chase jacobs aquilano casemap1

Harvard Business School Publishing

Case Map for Chase/Jacobs/Aquilano:

Operations Management for Competitive Advantage, 10/e (McGraw Hill, 2004)

Harvard Business School Publishing 800-545-7685 (Outside the U.S. and Canada 617-783-7600)

[email protected] www.hbsp.harvard.edu/educators

This case map is unusual in that many of the cases were suggested by the textbook authors; other cases (designated “*”) were identified by an experienced editor at HBS Publishing. Faculty at Harvard Business School were not involved in analyzing the textbook or selected the cases. Every case map provides only a partial list of relevant items from HBS Publishing. To explore alternatives, or for more information on the cases listed below, visit: www.hbsp.harvard.edu/educators

Case Title Institution,

HBSP Product Number, Length, Teaching Note

Geographical and Industry Setting, Company Size, Time Frame

Abstract, Key Subjects

Chapter 1 Introduction to the Field

*Mass Production and the Beginnings of Scientific Management Thomas K. McCraw

HBS 391255 17p

N/A Examines the coming of mass production (continuous and large-batch processes and those involving fabricating and assembling of interchangeable parts), and relates the beginnings of modern factory management to the needs and opportunities created by the new technology. Besides focusing on the interrelation of technology and management, it examines issues created by the responses of management and labor to the new machines and methods. Subjects: Automation; Business history; Labor relations; Management of change; Manufacturing; Production planning; Technological change

Chapter 2 Operations Strategy and Competitiveness

American Connector Co. (A) Gary P. Pisano; Sharon Rossi

HBS 693035 18p B case 693049 TN 695014

California and Japan electrical connectors $800 million revenues 1991

American Connector Co. is forced to reexamine operations at its Sunnyvale plant when a Japanese competitor announces plans to build an "ultimate" plant in the United States. Case examines issues related to benchmarking a competitor's manufacturing capabilities and productivity. Allows students to compare two companies' manufacturing strategies and their implications for productivity and flexibility. Subjects: Competition; Electronics; Manufacturing strategy; Plant management; Productivity

McDonald’s HBS Global McDonald's has over many years built an

http://www.hbsp/�

http://harvardbusinessonline.hbsp.harvard.edu/relay.jhtml?name=educator&referral=9026�


http://hbsp.harvard.edu/cb/product/391255-PDF-ENG�














Corp. David Upton; Joshua D. Margolis

693028 22p

fast food 10,000+ employees 1992

operating strategy based on consistency and quality through a limited product range. Competitive forces have drawn the company into a much wider variety of foods and services in order to maintain growth. Now, new competitors threaten to beat McDonald's at its own, original game. In addition, McDonald's faces unprecedented challenges in its environmental policy. The case teaches approaches and dangers arising from flexibility, and the identification of capabilities that support different types of flexibility. The integration of environmental concerns with operations strategy is also addressed. Subjects: Competition; Environmental protection; Fast food industry; Operations management; Services; Strategy implementation

Rapid Rewards at Southwest Airlines Frances X. Frei ; Corey Hajim

HBS 602065 22p

United States airline $5.650 billion revenues 29,274 employees 2001

Southwest is a highly profitable airline in a very difficult industry. Two key drivers of Southwest's success are its relentless focus on a low-cost strategy and its ability to set customer expectations appropriately. This case is told through the lens of a frequent flier who has made two requests of the airline for differentiated service. Although Southwest is known for offering bare bones service, these requests are intriguing as they require no additional cost. In addition, satisfying the frequent flier (and others like her) could potentially provide economic insulation to the declining airline market. Should Southwest yield to this request? Teaching Purpose: 1) To illustrate the economics of the airline industry and the critical economic role of the last few passengers on the plane, 2) to force students to consider the operational implications of changes in its service concept and the implications of denying "free" service to its most frequent fliers, and 3) to explore a range of low-cost strategies that firms use across industries and the operational design necessary to support these strategies. Subjects: Airlines; Customer service; Service management

*Fresh Connections

HBS 600022 23p TN 600108

Vermont, food, 60 employees, 1999

Mary Alice McKenzie is facing numerous issues in growing her Vermont-based fresh-prepared foods business. She must address immediate operational problems – such as bottlenecks and capital equipment decisions – as well as decide on a long-term strategic position. This case investigates how she can structure her operations

http://www.hbsp/�












today to take advantage of the continued growth in the home meal replacement market.

Analog Devices, Inc.: The Half-Life System Robert S. Kaplan For tech note 2: Learning curves

HBS 190061 26p TN 191103

Massachusetts semiconductor $440 million sales 1989

The company has committed to major improvements in quality, cost, and on-time delivery performance. Despite strong senior management support, however, the actual rate of improvement was disappointing until a new measurement philosophy was introduced. The new approach specified expected rates of improvement and compared actual improvements to the expected rate. Operational people preferred the new measures to the monthly financial reports they continued to receive. The case explores the conflicts between financial measurements and operating improvements. Subjects: Cost control; Learning curves; Management accounting; Productivity; Quality control; Semiconductors

Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991 Steven C. Wheelwright; Gary P. Pisano; Jonathan West For tech note 2: Learning curves

