Ivey Publishing

Operations Management: Strategy and Analysis

Krajewski, L.J., Ritzman, L.P.,6/e (United States, Pearson, 2002)
Prepared By Jorge A. Colazo, Ph.D. Candidate (Production & Operations Management)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Operations as a competitive weapon

Michiel R. Leenders, James A. Erskine

Product Number: 9A92D002
Publication Date: 7/9/1992
Revision Date: 5/16/2012
Length: 6 pages

An expansion in the bottling plant of a brewery leads to a reassessment of the manual palletizing operation. It is possible to purchase expensive automatic equipment and a choice of makes is involved.

Teaching Note: 8A92D02 (6 pages)
Industry: Manufacturing
Issues: Equipment Investment; Machinery and Equipment; Equipment Selection/Maintenance; Capacity Analysis
Difficulty: 4 - Undergraduate/MBA

Chapter 2:
Operations Strategy

John S. Haywood-Farmer, Andrew Fletcher

Product Number: 9A96D006
Publication Date: 6/28/1996
Revision Date: 2/9/2010
Length: 6 pages

The general manager has to decide whether to pursue a potentially large order of fibreglass fascia signs from Consolidated Industries, a major Canadian retailer. The order might result in quintupled sales and would help the GM achieve his mandate to diversify to counteract the seasonality of the company's main business of manufacturing water slides. WhiteWater Specialties has had mixed results with earlier diversification efforts. Students have to evaluate how this potential business will affect the company and decide how well it fits the current operations.

Teaching Note: 8A96D06 (5 pages)
Industry: Manufacturing
Issues: Cost/Benefit Analysis; Manufacturing Strategy; Growth Strategy; Expansion
Difficulty: 4 - Undergraduate/MBA

Chapter 3:
Process Management

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

Chapter 4:
Managing Project Processes

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

Chapter 5:
Managing Technology

Albert R. Wood, Ian Stuart

Product Number: 9A88D006
Publication Date: 1/1/1988
Revision Date: 6/5/2003
Length: 23 pages

The technical services manager must decide on how to proceed with the development of a new fish head cutting device based on results from a summer study of fish flesh waste. Various alternatives are presented along with projected costs, all with varying degrees of technological and financial risk. (A sequel to this case is available, titled Canadian Fishing Company (B), case 9A88D007.)

Teaching Note: 8A88D06 (12 pages)
Industry: Manufacturing
Issues: Cost/Benefit Analysis; Research and Development; Productivity; Production Processes
Difficulty: 4 - Undergraduate/MBA

Chapter 6:
Total Quality Management

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

Henry W. Lane, John Kamauff, David Ager

Product Number: 9A95C018
Publication Date: 8/17/1995
Revision Date: 2/12/2010
Length: 17 pages

The president and owner of a small sandal factory realizes that if his company is to survive in the long-run, the manufacturing operation would need to become more efficient. Relaxed tariff barriers had increased the level of foreign competition in the country, particularly in the footwear industry. He had recently attended a seminar on total quality control (TQC) sponsored by the local trade association. Despite the potential benefits of TQC and its record of past successes, John was uncertain whether the Mexican employees would be able to implement TQC, a system that appeared to be based on different norms and values than those of Mexican workers.

Teaching Note: 8A95C18 (7 pages)
Industry: Manufacturing
Issues: Quality Control; Organizational Change; Management Systems; International Business
Difficulty: 4 - Undergraduate/MBA

Henry W. Lane, John Kamauff, David Ager

Product Number: 9A95C019
Publication Date: 8/17/1995
Revision Date: 2/12/2010
Length: 9 pages

The president and owner of a small sandal factory decided to implement TQC in his company factory. This case outlines the steps he followed, the problems he encountered and the measures he took to correct them as he introduced his employees to TQC. This case is intended to be used in conjunction with Sandalias Finas de Cuernavaca, S.A.: Total Quality Management (A), case 9A95C018.

