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Shortly after Fell-Fab Products went through the decision-making process of whether to move into service management in addition to manufacturing, it learned that European Airlines, one of its major European customers, would no longer purchase products directly from Fell-Fab Products. Instead, European Airlines instructed Fell-Fab Products to sell to Aircraft Interior Refurbishment. The president of Fell-Fab wondered how this information would affect his decision. This supplement to Fell-Fab Products (A) (9B00D021) raises the possibility of a strategic alliance.

The operations manager at Diverse Industries International's plant needs to make a decision regarding a restructuring of the plant's Automatic Dishwasher Gel production line. The restructuring suggestion which included replacing a loading table with a lift conveyor and hopper system, came from the company's industrial equipment contractor who hoped to sell them some used production equipment. The operations manager, while he was fairly sure the investment was a good idea, was concerned about how he could best justify the cost to the finance department and, if approved, how he could reallocate direct labor on the line to maximize efficiency.

Microsoft Project solution file available with second teaching note, 5A95D15. This is a .mpp file.

American Airlines is a widely cited leader in the development and implementation of yield management practices. This case is based on a training exercise used at American Airlines to introduce managers to their yield management system. Participants are given the responsibility for a single flight from Dallas-Fort Worth, Texas to Miami, Florida and are required to make a series of sequential booking decisions in real time. The objective of the exercise is to maximize total revenue for the flight, after taking into account no-shows and penalties. De-briefing following the exercise provides an opportunity to discuss both the strategic and tactical issues that arise when applying yield management systems in service firms. The case is designed for use in a service management elective course or in a service operations course and is intended to expose students to yield management by giving them hands-on experience managing bookings for a flight. The game takes approximately 50 minutes to play, leaving approximately 30 minutes for class discussion. Ideally, a supplemental reading dealing with yield management should be assigned with the case in order to provide background theory on yield management and to describe the complexities of a yield management system.

American Airlines is a widely cited leader in the development and implementation of yield management practices. This case is based on a training exercise used at American Airlines to introduce managers to their yield management system. Participants are given the responsibility for a single flight from Dallas-Fort Worth, Texas to Miami, Florida and are required to make a series of sequential booking decisions in real time. The objective of the exercise is to maximize total revenue for the flight, after taking into account no-shows and penalties. De-briefing following the exercise provides an opportunity to discuss both the strategic and tactical issues that arise when applying yield management systems in service firms. The case is designed for use in a service management elective course or in a service operations course and is intended to expose students to yield management by giving them hands-on experience managing bookings for a flight. The game takes approximately 50 minutes to play, leaving approximately 30 minutes for class discussion. Ideally, a supplemental reading dealing with yield management should be assigned with the case in order to provide background theory on yield management and to describe the complexities of a yield management system.

Some of the advantages and disadvantages of franchising from the point of view of both the franchisor and the franchisee are described in this note. It also gives some guidelines for what characteristics one might look for in deciding whether a business is franchisable. It is intended as background reading for students, and could be used in conjunction with a case that involves franchising as a central issue.

The operations manager at Diverse Industries International's plant needs to make a decision regarding a restructuring of the plant's Automatic Dishwasher Gel production line. The restructuring suggestion which included replacing a loading table with a lift conveyor and hopper system, came from the company's industrial equipment contractor who hoped to sell them some used production equipment. The operations manager, while he was fairly sure the investment was a good idea, was concerned about how he could best justify the cost to the finance department and, if approved, how he could reallocate direct labor on the line to maximize efficiency.

The Mongolian Grill is a concept restaurant faced with a decision of whether to expand its capacity. The manager's objective is to optimize the restaurant's profitability without compromising the dining experience of its customers. This case is intended to introduce students to operations issues in a service environment (as opposed to a manufacturing environment). The concept of line balancing is central to the case. The case is also intended to explore capacity expansion issues and to demonstrate how expansion options can affect capacity, profitability and service quality. The case requires students to conduct a quantitative analysis of capacity and profitability while evaluating possible negative effects on service quality.

Although it continued to operate at about 7,000 surgeries per year, by late 1997 the portion of non-Canadian patients coming to Shouldice Hospital had declined to about five per cent with a corresponding change in the Hospital's economic fortunes. A marketing consultant has developed a marketing plan for the hospital. Students have to analyse the economic, political and technological changes that have occurred since 1983, evaluate the marketing plan and decide how the hospital should proceed. This case is intended to follow the 1983 Harvard case, Shouldice Hospital Limited (9-683-068).