HBS 692056 18p TN 692109

Indianapolis, IN pharmaceuticals Fortune 500 $5 billion revenues 1991

Outlines the evolution of Lilly's corporate manufacturing strategy over the past decade. The corporate vice president of manufacturing must decide on the next phase of Lilly's strategy for the early 1990s, as well as to what extent and what role process development will play. Provides data outlining three different points in the product development process at which manufacturing process development might be initiated. Using learning curve concepts and data, students can estimate the economic costs and benefits (as well as organizational issues and challenges) associated with each. Illustrates process improvement's substantial impact in a capital-intensive industry, describes possible roles of manufacturing process technology in an industry that has viewed product R&D as its primary competitive advantage, illustrates phases through which manufacturing can evolve in pursuit of comparative advantage, and introduces students to a challenging and changing industry. Subjects: Learning curves; Manufacturing strategy; Pharmaceuticals; Process analysis; Product development; Productivity

Chapter 3 Project Management

*Project Management Manual

HBS 697034 39p

N/A A descriptive manual of how to manage the process of project management. Major sections are: 1) define and organize the project, 2) plan the project, and 3) track and manage the project. 12

http://www.hbsp/�


















H. Kent Bowen

processes are described in detail. Teaching Purpose: To teach students that structured project planning is necessary for successful project outcome. Subjects: Organizational management; Process analysis; Product development; Project management; Risk management

Boeing 767: From Concept to Production (A) David A. Garvin; Lee C. Field; Janet Simpson

HBS 688040 19p B case 688041 TN 689027

Seattle, WA airplane manufacturing Fortune 500 $9 billion revenues 1970-1981

Describes the evolution of the Boeing 767 from the conception of the project to the start of manufacturing. Shows how the company manages an enormously complex and risky project and introduces students to a variety of estimating and management tools. The decision issue involves the shift from three-person to two-person cockpits and whether rework should be done in-line (without removing planes from the flow of production) or off-line (after initial assembly has been completed). Subjects: Aircraft; Learning curves; Manufacturing; Operations management; Project management

Biogen, Inc.: rBeta Interferon Manufacturing Process Development Steven C. Wheelwright

HBS 696083 18p

Cambridge, MA biotechnology $135 million revenues 1992-1993

Biogen, Inc., a Cambridge, MA-based biotechnology company, is wrapping up a project to develop a new manufacturing process for a new drug product that will reposition the company from a purely research-oriented company to a fully integrated pharmaceutical manufacturing organization. Morris Rosenburg, a senior scientist at Biogen, has been asked to perform a major evaluation of the project in order to report on lessons learned as well as to make recommendations on how to improve project management moving forward. Subjects: Biotechnology; Product development; Production processes; Project management

*BAE Automated Systems (A): Denver International Airport Baggage-Handling System Lynda M. Applegate; Ramiro Montealegre; H. James Nelson; Carin-Isabel Knoop

HBS 396311 15p B case 396312 TN 399099

Denver, CO engineering and construction 365 employees 1989-1994

Describes the events surrounding the construction of the BAE baggage-handling system at the Den-ver International Airport. It looks specifically at project management, including decisions regard-ing budget, scheduling, and the overall manage-ment structure. Also examines the airport's attempt to work with a great number of outside contractors, including BAE, and coordinate them into a productive whole, while under considerable political pressures. Approach-es the project from the point of view of BAE's management, which struggles to fulfill its contract, work well with project management and other contractors, and deal with supply, schedu-ling, and engineering difficulties. Subjects: Engineering; Management

http://www.hbsp/�






















communication; Politics; Project management; Transportation services

Chapter 4 Process Analysis

Kristen's Cookie Co. (A) Roger E. Bohn

HBS 686093 3p A2 case 686094 TN 688024

Cambridge, MA baking start-up: 2 employees

The student is starting his or her own business, baking make-to-order cookies. Basic times of each operation are laid out and the student is asked to determine the consequences for the operating system. Serves as an exercise and review of concepts such as capacity, bottlenecks, and throughput times. Students should be able to make several useful suggestions for improving the system. The case ends with a series of open-ended questions. Subjects: Capacity analysis; Manufacturing; Pricing strategy; Scheduling; Supermarkets

Fabritek Corp. William K. Holstein; Lawrence A. Bennigson; Linda G. Sprague

HBS 669004 7p TNs 677121 & 690021

machining castings $15 million revenues

Describes a large-volume automotive parts contract in a high-quality machine work company. Quality and delivery problems arise when one of the four men on the job is replaced with a high producer who cannot earn a substantial bonus because of machine interference.Subjects: Bonuses; Employee compensation; Incentives; Machine tools; Operations research; Performance effectiveness; Production processes

Donner Co. Roy D. Shapiro

HBS 689030 14p

printed circuit board small 1987

The management of a small manufacturer of circuit boards faces a number of production and operations management problems. The first day on this case is used to analyze the production capacity of various stages in the process and to examine bottlenecks and key production flow decisions. The emphasis is on physical flows. The second day the emphasis is on information flows. We look in detail at the problems faced by the company, discuss the tools and techniques of process analysis that can be used to determine the relative importance of those problems, identify solutions, and discuss implementation issues. Subjects: Capacity analysis; Electronics; Performance measurement; Process analysis

