Ivey Publishing

Operations Management

Heizer, J.; Render, B.; Griffin, P. (Canada, Pearson Education, 2014)
Prepared By under review,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Operations and Productivity

SOBEY'S INC: A STRATEGIC APPROACH TO SUSTAINABLE SEAFOOD SUPPLY
Anthony Goerzen

Product Number: 9B13M118
Publication Date: 2/21/2014
Revision Date: 11/19/2014
Length: 11 pages

By 2013, Sobey’s Inc., one of Canada`s largest food retailers, had initiated a number of programs in order to reduce its environmental footprint and to try to meet the public’s expectations that business would address such sustainability issues as waste management, genetically modified products and food safety. At the top of Sobey’s agenda was to develop a sustainable seafood strategy. While data collection, metric selection, employee incentives and customer education were important parts of this emerging strategy, a central decision was what products to choose to sell or not to sell. Certain major competitors had announced that they would sell only “certified sustainable” seafood, an approach strongly advocated by well-known environmental organizations. Sobey’s, on the other hand, decided that to abandon uncertified seafood would not only hamper its bottom line but also would eliminate its ability to push the very fisheries that needed more guidance towards better practices. Yet, to continue to sell “red zone” seafood was very controversial and could jeopardize Sobey’s standing as a leader in sustainable practices — an outcome that could have serious negative consequences in the marketplace. In this context, the vice-president of sustainability had to implement a sustainable seafood strategy by year’s end.

Teaching Note: 8B13M118 (7 pages)
Industry: Retail Trade
Issues: Sustainability; supply chain; retailing; corporate social responsibility; Canada
Difficulty: 4 - Undergraduate/MBA



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



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 2:
Operations Strategy in a Global Environment

FLIPKART.COM
Tripti Ghosh Sharma, Rohith Desikan, Lakshmi Narasimhan S., Shalabh Jain

Product Number: 9B14M066
Publication Date: 6/18/2014
Revision Date: 6/18/2014
Length: 14 pages

Flipkart.com is one of India’s best known online retailers. Founded in 2007, with the ambitious dream of becoming India’s Amazon.com, Flipkart.com started out selling books and quickly expanded its product portfolio to include laptops, computer peripherals, consumer durables, consumer electronics, fashion accessories, media and games. Flipkart’s products were competitively priced, its customer service was exemplary and it offered innovative solutions to enhance the customer experience such as its cash on delivery service. These factors, coupled with a smart marketing mix and catchy advertisements that sensitized the Indian consumer to the online shopping experience, contributed to its rapid growth. While the customer viewed the company with rose-tinted glasses, all was not well within Flipkart. It was plagued by a multitude of issues, including a business model that swallowed cash faster than it was generated, increasing constraints on its operational and supply chain capabilities and deteriorating investor confidence. Indeed, Flipkart found itself in trouble in late 2012. With competitors hot on its heels and the imminent entry of Amazon.com into the Indian market, Flipkart had to evaluate its options carefully and make some smart moves if it was to survive and regain investor confidence.

Teaching Note: 8B14M066 (14 pages)
Industry: Other Services
Issues: online shopping; India
Difficulty: 5 - MBA/Postgraduate



APPLE INC.: MANAGING A GLOBAL SUPPLY CHAIN
P. Fraser Johnson, Ken Mark

Product Number: 9B14D005
Publication Date: 5/16/2014
Revision Date: 3/13/2017
Length: 21 pages

AWARD WINNING CASE - PRODUCTION AND OPERATIONS MANAGEMENT CATEGORY - THE CASE CENTRE AWARDS AND COMPETITIONS 2016. An analyst for a money management firm is studying Apple Inc. as one of the firm’s key investments. In 2013, Apple had a market capitalization of nearly US$500 billion and sales of US$171 billion. According to the research firm, Gartner Group, it had the world’s best supply chain, ranking ahead of companies such as Walmart, Amazon and Inditex (Zara). As part of the analysis, a full review of Apple’s supply chain is required to look for insight into the future performance of the company in order to decide whether or not the analyst’s firm should continue to hold Apple shares.

