Ivey Publishing

Operations Management: An Integrated Approach

Reid, R.D., Sanders, N.R.,2/e (United States, Wiley, 2005)
Prepared By Thomas K. Yeung, Ph.D. Candidate (Production & Operations Management)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Introduction to Operations Management

BLINDS TO GO: INVADING THE SUNSHINE STATE
Larry Menor, Ken Mark

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

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

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



NAVISTAR: ENVIRONMENTAL MANAGEMENT (A)
Robert Klassen, P. Fraser Johnson

Product Number: 9A96D001
Publication Date: 3/25/1996
Revision Date: 12/2/2002
Length: 15 pages

The environmental coordinator at the Chatham Assembly Plant of Navistar International Corporation, must develop a total waste management program which addresses both corporate waste reduction objectives and regulatory requirements. At the time of the case, a plant-wide waste audit had just been completed by an outside contractor in response to the introduction of provincial legislation, referred to as 3R Regulations. The environmental coordinator must assess the competitive implications of different alternatives, design the program, decide which materials will be recycled, identify who will be involved in implementation, and take into account the reaction of different stakeholder groups. (A sequel to this case titled Navistar: Environmental Management (B), case 9A96D002, is available.)

Teaching Note: 8A96D01 (14 pages)
Industry: Manufacturing
Issues: Environment; Pollution; Manufacturing; Operations Management
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Operations Strategy and Competitiveness

ACER GROUP'S CHINA MANUFACTURING DECISION
Terence Tsai, Borshiuan Cheng, Donna Everatt

Product Number: 9A99M009
Publication Date: 4/6/1999
Revision Date: 5/24/2017
Length: 15 pages

The Acer Group is one of the world's largest PC and computer component manufacturers. The vice-president of Global Operations is pondering whether the timing and environment is conducive for Acer, based in Taiwan, to commence full-scale manufacturing operations in the Chinese mainland. Students are asked to examine the criteria on which Acer should base their decision to manufacture overseas, and in so doing, create the framework for a corporation's global manufacturing strategy. The teaching objectives also include having students consider the political, economic and social environments of a global manufacturing strategy. A related case entitled Acer Group's R & D Strategy - The China Decision (9A99M007) is also available.

Teaching Note: 8A99M09 (10 pages)
Industry: Manufacturing
Issues: Globalization; Plant Location; Competitiveness; Manufacturing Strategy
Difficulty: 4 - Undergraduate/MBA



UNICON CONCRETE PRODUCTS (H.K.) LTD.
Robert Klassen, P. Fraser Johnson

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

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

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



INDUSTRIE PININFARINA: THE NEW CUSTOMER DECISION
Neil R. Jones

Product Number: 9A98D005
Publication Date: 5/27/1998
Revision Date: 4/27/2011
Length: 19 pages

A renowned manufacturer and designer of niche vehicles for major automobile companies has traditionally competed on flexibility using a highly skilled design and manufacturing workforce and low levels of automation. However, the European auto market is threatened with a shakeout. The director of operations must decide whether to accept an offer from Mitsubishi to become the exclusive European manufacturer of a sport utility vehicle. The order would more than double the company's manufacturing volume and relieve pressure to replace models currently in production. However, the fit of the order with existing manufacturing strategy is poor, and major changes in facilities and equipment as well as people and systems would be required. The case is suitable for use in an operations class to introduce or apply basic concepts in operations strategy or to discuss operations capability and strategy with executives.

Teaching Note: 8A98D05 (17 pages)
Industry: Manufacturing
Issues: Globalization; Strategic Change; Process Design/Change; Automotive
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Product Design and Process Selection

ASIMCO INTERNATIONAL CASTING COMPANY (A)
Robert Klassen, Sophia Liu

Product Number: 9B04D009
Publication Date: 4/5/2004
Revision Date: 10/9/2009
Length: 16 pages

ASIMCO International Casting Company, a joint venture between ASIMCO and Caterpillar, had recently finished several major projects designed to upgrade the manufacturing capabilities in its foundry. The plant was now under significant pressure to increase revenue, and had received an invitation to bid on a new customer order. While this order might provide the ideal opportunity to further upgrade its process technology and capabilities, significant challenges were presented by several critical product characteristics. Alternatively, the plant's limited resources could focus on meeting the internal needs of one of its partners. Caterpillar was expected to authorize test runs of two new products soon; however, the annual production volumes were very uncertain.

