Ivey Publishing

Managing Business Process Flows; Principles of Operations Management

Anupindi, R., Chopra, S., Deshmukh, S.D., Van Mieghem, J.A., Zemel, E.,3/e (United States, Pearson, 2012)
Prepared By Eunika Sot,
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Products, Processes and Performance

WESTRIDGE CABINETS
P. Fraser Johnson

Product Number: 9B15D006
Publication Date: 4/1/2015
Revision Date: 7/5/2016
Length: 9 pages

The chief operating officer at Westridge Cabinets, a Canadian cabinet manufacturer, needs to improve the company’s on-time delivery performance and reduce costs. Customers’ orders vary widely, in terms of both order size and product mix, leading to complications in planning and scheduling the plant. As part of their analysis, students are required to 1) recognize how the company’s order process integrates with production planning and control; 2) understand how manufacturing lead times affect flexibility and delivery performance and 3) calculate capacity in each department to identify and resolve potential constraints.

Teaching Note: 8B15D006 (13 pages)
Industry: Manufacturing
Issues: Analysis; capacity; process; inventory control; 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



PROCESS MANAGEMENT STRATEGY FOR XYZ LIMITED - KLTD DIVISION
Srinivasan Maheswaran

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

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

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


Chapter 2:
Operations Strategy and Management

AIRBUS’S SUPPLIER PORTAL: CHANGING A BUSINESS PARADIGM
Erik van Raaij, Jan van den Ende, Dominic Baumann

Product Number: 9B14D008
Publication Date: 3/13/2015
Revision Date: 3/14/2016
Length: 14 pages

With procurement volume determining 75 to 80 per cent of costs, Airbus heavily depends on its supplier base of more than 1,000 key suppliers. In 2003, Airbus introduced the supplier portal eSupplyChain, which served as an electronic marketplace for all interactions with its suppliers. In 2008, this solution needs either large investments or total replacement in the near future due to various internal and external factors. As part of the BoostAeroSpace initiative, a project designed by the leading companies in the French and European aerospace and defence industries, Airbus decides to develop and introduce a new supplier portal: AirSupply. The case uses Airbus’s decision to replace its previous supplier portal with AirSupply to illustrate the benefits and risks involved when introducing electronic marketplaces and the challenges in the future development of existing systems. Moreover, a qualitative perspective on pricing systems will enable readers to think about the financial aspects of electronic marketplaces that are offered in a software as a service (SaaS) model.

Teaching Note: 8B14D008 (10 pages)
Industry: Manufacturing
Issues: Procurement; electronic marketplace; supplier portal; aerospace; Europe
Difficulty: 5 - MBA/Postgraduate



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



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

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

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

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



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 3:
Process Flow Measures

YOUREKA HOTEL, AMRITSAR
Shikha Aggarwal, Narain Gupta, Gita Bajaj

Product Number: 9B14D013
Publication Date: 5/1/2015
Revision Date: 5/1/2015
Length: 9 pages

The management of the Youreka Hotel in Amritsar, India, was concerned about the hotel’s overall returns relative to its annual operating cost and large initial investment. The new five-star hotel was now up and running and customers had started checking in, but occupancy levels were low. The hotel industry in India was making double-digit margins, but the hotel had not even achieved operational breakeven yet. Of key importance for the operations head was choosing the best seafood supplier — based on selling price, transportation cost and other factors — for supplying the hotel’s restaurants. A poor decision could have a negative impact on room occupancy and profitability. Among management, there were also concerns that the location of the hotel might be unfavourable. When could the operations head expect the hotel to match the profitability of the industry? What could he do to improve the hotel’s profitability?