National Cranberry Cooperative (Abridged) Roy D. Shapiro

HBS 688122 10p

Massachusetts food processing 1980

Describes the continuous flow process used to process cranberries into juice and/or sauce. Re-quires student to analyze process flows to deter-mine where the bottlenecks are and to decide how, and whether, to expand capacity. Original version written by J.G. Miller and R.P. Olson. Subjects: Capacity analysis; Cooperatives; Food processing industry; Process analysis; Process

http://www.hbsp/�















flow Productivity and Performance Systems: A Comparative Analysis of Northern Telecom and United Parcel Service Christopher W.L. Hart; W. Bruce Chew For tech note 4: Job Design and Work Measurement

HBS 689022 22p TN 689003

N/A Explores the issue of measuring and improving service quality and productivity by examining the radically different approaches of Northern Telecom and United Parcel Service. Subjects: Operating systems; Productivity; Quality control; Services

Chapter 5 Product Design and Process Selection-- Manufacturing

BMW: The 7-Series Project (A) Gary P. Pisano

HBS 692083 20p B case 695013 TN 692094

Germany automobiles DM27.5 million revenues 1990

Explores BMW's decision about how to manufacture prototype vehicles. Historically, BMW's prototypes were handcrafted by highly skilled artisans in the company's shop. A proposal has been made to alter the process so that prototypes are made in a way that can better uncover potential problems that may arise during final production. While the new approach is expected to make production start-up of new models smoother and reduce quality problems, there is some concern within the company that it will lead to less flexibility to change (and improve) designs during the development cycle. Explores different ways of competing on quality in a luxury product segment and how the product development process affects each of these. A second objective is to examine the notion of a prototyping strategy and the role prototyping plays in linking development strategy and manufacturing strategy. Subjects: Automobiles; Germany; Manufacturing strategy; Product design; Product development; Prototypes; Quality control

Quantum Corp.: Business and Product Teams

HBS 692023 20p TN 693004

Milpitas, CA computer hardware $878 million revenues 1988

Describes the adoption and evolution of product development teams and business teams at Quantum. Emphasizes integration of team capabilities with product development and

http://www.hbsp/�






















Steven C. Wheelwright; Clayton M. Christensen

competitive advantage in a rapidly changing environment. Subjects: Competition; Computer industry; Product development; Silicon Valley; Teams; Technology

Donner Co. Roy D. Shapiro

HBS 689030 14p

printed circuit board small 1987

The management of a small manufacturer of circuit boards faces a number of production and operations management problems. The first day on this case is used to analyze the production capacity of various stages in the process and to examine bottlenecks and key production flow decisions. The emphasis is on physical flows. The second day the emphasis is on information flows. We look in detail at the problems faced by the company, discuss the tools and techniques of process analysis that can be used to determine the relative importance of those problems, identify solutions, and discuss implementation issues. Subjects: Capacity analysis; Electronics; Performance measurement; Process analysis

Executive Shirt Co., Inc. Janice H. Hammond; Sylvie Ryckebusch

HBS 696071 10p Supplement 696093

Panquet, MS shirt maker 64 employees

The Executive Shirt Co. is contemplating a move into custom-made shirts. The company's general manager has charged two of his managers to come up with plans for incorporating production of custom shirts into the existing manufacturing process. Subjects: Clothing; Production planning

Metreke Cards Steven C. Wheelwright For tech note 5: Facility layout

HBS 692073 8p

Detroit, MI publishing

Used to introduce the assembly line process to first-year MBA students. Three different variations of an assembly line process for packing greeting cards are presented for analysis. To choose among the three, the students must address issues of time standards, capacity, supervision and training. A rewritten version of an earlier case. Subjects: Capacity analysis; Employee training; Printing; Supervision

Samsung International, Inc. Alice H. Amsden For tech note 5: Facility layout

HBS 686123 17p

New Jersey Television 1985

A major Korean firm has begun production of televisions in the United States. Output and quality are below Korean standards. Students must determine why and suggest ways to improve. Subjects: International operations; Process flow; Production processes; Productivity; Quality control

http://www.hbsp/�














Chapter 6 Product Design and Process Selection-- Services

Benihana of Tokyo W. Earl Sasser Jr.; John R. Klug

HBS 673057 18p TNs 677037 & 696021

Multinational foods mid-size 1972

Discusses the development of a chain of "theme" restaurants. The student is asked to evaluate the current operating strategy and suggest a long-term expansion strategy. Subjects: Corporate strategy; Expansion; Multinational corporations; Restaurants; Services

Burger King Corp. W. Earl Sasser Jr.; David C. Rikert

HBS 681045 15p TN 681070

New England fast food 1980

Describes the operating system of a Burger King unit. The case does not have a decision focus; it is designed for use with McDonald's Corp. Students are asked to compare the operating systems of these two fast food hamburger chains. Careful analysis will detect the subtle and not so subtle differences between the two operating systems selected by these two firms. Subjects: Fast food industry; Operations research; Systems design; Work force management

McDonald's Corp. (Condensed) W. Earl Sasser Jr.; David C. Rikert

HBS 681044 15p TN 681070

New England fast food 1980

Describes the operating system of McDonald's, the world's most successful fast food chain. The case does not have a decision focus; it is designed for use with Burger King Corp. Students are asked to compare the operating systems of these two fast food hamburger chains. Careful analysis will detect the subtle and not so subtle differences between the two operating systems selected by these two firms. Subjects: Fast food industry; Operating systems; Operations research; Systems design; Work force management

Sof-Optics, Inc. (A) W. Earl Sasser Jr.; Ramchandran Jaikumar; David C. Rikert For tech note 6: Waiting line mgt.