Teaching Note: 8B04D09 (14 pages)
Industry: Manufacturing
Issues: China; Operations Management; International Business; Technology; Process Design/Change
Difficulty: 4 - Undergraduate/MBA



COUNTRY PAWS BOARDING INC.
Larry Menor, Jacob Cho

Product Number: 9B03D007
Publication Date: 9/25/2003
Revision Date: 10/19/2009
Length: 6 pages

The owners of Country Paws Boarding Inc., a large boarding facility for dogs, customarily took every opportunity to get to know each dog's likes, dislikes, behaviors and tendencies in order to minimize separation trauma. This required ongoing dialog with each dog owner and observation of each canine. The owners were always eager to chat with those boarding their dogs at Country Paws in the hope of identifying potential new services and improving existing offerings. In response to dog owner expectations for canine socialization and recreation, new offering being considered was the community playground. They must determine how this offering would fit with their current line of services and what other services were worth considering.

Teaching Note: 8B03D07 (8 pages)
Industry: Other Services
Issues: Small Business; Product Design/Development; Process Design/Change; Services
Difficulty: 4 - Undergraduate/MBA



DOKA (SWEDEN)
Michiel R. Leenders, BAAM Van Baren

Product Number: 9A86D012
Publication Date: 1/1/1986
Revision Date: 7/8/2003
Length: 14 pages

The factory manager at the Doka plant in Stockholm was reviewing a capital expenditure proposal to replace some of the manufacturing equipment in the plant. The changes were proposed to avoid product environmental concerns and to provide savings in raw materials and personnel costs. He has, however, some reservations about the proposal, particularly the production process it was advocating and that it would put the plant out of line with the production process used by other subsidiaries.

Industry: Manufacturing
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
E-Commerce and Supply Chain Management

TECHNO SYSTEMS CORPORATION: BENCHMARKING SOURCING (ABRIDGED)
John Kamauff, Steven Kramer, Jim Simpson

Product Number: 9A95D001
Publication Date: 1/22/1995
Revision Date: 2/12/2010
Length: 14 pages

Techno Systems, an industry leader in providing electronic kit assemblies for customized commercial applications and government, is currently undergoing a transition from a heavy government orientation to a more commercial customer base. A director of sourcing has been asked to prepare a review of the sourcing function by using benchmarking. She is considering how to effectively implement a benchmarking effort that would contribute to the sourcing review. Based upon her presentation, the upper management will determine the need for strategy development in the sourcing department. In essence, she is determining the hierarchical placement of the sourcing department for the future. This case affords the student an opportunity to examine sourcing in relation to operations strategy and to investigate benchmarking practices. It includes information compiled from benchmark studies conducted by the Center for Advanced Purchasing Studies (CAPS) and provides an insight into gated benchmarking.

Teaching Note: 8A94D05 (6 pages)
Industry: Manufacturing
Issues: Operations Management; Quality; Supplier Relations; Purchasing
Difficulty: 4 - Undergraduate/MBA



DAIKIN INDUSTRIES
Chris J. Piper, Tetsu Imigi

Product Number: 9B04D018
Publication Date: 8/10/2004
Revision Date: 10/9/2009
Length: 9 pages

The president of Daikin Industries Residential Air Conditioning Shiga Factory was confronted by the prospects of an unseasonably cold summer, at a time when the Shiga Factory had large quantities of its products in inventory in anticipation of strong summer sales. The president was concerned not only about pending losses in the current year, but also about the factory's long-term survival. Unprofitability was unacceptable and Daikin was caught in a stagnant market in which it was increasingly difficult to build share by product differentiation. The Shiga Factory had been forced to use large inventories to cope with uncertain demand and a long and unwieldy supply chain. The president must decide whether to reduce the number of models, build a lower-cost factory outside Japan, or exit the business. He must also determine if there are any other options.

