central warehouse between four candidates, based on the location of five distribution centres, the loads to be transferred, and other factors such as land costs and tax.

Teaching Note: 8B12D008 (8 pages)
Issues: Location Analysis; Centre of Gravity; Load Distance Factors; Factor Rating Method; Decision Making; Agriculture; India
Difficulty: 4 - Undergraduate/MBA


Chapter 16:
Global Sourcing and Procurement

ELIZABETH ARDEN: EXECUTING GLOBAL SUPPLY CHAIN RE-ENGINEERING
David Wood, Norman Gao

Product Number: 9B13D017
Publication Date: 11/8/2013
Revision Date: 1/14/2019
Length: 11 pages

In mid-2008, the senior vice-president of Global Supply Chain at Elizabeth Arden in New York City was troubled with the challenges that lay before him. He had been hired to make sweeping changes to the company’s management of its supply chain, and he had already made a significant impact in forecasting, inventory control and service performance. His next move would require a radical consolidation of suppliers, make dramatic changes to inventory management, have a far-reaching impact on product development and require major lead time reductions. Given such a disruptive move, would current suppliers be able to meet expectations? Could the company’s current employees keep up with the pace of change expected? How many would have to be let go, and what would this do the morale of the workforce? Were significant results to shareholders really achievable? How much money would be saved, where would the savings come from and when would they be realized? The senior vice-president was determined to execute the re-engineering in a manner that would best address all these concerns.

Teaching Note: 8B13D017 (15 pages)
Industry: Retail Trade
Issues: Strategy; design; restructuring; impact of supply chain innovation; United States
Difficulty: 4 - Undergraduate/MBA



GLOBAL SOURCING AT ANHEUSER-BUSCH INBEV: TAPPING (BEER) INTO THE CHINESE SUPPLIER MARKET
Martin Lockstrom, Thomas E. Callarman, Shengrong (Linda) Zhang

Product Number: 9B12D015
Publication Date: 7/25/2012
Revision Date: 7/25/2012
Length: 5 pages

This case concerns the difficulties of global sourcing for InBev, an international brewery with branches in six geographical zones. In 2006, Pascal Baltussen came to China to set up the company's international procurement office and had it up and running by the end of the year. Not only were risks such as delivery delays and rising costs constantly lurking, but in 2010 his company, Brazilian-Belgian brewer InBev, acquired the almost equally large U.S. brewer Anheuser-Busch to form the world's largest brewer, AB InBev. This posed further complications. How could Baltussen now successfully roll out his sourcing vision for China and manage internal and external challenges?

Teaching Note: 8B12D015 (6 pages)
Industry: Accommodation & Food Services
Issues: Global Sourcing; Supplier Selection; Procurement Organization; Sourcing Strategy; China
Difficulty: 5 - MBA/Postgraduate



STRATEGIC SOURCING AT WHIRLPOOL CHINA: FINDING THE IDEAL SUPPLIER
Martin Lockstrom, Thomas E. Callarman, Shengrong (Linda) Zhang

Product Number: 9B12D012
Publication Date: 6/21/2012
Revision Date: 6/19/2012
Length: 8 pages

It was April 10, 2011, when the head of Whirlpool’s Asia International Procurement Office in Shanghai was informed by his colleagues that the company was about to launch a new energy-efficient refrigerator model in just six months. For the new refrigerator model, the basic difference was in the motor; the current AC motor would need to be replaced with a DC motor, which was more efficient but also more expensive. He would have to find a suitable supplier of DC motors in a very short time. Delayed sourcing of components would cause delays in the production of a new refrigerator and result in a later launch of new products. Within the home-appliance industry, the fierce level of competition meant that any delays in launching new products would result in a loss of sales. How should Whirlpool go about the process of finding a suitable supplier for the required DC motor parts? Should the company explore the possibility of developing its current supplier, or should it quickly engage an existing supplier of DC motors?