HBS 681052 24p

West Coast soft contact lenses $10 million sales 1980

The marketing director of a fast-growing firm must make some decisions about the customer service department. The volume in the department has been rising steadily, eye doctors are waiting longer for orders to be filled, and morale in the department is slipping. With pressure on the firm to make a profit, the marketing director must carefully justify any request for additional people or equipment. Subjects: Capacity analysis; Customer relations; Customer service; Employee morale; Medical supplies; Scheduling; Systems analysis; Work force management

http://www.hbsp/�
















Chapter 7 Total Quality Management: Focus on Six Sigma

Kristen's Cookie Co. (A2) Roger E. Bohn

HBS 686094 7p

Cambridge, MA Baking Start-up

Intended for distribution during class, this case contains one set of answers to the (A1) case. It introduces the concept of a Gantt chart and discusses issues raised by the case such as the value of labor flexibility. The open-ended questions in the (A1) case are only partially answered to encourage further student creativity. Subjects: Capacity analysis; Learning curves; Pricing strategy; Process analysis; Scheduling

Steinway & Sons David A. Garvin

HBS 682025 17p TN 682073

Long Island City, NY pianos $50 million sales 1981

Considers whether Steinway should reintroduce a long-discontinued product line to meet competition from the Japanese. Raises the issue of just how quality is defined in this market. Looks closely at a production process relying on craft skills. Students have the opportunity to consider issues of quality. Subjects: Competition; Instruments; Japan; Production processes; Quality control

Hank Kolb, Director, Quality Assurance Frank S. Leonard

HBS 681083 4p TN 683030

industrial products 1,200 employees 1980

Designed to introduce the systemic nature of product quality and the complexity of quality problems. Uses a new director, quality assurance, and the discovery of a quality problem. The new director has to decide if it is a real problem, what to do about it, and how to go about orienting an organization toward a better quality attitude. Subjects: Industrial goods; Manufacturing; Product liability; Product planning & policy; Quality control

Process Control at Polaroid (A) Steven C. Wheelwright; H. Kent Bowen; Brian Elliott For tech note 7: Process capability and statistical quality control

HBS 693047 17p B case 693048

Waltham, MA film $1.3 billion revenues 1984-1985

Describes the initial efforts at a film production plant to shift from a traditional QC inspection mentality to a worker based process control mentality. Students can prepare SPC charts, propose actions needed, and combine steps into an overall action plan. Teaching Purpose: Basic tools of quality and statistical process control. Subjects: Plant management; Process analysis; Project management; Quality control; Statistical analysis

http://www.hbsp/�















Chapter 8 Operations Consulting and Reengineering

Deloitte & Touche Consulting Group David Upton ; Christine Steinman

HBS 696096 12p TN 697085

Michigan automotive supply/consulting $570 million revenues 1995

Examines two dilemmas often faced by an operations consultant. First, the dual responsibility to both client and consulting firm. Second, the management of the often competing pressure to deliver immediate results, at the same time laying the foundation for long-term performance improvement. Subjects: Automotive supplies; Consulting; Facilities; Inventory management; Management of change; Manufacturing; Reengineering

*The Patient Care Delivery Model at the Massachusetts General Hospital Amy C. Edmondson; Richard Bohmer; Emily D. Heaphy

HBS 699154 23p TN 600083

Boston, MA health care/hospital 3,349 employees 1997

Examines the implementation of a new patient care delivery model at Massachusetts General Hospital. Uses clinical and financial data to examine different choices for staffing non-physician health care professionals and to understand the challenges of managing change across multiple professions in the hospital environment. Recently promoted to senior vice president of Patient Care Services, Jeanette Ives Erickson must decide whether a model for patient care delivery is the best way to improve care and reduce costs in the midst of extreme budget pressures and a rapidly changing health care environment. Subjects: Health care; Hospital administration; Hospitals; Management of change; Management of professionals; Organizational change; Reengineering; Reorganization

*American Nursing Services, Inc. W. Earl Sasser Jr.; Leonard A. Schlesinger; Roger Hallowell

HBS 692102 23p

United States health care $17 million revenues 1992

P.K. Scherle, R.N., founder, president, and owner struggles with her successful business and focuses on either growth or enhanced profitability. Teaching Purpose: A useful vehicle for understanding a service delivery process and discussing its possible reengineering. Subjects: Entrepreneurship; Growth management; Growth strategy; Health services; Reengineering; Service management

Section Three Managerial Briefing

Rosenbluth International and Biztravel.com Roger Hallowell

HBS 800356 24p TNs 800416, 802168, & 802169

Philadelphia, PA travel 2000

Rosenbluth, the third largest U.S. travel agency, uses the Internet to serve new customers with a high-service strategy. Rosenbluth acquires Biztravel.com and integrates the customer support and logistics aspects of service delivery. Teaching Purpose: Illustrates the role of service

http://www.hbsp/�






















in many e-commerce firms, including the continuing role of people. Also shows a successful "clicks and mortar" strategy for entering e-commerce. Subjects: Economies of scale; Electronic commerce; Entrepreneurship; Human resources management; Internet; Service management; Travel