Teaching Note: 8B04D18 (23 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Inventory; Operations Strategy; Lead Time
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Total Quality Management

LONGXI MACHINERY WORKS - QUALITY IMPROVEMENT (A)
Robert Klassen, Larry Li, Tom Gleave

Product Number: 9A98D001
Publication Date: 4/27/1998
Revision Date: 1/27/2010
Length: 17 pages

The assistant engineer in the Thermal Treatment Department of a state-owned enterprise in China has received approval for the formation of a new quality control group to reduce the high defect rate of a critical part. The total quality concept is presented within the context of a specific quality problem, which encourages students to both assess the company's quality system and apply quality improvement tools to this particular problem. This case is the first of a three part series that applies the principles and tools of total quality management in a Chinese setting. This case can either be used independently or in combination with the (B) case, 9A98D002 and (C) case, 9A98D003.

Teaching Note: 8A98D01 (16 pages)
Industry: Manufacturing
Issues: China; International Business; Quality Management; Production Processes; Operations Management
Difficulty: 4 - Undergraduate/MBA



JONES, BOX AND LABEL: THE RECALL
John Kamauff

Product Number: 9A94D002
Publication Date: 3/13/1994
Revision Date: 2/23/2010
Length: 7 pages

A medium-sized Canadian packaging firm is facing the potential recall of 90,000 individual products by one of its major pharmaceutical clients. The defects are packaging-related and were traced to a lot of customer-finished boxes that Jones, Box and Label had recently delivered. The immediate issue is to determine the problem causing defective packaging materials and how to solve it. Other business basics include: quality assurance, what type of relationship between buyer and supplier is most effective for problem-solving and whether the anticipated level of uncertainty dictates the nature of buyer-supplier relationships. The case introduces students to Kepner-Tregoe problem solving and offers an opportunity to compare and contrast this problem resolution methodology with Ishikawa (or fishbone) diagrams and other problem-solving techniques.

Teaching Note: 8A94D02 (6 pages)
Industry: Manufacturing
Issues: Operations Management; Customer Relations; Quality; Purchasing
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Statistical Quality Control

NORAM FOODS
Michiel R. Leenders, John Walsh

Product Number: 9A82D022
Publication Date: 1/1/1982
Revision Date: 6/29/2001
Length: 18 pages

The plant manager for Noram Foods was considering the impact of changing Noram's policy on package weight. Noram Foods in Canada had an enviable record of sound financial performance, although there had been a period of declining profits when the Canadian economy suffered under conditions of high unemployment, high interest rates, and high inflation. Leo Marsden believed the weight control issue represented a major opportunity for re-evaluation and increased performance.

Teaching Note: 8A82D22 (9 pages)
Industry: Manufacturing
Issues: Statistical Analysis; Quality Control
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Just-in-Time and Lean Systems

SPARTAN PLASTICS
Chris J. Piper, Narendar Sumukadas

Product Number: 9A97D012
Publication Date: 12/3/1997
Revision Date: 2/3/2010
Length: 15 pages

The vice-president Operations of Spartan Plastics, is facing a trade-off. As an avid proponent of the Toyota production system, just in time manufacturing (JIT), ISO 9001, and continuous improvement, he has reduced setup times, batch sizes, and throughput times. On the other hand, the scrap rate has shot up. This case would be appropriate for use in a production and operations course, to introduce students to the concepts of JIT and world class manufacturing.