Teaching Note: 8B12D012 (7 pages)
Industry: Other Services
Issues: Suitable Supplier; IPO; Global Sourcing; Supplier Quality; Strategic Sourcing; Supplier Selection Criteria; China
Difficulty: 5 - MBA/Postgraduate


Chapter 17:
Enterprise Resource Planning Systems

PAK ELEKTRON LIMITED: CONVERTING SYSTEMS TO ERP
Muntazar Bashir Ahmed

Product Number: 9B12E002
Publication Date: 4/27/2012
Revision Date: 4/25/2012
Length: 21 pages

Pak Elektron Limited was a prominent manufacturer of consumer home appliances, large distribution and power transformers, and switch gears for power companies in Pakistan. From 2007, the company had started the process of changing the information systems of the company. These systems had become outdated as Microsoft withdrew its support of Visual FoxPro, the platform on which all systems had been developed. The company decided that a Tier 1 ERP (enterprise resource planning) system with strength in manufacturing modules would be suitable. An ERP system was then selected and a firm was appointed as implementer in December 2009. The case describes the issues surrounding the implementation, including many unexpected events. It presents the situation as of the fourth quarter of 2011, after Phase 1 of the implementation had finished in December 2010 and the company had decided in March 2011 to dispense with the services of the consulting firm supporting the implementation. Pak Elektron Limited was facing a liquidity crisis and had to save costs even though there was insufficient corporate knowledge of ERP procedures. The staff was not comfortable with the ERP system and would not let go of the legacy systems and, as such, the project was in trouble.

Teaching Note: 8B12E002 (9 pages)
Industry: Manufacturing
Issues: Human Resource Management; Change Management; Enterprise Resource Planning; Information Systems; Pakistan
Difficulty: 5 - MBA/Postgraduate



MUDRA COMMUNICATIONS
Nicole R.D. Haggerty, Shankar Venkatagiri, Ramasastry Chandrasekhar

Product Number: 9B11E030
Publication Date: 9/13/2011
Length: 18 pages

In 2006, Mudra Communications, the third-largest advertising agency in India, is in the middle of an organizational transformation in which information technology (IT) is seen by the top management as pivotal. The IT setup is undergoing a transition at Mudra from manual systems to an Enterprise System (ES) which has been developed internally by the eight-member IT team led by executive vice president for technology Sebastian Joseph. As he gets ready to implement the first module of ES, known as Mudra Business Operations Support System (mBoss), covering 70 per cent of the activities of the agency, Joseph is facing some managerial dilemmas related to planning the roll-out, training the end users, and managing the change that the new system will bring to the agency. He is also facing choices between outsourcing the ES architecture or owning it, and between outsourcing the development of the remaining seven modules or developing them internally, as before.

Teaching Note: 8B11E030 (8 pages)
Industry: Information, Media & Telecommunications
Issues: IT System Implementation; Return on Investment; Enterprise System; Advertising Agencies; India; IIM-Bangalore/Ivey
Difficulty: 4 - Undergraduate/MBA



KEDA’S SAP IMPLEMENTATION
Derrick Neufeld, Yulin Fang, Huaiqing Wang, Terrance Fung

Product Number: 9B11E001
Publication Date: 2/18/2011
Revision Date: 5/4/2017
Length: 13 pages

Keda, a manufacturer of large-scale machinery in China, had successfully deployed an enterprise resource planning (ERP) solution that was paying for itself through more efficient inventory management. This was significant because despite China’s increasing demand for ERP systems, an estimated 80 per cent of ERP implementation efforts failed in the country. The vice general manager of Keda had a large backlog of other information technology projects, and he wanted to carefully evaluate the ERP project to determine what had gone right, what had gone wrong, and what Keda had achieved through simple luck.

Teaching Note: 8B11E001 (9 pages)
Issues: System Implementation; Enterprise Resource Planning; Information Technology; Project Management; China
Difficulty: 4 - Undergraduate/MBA


Chapter 18:
Forecasting

HARMONIZING DEMAND FORECASTING AND SUPPLY AT MAHINDRA & MAHINDRA LTD.
Alok Yadav, Sunil Ashra

Product Number: 9B13D019
Publication Date: 1/13/2014
Revision Date: 1/10/2014
Length: 6 pages

Mahindra & Mahindra Ltd., a US$15.4 billion company in 2012, has been the number one tractor manufacturer in India for the last 30 years. The agriculture tractor sale market in India is seasonal in nature and growing. To meet demand, the company has four manufacturing plants and 26 sales offices across the country; their main job is to coordinate supplies between its 800 dealers and the company. The sales offices provide a rolling tractor demand forecast for the current month plus two months in the future; it is used to determine the number and models of tractors to manufacture and to enable placing parts supply orders in advance. The deputy general manager of sales in the company’s Farm Division has been receiving an increasing number of complaints from irate dealers about the irregular and short supply of tractors from the company’s stockyards. This has created stress and low dealer satisfaction. The deputy general manager has decided to improve the demand forecasting of agriculture tractor sales and hence supply management.