Quantum Corp.: eSupplyChain Group Andrew McAfee; Gregory Bounds

HBS 601099 21p TN 603032

Silicon Valley, CA computers $4.7 billion revenues 2000

The eSupplyChain group has been recently formed with Quantum Corp.'s Hard Disk Drive Group to evaluate Internet/IT-based approaches to improving supply chain performance. The Hard Disk Drive Group has endured several quarters of poor financial performance, and has already embarked on a number of supply chain initiatives. The eSupplyChain group has been tasked with extending these, and with understanding how to take advantage of eHITEX, a web-based exchange just founded by a group of high-tech manufacturers, including Quantum. Teaching Purpose: Illustrates challenges around defining and executing an "eBusiness strategy." Quantum and the eSupplyChain group must decide which initiatives to pursue, and how to work with all involved stakeholders, both internal and external, to execute them successfully. Also highlights the role of IT platforms both within and outside the firm. Subjects: Business to business; California Research Center; Customer service; Forecasting; Information technology; Inventory management; Silicon Valley; Supply chain

Webvan Andrew McAfee; Mona Ashiya

HBS 602037 29p TN 602052

California 2001

Examines the company's operations and the processes by which it delivers to customers' homes groceries that were ordered from the Internet. Recounts Webvan's history from founding through early 2001 and concentrates on the unique approaches to warehousing, delivery, scheduling, and to a lesser extent, marketing and information technology. Also examines the rest of the Webvan business model and how it was formulated. At the time of the case, there is great pessimism, reflected in the press and the company's share price, that Webvan will be able to execute its business model profitably or even stay in business. Teaching Purpose: Examines aspects of the question "How and why did so many of the new economy start-ups fail so

http://www.hbsp/�











spectacularly?" Webvan is particularly interesting because its business model relied heavily on properly designed and executed operations, and it appears clear that the company's operations were neither. In addition, the mismatch between visiting operational capabilities and the operational requirements imposed by the rest of the business model appear to be severe. Discussions can focus on whether these problems were foreseeable and whether the company had room to be wrong about any of its operating assumptions. Subjects: Electronic commerce; Food; Information technology; Internet; Logistics; Scheduling; Supply chain; Warehousing

Chapter 9 Supply Chain Strategy

Lucent Technologies: Global Supply Chain Management Hau Lee; David Hoyt

Stanford GSB GS01 18p

Asia telecommunications $33.6 billion revenues 1995-1999

In 1995, Lucent Technologies' supply chain in Asia had many problems: long lead times, high cost, poor reliability, high inventories, and poor technical support of customers and local Asian operations. This was, in many ways, a result of the historical supply of Asia from the United States. Local Asian facilities had been established as market-entry vehicle and provided some high-level assembly and test, but the supply chain was organized around U.S. production and support. A substantial supply chain redesign was completed in 1996, providing more Asian content. This was very successful. However, continuing changes in the marketplace, suppliers, and the manufacturing environment suggested that the supply chain was no longer optimal. Subjects: Asia; Manufacturing; Supply chain; Telecommunications

Supply Chain Management at World Co. Ltd. Ananth Raman; Anna McClelland; Marshall L. Fisher

HBS 601072 21p TN 601147

Japan apparel, retailing $1.2 billion revenues 1999

Describes a supply chain with very quick (i.e., two week) response times and allows students to explore how such short response times are achieved. Allows students to explore why other supply chains, with much longer response times, might not be able to replicate this performance. Teaching Purpose: To illustrate the need and value of response times to short-lifecycle product supply chains and how response times can be reduced through process and organizational changes. Subjects: Inventory management; Japan; Retailing; Supply & demand; Supply chain; Textiles; Time to market

http://www.hbsp/�


http://hbsp.harvard.edu/cb/product/GS01-PDF-ENG�













Ford Motor Co.: Supply Chain Strategy Robert D. Austin

HBS 699198 9p TN 601172

Dearborn, MI automobiles $144 billion revenues 1998

Describes Ford's examination of its supply chain to evaluate whether the company should "virtually integrate" on the Dell Computers model. Teaching Purpose: To examine the challenges of virtually integrating supply chains in established industries. Subjects: Automobile industry; Electronic commerce; Information technology; Logistics; Suppliers; Supply chain

Chapter 10 Strategic Capacity Management

Shouldice Hospital Limited James L. Heskett

HBS 683068 18p TN 686120

Toronto, Canada hospital administration 1982

Various proposals are set forth for expanding the capacity of the hospital. In assessing them, serious consideration has to be given to the culture of the organization and the importance of preserving it in a service delivery system. In addition to issues of capacity and organizational analysis, describes a well-focused, well-managed medical service facility that may well point the way to future economies in the field. Subjects: Canada; Capacity planning; Expansion; Hospital administration; Organizational behavior; Services; Social enterprise

