Ivey Publishing

Essentials of Operations Management

Young, S.T. (United States, Sage, 2010)
Prepared By Eunika Sot,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Introduction to Operations Management and Productivity

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



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



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

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

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

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


Chapter 2:
Productivity and Process Analysis

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



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



METROPOLITAN COLLEGE
P. Fraser Johnson, Robert Klassen

Product Number: 9B09D012
Publication Date: 10/22/2009
Revision Date: 12/14/2009
Length: 2 pages

A manager of Student Services at a small college was very concerned about the delays and costs of processing student registrations during the annual orientation week. She glanced at recently collected data on processing times for the six major steps that the registration process required. She wondered how the process might be improved while balancing budgetary pressures to reduce costs.

Teaching Note: 8B09D12 (7 pages)
Industry: Educational Services
Issues: Service Operations; Process Analysis; Process Design/Change; Educational Administration
Difficulty: 2 - Intro/Undergraduate


Chapter 3:
Operations Strategy

TATA CUMMINS: USHERING IN A NEW EMISSION STANDARD
Rajiv Misra

Product Number: 9B14D006
Publication Date: 7/9/2014
Revision Date: 7/9/2014
Length: 12 pages

Tata Cummins Limited (TCL), a leading manufacturer of diesel engines in India, faced a variety of challenges in meeting the October 2010 deadline for new automobile emissions standards. These standards are identified as Bharat Stage (BS) standards ranging from BS I to BS V. The subject of this case — the BS III standard — was introduced in 2005 for just 11 cities across India and then made mandatory for the entire country by October of 2010. At that time, the BS IV standard had already been implemented in a few large cities and it was this standard that was expected to exist nationwide by 2017. Reflecting on their successful experience with the transition to the 2010 automobile emissions standards, the vice-president of TCL hoped to make this next transition a smooth one by identifying the issues that the company would face in the near future.

Teaching Note: 8B14D006 (14 pages)
Industry: Manufacturing
Issues: Emission standards; engine manufacture; Bharat Stage; 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



SCOTTS MIRACLE-GRO: THE SPREADER SOURCING DECISION
John Gray, Michael Leiblein, Shyam Karunakaran

Product Number: 9B08M078
Publication Date: 11/14/2008
Revision Date: 6/22/2009
Length: 11 pages

The Scotts Miracle-Gro company is the world's largest marketer of branded consumer lawn and garden products, with a full range of products for professional horticulture as well. Headquartered in Marysville, Ohio, the company is a market leader in a number of consumer lawn and garden and professional horticultural products. The case describes a series of decisions regarding the ownership and organization of the assets used to manufacture fertilizer spreaders. This case is intended to illustrate the application of and tradeoffs between financial, strategic and operations perspectives in a relatively straightforward manufacturing make-buy decision. The case involves a well-known, easily-described product that most students would assume is made overseas. Sufficient information is provided to roughly estimate the direct financial cost associated with internal (domestic) production, offshore (non-domestic) production and outsourced production. In addition, information is included that may be used to estimate potential transaction costs as well as costs associated with foreign exchange risk.

Teaching Note: 8B08M78 (13 pages)
Industry: Manufacturing
Issues: China; Human Resources Management; Outsourcing; Globalization; Operations Management; Supply Chain Management; Operations Strategy
Difficulty: 5 - MBA/Postgraduate


Chapter 4:
Managing the Operations Workforce

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



RIVERSIDE HOSPITAL'S PHARMACY SERVICES
Anne Snowdon, Hannah Standing Rasmussen

Product Number: 9B11D014
Publication Date: 1/31/2012
Revision Date: 2/6/2014
Length: 16 pages

Riverside District Memorial Hospital is a small rural hospital that must work within an operational budget that is determined by the Ministry of Health and Long Term Care. This case identifies the emergence of concerns for patient safety related to medication administration, and the challenges of ensuring that professional services are maintained by the pharmacy department to serve patients admitted to hospital. The chief nursing executive must decide what steps should be taken to reduce medication errors, in the context of the complex relationships at Riverside.

Teaching Note: 8B11D014 (8 pages)
Industry: Health Care Services
Issues: Health Care; Technological Change; Operations Analysis; Pharmacy; Drug Administration; Hospitals; Canada
Difficulty: 3 - Undergraduate



AMBROSE & BISARO
John S. Haywood-Farmer, Jennifer Xu, Nicole Maisonville

Product Number: 9B10D007
Publication Date: 9/24/2010
Length: 17 pages

In February 2009,the human resources associate at the Toronto office of advertising agency Ambrose & Bisaro (A&B) had just finished interviewing a candidate for one of eight summer internship positions. Due to the economic downturn, A&B anticipated a larger number of qualified applicants for these positions, especially notable in 2009 as many of their direct competitors had scaled back their internship programs. Throughout the interview, the candidate impressed the human resources associate with their demeanor, enthusiasm and extra-curricular activities; however, the candidate had no previous marketing experience. At the end of the interview the candidate revealed she had secured interviews at five competing advertising agencies and had three firm offers. Somewhat taken aback, the human resources associate realized she had to make a very quick decision: extend an offer to the candidate, or wait and interview the remaining applicants and risk losing this one?