Teaching Note: 8B14D005 (12 pages)
Industry: Information, Media & Telecommunications
Issues: Supply chain management; flexibility; strategy; supplier management; technology; innovation; Canada
Difficulty: 4 - Undergraduate/MBA



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


Chapter 3:
Project Management

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



DIGITAL EXTREMES LTD.
David Wood, V. Joseph Compeau

Product Number: 9B11D002
Publication Date: 10/26/2011
Revision Date: 10/19/2012
Length: 5 pages

In March 2005, the president of Digital Extremes in London, Ontario, had just received the latest industry data. The new Xbox 360 was a success and the president knew that Digital Extremes would have to add significant resources and fundamentally change its operations in order to focus on the growing console market rather than on PC gaming. However, given only three months before game development would begin for the next new console, the Playstation 3, the president was unsure of what changes would be possible.

Teaching Note: 8B11D002 (9 pages)
Industry: Information, Media & Telecommunications
Issues: Evaluating Roles; Creativity and Structure; Video Games; Technology; Canada
Difficulty: 4 - Undergraduate/MBA



TORONTO SUN AND CARIBANA
Kenneth J. Klassen, Leanne Miele

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

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

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


Chapter 4:
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 5:
Design of Goods and Services

PERFORMANCE EVALUATION AT BANK OF MAHARASHTRA
Asmita Chitnis, Omkarprasad S. Vaidya, Darroch A. Robertson

Product Number: 9B14D004
Publication Date: 6/6/2014
Revision Date: 6/6/2014
Length: 7 pages

In January 2013, the general manager of the Planning Division of the Bank of Maharashtra in Pune, India, is considering how best to analyze the performance of the bank’s 1,728 branches in 28 states and two union territories and its staff of nearly 14,000 people. Such a process would help develop a comprehensive yearly plan by setting realistic targets for each of the bank branches, which have a wide variety of operating conditions. With its market share falling and increasing competition from major players in both the private and public sectors, the bank must take proactive steps to develop a strategy for expansion. The general manager meets a business school graduate who suggests using performance evaluation and benchmarking tools that will not only help evaluate performance in terms of an efficiency score but also indicate possible potential improvements. Should the general manager trust that the young analyst can pinpoint why some branches are not meeting their targets and suggest how their performance can be improved, or should he hire a more experienced consultant?

Teaching Note: 8B14D004 (15 pages)
Industry: Finance and Insurance
Issues: Performance evaluation; banks; data envelopment analysis; India
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



SASKATCHEWAN PROVINCIAL PARK CAMPSITE MANAGEMENT AND RESERVATION SYSTEM
Nicole R.D. Haggerty, William Bonner

Product Number: 9B11E029
Publication Date: 9/15/2011
Revision Date: 8/26/2019
Length: 18 pages

The manager of Visitor Services with Saskatchewan Park Services was thinking ahead to next year, even though 2011 was still four months away. Park Services had experienced a number of turbulent years around the provincial park campground reservation system. While the problems experienced were largely invisible to the public, over the years the behind-the-scenes actions required to process campground reservations had placed an onerous burden on Park Services staff, both in Regina (in Saskatchewan, Canada) and in the local provincial parks. Additionally, the present system severely limited the type of services that could be developed for tourists and campers due to the lack of quality data on campers.

While steps had been taken in 2009 and 2010 to address some of the major problems surrounding the campground reservation system, serious issues remained that required action. This was particularly true when the system in place in Saskatchewan was compared to new campground reservation systems recently employed in Alberta, Manitoba, and the federal national park system. The manager reflected on the turbulent 2008 season, the relative calm in 2009 due to the success of temporary fixes, and the new issues that had arisen in 2010. She needed to decide on a more permanent solution that resolved the operational problems of the present reservation system while also laying the foundation for improved services for campers.


Teaching Note: 8B11E029 (15 pages)
Industry: Public Administration
Issues: Information Systems Development; Work Flow Systems; Camping; Hill
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Managing 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



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



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 7:
Process Strategy and Sustainability

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



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



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 8:
Location Strategies

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



FIRSTWELL CORPORATION AND THE PRODUCTION MANDATE QUESTION
Paul W. Beamish

Product Number: 9B12M024
Publication Date: 2/28/2012
Revision Date: 11/19/2014
Length: 12 pages

Two facilities owned by a large U.S.-based multinational enterprise (one in Canada, one in the United States) are competing for a regional manufacturing and distribution mandate. The head of Firstwell’s global operating committee must decide whether the proposal from Firstwell Canada is best not only for the Kingston, Ontario, plant but also for Firstwell Corporation worldwide. The decision could signal a major shift in parent–subsidiary relations.