New Balance Athletic Shoes Kim B. Clark For tech note 10: Facility location

HBS 680110 15p TN 683040

Massachusetts shoe manufacturing $5 million sales 1978

Faced with growth exceeding 100% per year, James Davis, president of New Balance, must decide how to meet the need for additional capacity. Several factors contribute to a climate of extreme uncertainty. Several options are considered, ranging from a second shift to acquiring a plant in Ireland. Sufficient information is provided to allow an analysis of forecasted demand as well as the strategic financial and organizational implications of alternative courses of action. Subjects: Capacity planning; Demand analysis; Facilities planning; Footwear; Forecasting; Growth management; Location of industry; Manufacturing

Applichem (A) (Abridged) Janice H. Hammond; Gary P. Pisano For tech note 10 Facility location

HBS 694030 13p TN 696017

International specialty chemicals $75 million revenues 1982

Applichem manufactures the same chemical product in four plants, each of which is located in a different country. The company has completed a major study comparing the productivity and performance of these plants. Using the data from the study, students must decide which, if any, plants to close. The case requires students to think about the relevant metrics for comparing the performance of plants that operate very differently and in different countries. An important issue is the distinction between physical measures of productivity and financial

http://www.hbsp/�
















measures of performance. Finally, the case allows students to think about what management might do to ensure that productivity improvements are shared across the plant network. Subjects: Business conditions; Chemicals; Multinational corporations; Operations management; Performance measurement; Plastics; Productivity

Chapter 11 Just-in-Time and Lean Systems

Johnson Controls, Automotive Systems Group: The Georgetown, Kentucky Plant Kazuhiro Mishina

HBS 693086 23p TN 693102

Georgetown, KY automotive $5 billion revenues 1993

Prior to the 1980s, auto makers purchased individual seat components and built the seats alongside their auto assembly lines. This case describes how Johnson Controls, Automotive Systems Group blossomed when auto makers turned to outsourcing the complete seat set. Closely examines one plant, in Georgetown, Kentucky, that switched from just-in-time (JIT) delivery of seat sets to JIT assembly to serve a nearby Toyota Camry assembly operation. Exposes the challenge of dealing with growing seat variation and an opportunity of doubling the plant floor space at a separate site. The specific case question is how the plant should use this new space. Teaching Purpose: Students who have been only exposed to the concept of JIT production will grasp not only how JIT is actually practiced but what it really entails. Subjects: Automotive supplies; Facilities planning; Manufacturing strategy; Materials management; Production controls; Suppliers; Vertical integration

Toyota Motor Manufacturing, U.S.A., Inc. Kazuhiro Mishina

HBS 693019 22p TN 693046

Georgetown, KY autos $1-5 billion revenues 1992

On May 1, 1992, Doug Friesen, manager of assembly for Toyota's Georgetown, Kentucky, plant, faces a problem with the seats installed in the plant's sole product--Camrys. A growing number of cars are sitting off-line with defective seats or are missing them entirely. This situation is one of several causes of recent overtime, yet neither the reason for the problem nor a solution to it is readily apparent. As the plant is an exemplar of Toyota's famed production system (TPS), Friesen is determined that, if possible, the situation will be resolved using TPS principles and tools. Students are asked to suggest what action(s) Friesen should take and to analyze whether Georgetown's current handling of the seat problem fits within the TPS philosophy. Teaching Purpose: 1) Provide comprehensive

http://www.hbsp/�
















knowledge on Toyota Production System, 2) Exercise advanced root cause analysis, and 3) Demonstrate the totality of manufacturing, especially the link between production control and quality control. Subjects: Automobiles; International operations; Process analysis; Production controls; Quality control; Suppliers

Section Four Managerial Briefing Vandelay Industries, Inc. David Upton; Andrew McAfee

HBS 697037 16p TN 697063

United States heavy equipment/software $8 billion revenues 1996

An ICS consultant considers issues at the start of a full-scale implementation of SAP software for a large client. The Enterprise Resource Planning (ERP) software will integrate previously fragmented business processes, and so must be supported by the entire client organization. Teaching Purpose: Discusses ERP basics, pros and cons of process reengineering and standardization, and change management issues. Subjects: Consulting; Data processing; Enterprise systems; ERP; Information systems; Management of change; Manufacturing strategy; Reengineering; Software

i2 Technologies, Inc. Ananth Raman; Jasjit Singh

HBS 699042 21p TN 601143

Texas software $200 million revenues 1998

Describes the emergence and growth of i2 Technologies and the supply chain planning software industry. In December 1998, i2's market capitalization was in excess of $2 billion; the supply chain planning software industry had annual sales of approximately $1 billion and was expected to grow at 57% annually. By describing i2's products and the process that the company followed to sell and implement its software at companies, the case provides students with the background needed to understand why i2 was successful. This understanding enables students to address issues like what i2 should do in the future, and whether new competition such as SAP poses a substantial threat to i2's future success. Subjects: Forecasting; Mathematical programming; Operations management; Operations research; Production planning; Software; Supply chain

Chapter 12 Forecasting

L.L. Bean, Inc.: Item Forecasting and Inventory Management

HBS 893003 5p TN 985057

Maine direct marketing $600 million revenues 1991

L.L. Bean must make stocking decisions on thousands of items sold through its catalogs. In many cases, orders must be placed with vendors twelve or more weeks before a catalog lands on a customer's doorstep, and commitments cannot be changed thereafter. As a result, L.L. Bean suffers

http://www.hbsp/�















Arthur Schleifer Jr.