Student spreadsheet 7B13D019 with data is available.


Teaching Note: 8B13D019 (10 pages)
Industry: Manufacturing
Issues: Sales forecasting; tractor sales; excel spreadsheet; time series; India
Difficulty: 4 - Undergraduate/MBA



A-CAT CORP.: FORECASTING
Jitendra R. Sharma

Product Number: 9B13D016
Publication Date: 9/13/2013
Revision Date: 9/6/2013
Length: 4 pages

A-CAT Corp., a company that produces domestic electrical appliances in a poor region of India, largely caters to the price-sensitive rural market. During the past several months, there has been an alarming dip in sales of its major product, a voltage regulator that is used for varied purposes but most commonly as a protective device for refrigerators and television sets, to protect the latter from the vagaries of load fluctuations and/or frequent power failures, which are a very common phenomenon in the region. At the same time, the production department has been complaining about shortages of spares and components. Placing orders beyond a certain limit for the vital transformers used in most of its products has also stretched the system — whereas the company previously had access to four suppliers of transformers, now there is only one. The vice president has asked the chief operations manager to look into the problem. The operations manager traces the production planning process and its reliance on accurate forecasts. The manager’s job is to collect the data, analyze the data patterns, use forecasting methods, carry out back-testing and submit recommendations to management to solve the problem.

Teaching Note: 8B13D016 (13 pages)
Industry: Manufacturing
Issues: Forecasting; back testing; errors; India
Difficulty: 4 - Undergraduate/MBA



THE UNIVERSITY OF WYOMING MEN’S BASKETBALL TEAM
John G. Wilson, Craig Sorochuk

Product Number: 9B11E034
Publication Date: 10/7/2011
Length: 4 pages

At the University of Wyoming, home games played by the men’s basketball team generated significant revenues for the athletics department through ticket and concession sales. With the 2009-2010 season ending, it was time to forecast revenues for the upcoming season. Even though ticket prices were already set, providing a revenue forecast was difficult, as the schedule of home games for the 2010-2011 season was not yet known, and both ticket and concession sales for each game were uncertain. A director of business operations for the athletics department needed to review data from the four most recent seasons and determine the best way to forecast revenues for the upcoming season.

Teaching Note: 8B11E034 (14 pages)
Industry: Other Services
Issues: Revenue Forecasting; Demand Uncertainty; Linear Regression
Difficulty: 4 - Undergraduate/MBA


Chapter 19:
Sales and Operational Planning

AGGREGATE PLANNING AT GREEN MILLS
Owen Hall, Jr., Kenneth Ko

Product Number: 9B13D002
Publication Date: 3/14/2013
Revision Date: 3/12/2013
Length: 3 pages

Green Mills Inc. operates several lumber mills throughout the Northwestern United States that produce a variety of wood products. The company is currently considering expanding operations to Chile as a vehicle for reducing the costs of raw materials. In that regard, the management team is interested in analyzing the cost implications as a vehicle to properly assess this backward integration strategy. More specifically, management wishes to evaluate several different aggregate planning policies including level, chase and mixed policies.

Teaching Note: 8B13D002 (8 pages)
Industry: Manufacturing
Issues: Aggregate planning; sensitivity analysis; United States
Difficulty: 5 - MBA/Postgraduate



DANFOSS — GLOBAL MANUFACTURING FOOTPRINT
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



AVALANCHE CORPORATION: INTEGRATING BAYESIAN ANALYSIS INTO THE PRODUCTION DECISION-MAKING PROCESS
Owen Hall, Jr., Kenneth Ko

Product Number: 9B11D006
Publication Date: 5/20/2011
Length: 3 pages

The director of operations at Avalanche Corporation was faced with some major decisions. The firm was experiencing considerable difficulties in matching supply with demand. As a result, the company was overproducing and had to sell the excess at a loss. At a recent board meeting, the vice president of marketing reported on a new snowboard product, the Avalanche Racer. She presented her rationale for introducing a new ski product at this time by highlighting the growth of the ski equipment sales over the past five years. The board meeting concluded with the general manager tasking the director of operations with developing an analysis and reporting back his findings to the board the following week.