Teaching Note: 8A97D12 (6 pages)
Industry: Manufacturing
Issues: Quality Management; Continuous Improvement; Just-in-Time; Operations Management
Difficulty: 4 - Undergraduate/MBA



LOCTITE CORPORATION
Edward D. Arnheiter, John J. Cocco

Product Number: 9B02D019
Publication Date: 1/9/2003
Revision Date: 11/30/2009
Length: 33 pages

Loctite Corporation is a large industrial adhesives company. The company has implemented the five principles of lean management on its customer service operation. A recent merger of the customer engineering service operation with the dispensing equipment operation has the vice-president of technical service and application engineering looking at applying the lean principles on the equipment operations. The company initially considered equipment a secondary product line needed only to augment its service offering in the support of the core product, industrial adhesives. In addition, most of Loctite's equipment manufacturing activities were outsourced so suppliers played a key role in lean transformation. The vice-president must prepare a plan to implement the principles of lean management while meeting the goals set out by the president of the company.

Teaching Note: 8B02D19 (17 pages)
Industry: Manufacturing
Issues: Manufacturing Strategy; Inventory Planning/Control; Value Chain; Price Tension
Difficulty: 5 - MBA/Postgraduate


Chapter 8:
Forecasting

ESTIMATING DEMAND FOR KODAK FILM
David M. Currie, Ilan Alon

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

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

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



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 9:
Capacity Planning and Facility Location

FAMILY PIZZA NIGHT AT THE BALA BAY INN
John S. Haywood-Farmer, Amanda Balodia, Sara McCormick

Product Number: 9B04D007
Publication Date: 4/5/2004
Revision Date: 10/9/2009
Length: 9 pages

During the summer, a popular hotel and restaurant must turn away customers whenever it offers its once a week family pizza buffet. With summer season fast approaching, the managers and owners of Bala Bay Inn must evaluate the process and capacity of the restaurant and identify bottlenecks in the process to determine what can be done to accommodate the demand.

Teaching Note: 8B04D07 (7 pages)
Industry: Accommodation & Food Services
Issues: Process Design/Change; Capacity Analysis; Bottlenecks; Process Analysis
Difficulty: 4 - Undergraduate/MBA



INTERNATIONAL DECORATIVE GLASS
Robert Klassen, Paul W. Beamish, Jim Barker

Product Number: 9A97D010
Publication Date: 8/28/1997
Revision Date: 2/3/2010
Length: 16 pages

International Decorative Glass (IDG) is a small manufacturer of glass panels which are inserted into exterior steel doors. While their primary market is in the U.S., most of IDG's manufacturing is done in China through a joint venture arrangement. In response to rapidly growing customer demand, the vice president of operations, is considering the expansion of either their Chinese or Canadian manufacturing operations. Alternatively, he has been approached by a supplier to form a new joint venture manufacturing operation in Vietnam. Financial, political and infrastructural considerations must be weighed, in addition to any signal that would be sent to their current Chinese partners.

Teaching Note: 8A97D10 (14 pages)
Industry: Retail Trade
Issues: China; International Business; Manufacturing Strategy; Manufacturing Capacity; Joint Ventures
Difficulty: 4 - Undergraduate/MBA



HUXLEY MAQUILADORA
Paul W. Beamish, Jae C. Jung, Joyce Miller

Product Number: 9B02M033
Publication Date: 11/29/2002
Revision Date: 6/28/2011
Length: 14 pages

A senior manager in a U.S. manufacturing firm must make a recommendation about whether 57 labour intensive jobs should be moved from the existing California plant to a new facility in a Mexican maquiladora. If the Mexican opportunity is pursued, decisions are also required regarding the entry mode (subcontracting, shelter operator or wholly-owned subsidiary) and location (border or interior).

Teaching Note: 8B02M33 (7 pages)
Industry: Manufacturing
Issues: Corporate Strategy; Plant Location; Third World; Subsidiaries
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Facility Layout

CANADIAN TIRE CHECK-OUT CONFIGURATION
John S. Haywood-Farmer, Alex Antoniou

Product Number: 9B04D006
Publication Date: 6/24/2004
Revision Date: 10/9/2009
Length: 17 pages

Canadian Tire is a large automotive parts, sports and leisure, and home improvement retail store chain. With the rise in the number of large retail outlets, the company needed to look at ways to maintain and increase sales. Continuous improvements were made to store design and in-store operations. The vice-president of store planning and merchandising was evaluating checkout configurations. He needed to make his decision soon to avoid delaying the construction of four new test stores. He has three options; continue using the current tandem system, add self check-outs or switch to a single line configuration. He must analyze the three options to determine the benefits and trade-offs of each.

