Ivey Publishing

Operations Management for MBAs

Meredith, J.R., Shafer, S.M.,3/e (United States, Wiley, 2006)
Prepared By Jing Chen, Ph.D. Candidate (Management Science)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
The Nature of Operations

FOREFRONT MANUFACTURING: PRODUCTION PROCESSES AND CHANGE MANAGEMENT IN MAINLAND CHINA
Chris J. Piper, Nigel Goodwin

Product Number: 9B06D020
Publication Date: 10/12/2006
Revision Date: 9/16/2009
Length: 15 pages

ForeFront Wood Products produces high quality wooden door-sets. The company faces capacity constraints and inefficiencies resulting from its processes and culture. As a consequence, it struggles to be profitable. ForeFront's parent company, ForeFront Holdings, plans an initial public offering in 2007. It has recently hired a new operations manager with the mandate to turn the factory around. As the operations manager begins his job he tours the manufacturing facilities to gather information on production processes and factors affecting capacity, cost and conformance. The case describes the firm's manufacturing and managerial processes. Many issues are described, including high costs, low yields, unreported defects and equipment that fails to operate near its rated capacity. Organizational and change management challenges, including high employee turnover, excessive use of overtime and failure of supervisors to observe or report employee errors are also described.

Teaching Note: 8B06D20 (12 pages)
Industry: Manufacturing
Issues: China; Production Management/Control; Organizational Behaviour; Automation; Bottlenecks; Nanyang
Difficulty: 4 - Undergraduate/MBA



WILKINS, A ZURN COMPANY: DEMAND FORECASTING
Carol Prahinski, Eric Olsen

Product Number: 9B06D006
Publication Date: 8/21/2006
Revision Date: 9/16/2009
Length: 11 pages

The newly promoted inventory manager wonders if there is an easier, more reliable means of forecasting the sales demand. Currently forecasts are based on the plant manager, sales/marketing manager and inventory manager's knowledge of industry trends, competitive strategies and sales history. He must decide if using statistical forecasting methods would ease the forecasting process and make the forecast more reliable. Students are exposed to different forecasting techniques, including executive opinion, linear regression and time series. The data characteristics include seasonality, trend and random fluctuations.

Teaching Note: 8B06D06 (23 pages)
Industry: Manufacturing
Issues: Sales Forecasting; Demand Analysis; Planning Information; Uncertainty
Difficulty: 4 - Undergraduate/MBA



LABORATORIO DE ANALISIS ARGENTINA
P. Fraser Johnson, Ken Mark, Jordan Mitchell

Product Number: 9B06D004
Publication Date: 2/6/2006
Length: 13 pages

The technical director of Laboratorio de Analisis Argentina is responsible for ensuring that an average of 5,000 samples are processed daily. The samples have three sources: samples collected on-premises, samples sent from the organization's other 40 labs and samples sent from external labs. In one week the technical director has to give her boss a recommendation about dealing with the lab's capacity problems.

Teaching Note: 8B06D04 (6 pages)
Industry: Health Care Services
Issues: Capacity Analysis; Service Operations; Process Analysis; Operations Analysis
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 2:
Strategy, Operations, and Global Competitiveness

PRO ORGANICS (A)
Stewart Thornhill, Julie Gosse

Product Number: 9B05M003
Publication Date: 10/28/2005
Revision Date: 9/30/2009
Length: 5 pages

Pro Organics is a major distributor of organic fresh food. The owner is faced with the decision of broadening the company's market and opening a second location. The owner must develop an expansion strategy to test and ensure the viability of success in the new market. The supplement Pro Organics (B), product 9B05M004 discusses how the owner must reevaluate the company's future direction in response to the possibility of a shrinking market and an increasing trend of industry consolidation. An 8-minute video supplement is also available, product 7B05M003.

Teaching Note: 8B05M03 (8 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Acquisitions; Market Strategy; Expansion
Difficulty: 4 - Undergraduate/MBA



ALCHEMY TRAINING FIRM
June Cotte, Alan (Wenchu) Yang

Product Number: 9B04A015
Publication Date: 9/20/2004
Revision Date: 10/7/2009
Length: 14 pages

The top sales person for Alchemy Training Firm has visited three potential clients, an existing customer, a warm call referral and a cold call, to sell a new offering from the company. While the company was well-known for providing top quality sales management training programs, the owners have decided to branch out with a new offer of supply chain management/purchasing training courses. The sales person must prepare a report of these sales calls for a planning session, and is concerned that the outcome may not be successful. He wonders what he could have done differently. The case highlights the difficulties in selling a new intangible service when firm reputation, trainer reputation, and course customization opportunities compete with cost as main buyer priorities. The differing opinions of the owners on the firm's growth strategy are an issue, as well.