Teaching Note: 8B11D006 (6 pages)
Issues: Risk Analysis; Manufacturing; Break-even Analysis; Decision Making; Skiing
Difficulty: 4 - Undergraduate/MBA


Chapter 20:
Inventory Management

ATHLETIC KNIT
David Wood, Dina Ribbink

Product Number: 9B12D020
Publication Date: 8/31/2012
Revision Date: 7/17/2017
Length: 7 pages

This case investigates issues of obsolescence and inventory control in a local sportswear company that is competing on the global stage with both multinational corporations and foreign, low-cost distributors. Athletic Knit, a family-owned company in Toronto, faces the need to balance peak-season demand during the third quarter of the year with the available knitting production capacity. Inventory, if it serves a purpose, can be an asset to a company, but too much inventory can be a liability. Trade-offs between capacity, inventory, and flexibility to meet custom orders must be met to support corporate strategy. Given the competitive nature of the industry, tighter inventory controls are essential, but the company must weigh endangering its reputation for fast responses to custom orders with managing inventory to prevent stock-outs and/or overruns of stock that cannot be sold.

Teaching Note: 8B12D020 (9 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Inventory Analysis; Economic Order Quantity; Aggregate Planning; Cost; Canada
Difficulty: 4 - Undergraduate/MBA



UPGRADING THE SUPPLY CHAIN MANAGEMENT STRATEGY AT SICHUAN TELECOM
Xu Chen, Zhang Du, Li Zheng, Ding Yichao, Liu Ying

Product Number: 9B12D013
Publication Date: 8/21/2012
Revision Date: 8/20/2012
Length: 7 pages

In the process of business development, many enterprises have to deal with issues from all dimensions of operations management including inventory management, distribution management, and network design. Sichuan Telecom, a branch of China Telecom Co. Ltd, which was a Fortune Global 500 company, had achieved its highest market share in its broadband business and maintained strong growth momentum in this segment. However, there was a serious inventory management problem concerning ADSL modems, a component that most broadband users required. The problem was that Sichuan Telecom's ADSL modem inventory was either too high or insufficient. To reduce inventory costs and improve the service level, the procurement manager conducted a comprehensive analysis of the company's sales and demand forecasting, procurement and suppliers, distribution management, warehouse management, and inventory management. This case follows the procurement manager in analyzing the company's existing operational management system for ADSL modems in order to discover the cause of the inventory problem and develop an effective plan to improve operations management.

Teaching Note: 8B12D013 (7 pages)
Industry: Information, Media & Telecommunications
Issues: Supply Chain Management; Inventory Planning Control; Distribution Design; Telecommunications; Service Industry; China; Ivey/CMCC
Difficulty: 5 - MBA/Postgraduate



THE NORTH WEST COMPANY (B): SUPPLY CHAIN MANAGEMENT
P. Fraser Johnson, Stephen R. Foerster, Ken Mark

Product Number: 9B07D008
Publication Date: 2/5/2010
Length: 7 pages

The North West Company cases allow students to take a cross-enterprise leadership approach in looking at the dilemma facing the president and chief executive officer of The North West Company (North West), a food and general merchandise retailer operating primarily in Northern Canada. In early 2003, North West had negotiated a master franchisor agreement with Giant Tiger Stores Limited (Giant Tiger) with the objective of opening stores west of Winnipeg. In contrast with North West's push system of product replenishment, Giant Tiger had developed a successful pull system that gave individual store managers tremendous leeway in ordering decisions. The president and CEO wonders whether there is an opportunity to drive better results by adopting Giant Tiger's pull system within its Northern stores. The upside potential may include higher sales and reduced inventory levels as merchandise is tailored for each community. On the other hand, North West may face logistics and human resources issues in attempting to adopt this new system. This supplement to The North West Company (A): Cross-enterprise Strategy, product 9B07M047, discusses the supply chain issues.