Teaching Note: 8B14D013 (10 pages)
Industry: Accommodation & Food Services
Issues: Supplier selection; total cost of ownership; spend analytics, facility location; India
Difficulty: 5 - MBA/Postgraduate



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

Product Number: 9B11E029
Publication Date: 9/15/2011
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



UPPER CANADA INSURANCE
David Wood

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

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

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



HOLT RENFREW
P. Fraser Johnson, Amrou Awaysheh

Product Number: 9B02D018
Publication Date: 11/29/2002
Revision Date: 2/12/2003
Length: 4 pages

In the early 2000s, the new director of logistics at Holt Renfrew, a high-end retailer of men's and women's fashions, has been asked to prepare a detailed plan for dealing with the company's $40 million warehoused inventory and its chronic stock out problems. Given the opportunity to prove how logistics can benefit the company's profit margin, the director prepares a three-fold strategy: improve the physical layout and process flow in the distribution center, upgrade the distribution systems and business processes, and re-allocate human resources. His challenge is augmented by the need to receive merchandise from international suppliers and distribute it quickly to compete in the fast-paced fashion industry.

Teaching Note: 8B02D18 (10 pages)
Industry: Retail Trade
Issues: Logistics; Supply Chain Management; Retailing; Inventory Planning/Control
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Flow-Time Analysis

NIAGARA FALLS CONSTRUCTION PROJECT: SCHEDULING, RESOURCES, COSTS AND BUREAUCRACY
Kenneth J. Klassen, Barry Riddell

Product Number: 9B15D007
Publication Date: 5/29/2015
Revision Date: 5/29/2015
Length: 12 pages

A homeowner and his family finally have an offer on their residence. The terms negotiated with the buyers require the homeowner to build a detached garage on the property before the closing date on August 30, 2013, which is in 16 weeks. The homeowner’s family has also made a conditional offer on another home, and the condition must be removed in two days if they would like to finalize that purchase. Although proficient at construction, the homeowner has encountered a major addition to his timeline on May 1. The city is requiring that he obtain a variance approval before the building department issues the building permit, thereby delaying the start of construction by between nine and ten weeks. The homeowner must decide whether to go ahead or cancel the sale of the residence and the purchase of a new home.

Teaching Note: 8B15D007 (11 pages)
Industry: Construction
Issues: Project management; scheduling
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: 7/26/2013
Length: 11 pages

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

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



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



CPSIM2: THE CRITICAL PATH SIMULATOR (WINDOWS VERSION)
Chris J. Piper

Product Number: 9B06D002
Publication Date: 1/11/2006
Revision Date: 9/16/2009
Length: 6 pages

CPSim2 is a Critical Path Simulator that runs under MS Windows. Participants use the simulator to manage the construction of an automated factory - a fairly complex, 43-activity project that must be completed in 107 days if penalties are to be avoided. As project manager, students must make effective trade-offs between the costs incurred by crashing (speeding up) activities, and the financial penalties for late completion. Unforeseen delays and speedups occur during the project, which require timely response. Although these appear random, each user of the simulator is exposed to the same events during the project. This allows performances and strategies to be compared within a class and between classes. CPSim2 maintains a current display of the project's CPM network, as well as the critical path(s) and activity slacks. The time required to complete the exercise is controlled by CPSim2, and does not exceed 60 minutes. This product provides the student instructions on the running of the simulation; the software itself is distributed with a site license for an additional annual license fee (product 7B06D002) - contact Ivey Publishing for pricing and distribution information.

Teaching Note: 8B06D02 (14 pages)
Issues: Critical Path; Computer Assisted Cases; Simulation; Project Management
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Flow Rate and Capacity Analysis

SPARTAN BUILDING PRODUCTS
P. Fraser Johnson

Product Number: 9B15D009
Publication Date: 5/8/2015
Revision Date: 8/2/2017
Length: 9 pages

The logistics analyst at Spartan Building Products, a large, national distributor of building materials, needs to prepare a report analyzing the company’s logistics practices. Management is particularly concerned about the high cost of servicing customer deliveries. Students are asked to evaluate factors contributing to the logistics problems at Spartan, including freight costs and the sales mix. Students will analyze the cost implications of supporting a broad product line and servicing customer orders that have a small dollar value.