Teaching Note: 8B04D06 (7 pages)
Industry: Retail Trade
Issues: Process Design/Change; Service Operations; Store Layout; Retailing
Difficulty: 4 - Undergraduate/MBA



CELESTICA, INC. - MEMORY BUSINESS UNIT
John S. Haywood-Farmer, Lyn Purdy

Product Number: 9A97D005
Publication Date: 9/9/1997
Revision Date: 2/3/2010
Length: 19 pages

Celestica's memory products group is considering relocating and/or reconfiguring its production facilities. The Memory Products' general manager, has asked the process control engineer, to investigate the possibilities. One option being considered is moving from a process to a cellular layout. Both moving and reorganizing have attractive benefits as well as significant risks and costs.

Industry: Manufacturing
Issues: Employee Attitude; Manufacturing; Management of Change; Facilities Planning
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Work System Design

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



NEERAJ JAIN: THOMSON MACKENZIE, TORONTO
James A. Erskine, Anish Makim

Product Number: 9B03D003
Publication Date: 9/25/2003
Revision Date: 10/19/2009
Length: 8 pages

Thomson-MacKenzie is a large accounting firm. A senior staff member has taken a phone call from one of the firm's clients asking about why he has not yet received his tax return as promised. The senior staff member has to determine what caused the delay in getting the return done on time, how to resolve the issues surrounding the delay, and how he will respond to the client. A part-time workforce, working with high volumes and tight deadlines, may be part of the problem.

Teaching Note: 8B03D03 (3 pages)
Industry: Other Services
Issues: Work-Force Management; Process Analysis; Accounting - Tax; Service Operations
Difficulty: 2 - Intro/Undergraduate


Chapter 12:
Independent Demand Inventory Management

AN INTRODUCTION TO INVENTORY CONTROL AND INDEPENDENT DEMAND
P. Fraser Johnson

Product Number: 9A98D013
Publication Date: 8/18/1998
Revision Date: 11/8/2002
Length: 13 pages

Inventories exist in virtually every organization, and can serve any number of purposes. However, they can also represent a significant investment. Consequently, an important challenge facing managers is balancing the economic benefits of less frequent orders or setups versus the costs of holding inventory. This note provides an introduction to managing independent demand inventory items. It reviews the basic techniques associated with independent demand items, including fixed order quantity and fixed time period systems, and the ABC inventory classification system. The note is intended to address the questions of how much to order (the lot size issue) and when to order (the reorder point issue).

Issues: Inventory; Logistics; Operations Management; Inventory Planning/Control
Difficulty: 4 - Undergraduate/MBA



PROGISTIX-SOLUTIONS INC. - THE CRITICAL PARTS NETWORK
P. Fraser Johnson, Alison Woodcock

Product Number: 9B05D002
Publication Date: 1/28/2005
Revision Date: 9/28/2009
Length: 8 pages

The president and chief executive officer of Progistix-Solutions Inc. has asked an analyst to prepare an annual review of the Xerox Critical Parts Network for presentation to management in two weeks. The president expected the analyst to review the performance of the network and establish an improvement plan for the coming year, supported by specific goals and objectives. Although Xerox and Progistix had been satisfied with their relationship, after five years, both parties were interested in exploring ways to improve the network, particularly as competitors adopted similar approaches. In preparation for the meeting, the analyst wanted to explore opportunities in three specific areas. First, identify opportunities to improve depot operations. Second, he believed that opportunities existed to make additional improvements in the area of inventory management and he wondered how and where Progistix could work together with Xerox on such an initiative. Third, was to improve system-wide inventory turn performance by re-examining the cut-off point for filling the technicians' trunks with inventory. This case provides an opportunity for students to analyse a rapid-response supply chain and make recommendations for improvements. Class discussion can include issues related to supply chain partnerships, outsourcing, inventory management and demand forecasting. Data provided in the case allow students to develop implementation plans and set specific performance targets.