Teaching Note: 8B07D08 (4 pages)
Industry: Retail Trade
Issues: Supply Chain Management
Difficulty: 4 - Undergraduate/MBA


Chapter 21:
Material Requirements Planning

MATERIAL REQUIREMENTS PLANNING AT A-CAT CORP.
Jitendra R. Sharma, Tinu Agrawal

Product Number: 9B12D003
Publication Date: 4/12/2012
Revision Date: 4/11/2012
Length: 5 pages

Material requirements planning (MRP) systems have been widely used by manufacturing firms to maintain an optimum flow of inputs for the 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 a final product along with the exact timeline of an order, from placement to completion.

In the case, an A-CAT employee is assigned the task of preparing an operating plan for the next eight weeks for a product. She has to decide how much to produce to be able to meet the requirements economically, taking into account the forecasted demand. 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 inventory-holding costs.


Teaching Note: 8B12D003 (8 pages)
Industry: Manufacturing
Issues: Material Requirements Planning; Inventory Management; Lot-sizing Techniques; Bill of Materials; Electrical Appliances; India
Difficulty: 4 - Undergraduate/MBA



1-888-JUNK-VAN
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


Chapter 22:
Workcenter Scheduling

BLACKSHOP RESTAURANT
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


Chapter 23:
Theory of Constraints

MEAGAL STELPLAST: STEERING A NEW PATH
Rajiv Misra, Achin Kishore

Product Number: 9B13D013
Publication Date: 7/12/2013
Revision Date: 7/5/2013
Length: 12 pages

A family-owned business that manufactures automobile horns for the replacement market in Delhi, India is considering options to improve current operations and expand the business. The company is faced with numerous challenges: erratic demand, lack of brand, high warranty returns, lack of information, availability of skilled manpower and implementing modern methods of manufacturing. The company is also considering expanding beyond Delhi and manufacturing products for automobile manufacturers, which requires adherence to regulatory certification.

Teaching Note: 8B13D013 (15 pages)
Industry: Manufacturing
Issues: Process analysis; line balancing; plant expansion; production planning; India
Difficulty: 5 - MBA/Postgraduate



EU HOLIDAYS
Yew Hoong Wong, Singfat Chu

Product Number: 9B13E003
Publication Date: 3/18/2013
Revision Date: 3/15/2013
Length: 4 pages

The profit margin for the travel agency industry in Singapore, which mostly offered travel packages to Asia and Europe, was very thin. An up-and-coming travel agency faced the dilemma of offering maximum customer satisfaction while keeping its operating cost (e.g., fees for its tour guides) low. Rather than simply assigning travel guides to tours by trial and error, a director of the travel agency decided to use an optimization template. This case requires the development of an optimization template to advise management on the optimal assignment of tour leaders (within constraints of their availability and required rest periods) and generate maximum satisfaction among the customers. Considerations for tour-guide assignment include tour guides’ customer satisfaction levels, expertise on particular tours, visas for specific countries, and employment plans.

Teaching Note: 8B13E003 (6 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Travel Industry; Customer Satisfaction; Optimization; Decreasing Returns; Singapore
Difficulty: 4 - Undergraduate/MBA


Chapter 24:
Health Care

COLD CHAIN DISTRIBUTION ISSUES AT INDO-EURO PHARMA
Mohit Srivastava, Helen Rogers, Kulwant Pawar, Janat Shah

Product Number: 9B13D018
Publication Date: 12/16/2013
Revision Date: 11/19/2013
Length: 12 pages

The supply chain director of Indo-Euro Pharma summoned an urgent meeting in response to significant losses incurred by the company in the last fiscal year. This was primarily due to the return of yet another international consignment of temperature-sensitive drugs (TSDs) — this time worth millions of dollars. The meeting focused on the inability of Indo-Euro Pharma to appropriately distribute and monitor TSDs cost effectively across the various stages and locations of the supply chain — especially at the pharmacist level. Deviations from drugs’ required temperature ranges could happen during packaging, storage, transport, loading and unloading in aircraft, sea containers, trucks, etc. It was extremely difficult to monitor whether pharmacists were following proper procedures for storing TSDs. Most medical stores in India had domestic refrigerators that required frequent calibration. The problems indicated the need for Indo-Euro Pharma to adopt an alternative distribution system that was specifically tailored for TSDs.

