Hoshin kanri (HK), or strategy deployment, has been an integral part of the company management practices of some of the most successful Lean-practicing organizations. The purpose of this note is to give a very quick introduction to how it has been successfully used in small and medium-sized value streams to inject strategic meaning and tactical understanding to operational strategies and improvement plans. Done well, HK is an extraordinary tool to help a team develop, adjust, and communicate strategy to meet robust, long-term goals.
This technical note describes the problem-solving process known as A3 Thinking through the lens of an individual's weight-loss efforts. The story is easy to understand and shows how the A3 process can be integrated into one's personal life. The note details the A3 process steps of current condition, target condition, root-cause analysis, countermeasures, implementation, and standardize and sustain. It allows the student to see an easily identifiable and approachable application of the technique.
This case, a follow-up to "The Virginia Journal of International Law (A)" (UVA-OM-1640) continues the story of the Virginia Journal of International Law (VJIL), a student-edited law review at the University of Virginia School of Law. It reveals the work the publication team put in to understand the root causes of its problems and implement countermeasures to standardize and sustain improvement. Supplemental videos discuss aspects of the case in detail and support case discussion.
Established in 1959, the Virginia Journal of International Law (VJIL) was a student-edited law review at the University of Virginia School of Law. It was among the world's most influential international law journals, and pieces published in the journal had been cited by the Supreme Court of the United States and the International Court of Justice, among many other highly prestigious courts. Despite this, it faced numerous operational challenges, including long publication lead times, missed publication dates, and financial uncertainty. The case allows students to practice problem solving through the A3 thinking process. Supplemental videos discuss aspects of the case in detail and support case discussion.
This brief note provides a description of the A3 report, a classic problem-solving methodology associated with the Toyota Production System. A3 thinking may be used for many activities, including problem solving, proposal writing, and status reporting. The six elements of an A3 report are described briefly.
Rebecca Banquette, a recently hired executive coach and Lean consultant at a staffing firm in the health care industry, has experienced a change in her Lean management philosophy and approach. Previously, she focused heavily on Lean's technical process-improvement aspects, but after a period of personal exploration and growth, she has decided to focus first and primarily on the development of people. In this case, Banquette explains and reflects on her methods for utilizing Lean tools-including the plan-do-check-act (PDCA) cycle, the A3 structured problem-solving process, and gemba walks-to create standard work in developing leaders. She also uses a holistic framework to provide focus to her development activities, including helping others ask the right questions and building personal qualities such as humility and courage. In doing so, she commits to being the type of coach who refrains from providing answers or direct advice. Instead, she presents new information and ideas and then supports her executives by asking questions designed to build self-reflection skills. This case is both a leadership-development story and a creative application of Lean tools in a context that supports the development of robust people. Just as a process is described as robust when it can accept a wide range of inputs and produce a consistent output, people can also be described as robust when they respond flexibly to competing and ever-changing circumstances and still produce consistent results. By utilizing the concept of standard work in a leadership-development setting, we codify the process of developing people with an intentional, Lean-based framework, and we emphasize the critical, primary importance of robust people in the overall operations of an organization.
This fictional, international case explores online delivery models through the voices of two female protagonists: Melis Aydin, COO, who is from Turkey; and Athena Galini, CEO, who is from Greece. They have recently begun an online grocery-delivery (OGD) service called GidaExpress (i.e., Express Food) by closing on a TRY300,000 low-interest loan and entering a start-up incubator in Istanbul, Turkey. Aydin and Galani are evaluating three models for hiring drivers-all full-time employees who can be trained (and perhaps provide more consistent and higher-quality customer service); all independent workers who are paid a wage rate that escalates in order to meet demand; or a hybrid of the two. This story allows for a discussion of the strategic trade-offs between investing in a full-time workforce and sourcing independent workers of unknown quality using a fluctuating wage rate, and how these decisions impact the ability of the business to deliver on the value proposition.
Service systems are inherently subject to variability, whether through customers, service providers, suppliers, or unexpected events. Yet, customers demand excellence and consistency regardless of this variability. In general, there are two ways to handle this variability: with people or with processes. We use the concept of robustness to describe these two approaches and address when one or the other might be appropriate and discuss how and why one might transition from one approach to the other. The relationship between robust people and robust processes within a system can inform and build upon one another in a cycle that mirrors that of continuous improvement. Investing in this cycle can help an organization move toward a system that relies more on robust processes and less on hiring and training robust people, allowing the organization to be scalable while simultaneously creating new opportunities for incumbent robust people.