Teaching Note: 8B12M024 (11 pages)
Industry: Manufacturing
Issues: Subsidiaries; MNE Reporting Structures; Production; Organizational Politics; International Expansion; Canada; United States
Difficulty: 4 - Undergraduate/MBA



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


Chapter 9:
Layout Strategies

7-ELEVEN IN TAIWAN: ADAPTATION OF CONVENIENCE STORES TO NEW MARKET ENVIRONMENTS
Shih-Fen Chen, Aihwa Chang

Product Number: 9B12A011
Publication Date: 3/16/2012
Revision Date: 3/16/2012
Length: 24 pages

This case shows the expansion of 7-Eleven to Taiwan and the adaptation of the store format by its local franchisee to the new market environment. The core issue in this case is the balance between standardization and localization in business-format franchising across national borders. Despite keeping the store logo and convenience concept that was well established in the United States, the local franchisee of 7-Eleven in Taiwan re-formatted almost all aspects of the store chain, including its positioning, location, layout, and product offerings. In addition, 7-Eleven in Taiwan introduced a wide variety of new services for its customers, such as e-commerce (train or movie tickets), e-payment, mobile communications, pickup/delivery, and taxi services. The local franchisee, President Chain Store Corp. (PCSC), seemed to have struck the right balance between standardization and localization that allowed it to use service differentiation to gain competitive advantages over its rivals. In about three decades, it grew from zero to nearly 5,000 stores in Taiwan with over 50 per cent of the market, while expanding its reach to China and Thailand.

Teaching Note: 8B12A011 (7 pages)
Industry: Retail Trade
Issues: Service Standardization; Localization Across Borders; Service Differentiation; Service Marketing; International Franchising; Taiwan; CNCCU/Ivey
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



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 10:
Human Resources, Job Design and Work Measurement

DAVIS, ELLIS & THURN LLP
John S. Haywood-Farmer, Megan McNevitts, Meg Vito

Product Number: 9B12D016
Publication Date: 8/17/2012
Revision Date: 1/31/2014
Length: 14 pages

A senior manager at the Toronto office of accounting firm Davis, Ellis & Thurn (DE&T) reflected on last year's Upper Canada Bank (UCB) audit and wondered how he should plan for the upcoming 2012 audit. The senior manager was responsible for overseeing the audit of UCB's retail segment (UCBR). Specifically, he was concerned about the test-of-controls portion of the UCBR audit, since the team had faced some challenges the previous summer. For years, UCB had been a client of DE&T, but it was only in 2011 that the firm had bid on and was granted the test-of-controls portion, which had formerly been completed on behalf of DE&T by UCB's internal auditors. Now, reflecting on the previous year's engagement, the senior manager wondered what changes he would make with respect to budgeting, staffing, and training, and to the client relationship in order to ensure that the client was satisfied and the UCBR audit remained profitable.

Teaching Note: 8B12D016 (8 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Auditing; Budgeting; Control Systems; Cost Control; Professional Firms; Customer Service; Canada
Difficulty: 4 - Undergraduate/MBA



DAVIS, ELLIS & THURN LLP
John S. Haywood-Farmer, Megan McNevitts, Meg Vito

Product Number: 9B12D016
Publication Date: 8/17/2012
Revision Date: 1/31/2014
Length: 14 pages

A senior manager at the Toronto office of accounting firm Davis, Ellis & Thurn (DE&T) reflected on last year's Upper Canada Bank (UCB) audit and wondered how he should plan for the upcoming 2012 audit. The senior manager was responsible for overseeing the audit of UCB's retail segment (UCBR). Specifically, he was concerned about the test-of-controls portion of the UCBR audit, since the team had faced some challenges the previous summer. For years, UCB had been a client of DE&T, but it was only in 2011 that the firm had bid on and was granted the test-of-controls portion, which had formerly been completed on behalf of DE&T by UCB's internal auditors. Now, reflecting on the previous year's engagement, the senior manager wondered what changes he would make with respect to budgeting, staffing, and training, and to the client relationship in order to ensure that the client was satisfied and the UCBR audit remained profitable.