Teaching Note: 8B13D018 (7 pages)
Industry: Health Care Services
Issues: Cold chain; pharmaceutical; temperature sensitive drugs; distribution; India
Difficulty: 5 - MBA/Postgraduate



PURCHASING CONSORTIUM FOR THE BMS INDUSTRY IN SINGAPORE
Mei Qi, Siew Hwa Ong

Product Number: 9B12D014
Publication Date: 7/17/2012
Revision Date: 7/9/2012
Length: 6 pages

Since November 2011, the director and chief scientist for Acumen Research Laboratories (ARL) had been conferring with Spring Singapore — a government agency devoted to the city-state’s economic growth — on ways to improve the current procurement practices of the biomedical science (BMS) industry in Singapore. As a senior chief scientist and the founder of ARL, she saw and experienced tremendous purchasing inefficiency and quality problems in the existing procurement practice in sourcing supplies and equipment. She believed that a centralized procurement structure and process among all members of the BMS industry in Singapore would be more efficient and was in April 2012 finalizing a proposal to Spring Singapore for initial funding to set up such a purchasing consortium. This consortium would be a new line of business for ARL.

Teaching Note: 8B12D014 (7 pages)
Industry: Health Care Services
Issues: Purchasing Consortium; Entrepreneurship; Purchasing Process; Supply Distribution
Difficulty: 4 - Undergraduate/MBA



3M HEALTH CARE
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 25:
Operations Consulting

ONCIDIUM BUSINESS CONSULTING (A1)
John S. Haywood-Farmer, Ramasastry Chandrasekhar

Product Number: 9B09D015
Publication Date: 12/11/2009
Length: 8 pages

In late 2006, the four partners of Oncidium Business Consulting disagree on a number of questions, such as the firm's future direction, the responsibilities of each partner and how profits are to be divided. The A1 case, 9B09D015, takes the viewpoint of the founding partner and majority holder of the firm's shares. The A2 case, 9B09D016, looks at the situation from the position of one of the minority partners.

Teaching Note: 8B09D15 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Corporate Culture; Professional Firms; Valuation; Partnership
Difficulty: 4 - Undergraduate/MBA



ONCIDIUM BUSINESS CONSULTING (A2)
John S. Haywood-Farmer, Ramasastry Chandrasekhar

Product Number: 9B09D016
Publication Date: 12/11/2009
Length: 7 pages

In late 2006, the four partners of Oncidium Business Consulting disagree on a number of questions, such as the firm's future direction, the responsibilities of each partner and how profits are to be divided. The A1 case, 9B09D015, takes the viewpoint of the founding partner and majority holder of the firm's shares. The A2 case, 9B09D016, looks at the situation from the position of one of the minority partners.

Teaching Note: 8B09D15 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Corporate Culture; Professional Firms; Valuation; Partnership
Difficulty: 4 - Undergraduate/MBA



YOUR HOME IS A GOOD PLACE, INC.
Kevin Coulson, Zane Swanson

Product Number: 9B09A025
Publication Date: 10/9/2009
Length: 8 pages

Your Home is a Good Place, Inc. was a unique business. It brought together homeowners, contractors and other service suppliers in a one-stop shopping environment that emphasized convenience as a marketing strategy. Your Home is a Good Place, Inc. (YHGP) needed to know more about the demand in the area and to decide how to attract both suppliers of services and customers as well as promote the business and build a brand identity. The owner has decided to hire a consultant to: 1) identify target market demographics in Michiana developed from the census data provided 2) provide a general description of potential competitors for YHGP 3) develop a marketing plan focused on bringing in clients as well as contractors and facilitators as partners. Discussion of building a brand identity for a new business will be a consideration here. This case will fit with upper-level marketing strategy or entrepreneurship courses, a management capstone course or within an MBA-level marketing course. The objectives for this case are for the students to learn SWOT analysis, to apply the data to complete a marketing plan, and to advise a difficult client. It is best suited for team applications although individuals can complete the exercises. Additionally, students should consider the implications of, and how to deal with, a client who is in need of advice but is reluctant to accept ideas that are not his own.

Teaching Note: 8B09A25 (7 pages)
Industry: Construction, Manufacturing, Other Services
Issues: Market Strategy; Human Resources Management; Strategy and Resources; Strategic Alliances; Management Science and Info. Systems; Distribution Channels; Segmentation; Brand Positioning; New Product Development; Target Segment
Difficulty: 4 - Undergraduate/MBA