Teaching Note: 8B15D009 (18 pages)
Industry: Wholesale Trade
Issues: Supply chain; logistics; distribution; transportation; Canada
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



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



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 6:
Inventory Analysis

TOFFEE INC.: DEMAND PLANNING FOR CHOCOLATE BARS
Jitendra R. Sharma

Product Number: 9B15D003
Publication Date: 5/7/2015
Revision Date: 5/7/2015
Length: 5 pages

The inventory manager of sales and distribution for Toffee Inc., a confectionery company, had just concluded a meeting with all relevant personnel. The meeting had not been entirely positive. The words of the production manager still echoed in his ears: “If the ingredient inventory is not re-examined and re-worked to the firm’s advantage then [soon] the final products based on these ingredients will cease to yield the kind of profits that the firm expects.” The inventory manager needed to prepare a comprehensive forecasting and inventory management plan with a view to minimize the cost of managing the supply chain by judicious use of resources, better forecasting, and improvement in the ingredient inventory purchasing and management systems.

Teaching Note: 8B15D003 (12 pages)
Industry: Other Services
Issues: Forecasting; inventory; service levels; quantity discounts; India
Difficulty: 4 - Undergraduate/MBA



ATHLETIC KNIT
David Wood, Dina Ribbink

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

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

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



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

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

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

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



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


Chapter 7:
Managing Flow Variability: Safety Inventory

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



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 8:
Managing Flow Variability: Safety Capacity

CHARTERED SPEED AND THE BUS RAPID TRANSIT SYSTEM
Debjit Roy, John Joy, Vaibhav Malhotra

Product Number: 9B15D004
Publication Date: 4/16/2015
Revision Date: 4/16/2015
Length: 14 pages

In June 2014, Chartered Speed Private Limited, the contract provider for the much acclaimed Bus Rapid Transit System of Ahmedabad, India, would like to improve customer service in order to position itself strongly during upcoming contract renewal talks with Ahmedabad Janmarg Limited, the municipal body responsible for the system. Buses arrive at the company’s workshops during the night for daily repairs and leave the next morning for their scheduled runs. However, given time and resource constraints, bus departures may either be delayed or buses may have to leave the workshop without the scheduled repair operations. Moreover, there is a long list of deficiencies with the buses or drivers and of incidents, such as accidents or breakdowns, that can result in financial penalties to the company. How should maintenance activities be designed to minimize the penalty losses and guarantee high customer service levels?

Teaching Note: 8B15D004 (11 pages)
Industry: Transportation and Warehousing
Issues: Bus operations; maintenance; scheduling; workshop operations; logistics; India
Difficulty: 4 - Undergraduate/MBA



PRAMANIK CONTAINERS AND THE BOTTLENECK CHALLENGE (A)
Rajiv Agarwal

Product Number: 9B12E014
Publication Date: 1/16/2013
Revision Date: 1/4/2013
Length: 6 pages

In 2010, a recent business graduate tries to resolve a constant bottleneck in the printing department of the family business. The two-part case discusses the issues of identifying the need for relevant information and then discusses the staff’s resistance to change and how these objections were handled and overcome.

This pair of cases seeks to identify the pressures faced by small businesses, along with the task of managing the various stakeholders, including the father-owner and the personnel on the factory shop floor.


Teaching Note: 8B12E014 (13 pages)
Industry: Manufacturing
Issues: Change management; identifying bottlenecks; organizational behaviour; India
Difficulty: 3 - Undergraduate



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



CRP PRODUCTS
David Wood, Robert Klassen

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

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

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


Chapter 9:
Managing Flow Variability: Process Control and Capability

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



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



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

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

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

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



SIX SIGMA IMPLEMENTATION AT MAPLE LEAF FOODS
P. Fraser Johnson

Product Number: 9B05D016
Publication Date: 1/5/2007
Length: 12 pages

Six Sigma has become a popular management philosophy adopted by several large companies including Maple Leaf Foods as a means of reducing waste systematically. The plant manager at the Rivermede plant is preparing for a meeting with the senior manager to discuss the new initiative Six Sigma @ the Edge. Based on the success of Six Sigma at this plant, it was chosen as a pilot for this new initiative. Students will develop a deeper understanding of Six Sigma and the challenges associated with embedding it in the organization.

Teaching Note: 8B05D16 (4 pages)
Industry: Manufacturing
Issues: Continuous Improvement; Job Enrichment; Work-Force Management; Quality
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Lean Operations: Process Synchronization and Improvement

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



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

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

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



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


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



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