Teaching Note: 8B04A15 (5 pages)
Industry: Educational Services
Issues: China; Sales Management; Corporate Strategy; Sales Strategy; Services
Difficulty: 4 - Undergraduate/MBA



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

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

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

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



ROSENBLUTH: SUPPLY CHAIN MANAGEMENT IN SERVICES
John Kamauff, Sara Allan

Product Number: 9A95D021
Publication Date: 5/13/1996
Revision Date: 10/23/2008
Length: 18 pages

This case demonstrates how forming strategic partnerships with suppliers and clients can lead to win-win-win situations in the supply chain. It can be used to discuss the importance of information sharing and the use of information technology to drive the direction of the individual relationships. It also shows how cultivating partnerships can result in a competitive advantage in a highly competitive service industry. Techniques for developing and maintaining such a relationship are also brought out in the case, and it provides an opportunity to focus on the key concepts of supply chain management as they apply to service industries.

Teaching Note: 8A95D21 (3 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Customer Relations; Management in a Global Environment; Supplier Relations; Supplier Selection
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Process Planning and Design

DABBAWALLAHS OF MUMBAI (B)
Larry Menor, Ramasastry Chandrasekhar

Product Number: 9B04D013
Publication Date: 8/10/2004
Revision Date: 10/9/2009
Length: 4 pages

The president of Nutan Mumbai Tiffin Box Suppliers Charity Fund is faced with the decision of how to expand the Dabbawallahs of Mumbai service. The service could be expanded in terms of product offering or geographical setting. This is a supplement to Dabbawallahs of Mumbai (A), product 9B04D011, and asks students to examine the opportunities and challenges in growing the service, and decide upon the most appropriate course of action.

Teaching Note: 8B04D11 (13 pages)
Industry: Other Services
Issues: System Design; Service Operations; Process Design/Change; Supply Chain Management
Difficulty: 4 - Undergraduate/MBA



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



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



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 4:
Six Sigma for Process and Quality Improvement

SUMMERWOOD OUTDOORS INC.
John S. Haywood-Farmer, Erich Isopp, Naomi Midanik

Product Number: 9B06D012
Publication Date: 8/30/2006
Revision Date: 9/16/2009
Length: 16 pages

The head of logistics has received a number of customer complaints regarding various aspects of the company's product delivery policy. She must decide what can be done to increase customer satisfaction with its pricing, delivery service and customer relations. The head of logistics is not sure if it's a problem with communications or internal problems with the delivery process. She will have to assess customer feedback and examine the sales process.

Teaching Note: 8B06D12 (10 pages)
Industry: Construction
Issues: Logistics; Quality; Service Operations; Customer Relations
Difficulty: 4 - Undergraduate/MBA



DABBAWALLAHS OF MUMBAI (A)
Larry Menor, Ramasastry Chandrasekhar

Product Number: 9B04D011
Publication Date: 5/14/2004
Revision Date: 10/9/2009
Length: 19 pages

The president of the Nutan Mumbai Tiffin Box Suppliers Charity Trust had just returned to his office after meeting with Britain's Prince Charles, who was on an official visit to Mumbai. The Trust was the managing organization of the dabbawallah meal delivery network. The dabbawallah's service was cited internationally by management scholars and industry executives as an exemplar in supply chain and service management. The service had acquired a reputation for its delivery reliability in Mumbai. International interest in the dabbawallahs was largely due to a 1998 article published by Forbes. However, many observers now expressed concerns over the future viability of the dabbawallahs' service given the difficulty in duplicating its delivery network elsewhere, the emergence of other lunch competitors in Mumbai, and an array of environmental changes affecting both its customers and the workforce. The case allows a discussion of service and supply chain management issues related to operational excellence.