Teaching Note: 8A95C18 (7 pages)
Industry: Manufacturing
Issues: International Business; Quality Control; Organizational Change; Management Systems
Difficulty: 4 - Undergraduate/MBA

Chapter 7:
Statistical Process Control

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 8:

Chris J. Piper, Albert R. Wood

Product Number: 9A91D004
Publication Date: 1/1/1991
Revision Date: 7/21/2000
Length: 10 pages

A large, open pit, iron ore mine is plagued with crusher delays. The case describes the situation, provides relevant capacities and costs, and gives statistical data on the frequency and duration of crusher stoppages. The manager has to choose between holding trucks idle during crusher delays, reassigning the truck-shovel teams to waste removal, or to dump ore at an ore stockpile.

Teaching Note: 8A91D04 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Capacity Analysis; Bottlenecks; Mining; Natural Resources
Difficulty: 4 - Undergraduate/MBA

John S. Haywood-Farmer, Wendy Osborne

Product Number: 9A93D011
Publication Date: 8/30/1993
Revision Date: 3/4/2010
Length: 15 pages

The plant manager of Campbell Soup Company Limited's Toronto plant, was trying to decide how the plant should increase its capacity and reduce its costs. The goal was to make the plant competitive with Campbell's United States plants to allow it to serve the large north-eastern American market. The plant manager was considering investing in equipment or labour to address this issue. Without a solution, the plant's future may be in doubt.

Industry: Manufacturing
Issues: Productivity; Management in a Global Environment; Manufacturing Capacity; Capital Investment
Difficulty: 4 - Undergraduate/MBA

Chapter 9:

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

Chapter 10:

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:
Supply Chain Management

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 12:

John S. Haywood-Farmer, Arash Mahdaviani

Product Number: 9A96M003
Publication Date: 9/4/1996
Revision Date: 8/18/2004
Length: 24 pages

The operations manager of the Westover Inn has an opportunity to obtain an equity position in the Inn and is trying to decide whether it makes sense for him to take advantage of it. The case examines a purchase decision from a broad range of perspectives - finance, accounting, model building, operations, marketing, strategy, human resources, communications, information technology - and particularly the interaction between the concerns of these functions. A related issue is to determine the value of the property. The focus of the case is the Inn's financial condition - its statements and projections - and various alternative approaches to evaluation. (A supplement to this case, Westover Inn (B), case 9A96M004, is available.)

Industry: Accommodation & Food Services
Issues: Acquisitions; Present Value; Forecasting; Economic Analysis
Difficulty: 4 - Undergraduate/MBA

Chapter 13:
Inventory Management

John S. Haywood-Farmer, Amanda Clark

Product Number: 9A94D018
Publication Date: 9/2/1994
Revision Date: 2/23/2010
Length: 5 pages

The plant manager of Hammond Manufacturing's Guelph, Ontario transformer plant was concerned about problems with the delivery of enclosures from a sister plant ten kilometres away. These problems reduced the company's ability to compete for business by delaying production and shipments to customers. Both plant managers wanted to reduce not only the frequency of late deliveries, stockouts, and backorders, but also the level of frustration between their two plants. Students have to identify the source of these problems and propose a reasonable course of action to deal with them.

Teaching Note: 8A94D18 (4 pages)
Industry: Manufacturing
Issues: Materials Management; Supplier Relations; Inventory Planning/Control; Manufacturing Strategy
Difficulty: 4 - Undergraduate/MBA

Chapter 14:
Aggregate Planning

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 15:
Resource Planning

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 16:
Lean Systems

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

Chapter 17:

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

Michiel R. Leenders, Robert Klassen, Natasha Ebanks

Product Number: 9B02D011
Publication Date: 9/20/2002
Revision Date: 11/9/2009
Length: 12 pages

ING Direct Canada is a retail banking operation and a subsidiary of one of the top global providers of integrated financial services, ING Group of the Netherlands. ING Direct Canada needs to meet the operational demands of a growing client base, while maintaining its current staffing levels, physical space and commitment to same-day processing of accounts. The senior vice-president of operations must implement procedures to cope with the immediate challenges of the company's growth, as well as develop a long-term strategy. Options to consider included new technology, increased efficiencies, or relaxing the same day processing requirements.

Teaching Note: 8B02D11 (15 pages)
Industry: Finance and Insurance
Issues: Process Analysis; Process Design/Change; Service Operations; Scheduling
Difficulty: 4 - Undergraduate/MBA