annual losses of over $20 million due to stockouts or liquidations of excess inventory. Provides a context in which buying decisions that balance costs of overstocking and understocking when demand is uncertain are made and implemented on a routine basis. Subjects: Direct marketing; Forecasting; Inventory management; Uncertainty

*Merchandising at Nine West Retail Stores Ananth Raman; Colin Welch

HBS 698098 17p TN 601148

United States, footwear retailing, 1998

Describes the merchandising decision process (organization, structure, and incentives) at Nine West retail stores, a large footwear retailer in the United States. Also describes changes currently occurring at Nine West and thus provides a context in which students can recommend changes to the merchandising process and the structure of the merchandising organization. Subjects: Budgeting; Footwear; Forecasting; Incentives; Inventory control; Inventory management; Merchandising; Retailing

*Sport Obermeyer Ltd. Janice H. Hammond; Ananth Raman

HBS 695022 21p TN 696012

U.S., Hong Kong, China, apparel, 100 employees, 1992

Describes operations at a skiwear design and merchandising company and its supply partner. Introduces production planning for short-life-cycle products with uncertain demand and allows students to analyze a reduced version of the company's production planning problem. In addition, provides details about information and material flows that allow students to make recommendations for operational improvements, including comparisons between sourcing products in Hong Kong and China. Teaches students how to match supply with demand for products with high demand uncertainty and a globally dispersed supply chain. Subjects: China; Clothing; Demand analysis; Forecasting; International operations; Production planning; Purchasing; Sourcing; Supply chain

Chapter 13 Aggregate Sales and Operations Planning

Pioneer Hi-Bred International, Inc.: Supply Management Xin X He; Paul Clark

HBS 898238 15p Supplement 898239 TN 899208

Des Moines, IA agribusiness $1.7 billion revenues 1997

Depicts the supply-management practices--including planning, production, and distribution--at Pioneer Hi-Bred International, the world's leader in the genetically engineered hybrid crop seed industry. Set in the context of a supply-management planning meeting, it reveals conflicting considerations in setting policies for production (what, how much, and where to plant) and distribution. These considerations include costs, customer service, the vicissitudes of farm production, market uncertainties, and corporate

http://www.hbsp/�
















culture. Since the issues are viewed from three independent perspectives--planning, production, and distribution--the case lends itself to role playing. The principal focus for discussion is to determine what bears on the key issues--the size of the safety stock inventory and the level of overseas products--and to specify the information that would be needed to arrive at a decision. Also permits consideration of the forces that could change supply management at Pioneer in years to come. Teaching Purpose: 1) To consider the challenges in managing the production, inventory, and distribution functions in a large, complex agribusiness firm. 2) To demonstrate the role of inventory management in supply management, and its relationship with production, marketing, and customer service. Subjects: Agribusiness; Forecasting; Inventory management; Linear programming; Operations management; Production planning; Sourcing; Supply & demand

Toy World, Inc. W. Carl Kester

HBS 295073 6p TN 297118

United States toys $10 million revenues 1994

A shift from seasonal to level production of toys will change the seasonal cycle of Toy World's working capital needs and necessitate new bank credit arrangements. Students must analyze the company's performance, forecast funds needs, and make a recommendation. Teaching Purpose: To introduce the pattern of current assets and cash flows in a seasonal company and provide an elementary exercise in the construction of pro forma financial statements and estimation of funds needs. A rewritten version of an earlier case. Subjects: Financing; Inventory management; Production planning; Production scheduling; Risk management; Toy industry

Play Time Toy Co. Thomas R. Piper

HBS 292003 6p TN 292055

United States toys $9 million revenues 1991

The president of a toy company is considering the adoption of level production in a business characterized by highly seasonal sales. The issues include balancing the cost savings and the inventory risk, estimating the seasonal financing need, and determining the appropriate approach to the bank. A rewritten version of an earlier case. Subjects: Financing; Inventory management; Production planning; Production scheduling; Risk management; Toy industry

*MacPherson Refrigeration Ltd.

Ivey School /UWO 93D021

N/A Linda Metzler, newly appointed production planning manager, is drafting an aggregate production plan for the company's refrigerators,

http://www.hbsp/�





http://hbsp.harvard.edu/cb/product/93D021-PDF-ENG�








John S. Haywood-Farmer; Bill Rankin

8p TN 893D21

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 favoring them. Ultimately, the use of linear programming to construct aggregate plans will be introduced. Subjects: Aggregate planning; Canada; Linear programming; Tradeoff analysis

Chapter 14 Inventory Control

Supply Chain Close-Up: The Video Vault V.G. Narayanan; Lisa Brem

HBS 102070 10p TN 103012

United States video rental 1 employee 2002

The owners of the Video Vault struggle to determine the optimal stocking levels of home videos in an industry fraught with new technology, new pricing paradigms, and stiff competitive pressure from large national chains. Teaching Purpose: To demonstrate the role of incentive contracts in achieving supply chain coordination. Subjects: Accounting; Contracts; Incentives; Inventory; Operations management; Pricing; Supply chain