Teaching Note: 8B12D016 (8 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Auditing; Budgeting; Control Systems; Cost Control; Professional Firms; Customer Service; Canada
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 11:
Supply –Chain Management

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



RED BRAND CANNERS AND ITS SUPPLY CHAIN
Christoph Haehling von Lanzenauer, Olaf Pohl

Product Number: 9B12E007
Publication Date: 8/10/2012
Revision Date: 10/6/2016
Length: 5 pages

Developed as a companion to the Red Brand Canners (RBC) case, the starting point in this case is the improvement in performance resulting from the optimization approach in the original case. However, RBC’s vice president of operations is concerned about the quality and quantity mix of the most recent tomato crop received from Greenfield Farms (GF). RBC’s preferred quality and quantity mixes differ significantly from the current harvest. To RBC, the issue is how to motivate the supplier to produce a crop more in line with RBC’s needs. Initially, both firms in the B2B section of the supply chain try to find a combination that would be mutually beneficial — an attempt that fails because of conflicts of interest. RBC’s objective might be accomplished by taking a supply chain approach and modifying the delivery contract by an appropriate pricing scheme. The task is to identify and calibrate a pricing scheme that will realize the supply chain’s maximum performance and lead to a stable win-win solution. The derivation of the supply chain optimal prices is carried out by developing and solving a linear optimization model.

Teaching Note: 8B12E007 (17 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Pricing; Linear Programming; Quantitative Analysis;Food Processing Industry
Difficulty: 4 - Undergraduate/MBA



HALF A CENTURY OF SUPPLY CHAIN MANAGEMENT AT WAL-MART
P. Fraser Johnson, Ken Mark

Product Number: 9B12D010
Publication Date: 4/19/2012
Revision Date: 11/12/2013
Length: 23 pages

In 2012, a stock analyst was preparing a recommendation on what his firm, a large U.S. investment house, should do with its stake in Wal-Mart Stores, Inc. Wal-Mart, the world’s largest retailer, was trying to recover from a series of missteps that had seen competitors such as dollar stores and Amazon.com close the performance gap. Competitors had copied many aspects of Wal-Mart’s distribution system, including cross-docking products, eliminating storage time in warehouses, positioning stores around distribution centres, and widespread adoption of electronic data interchange (EDI), as well as ordering and shipping from suppliers.

Teaching Note: 8B12D010 (9 pages)
Industry: Retail Trade
Issues: Operations Analysis; Supply Chain Management; Supplier Relations; Competitive Advantage; Scheduling; United States
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Inventory Management

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



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



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 13:
Aggregate 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



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



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


Chapter 14:
Material Requirements Planning (MRP) and ERP

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



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



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 15:
Short-Term Scheduling

LANDHILLS WINERY: DEVELOPING AN OPTIMAL BLENDING PLAN
Owen Hall, Jr., Kenneth Ko

Product Number: 9B14E006
Publication Date: 5/21/2014
Revision Date: 5/12/2014
Length: 3 pages

A senior vintner at Landhills Winery (Landhills) has been put in charge of developing an optimal blending plan for the upcoming season. This assignment is the result of a recent Landhills board meeting where the chief executive officer presented her ideas regarding the use of analytics for enhancing profits while at the same time not affecting quality. Specifically, the use of resource optimization could significantly improve Landhills’s profitability. Industry reports have indicated that a growing number of major wineries are using analytics to assist in the wine-blending process. The board meeting concluded with the CEO tasking the senior vintner with developing an analysis and reporting back his findings to the board at next month’s meeting.

Teaching Note: 8B14E006 (5 pages)
Industry: Accommodation & Food Services
Issues: Analytics; wine blending; United States
Difficulty: 4 - Undergraduate/MBA



SAP LABS: STAFF REQUIREMENTS
Ajith J. Kumar, Amit Kumar Pansari

Product Number: 9B13E015
Publication Date: 5/14/2013
Revision Date: 5/1/2013
Length: 10 pages

The associate project manager for the Indian branch of SAP Labs, a multinational enterprise that provides software and software-related services, has been meeting with his manager to discuss ways to estimate staff requirements across shifts for the company’s provisioning team. The team works three shifts, 24 hours a day, seven days a week and services multiple types of requests in the form of tasks, which have one of seven priorities assigned to them. Service level agreements with customers require that the initial reaction time of the team meet specific requirements, which differ across priorities. Employing service agents involves costs for the organization. The project managers must identify a shift schedule that minimizes the number of staff used in a service setting while meeting the service level agreement expectations.

Teaching Note: 8B13E015 (21 pages)
Industry: Information, Media & Telecommunications
Issues: Discrete-event simulation; staff scheduling; service operations; optimization; India
Difficulty: 5 - MBA/Postgraduate


Chapter 16:
JIT and Lean Operations

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



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


Chapter 17:
Maintenance and Reliability

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



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