Teaching Note: 8B10D007 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Employee Selection; Hiring; Professional Firms; Management of Professionals
Difficulty: 4 - Undergraduate/MBA



JINJIAN GARMENT FACTORY: MOTIVATING GO-SLOW WORKERS
Tieying Huang, Junping Liang, Paul W. Beamish

Product Number: 9B04M033
Publication Date: 5/14/2004
Revision Date: 10/14/2009
Length: 6 pages

Jinjian Garment Factory is a large clothing manufacturer based in Shenzhen with distribution to Hong Kong and overseas. Although Shenzhen had become one of the most advanced garment manufacturing centres in the world, managers in this industry still had few effective ways of dealing with the collective and deliberate slow pace of work by the employees, of motivating workers, and of resolving the problem between seasonal production requirements and retention of skilled workers. However, the owner and managing director of the company must determine the reasons behind the deliberately slow pace of the workers, the pros and cons of the piecework system and the methods he could adopt to motivate the workers effectively.

Teaching Note: 8B04M33 (11 pages)
Industry: Manufacturing
Issues: China; Productivity; Employee Attitude; Piece Work; Performance Measurement; Work-Force Management; Peking University
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
The Balanced Scorecard Approach to Operations

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


Chapter 6:
Total Quality Management

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



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


Chapter 7:
Sustainable Operations

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



WAL-MART CHINA: SUSTAINABLE OPERATIONS STRATEGY
David J. Robb, Ben Hopwood, Lei Wang, Jun Cheng

Product Number: 9B08D009
Publication Date: 5/5/2009
Length: 20 pages

A German expatriate had moved to China in 2005 to take up a merchandizing position at the Wal-Mart China headquarters in Shenzen. By 2008 he had been promoted to the new position of senior director for sustainability for Wal-Mart China (retail) and Global Procurement. His new position required that he lead the rapidly-approaching inaugural Wal-Mart Sustainability Summit. The senior director must ensure that Wal-Mart China's five Strategic Value Networks (SVNs), which were tasked with leading sustainability change within the organization, continued to engage stakeholders by implementing innovative solutions that not only cut costs but also lead to more sustainable operations. The case describes Wal-Mart China's operations (including purchasing, distribution and retail) in the context of the company's desire to improve sustainability in a manner appropriate to China. The immediate issue is to identify opportunities to improve the sustainability of Wal-Mart China's distribution systems and retail operations.

Teaching Note: 8B08D09 (14 pages)
Industry: Retail Trade
Issues: China; Distribution; Purchasing; Logistics; Supply Chain Management; Sustainability; Tsinghua/Ivey
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Forecasting and Aggregate Planning

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



DESIGNING OPTIMAL CAPACITY PLANNING STRATEGIES
Owen Hall, Jr., Charles McPeak

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

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

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



NISSAN CANADA INC.
P. Fraser Johnson, Kyle Hunter

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

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

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


Chapter 9:
Scheduling for Operations

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



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

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

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

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



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 10:
Facility Location

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



ARE WE READY FOR AN AUTOMOTIVE PLANT?
Yi-Chia Wu, Joo Y. Jung

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

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

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



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 11:
Facility Layout and Waiting Lines

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



DIVERSE INDUSTRIES INTERNATIONAL
John S. Haywood-Farmer, Tim Tattersall

Product Number: 9B00D005
Publication Date: 5/1/2000
Revision Date: 5/27/2015
Length: 6 pages

The operations manager at Diverse Industries International's plant needs to make a decision regarding a restructuring of the plant's Automatic Dishwasher Gel production line. The restructuring suggestion which included replacing a loading table with a lift conveyor and hopper system, came from the company's industrial equipment contractor who hoped to sell them some used production equipment. The operations manager, while he was fairly sure the investment was a good idea, was concerned about how he could best justify the cost to the finance department and, if approved, how he could reallocate direct labor on the line to maximize efficiency.

Teaching Note: 8B00D05 (7 pages)
Industry: Manufacturing
Issues: Process Analysis; Process Design/Change; Operations Analysis
Difficulty: 3 - Undergraduate


Chapter 12:
Supply Chain Management

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



WOODSYNERGY INC: INTEGRATING IT INTO THE SUPPLY CHAIN
Owen Hall, Jr., Andrea Scott, Mark Chun

Product Number: 9B10E013
Publication Date: 10/13/2010
Length: 4 pages

WoodSynergy Inc. had become a midsize player in the fine woods supplier industry. The firm purchased stock woods from a number of producers and processed them to meet specific customer specifications. WoodSynergy had recently launched a number of IT-based supply chain management initiatives and was interested in assessing the current progress. The senior management at WoodSynergy had long felt that efficiency improvements to the firm's supply chain could be made through increased information integration. This case introduces the student or student teams to the growing role of information technology in supply chain management.