Service systems are inherently subject to variability, whether through customers, service providers, suppliers, or unexpected events. Yet customers demand excellence and consistency regardless of this variability. In general, there are two ways to handle this variability-through people or through processes. We use the concept of robustness to describe these two approaches. This case uses an inventory mishap at a pet store to explore the need for robust people in a service system subject to variability. The case gives students the opportunity to explore the implications of lack of robustness when people face unexpected variability. A day-shift manager at a pet store, Martin Fesmire, thinks nothing of selling two rabbits to his best customer. But when the rabbits have a litter of bunnies overnight, Fesmire's professional world is thrown into turmoil that will grow to involve his boss, the corporate legal department, the CEO, the highest court in America, and an ever-increasing number of disputed rabbits. This tongue-in-cheek story allows for a discussion of the strategic tradeoffs between investing in robust people versus investing in robust processes.
Service systems are inherently subject to variability, whether through customers, service providers, suppliers, or unexpected events. Yet customers demand excellence and consistency regardless of this variability. In general, there are two ways to handle this variability-through people or through processes. We use the concept of robustness to describe these two approaches, addressing when one or the other might be appropriate and discussing how and why one might transition from one approach to the other.
The effectiveness of manufacturing and service processes can be measured in many ways. Some key measures include throughput time, throughput rate, cycle time, and inventory. In this brief exercise, we define the relationships among these metrics, focusing specifically on a concept called Little's Law and distinguishing among throughput rate, throughput time, and cycle time-hence the title.
While managers of both for-profit and not-for-profit organizations often focus on their area of specific expertise, true success comes only from taking a complete enterprise perspective. Organizations must focus on global, not local, optimization across all functional areas, not just one. In this note, we present a model based on nine interrelated areas that when jointly considered will increase the likelihood of enterprise success. This note presents the 9 Cs Enterprise-Perspective Model, which allows a manager to consider the interactions among various functional areas in making decisions.
This case provides the opportunity for a comprehensive analysis in a service operations strategy course. It touches on subjects including the customer value proposition, profitability, employee management, customer management, robust people versus robust process, queue management, and staffing models. This case can be used as a basis for discussing the ""Four Truths"" from Frances Frei and Anne Morriss, Uncommon Service: How to Win by Putting Customers at the Core of Your Business, 6th ed. (Boston: Harvard Business Press, 2012). The Four Truths are (1) you can't be good at everything, (2) someone has to pay for it, (3) you must manage your employees, and (4) you must manage your customers. Students are asked to decide the necessary service strategy and operational changes as Schindler Elevator Corporation decides how to use current trends in the internet of things.
As part of a biennial supplier review, Jennifer Schramm, a purchasing manager in the cocoa and chocolate division at Cardinal Foods, had been considering several different cocoa cooperatives. She wanted to (1) source high-quality cocoa in the proper particle sizes, (2) source cocoa from environmentally and socially conscious producers, (3) keep the cost of cocoa sourcing as low as possible, and (4) not increase any reputational risks to the company. Information and data from three cooperatives is given to assist in making a recommendation. From an operations perspective, the purpose of the case is to teach the dual concepts of capability and natural variability. The case can be used as a lead-in to the concept of statistical process control. From an ethical sourcing perspective, the case addresses the complexities involved in making a principled decision in a global supply chain.
This note summarizes some important learnings from the study of behavioral economics of which service organizations should be aware in order to enhance customers' emotional experiences and help direct their decision making-in an ethical manner.
Supplement to case UV7389. This case, a follow-up to "Anna Pessah: Lean Thinking at Summit Funding (A)" (UVA-OM-1569), contains answers from Anna Pessah about her operations improvement challenges at Summit Funding and what actually happened.
Mackenzie Spencer, vice president of operations at Strategic Consulting Group, must determine a staffing (the "S" word) plan for the upcoming year. She must balance the costs of overstaffing with those of understaffing in the face of uncertain demand for future services. Students can either determine a staffing plan based on the expected demand or by taking into account the uncertainty by simulating demand. This case was awarded second place in the 2017 Decision Sciences Institute case-writing competition. It is used at Darden in the first-year operations course as well as in the service operations elective. This case would also be suitable for use in a first-year decision analysis course or in an elective or course module covering optimization.