Teaching Note: 8B05D02 (9 pages)
Industry: Manufacturing
Issues: Supply Chain Management; Logistics; Inventory Planning/Control; Outsourcing
Difficulty: 4 - Undergraduate/MBA



VBF TUBING (ABRIDGED)
Chris J. Piper, Robert Klassen

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

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

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


Chapter 13:
Aggregate Planning

MACPHERSON REFRIGERATION LIMITED
John S. Haywood-Farmer, Bill Rankin

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

Linda Metzler, newly-appointed production planning manager, is drafting an aggregate production plan for the company's refrigerators, freezers and air conditioners for the next year. She has considered three plans. Students are asked to devise better plans and to evaluate the quantitative and qualitative factors favouring them. Ultimately, the use of linear programming to construct aggregate plans will be introduced.

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



MARTIN TRAILERS LIMITED
Chris J. Piper

Product Number: 9A82D006
Publication Date: 1/1/1982
Revision Date: 6/1/2001
Length: 4 pages

Martin Trailers Limited, which has grown rapidly, produces a line of camping trailers, which have a pronounced seasonal sales pattern. Details for the previous year's planning process, staffing levels, production outputs and costs are reviewed by the owner, with the objective of improving the management of materials in the year ahead. Sufficient information is available to perform a quantitative analysis of the aggregate planning decision and its relationship to material requirements planning.

Teaching Note: 8A82D06 (6 pages)
Industry: Manufacturing
Issues: Capacity Analysis; Material Requirements Planning; Materials Management; Purchasing
Difficulty: 4 - Undergraduate/MBA


Chapter 14:
Resource Planning

FOKKER B.V.
Chris J. Piper

Product Number: 9A88D012
Publication Date: 1/1/1988
Revision Date: 6/27/2003
Length: 25 pages

Problems had come to a head at the Fokker aircraft company's parts fabrication facility. Backlogs had gone from essentially zero two years previously to a size that was threatening the economic viability of not just the company's two new aircraft programs, but the company itself. At the centre of the problem were: a manufacturing information system whose information was being questioned by all sides; a production planning department that was swamped with work; and a manufacturing function whose capacity to keep up with demand was in dispute. A decision and action plan is needed.

Teaching Note: 8A88D12 (14 pages)
Industry: Manufacturing
Difficulty: 4 - Undergraduate/MBA



ILLUSTRIOUS CORPORATION
John S. Haywood-Farmer

Product Number: 9A93D022
Publication Date: 10/20/1993
Revision Date: 3/3/2010
Length: 2 pages

This exercise briefly describes the assembly of a fictional product, X500. The student must construct a structured bill of materials and an MRP plan for ten weeks for X500 and seven components in four levels. The student must then interpret the MRP plan and take action on stockouts.

Industry: Manufacturing
Issues: Materials Management; Centralization
Difficulty: 4 - Undergraduate/MBA


Chapter 15:
Scheduling

FISHER & PAYKEL LIMITED
Michiel R. Leenders

Product Number: 9A97D015
Publication Date: 12/3/1997
Revision Date: 2/3/2010
Length: 5 pages

On February 9, 1995, the purchasing officer at Fisher & Paykel Limited in Auckland, New Zealand, was preparing for the next meeting of the evaporator pad cover team. Recent supply problems had threatened to close down the refrigerator assembly line and the purchasing officer's task was to propose a workable and cost effective solution.

Teaching Note: 8A97D15 (15 pages)
Industry: Manufacturing
Issues: Make or Buy Decision; Scheduling
Difficulty: 4 - Undergraduate/MBA


Chapter 16:
Project Management

MULTIPLE SCLEROSIS SOCIETY OF CANADA: LONDON-GRAND BEND BICYCLE TOUR
Carol Prahinski, Thomas K. Yeung

Product Number: 9B05D014
Publication Date: 10/13/2005
Revision Date: 9/28/2009
Length: 7 pages

The senior manager of the Multiple Sclerosis Society of Canada, Ontario Division is working on the next fundraising event, the bicycle tour. She must plan the routing activities, while also concerned about cyclists' safety and enjoyment while participating in the event. Students will apply project management tools such as PERT/CPM diagrams and critical path while recognizing and managing for uncertainty in task duration times.