Teaching Note: 8B10E13 (5 pages)
Industry: Manufacturing
Issues: Supply Chain Strategy; Supply Chain Management; Information Technology
Difficulty: 4 - Undergraduate/MBA



SUPPLY CHAIN MANAGEMENT AT WAL-MART
P. Fraser Johnson, Ken Mark

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

In 2006 Wal-Mart, the second largest firm in the world by sales, was looking to improve its already efficient supply chain. The company's supply chain was closely integrated with its retail and information systems strategies and has been developed incrementally over the past 40 years. However, rivals are copying every aspect, from the way Wal-Mart cross-docks product in warehouses, to Wal-Mart's use of a sophisticated database to capture, store and disseminate store-level information to suppliers. Wal-Mart's new executive vice-president, logistics was overseeing a handful of initiatives designed to improve the firm's supply chain. However, it was not certain that these initiatives were going to have a significant impact on Wal-Mart costs, and he needed to consider what the company should do to stay ahead of the competition.

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


Chapter 13:
Inventory Management and Purchasing

DAVID STERN'S DECISION
John S. Haywood-Farmer, Kaitlin Thanasse

Product Number: 9B14D007
Publication Date: 6/24/2014
Revision Date: 3/6/2015
Length: 13 pages

At 6:05 a.m., the head office at Golden Horseshoe Constructors (GHC) was understandably empty and very quiet. The vice-president (VP) of purchasing settled in at his desk to review the bids for an upcoming condominium project and to then decide which window and door installation firm he would recommend for that portion of the job. GHC's president was expecting the decision first thing that morning. Just a day earlier, the president had strongly suggested that the work be given to Monyash Doors and Windows, a firm that had not submitted the lowest bid. In practice, all else being equal, the firm with the lowest priced bid would win the contract, but the VP was unsure how to proceed with the president’s request and which of the four bids he should recommend.

Teaching Note: 8B14D007 (6 pages)
Industry: Construction
Issues: Contracting; ethics; management of professionals; firms; purchasing; Canada
Difficulty: 4 - Undergraduate/MBA



HIGH-TECH METAL COMPONENTS: FINDING LOCAL SUPPLIERS
Martin Lockstrom, Shen Li

Product Number: 9B12D004
Publication Date: 3/22/2012
Revision Date: 10/26/2015
Length: 10 pages

In May 2009, High-Tech Metal Components (HTMC) inaugurated its brand new production plant of forgings and castings for automotive supplies in Suzhou, a city of 13 million close to Shanghai, China. After the successful installation of machinery and placement of workers, the company was prepared to begin production. A month later, the general manager of the Chinese division of HTMC received a phone call from the chief operating officer of its German headquarters; it was decided that it was necessary to cut costs for 2009 by more than five per cent. The cost structure was way too high, with many components imported from Europe. How could cost-cutting be done with the existing supply chain design in China? What long-term measures could be taken to realize the goal?

Teaching Note: 8B12D004 (5 pages)
Industry: Manufacturing
Issues: Supplier Management; Low-cost Country Sourcing; Technology; Germany; China; CEIBS
Difficulty: 5 - MBA/Postgraduate



PURCHASING SYSTEMS
Fernando Olivera, James A. Erskine, Michiel R. Leenders

Product Number: 9B00D011
Publication Date: 10/31/2000
Revision Date: 1/8/2010
Length: 4 pages

The technology deployment specialist of the Adelaide District School Board needed to make immediate changes to the purchasing system to respond to service demands. The current system was not widely accessible or user-friendly and was creating heavy workloads and the need for overtime. Senior management recognized the advantages of implementing a system that would integrate the data processing of all functions, including human resources, inventory, finance, purchasing, etc., and gave her the mandate to find an integrated system and develop a proposal for its implementation. In addition to finding a system that would meet these criteria, she had to consider the conflicting interests of different users, a new system that had been implemented in the finance department, and the ongoing changes in the organization.

Teaching Note: 8B00D11 (4 pages)
Industry: Educational Services
Issues: Conflict Resolution; Purchasing; Integration
Difficulty: 2 - Intro/Undergraduate


Chapter 14:
Resource Planning

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



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



NECANKO, INC.
Carol Prahinski

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

Necanko Inc. is a large international food manufacturer. A buyer-scheduler for the company must forecast sales demand to determine production planning, inventory management and distribution for the year. Sales were normally predictable and stable, but the company has just come back from a three month layoff due to slow sales and they are now experiencing a sales increase three times greater than usual. The buyer-scheduler is uncertain why the sales are spiking and must decide what action to take.

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


Chapter 15:
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: 9/27/2019
Length: 11 pages

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

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