Teaching Note: 8B04D11 (13 pages)
Industry: Other Services
Issues: Process Design/Change; System Design; Service Operations; Supply Chain Management
Difficulty: 4 - Undergraduate/MBA



BLUE MOUNTAIN RESORTS: THE SERVICE QUALITY JOURNEY
P. Fraser Johnson, Mark Sheppard

Product Number: 9B00D016
Publication Date: 10/20/2000
Revision Date: 10/18/2002
Length: 20 pages

Blue Mountain Resorts had been driving its business with a service quality program for several years, which the vice-president of human resources was responsible for coordinating. With a new ski season underway, and the critical Christmas season approaching, he wanted to continue progress of the program by introducing a new set of initiatives. He had recently gathered together a team of Blue Mountain Resort managers, from a variety of different areas in the company, to identify opportunities to improve service quality. The group provided three proposals that he felt warranted consideration. At the upcoming executive team meeting, he would be expected to set the priorities for the coming year and recommend what action, if any, should be taken for each. He had to decide which programs made the most sense for immediate action and which ones required additional study and analysis. Each of the proposals affected different parts of the organization, so he also needed to be concerned about who else in the company should be involved in further evaluation and implementation.

Teaching Note: 8B00D16 (14 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Continuous Improvement; Cost/Benefit Analysis; Service Operations; Service Quality
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 5:
Schedule Management

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



ING DIRECT CANADA
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


Chapter 6:
Supply Chain Management

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



WHEELS GROUP: EVOLUTION OF A THIRD-PARTY LOGISTICS SERVICE PROVIDER
P. Fraser Johnson, Michael Sartor

Product Number: 9B04D004
Publication Date: 4/5/2004
Length: 17 pages

The president of Wheels Group and the founder and major shareholder of the company, are evaluating alternatives with respect to pursuing the goal of doubling the company's revenues over the next five years. However, the alternatives presented to them reveal a tension between two competing growth strategies: 1) an asset based growth strategy and, 2) a non-asset based growth strategy. A decision is required with respect to which opportunity to pursue, recognizing that both strategies cannot be pursued simultaneously. Complicating the decision is the fact that approximately 75 per cent of the company's revenues are currently derived from non-asset-based activity. The opportunity is provided to explore issues associated with developing, evaluating and implementing business strategy within the third-party logistics industry.

Teaching Note: 8B04D04 (18 pages)
Industry: Transportation and Warehousing
Issues: Logistics; Supply Chain Management; Strategic Planning; Transportation
Difficulty: 4 - Undergraduate/MBA



UNIFINE RICHARDSON
Carol Prahinski

Product Number: 9B02D020
Publication Date: 1/10/2003
Revision Date: 11/30/2009
Length: 4 pages

Unifine Richardson is a food manufacturer with 110 employees. The company's sole supplier of honey announced that effective immediately it was no longer able to supply Chinese honey. The Canadian Food Inspection Agency had rejected the importation of Chinese honey due to recently found traces of an antibiotic chemical. China had provided 20 per cent of the world's honey supply. Faced with escalating prices, issues with customers' preferences and possible product recalls, the purchasing manager must determine the company's next step. International sourcing, supply disruptions, supply chain management and quality issues must be considered.

Teaching Note: 8B02D20 (13 pages)
Industry: Manufacturing
Issues: Imports; Quality; Supplier Relations; Purchasing
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 7:
Supplement: The Beer Games
Chapter 8:
Inventory Management

ACUSHNET CANADA INC.: THE BONDED WAREHOUSE INITIATIVE
Gregory S. Zaric, Ian Friedman

Product Number: 9B05E012
Publication Date: 9/22/2005
Revision Date: 9/30/2009
Length: 3 pages

Acushnet Canada Inc. is considering using Canada Customs Bonded Warehouses to store golf shoes, gloves, outerwear and club heads inventory purchased from overseas suppliers. ACI often has to procure inventory four to six months before they needs it in order to ensure they will be able to meet customer requirements during the busy season. The critical managerial issue is considering the tradeoff between the cash flow savings (through duty postponement) and the need to meet the demand schedule, while taking into account storage limitations imposed by the private facility and their storage costs. This case can be used as an introduction to linear programming as well as an introduction to the concept of bonded warehouses.

Teaching Note: 8B05E12 (5 pages)
Industry: Wholesale Trade
Issues: Inventory Planning/Control; Linear Programming; Spread Sheet Application; Procurement
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



GREAVES BREWERY: BOTTLE REPLENISHMENT
James A. Erskine, Michiel R. Leenders, Chris J. Piper

Product Number: 9B04D017
Publication Date: 9/20/2004
Revision Date: 10/9/2009
Length: 6 pages

The purchasing manager was wondering how many bottles he should purchase in the coming year. Last year, the market had levelled off and sales predictions were difficult. On the one hand he wanted to be sure sufficient bottles were available to supply this year's sales levels, yet he also wanted to minimize year-end inventories as covered storage space for empty bottles was tight and a bottle change-over seemed possible in the next two years.