The Mongolian Grill is a concept restaurant faced with a decision of whether to expand its capacity. The manager's objective is to optimize the restaurant's profitability without compromising the dining experience of its customers. This case is intended to introduce students to operations issues in a service environment (as opposed to a manufacturing environment). The concept of line balancing is central to the case. The case is also intended to explore capacity expansion issues and to demonstrate how expansion options can affect capacity, profitability and service quality. The case requires students to conduct a quantitative analysis of capacity and profitability while evaluating possible negative effects on service quality.

The president of Joong-Ang Development Company was concerned with the level of service quality at Yongin Farmland, the company's theme park located just south of Seoul, South Korea. Despite the service quality program he had initiated since he assumed his present position 14 months ago, service quality seemed to be less than that of its competitors. He wondered if he had made the right moves, how Farmland could achieve international service quality standards, whether it would be worth doing, and if it would really provide a sustainable competitive advantage. This case and its companion (B) case, 9A97D017, are intended for use in a service quality module of a service management course.

Ken Zelazny, general manager of COM DEV's Chinese facility, which assembled satellite components, was trying to decide whether the plant should seek ISO 9000 certification. Not only did ISO 9000 registration have a number of advantages and disadvantages, but also the decision in the Chinese plant would have some implications for COM DEV's other facilities in Canada and Europe. In addition, if Zelazny decided to seek ISO 9000 certification for his plant, he would have to decide which level of certification to seek. The case is intended to expose students to the ISO 9000 series of quality standards.

The general manager of COM DEV's Chinese facility which assembled satellite components, was trying to decide whether the plant should seek ISO 9000 certification. Not only did ISO 9000 registration have a number of advantages and disadvantages, but as well, the decision in the Chinese plant would have some implications for COM DEV's other facilities in Canada and Europe. In addition, if the general manager decided to seek ISO 9000 certification for his plant, he would have to decide which level of certification to seek. COM DEV Xi'an was a joint venture between COM DEV International of Cambridge, Ontario and Xi'an Institute of Space Radio Technology.

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

In response to a recent incident the supervisor of administration services was trying to decide how best to prevent the company from sending out mail with insufficient postage. The case describes how the company determines how much postage is required and the process Canada Post uses in dealing with mail with insufficient postage. The supervisor is examining two options. One involves a software solution to calculate envelope weight, the other involves mechanically weighing each envelope.

The general manager of Elliot Lake Retirement Living (ELRL), was trying to decide whether to adopt the recommendations in a student report to broaden the organization's service activities by expanding into assisted living. Although success would allow the organization to grow, failure might threaten the survival of the very town. ELRL was unique; it had been established as a not-for-profit enterprise to try to save the isolated northern Ontario town of Elliot Lake, whose almost exclusive raison d'etre was about to disappear with the impending closure of the area's last uranium mine. Its purpose was to establish the town as a retirement centre. Students have to analyze how the proposal will affect the company's ability to deliver the new service concept. The general manager was considering several options in addition to assisted living. A reasonable course of action must include a consideration of ELRL's status as a not-for-profit entity with a number of significant stakeholders.

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

The operations manager of the Westover Inn has just decided to purchase an equity position in the Inn. He has mixed feelings of both elation and dread. Now that the decision has been made, the real work can begin. The focus of the case is dealing with several inter-related strategy, marketing, operations, human resources, technology, and communications decisions required to ensure that the purchase will be a success. (This is a supplement to Westover Inn (A), case 9A96M003.)

The director of the Book Store, was trying to decide what to do about a recent customer survey that had revealed student dissatisfaction with long line ups and the hours of operation. The vice-president administration had been actively encouraging all operating units to adopt total quality service (TQS). The director of the book store was considering several options, trying to decide how the principles of TQS applied to his situation.

The manager of Service and Business Development for Trizec, a large property management company, was trying to decide how to implement a new initiative, the Trizec Advantage Program. This program called for Trizec to negotiate services management agreements with business services companies to become preferred service providers for Trizec's tenants. Although Trizec, its tenants and potential service providers were very positive, some of Trizec's critical staff members were skeptical. Students have to analyze how the Trizec Advantage Program fits into Trizec's service concept, how it will affect the company's competitive position, and how to make sure the staff support it.