Teaching Note: 8B05D14 (15 pages)
Industry: Social Advocacy Organizations
Issues: Critical Path; Uncertainty; Project Management; Planning
Difficulty: 4 - Undergraduate/MBA



GADGET TOY COMPANY
Robert Klassen, P. Fraser Johnson

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

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

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



BENCHMARKING AT ULJANIK SHIPYARD
David M. Currie, Giorgio Sinkovic

Product Number: 9B05D011
Publication Date: 4/26/2005
Revision Date: 9/28/2009
Length: 5 pages

A junior executive is given the task of calculating a benchmark common in the ship building industry - cost per compensated gross ton. Although raw data is available for its components, the executive must formulate relationships between the data to determine the benchmark. The case is designed to provide: 1) an introduction to the construction and use of benchmarks in quality management; 2) practice in conceptualizing a problem and designing a basic spreadsheet model to solve the problem. The modeling procedure uses an influence diagram as the basis for constructing the spreadsheet model, this spreadsheet model is available, product 7B05D011.

Teaching Note: 8B05D11 (9 pages)
Industry: Transportation and Warehousing
Issues: Quality Management; Spread Sheet Application; Models
Difficulty: 4 - Undergraduate/MBA



CRAGGIER NATIONAL PARK
Chris K. Anderson, Benjamin Marcus

Product Number: 9B03E001
Publication Date: 2/27/2003
Revision Date: 10/19/2009
Length: 4 pages

Craggier National Park is a typical game reserve located in South Africa. The game reserve's management is trying to determine the optimal mix of animal species to stock a game reserve. Jointly they are trying to determine the mix of hunting packages to promote to potential clients.

Teaching Note: 8B03E01 (7 pages)
Industry: Accommodation & Food Services
Issues: Integer Programming; Optimization; Revenue Management
Difficulty: 5 - MBA/Postgraduate



INTRODUCTION TO PROCESS SIMULATION
Robert Klassen, P. Fraser Johnson

Product Number: 9A96D009
Publication Date: 9/20/1996
Revision Date: 9/1/1999
Length: 13 pages

Simulation is commonly used as a decision tool by managers in marketing, engineering, production, finance and many other disciplines. Managers simulate processes to gain a better understanding of their processes, diagnose problems, train new employees, and explore possibilities. Both the advent of powerful personal computers and the development of graphically driven simulation packages have contributed to this greater adoption. This note describes process simulation and illustrates the techniques with a tutorial model of a deli operation. (An Extend simulation file, product 7A96D009, is available for this case.)

Industry: Accommodation & Food Services
Issues: Simulation; Process Analysis; Computer Applications
Difficulty: 4 - Undergraduate/MBA



RED CROSS MOBILE BLOOD CLINICS - IMPROVING DONOR SERVICE
Robert Klassen, John S. Haywood-Farmer

Product Number: 9B00D024
Publication Date: 12/11/2000
Revision Date: 1/8/2010
Length: 12 pages

A regional director of donor services for the American Red Cross was wondering how to improve services to blood donors. Faced with an increasing number of complaints that donors were being held up in long lines at Red Cross' mobile blood collection operations - commonly termed bloodmobiles - she was considering several design alternatives for the blood collection process. Using the accompanying Extend run-time model (product #7B00D024), data file and structured assignment, students can explore changes in staffing assignments, donor registration and donor-bed configurations. For each alternative, a comparison is possible along a number of performance dimensions.

Teaching Note: 8B00D24 (9 pages)
Industry: Health Care Services
Issues: Non-Profit Organization; Service Quality; Service Operations; Simulation
Difficulty: 4 - Undergraduate/MBA