Teaching Note: 8B04D17 (12 pages)
Industry: Manufacturing
Issues: Inventory; Forecasting
Difficulty: 4 - Undergraduate/MBA



PINNACLE TECHNOLOGIES - MIDDLE EAST
Allen Morrison

Product Number: 9B03M054
Publication Date: 11/5/2003
Revision Date: 10/22/2009
Length: 16 pages

Pinnacle Technologies is an unusual company in that it acts essentially as a subsidiary of U.K.-based Psion Teklogix although it is 100 per cent independent. Psion Teklogix manufacturers wireless data communication devices that are used primarily in inventory management activities performed in warehouses, ports, factories and airports. In the mid 1990s, Psion gave Pinnacle Technologies exclusive Middle Eastern rights to the Teklogix technology and product line. It also assisted in training Pinnacle's development staff, programmers and sales representatives. By 2002, Pinnacle was prospering and was thinking of diversifying into related and unrelated software services. The chief executive officer must decide to what degree Pinnacle should diversify from its core business and determine what financial and managerial resources are required for the diversification. (A 27-minute video is available featuring a discussion with the chief executive officer of Pinnacle, product 7B03M054.)

Teaching Note: 8B03M54 (12 pages)
Industry: Information, Media & Telecommunications
Issues: Core Competence; Management in a Global Environment; Inventory Planning/Control; International Business
Difficulty: 5 - MBA/Postgraduate


Chapter 9:
Enterprise Resource Planning

WILKINS, A ZURN COMPANY: MATERIAL REQUIREMENTS PLANNING
Carol Prahinski, Eric Olsen

Product Number: 9B06D005
Publication Date: 4/11/2006
Revision Date: 9/16/2009
Length: 16 pages

The materials manager at the Wilkins plant in California is surprised to find out that an auditor's report recommends a second annual physical inventory count. He had concerns about the level of the inventory that was conducted, he knew changes were needed and must decide what alternatives to consider. Students are exposed to the difficulties of managing inventory as well as typical problems that occur in growing businesses. Students will diagram the bill of material, conduct a materials requirement planning explosion and determine appropriate levels of safety stock, and address concerns associated with the high level of inventory.

Teaching Note: 8B06D05 (14 pages)
Industry: Manufacturing
Issues: Inventory Planning/Control; Material Requirements Planning; Materials Management
Difficulty: 4 - Undergraduate/MBA



KL WORLDWIDE ENTERPRISES, INC.: PUTTING IT TO WORK
Richard M. Kesner

Product Number: 9B05E023
Publication Date: 1/13/2006
Revision Date: 11/11/2015
Length: 21 pages

The KL Worldwide Enterprises Inc. case provides a rich context within which to explore the information technology (IT) issues that confront a global enterprise engaged in the manufacture, sales, and distribution of durable goods. The primary purpose is to give students a real-world, hands-on simulation of an IT systems development process that spans the entire lifecycle of an IT project from initial project scoping and justification through acceptance testing and deployment. The KL case emphasizes the design and delivery of enterprise resource planning, supply-chain management, decision support system, and e-commerce solutions for both for-profit and not-for-profit organizations. The case leads the reader into a consideration of the many opportunities to improve KL’s performance through the better design and integration of IT-enabled processes and services, including designing a new e-commerce or DSS capability and reengineering KL’s supply-chain and product design practices.

Teaching Note: 8B05E23 (9 pages)
Industry: Manufacturing
Issues: Operations Management; E-Commerce; Information System Design; Information Systems; Northeastern
Difficulty: 4 - Undergraduate/MBA



ASSET MANAGEMENT MODULE SELECTION
Derrick Neufeld, Yulin Fang

Product Number: 9B03E018
Publication Date: 11/5/2003
Revision Date: 10/19/2009
Length: 7 pages

A large university was adopting a new enterprise resource planning application suite. The purchasing director must decide whether or not to stay with the existing software, purchase a new system or modify two existing modules (Accounts Payable and Purchasing) to meet business requirements.