Northco (A) Ananth Raman; Bowon Kim

HBS 697017 11p TN 697125

New England clothing $5 million revenues 25 employees

Describes a small school-uniform manufacturer wrestling with seasonal demand. The company is saddled with excess inventory when it is bought by a leveraged buyout firm. Students are required to identify ways to analyze and solve the problem. Teaching Purpose: Linkage between inventory management and operational as well as finance issues. Subjects: Clothing; Inventory management; Leveraged buyouts

*Blanchard Importing and Distribution Co., Inc. Paul W. Marshall Alan H. Drinan

HBS 673033 11p TN 678033

Boston, MA, liquor wholesaling, 1972

Illustrates the two main types of errors resulting from use of the economic order quantity (EOQ) as a tool in production scheduling. Designed to permit class discussion to begin with a consideration of one common type of mistake, errors in calculation of the EOQ volume resulting from use of incorrect data for the input parameters of the formula. The analysis can then shift to a more general discussion of the second type of error, the misapplication of EOQ and re-order point (ROP) techniques to a given system. Class discussion can conclude with student recommendations of alternative techniques that may be better suited to the Blanchard operation than the EOQ/ROP method. Subjects: Beverages; Inventory management; Order quantity; Production scheduling; Wholesaling

http://www.hbsp/�















Chapter 15 Material Requirements Planning

Digital Equipment Corp.: The Endpoint Model (A) David A. Garvin; Janet Simpson


Maine, Massachusetts computers Fortune 500 1986

Describes a comprehensive manufacturing strategy designed to reduce substantially the cycle time of orders (i.e. the time between the placement of an order by a customer and its delivery to the customer). To launch the strategy Digital has adopted manufacturing resource planning (MRP II). The case allows students to assess the pros and cons of the strategy which requires rapid information flows and tight manufacturing discipline, the usefulness of MRP II which integrates manufacturing with overall business plans, and the implementation process to date. Subjects: Computer industry; Inventory management; Manufacturing strategy; Operations management; Plant management; Strategy implementation

*Tektronix, Inc.: Global ERP Implementation Robert D. Austin; Richard L. Nolan; George Westerman; Mark Cotteleer

HBS 699043 22p TN 602078

Pacific Northwest, electronics, 1993-1998

Reviews Tektronix's implementation of an Enterprise Resource Planning (ERP) solution in its three global business divisions. This case tells the story of three implementations, each with its own character and requirements. Tektronix managers needed to synchronize the requirements of each division with the company's overall need to standardize business practices and its desire to adhere to a common business model across the enterprise. Details the difficulty of major business change in a mature business and technical environment. Subjects: Electronics; Enterprise systems; ERP; Implementation; Information technology; Reengineering

*Vandelay Industries, Inc. David Upton; Andrew McAfee

HBS 697037 16p TN 697063

United States heavy equipment/software $8 billion revenues 1996

An ICS consultant considers issues at the start of a full-scale implementation of SAP software for a large client. The Enterprise Resource Planning (ERP) software will integrate previously fragmented business processes, and so must be supported by the entire client organization. Teaching Purpose: Discusses ERP basics, pros and cons of process reengineering and standardization, and change management issues. Subjects: Consulting; Data processing; Enterprise systems; ERP; Information systems; Management of change; Manufacturing strategy; Reengineering; Software

http://www.hbsp/�

















Chapter 16 Operations Scheduling

Manzana Insurance: Fruitvale Branch (Abridged) Steven C. Wheelwright

HBS 692015 13p TN 696043

California insurance 1989-1991

Deals with performance assessment and improvement of a service operation in the insurance industry, a market that is highly sensitive to response time. Two branch offices in direct competition are described, and the impact of response time on performance is suggested. Management choices that impact response time are explored and the poorer performer of the two branches must decide how to respond. Subjects: Competition; Insurance; Operations management; Performance measurement; Scheduling; Service management

Fabtek (A) Benson P. Shapiro; Rowland T. Moriarty Jr.; Craig E. Cline


United States chemical equipment small $31 million sales 1991

Concerns the selection and scheduling of orders by a small industrial titanium fabricator that in recent months has been plagued by poor deliveries and a lack of capacity. Four orders are offered, from which the student must select one. Each order represents different order-mix/customer situation issues. The case forces the student to choose among the four orders, given conflicting estimates of capacity available, other business likely to come along, and the requirements of each order. A rewritten version of an earlier case. Subjects: Competitive bidding; Industrial markets; Metals; Order processing; Pricing; Production scheduling; Purchasing

*Southern Pulp and Paper David Upton; William H. Bolen Jr.

HBS 696103 10p

Alabama, pulp and paper, 1996

Describes a paper mill whose paper machines are a bottleneck in the operation. The causes include poor scheduling, lack of investment, and ineffective process control. The plant manager is charged with improving this situation fairly rapidly and has a number of proposals for change to choose from. Examines various aspects of computer integration, operations improvement, and implementation. Subjects: Computer systems; Facilities; Implementation; Manufacturing; Operations management; Paper industry; Plant management

Chapter 17 Synchronous Manufacturing and Theory of Constraints

N/A

http://www.hbsp/�









chase jacobs aquilano casemap1

Documents