Teaching Note: 8B03E18 (9 pages)
Industry: Educational Services
Issues: Cost/Benefit Analysis; Enterprise Resource Planning; Information Systems; Decision Analysis
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 10:
Lean Management

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



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



MCLEOD MOTORS LTD
John S. Haywood-Farmer

Product Number: 9A95D008
Publication Date: 5/4/1995
Revision Date: 6/5/2012
Length: 5 pages

In the mid-1990s McLeod Motors rationalized a number of motor end shields to reduce manufacturing costs, improve service, and reduce inventories. However, inventories have apparently risen. Students must identify why McLeod has inventory, how large the inventory might have been before the rationalization, how large they might be now, why they are so large, and what could be done to reduce inventory levels. The case can be used in conjunction with a discussion on inventory function.

Teaching Note: 8A95D08 (11 pages)
Industry: Manufacturing
Issues: Inventory; Scheduling; Materials Management; Inventory Planning/Control
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
Project Management

CANADIAN FIREARMS PROGRAM
Derrick Neufeld, Zeying Wan

Product Number: 9B06E007
Publication Date: 2/16/2006
Revision Date: 9/17/2009
Length: 12 pages

The Canadian firearms program initially was established to set up a shared database. However, increasing costs of the firearms program is a concern for a number of Canadians. Should the federal government continue with the program, de-escalate or cancel the program. The case requires students to simultaneously evaluate the issues of the database design, software outsourcing, IS project management and change management. It can also be used to cover cost analysis, and political influences in decision-making.

Teaching Note: 8B06E07 (7 pages)
Industry: Public Administration
Issues: Politics; Cost Control; Information Systems; Project Management
Difficulty: 4 - Undergraduate/MBA



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



SPIN MASTER TOYS (A): FINDING A MANUFACTURER FOR E-CHARGERS
John S. Haywood-Farmer, Ken Mark

Product Number: 9B01D001
Publication Date: 1/19/2001
Revision Date: 12/17/2009
Length: 12 pages

AWARD WINNING CASE - This case was one of the winning cases in the 2002 Regional Asia-Pacific Case Writing Competition. Spin Master Toys was a Canadian manufacturer of toys ready to produce its latest product, E-Charger, an electrically powered model airplane. The operations manager had to decide which supplier should design and manufacture this new product. The timeframe from design to delivery was very short, requiring an accelerated development schedule. The company had a short list of two potential companies, both located in the major toy manufacturing district of southern China, near Hong Kong. The operations manager had to develop the appropriate criteria for this decision and evaluate the two suppliers. With relatively little information and already behind schedule, the company must make its decision in the face of considerable uncertainty. The supplemental cases Spin Master Toys (B): A New E-Chargers Supplier? (product 9B01D002) and Spin Master (C): Keeping the E-Chargers' Wings On (product 9B01D003) follow the progress and the challenges of the production of the E-Charger.

Teaching Note: 8B01D01 (7 pages)
Industry: Manufacturing
Issues: China; Project Management; Quality Management; Supplier Selection; Supplier Relations
Difficulty: 4 - Undergraduate/MBA



SPIN MASTER TOYS (B): A NEW E-CHARGERS' SUPPLIER?
John S. Haywood-Farmer, Ken Mark

Product Number: 9B01D002
Publication Date: 1/19/2001
Revision Date: 12/17/2009
Length: 5 pages

AWARD WINNING CASE - This case was one of the winning cases in the 2002 Regional Asia-Pacific Case Writing Competition. A manufacturer had been selected to produce Spin Master Toys' new product, E-Charger. Two weeks into the product design process, the operations manager was concerned because the manufacturer's progress was unsatisfactory and that, as a result, Spin Master Toys would likely miss its shipping date for the product launch. His options were to push ahead with the current supplier, try to negotiate with the other company that quoted on the contract, or look for yet another supplier. He had to evaluate the options and the impact each would have on meeting the shipping date. This is the second in a three case series that follows the selection of a manufacturer and the progress of the production of a new product. The accompanying cases are Spin Master Toys (A):Finding a Manufacturer (product 9B01D001) and Spin Master Toys (C): Keeping the E-Chargers' Wings On (product 9B01D003).

Teaching Note: 8B01D01 (7 pages)
Industry: Manufacturing
Issues: China; Quality Management; Supplier Selection; Supplier Relations; Project Management
Difficulty: 4 - Undergraduate/MBA